Saudi Arabia’s Economic Momentum Builds in 2024 as Non-Oil Sector Surpasses Expectations

Riyadh – April 30, 2025
Saudi Arabia’s economy continued to accelerate in 2024, showcasing the tangible impact of its bold economic reforms under Vision 2030. The Kingdom posted a 1.3% growth in real GDP, powered by a remarkable 4.3% surge in non-oil sector performance—a clear sign that the diversification strategy is delivering results.

Vision 2030: From Ambition to Achievement

The past year has confirmed what many economists have projected—Saudi Arabia’s shift away from oil dependence is not only underway but exceeding milestones. From logistics and tourism to advanced manufacturing and digital innovation, non-oil sectors are now firmly positioned as engines of national growth.

Quarterly Growth Hits Two-Year High

In the final quarter of 2024, GDP grew by 4.5% year-on-year, marking the strongest quarterly expansion in two years. This momentum was largely driven by a 4.7% growth in non-oil activities and a 3.4% increase in oil production, signaling broad-based economic health.

• Non-oil exports grew by 17.3% in Q4 2024, with a total trade surplus of $11.97 billion, reinforcing the Kingdom’s growing role in global trade.
• Sectors like hospitality and entertainment saw record gains, supported by major events, expanded tourism visas, and giga-project progress such as NEOM, Diriyah Gate, and Red Sea Global.

Private Sector: A Rising Force in the National Economy

The private sector’s growing role in the economy is a highlight of 2024. Its contribution reached 47% of GDP, surpassing interim Vision 2030 targets and moving confidently toward the Kingdom’s goal of 65% by 2030.

Investor Confidence at Record Levels

Private capital surged, with private investments making up 23.4% of GDP in Q1 2024—up from 15.1% in 2016. The leap represents increased confidence in the Kingdom’s economic ecosystem and its long-term promise.

• The Public Investment Fund (PIF) played a key role in catalyzing private sector growth, with targeted investments in renewable energy, tech startups, and infrastructure.
• SME financing also grew significantly, supported by initiatives from Monsha’at and the Saudi Central Bank to improve access to capital and digital tools.

A Business Environment on the Rise

Investor sentiment and business performance remain strong. The Riyad Bank Saudi Arabia PMI reached 58.1 in March 2025, well above the neutral 50-point benchmark, indicating healthy expansion in business activity.

Fastest Job Growth in Over a Decade

Job creation also reached a high point, with early 2025 witnessing the fastest pace of hiring in the non-oil private sector since 2012. This is a promising sign for young Saudis entering the workforce and a testament to the economic resilience being built across industries.

• Programs like Tamheer, Mowaamah, and Qiwa have helped align job training with market needs, particularly for youth and women entering the workforce.
• The rise in hybrid and remote work opportunities has also expanded the participation of underrepresented groups across the Kingdom’s labor force.

Charting a Confident Course Forward

Vision 2030 is no longer just a blueprint—it is an unfolding reality. The data from 2024 affirms that Saudi Arabia’s transformation is not only on track but accelerating. With record-breaking growth in non-oil sectors, dynamic private sector participation, and rising global confidence, the Kingdom is well-positioned to lead the region into a new era of sustainable prosperity.

• As global investors increasingly look toward the Middle East, Saudi Arabia’s transparent regulatory framework and pro-business reforms continue to attract long-term partnerships.
• With the Green Saudi Initiative, environmental and economic sustainability are now tightly interwoven into future growth strategies.