Saudi Arabia's real GDP sees 4.4 percent growth in Q4 2024, highest in two years

According to official data from the General Authority for Statistics (GASTAT) of Saudi Arabia, the country's real gross domestic product (GDP) grew by 4.4% year-on-year in the fourth quarter of 2024, marking the highest growth rate in two years. This signifies a strong recovery momentum for the Saudi economy after experiencing previous challenges.

In 2024, the Saudi economy achieved a significant rebound, with real GDP increasing by 1.3% compared to the previous year. Preliminary government data released on Thursday showed that non-oil sector activities made a significant contribution to overall GDP growth. This indicates that Saudi Arabia has made positive progress in economic diversification, reducing its dependence on oil revenues.

Preliminary estimates from the General Authority for Statistics show that Saudi non-oil activities grew by 4.6% year-on-year in the three months ending in December, highlighting the country's continued efforts in economic diversification. The report also noted that oil activities grew by 3.4% and government activities increased by 2.2% in the fourth quarter. These figures suggest that the growth drivers of the Saudi economy are becoming more diversified.

Nevertheless, the Saudi economy still faced a contraction of 0.8% in 2023, mainly due to oil production cuts and falling oil prices, which had a negative impact on the economic growth of the world's largest crude oil exporter. This underscores the potential impact of oil price fluctuations on the Saudi economy.

Saudi Finance Minister Mohammed Al-Jadaan emphasized in November 2024 that Saudi Arabia's key economic indicators were performing strongly. He pointed out that nominal GDP soared by 64% from 2016 to the end of 2023, reaching approximately 4.1 trillion Saudi Riyals (about $1.09 trillion). Although a significant drop in oil GDP affected real GDP, the growth of non-oil GDP has been a key driver of continued economic expansion. Forecasts indicate that the growth rate of non-oil GDP will reach 4.6% in 2025 and will maintain a similar average level in 2027 and beyond.