Saudi Arabia's economy showed moderate recovery in 2024, with real GDP growing by 2.6%, slightly under the 4.4% projected in the budget. The non-oil sector led the growth, expanding by 3.9%, while the oil sector contracted by 2.4% due to OPEC+ production cuts and weaker global demand. Government activities also saw a 2.6% increase, supporting key public services and infrastructure projects.
Non-oil exports in Saudi Arabia rose by 17.3% in Q4 2024 compared to the same period in 2023, following a recovery in non-oil exports (excluding petroleum). The value of goods exports increased by 8.2%, with the increase in commodity exports rising by 47.3%. However, petroleum exports declined by 13.3%, which impacted the total share of petroleum exports in the overall export volume, reducing it to 70.5% in Q4 2024 from 76.4% in Q4 2023. This shift, along with a decrease in the trade balance, led to a 15.5% reduction in the trade surplus in Q4 2024 compared to Q4 2023.
Economic Performance in 2024
The non-oil private sector remained a critical driver of economic resilience, with GDP growth reaching 4.3% in Q4 2024. Key sectors such as tourism, logistics, and entertainment saw significant investment, providing a boost. While the oil sector faced a decline throughout most of the year, a slight recovery in Q4 helped stabilize overall economic performance. Vision 2030's diversification efforts continue to yield positive results.
Non-Oil Sector Growth
Saudi Arabia’s labor market showed substantial improvements in 2024. Unemployment dropped to 3.3% by Q4, and Saudi-specific unemployment fell to 7.1%, exceeding Vision 2030 targets six years ahead of schedule. Female labor force participation reached 35.8%, reflecting significant policy shifts aimed at workforce inclusion. Additionally, the private sector now accounts for 50.5% of employment, signaling a more dynamic labor market.
Labor Market Improvements
Non-Oil Export Performance
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