During a virtual meeting in September 2024, the top council on economic affairs for Saudi Arabia looked over many reports, according to the Saudi Press Agency.
The Ministry of Economy and Planning presented a financial report for the second quarter of 2024 to the Council of Economic and Development Affairs.
The report featured updates on the country’s fiscal status and vital data, as well as a study of the financial markets and the world economy.
In Q2 2024, the non-oil industry grew by 4.9% year over year, while in July, general inflation rates stabilised at 1.5%.
The report demonstrated the resilience of Saudi Arabia’s economy and the efficacy of the actions implemented to address shifts in the world economy.
The ministry’s presentation also included significant reports from local and international organisations that are relevant to the national economy, as well as future projects that are in the works.
The council’s own Strategic Management Office gave a presentation to the members on the Saudi Vision report for the first quarter of 2024. The report outlined the major accomplishments of the Vision’s initiatives, strategic objectives, and performance reviews.
According to the Vision report, 2024 got off to a strong start in all three of the programme’s pillars: an ambitious country, a thriving economy, and a lively society.
The council also reviewed the 2023 annual report of the Saudi Public Investment Fund, the 2023 report on traffic safety, and the 2023 report on the social support subsidy system.
Meanwhile, Saudi Arabia’s non-oil GDP is projected to grow by up to 6% points by the end of the decade, driven by the Vision 2030 initiatives, according to an S&P Global report.
The international rating agency said over the past decade, the non-oil economy, with a focus on boosting consumer spending in tourism and construction, has solidified its position as a key element in the Kingdom’s strategy for economic diversification.
“By 2030, the oil sector’s share of GDP is expected to drop from over 30% in early 2024 to between 24% and 26%, reflecting a significant shift away from hydrocarbon dependence,” reported Arab News, citing the report.
“This transformation is supported by a substantial array of Vision 2030 megaprojects, with a collective value exceeding USD 1 trillion. NEOM, a central component of this vision, is expected to attract nearly half of the total investment. Despite potential adjustments to some projects, including NEOM, the overall economic outlook remains favourable, with the non-oil sector continuing to gain importance,” the publication added.
As domestic demand rises due to increased household consumption and a thriving tourism sector, the Gulf economic powerhouse is advancing steadily toward reducing its reliance on hydrocarbons.