Saudi Arabia's Non-Oil Sector Drives Economic Transformation

Saudi Arabia's economy is undergoing significant transformation, driven by its non-oil sector. Despite uncertainties in energy and trade markets, the country's GDP has shown resilience, with real growth rates contracting by only 4.7% year-on-year in the second quarter of 2026.

The non-oil activities and government sectors have been key contributors to this growth, expanding by 0.9% each. This diversification is part of Saudi Arabia's Vision 2030 initiative, which aims to reduce dependence on oil revenues and create new sectors for employment and economic growth.

According to the Saudi Vision 2030 report, the non-oil sector accounted for around 55% of GDP in 2025, recording a growth rate of 4.9%. The private sector's contribution also rose to about 51%. This indicates that sources of growth are no longer limited to energy and major government projects but now encompass financial, professional, and social services.

The tourism sector has been a significant contributor to this growth, with 123 million domestic and international tourist visits in 2025. Total tourism expenditure reached SAR303.7 billion (around US$81 billion), with SAR176.6 billion spent by inbound visitors and SAR127.1 billion by domestic tourists.