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Saudi Arabia's 1.4% GDP growth in Q2 2024, as reported by the General Authority for Statistics, underscores the Kingdom's economic resilience and ongoing diversification efforts. While oil activities increased by 1.3%, it was non-oil activities (+1.4%) that largely fueled this expansion, signaling a structural shift in the country's economic landscape.
Beyond the quarterly numbers, this growth reflects Saudi Vision 2030’s long-term economic strategy, which aims to reduce oil dependency and develop a robust, innovation-driven economy. Let’s break down the key insights and what they mean for Saudi Arabia’s future.
Saudi Arabia’s reliance on oil has historically left its economy vulnerable to fluctuating global oil prices. However, the latest data reveals a significant milestone: Non-oil activities now contribute 50% to GDP, the highest recorded level.
This is a clear indicator that the Kingdom’s diversification initiatives are gaining traction. Instead of being driven primarily by oil exports, the economy is increasingly powered by:
One of the standout sectors in the report is technology, particularly AI. Saudi Arabia registered a 53% increase in AI technology registrations, issuing 8,948 official AI technology IDs in Q2 2024 alone.
Why does this matter?
✅ AI is a cornerstone of Saudi Arabia’s digital transformation.
✅ PIF-backed AI investments are attracting global tech firms to set up operations in Saudi Arabia.
✅ AI-powered industries (Fintech, Healthcare, Smart Cities) are creating high-value jobs and innovation.
With the Saudi Data and Artificial Intelligence Authority (SDAIA) pushing AI adoption across multiple sectors, we can expect exponential growth in AI-driven businesses.
Saudi Arabia's entertainment sector grew by a staggering 106% between 2021 and 2022, reflecting the rapid expansion of cultural and leisure activities. This aligns with Vision 2030’s ambition to develop the Kingdom’s tourism industry and enhance its global image.
Several consumer-facing sectors also recorded strong growth, signaling increasing domestic demand:
At Equivator, we recognize the critical role of private equity and venture capital in sustaining this transformation. The growth of Saudi Arabia’s technology, AI, and innovation sectors presents unique opportunities for entrepreneurs, investors, and corporate partnerships.
What’s Next for Investors?
By supporting high-growth startups and enabling strategic investments, we contribute to the long-term success of Saudi Arabia’s non-oil economy, helping drive sustainable growth in line with Vision 2030.