Riyadh: The comprehensive update of Saudi Arabia's Gross Domestic Product (GDP), released by the General Authority for Statistics (GASTAT), signifies a strategic milestone for the Kingdom, as stated by the Minister of Economy and Planning and Chairman of the Board of Directors of GASTAT, Faisal Alibrahim. He emphasized that this update underscores Saudi Arabia's dedication to maintaining the quality of its economic data and ensuring transparency in measuring its economic performance.
According to Saudi Press Agency, the comprehensive GDP update is part of a broader initiative to enhance statistical practices in line with international standards. This effort will provide more precise information on the Saudi economy, empowering decision-makers with reliable data for well-informed decisions. Alibrahim highlighted that the updated GDP measurement showcases the Kingdom's ongoing transformation and the momentum of its economic diversification and growth. The inclusion of new sectors such as fintech, the creative economy, logistics, sports, and entertainment has allowed for a more accurate GDP assessment, which is expected to have positive effects on the national economy by highlighting economic initiatives' progress and illustrating the ongoing transition.
Alibrahim also pointed out that non-oil activities are increasingly contributing to the national economy, with their share growing to 53.2% of GDP, a 5.7 percentage point increase from previous estimates. The continued growth of non-oil activities, recorded at 4.2% in the first quarter of 2025, reflects the resilience of Saudi Arabia's business environment and the impact of policies implemented under Saudi Vision 2030. He stressed the importance of regular data updates to provide an accurate economic landscape and stimulate investment.
At the start of 2024, GASTAT launched a comprehensive GDP update through various surveys, including visits to 2.4 million sites and 122,000 households to measure household income and expenditure, along with over 880,000 agricultural holdings for agricultural surveys. The project utilized over 60 administrative data sources, enabling the development of detailed supply and demand tables for consistent GDP estimates across production, income, and expenditure. The classification of economic activities expanded from 85 to 134 activities, resulting in significant growth in key sectors such as construction (61%), wholesale, retail trade, restaurants, and hotels (29.8%), and transportation, storage, and communications (25.6%).
The update aligns with Saudi Vision 2030, which aims to build a more diverse and sustainable economy, and demonstrates the Kingdom's progress in global economic performance indicators, increased investments, and growing private sector participation. Alibrahim noted the strong coordination between government sectors optimizing the use of national resources. The results of this update are essential for measuring the progress of the national economy's restructuring as it advances towards Saudi Vision 2030 ambitions.
Alibrahim concluded that the Kingdom's economic outlook is positive, supported by structural reforms and strategic government-led projects. These initiatives are expected to reshape the economy, boost non-oil GDP growth, and strengthen Saudi Arabia's position as a regional and global economic hub. Regularly updating economic data is vital to the Kingdom's development, ensuring accurate, transparent information that captures the profound transformations in the Saudi economy, enabling more robust policymaking and well-informed decisions by all stakeholders.