Saudi Arabia’s non-oil sector grew at 5.2% y-o-y in the second quarter (Q2) 2023, faster than the flash estimate of 4.9%, according to Emirates NBD Research. 

 

Private sector GDP growth was particularly strong at 6.1% y-o-y last quarter, up from 5.4% y-o-y in Q1. Headline GDP growth slowed to 1.2% y-o-y however, as oil and gas GDP contracted on oil production cuts. 

 

Strong growth in transport, storage and communications

The sector breakdown showed strong growth in transport, storage and communications (12.9% y-o-y) in Q2 2023, along with trade and hospitality (9.8% y-o-y). 

 

Financial services GDP grew 2.5% y-o-y while government services growth slowed to 2.3% y-o-y. Emirates NBD Research expects non-oil sector growth of 5% for the full year 2023, but headline GDP growth is likely to come in slightly negative as the hydrocarbons sector is forecast to contract -8.5%

y-o-y.--TradeArabia News Service