RIYADH: Saudi Arabia’s non-oil industrial activities posted robust growth of 5.3 percent in 2024, highlighting the success of the Kingdom’s economic diversification efforts under Vision 2030.
The overall Industrial Production Index however declined by 2.3 percent, driven primarily by a 5.2 percent contraction in oil-related activities, according to the latest report from the General Authority for Statistics.
Saudi Arabia’s growing non-oil industrial output reflects progress in diversifying revenue and jobs beyond oil, a key Vision 2030 goal.
Reforms such as easier licensing, tax incentives, and mega projects are driving growth in manufacturing, logistics, and technology. While oil remains volatile, the expansion is showing early success in the private sector, driven by growth in foreign direct investment.
During the Davos Conference in January, Saudi Minister of Economy and Planning Faisal Al-Ibrahim said that the non-oil economy is expected to grow by 4.8 percent this year.
The latest figures from GASTAT show that manufacturing played a pivotal role in driving growth in 2024, recording a 4.7 percent annual increase. Food production expanded by 6.2 percent, while the manufacture of chemicals and chemical products,, and coke and refined petroleum goods increased by 2.8 percent.
Manufacturing played a pivotal role in driving growth in 2024, recording a 4.7 percent annual increase. File/SPA
The mining and quarrying sector, which includes oil extraction, saw a decline of 6.8 percent in 2024. This drop offsets gains in other areas, pulling the overall IPI into negative territory for the year.
The report also revealed positive trends in utilities and infrastructure-related sectors. Electricity, gas, steam, and air conditioning supply activities grew by 3.5 percent, while water supply, sewerage, and waste management services increased by 1.6 percent.
Saudi endeavors in non-oil exports
The Kingdom’s non-oil export sector has also seen impressive growth, reinforcing diversification efforts.
According to official data released in April, Saudi Arabia’s non-oil exports reached SR515 billion ($137 billion) in 2024, a 13 percent increase from the previous year and a 113 percent rise since the launch of Vision 2030.
This expansion spanned all export sectors, with merchandise exports rising to SR217 billion, driven by petrochemical and non-petrochemical goods.
The Kingdom now exports to over 180 countries, with 37, including the UAE, France, and Indonesia, registering record imports, solidifying its role as a growing global trade hub.
