Non-oil activities reach 55% of the Saudi economy for the first time

Saudi Deputy Minister of Finance Abdulmohsen Al-Khalaf stated that non-oil activities accounted for 55% of the Kingdom's Gross Domestic Product (GDP) for the first time in its history, according to the Saudi Gazette.

He explained that non-oil government revenues increased from around 166 billion riyals in 2015 to approximately 500 billion riyals, reflecting the expansion of the economic base away from oil revenues.

Al-Khalaf noted that the unemployment rate dropped to around 6%, a level that reflects a tangible improvement in the Saudi labor market in recent years.

These figures fall under the targets of Saudi Vision 2030, which aims to diversify income sources and increase the contribution of non-oil sectors and non-oil exports, alongside continued spending on major projects. The sources did not provide a detailed breakdown of each sector's individual contribution.

What do these terms mean?

Gross Domestic Product (GDP): The value of all goods and services produced by a country's economy in a year. An increase in a sector's share means its contribution to the economy is growing.

Non-oil revenues: Money collected by the government from sources other than oil sales, such as taxes, fees, and investments, used to measure the success of economic diversification.

Vision 2030: A plan launched by the Saudi Crown Prince in 2016 to diversify the economy, reduce dependence on oil, and develop sectors such as tourism, industry, and technology.