Saudi Arabia’s non-oil economy to grow 6% in 2023

Saudi Finance Minister Mohammed Al-Jadaan predicted that the Saudi non-oil economy will grow by about 6% this year, citing that the non-oil sector in Saudi Arabia continues to record strong growth.

Regarding the ongoing conflict in the Middle East and its economic effects, al-Jadaan said that low-income countries are currently bearing the brunt of the risks.

“We are no longer focusing on Saudi Arabia’s GDP, but on the development of the non-oil sector,” he said.

A few days ago, Global Moody’s rating agency predicted that the Saudi economy will grow at an average rate of 3.2% during the period from 2023 to 2026 and that the non-oil sector will contribute an average of 3.5% of economic growth during that period.

The agency stated that growth in the non-oil sector will be strong in the coming years, driven by the implementation of projects, supportive oil prices, and the possible increase in private sector investments, taking into account the economic, legal, and social structural reforms implemented by the government in a way that contributes to strengthening the business environment.

Moody’s rating agency predicted that the average deficit will be 2% of the kingdom’s GDP in 2023–2024 and 3.5% in 2025–2026, compared to a fiscal surplus of 2.5% in 2022, according to government spending forecasts, according to the National Center for Public Debt Management in Saudi Arabia.

The increase in expenses is associated with ambitious government programs to diversify the economy while maintaining the strength of the government’s current financial position, which the agency considered a strong point.