Saudi Arabia’s non-oil activities now account for 55 per cent of gross domestic product, a first for the kingdom, Deputy Finance Minister Abdulmohsen Al-Khalaf said.Speaking at the World Petroleum Congress in Riyadh on Monday, Al-Khalaf linked the milestone to economic diversification under Vision 2030, the government programme intended to reduce reliance on revenue from crude oil.
He said non-oil government revenue had increased from about 166 billion riyals ($44.3 billion) in 2015 to roughly 500 billion riyals ($133.3 billion), providing the public finances with a broader source of income.
The figures point to two related but distinct developments. Non-oil activities measure economic production outside the petroleum sector, while non-oil government revenue includes receipts such as taxes and fees. Higher revenue does not necessarily mean that the government receives an equivalent proportion of its income from non-oil businesses.
Al-Khalaf also put unemployment among Saudi nationals at approximately 6 per cent, describing that level as a record low. He attributed the improvement to labour-market initiatives designed to expand employment and increase participation by Saudi workers.
Tourism, entertainment, sport, technology, artificial intelligence and data centres were among the industries he identified as sources of expansion. Their growth is central to efforts to create employment opportunities outside the energy industry and attract private investment.
The announcement comes against a mixed backdrop for overall economic performance. The General Authority for Statistics reported that real GDP contracted by 4.7 per cent in the second quarter of 2026 compared with a year earlier, largely because oil activities declined by 24.8 per cent.
Non-oil activities and government activities each grew by 0.9 per cent over the same period, cushioning but not reversing the impact of lower oil-sector output. The figures underline the distinction between a rising non-oil share of economic activity and growth in the economy as a whole.
The statistics authority calculated that oil activities subtracted 5.4 percentage points from annual GDP growth in the quarter. Non-oil activities added approximately 0.6 percentage points, while government activities and net taxes on products each made smaller positive contributions.
Saudi Arabia had recorded annual GDP growth of 3 per cent in the first quarter of 2026, when oil and non-oil activities both expanded by 2.9 per cent. The shift between the two quarters shows the continuing influence of petroleum production on headline economic results.
The 55 per cent figure cited by Al-Khalaf was presented as an economy-wide milestone. His remarks did not specify the statistical period or valuation basis underlying the percentage, making a direct comparison with individual quarterly GDP estimates difficult.
The importance of that distinction is heightened by the way national accounts separate oil activities, non-oil activities, government activities and taxes on products. Changes in oil output and prices can alter the relative size of sectors even when activity elsewhere continues growing.
Private-sector surveys nevertheless indicate continued expansion outside oil. Saudi Arabia’s non-oil purchasing managers’ index reached 55.3 in September, signalling improvement in business conditions and the sixth consecutive month of expansion. Readings above 50 indicate growth compared with the preceding month, rather than the share of GDP generated.
Al-Khalaf said diversification reforms had improved the economy’s ability to withstand changes in external conditions. He presented the increase in non-oil government receipts as one measure of greater fiscal resilience, although oil income remains an important component of the kingdom’s finances.
Investment has also become a focus of the programme. Saudi Investment Minister Fahad Al-Saif told the Riyadh congress that foreign direct investment in emerging economic sectors had increased by 162 per cent over five years, while total fixed capital formation rose by 52 per cent.
Those figures describe growth from earlier levels and do not by themselves establish how much of the investment has translated into higher productivity or permanent employment. The government is seeking to expand both domestic enterprise and international participation across industries.
For businesses, the composition of expansion matters alongside its pace. Stronger activity in services and manufacturing can support jobs and spending, but demand, financing costs and access to skilled employees remain relevant to the durability of growth.
Al-Khalaf's remarks were delivered during a ministerial discussion of Vision 2030 at the petroleum congress, where the role of energy resources and emerging industries formed part of the debate about the kingdom’s economic direction.
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