Saudi economy grew 3.8% in Q1 driven by rise in non-oil activities  

Update Saudi economy grew 3.8% in Q1 driven by rise in non-oil activities  
The Kingdom’s non-oil activities expanded by 5.4 percent in the first three months of 2023 compared to the same period a year ago. (Shutterstock)  
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Updated 08 June 2023
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Saudi economy grew 3.8% in Q1 driven by rise in non-oil activities  

Saudi economy grew 3.8% in Q1 driven by rise in non-oil activities  

RIYADH: Saudi Arabia’s real gross domestic product grew by 3.8 percent year over year in the first quarter of 2023, primarily driven by expansion in non-oil activities, according to a report released by the General Authority for Statistics.  

The GASTAT report noted that the Kingdom’s non-oil activities expanded by 5.4 percent in the first three months of 2023 compared to the same period a year ago. The growth of non-oil activities was 1 percent when compared with the last quarter of 2022.   

Strengthening the non-oil private sector is the key part of the Kingdom’s economic diversification efforts under the goals outlined in Vision 2030. 

According to the GASTAT report, the Kingdom’s real GDP decreased by 1.4 percent in the first quarter of 2023 compared to the last quarter of the previous year.  

FASTFACTS

The Kingdom’s non-oil activities expanded by 5.4 percent in the first three months of 2023 compared to the same period a year ago.

The growth of non-oil activities was 1 percent when compared with the last quarter of 2022.

The government services activities also soared by 4.9 percent in the first quarter compared to the same period a year ago.

The report noted that oil activities rose by 1.4 percent year on year, but it dropped by 4.7 percent quarter on quarter.  

The government services activities also soared by 4.9 percent in the first quarter compared to the same period a year ago.  

The GASTAT report said that most economic activities in the Kingdom recorded positive growth on an annual basis in the first quarter of 2023. This includes community, social and personal services activities that grew at the highest pace of 12.9 percent year on year.  

This was followed by transport, storage and communication activities that rose by 9.3 percent annually.  

Saudi Arabia’s wholesale and retail trade, restaurant and hotel activities also grew by 7.5 percent, the report added.  

Earlier in January, Kristalina Georgieva, managing director of the International Monetary Fund, said that Saudi Arabia is an economic bright spot in the world at this time when several countries are facing economic challenges.  

An IMF mission to Saudi Arabia in May noted that the Kingdom’s non-oil sector is predicted to grow at an average of 5 percent in 2023.  

The Washington-based lender also lauded the structural reforms which are happening in the Kingdom, in line with Vision 2030.  

In May, Saudi Arabia’s Purchasing Managers’ Index stood at 58. 5, revealed the Riyadh Bank’s PMI report, indicating strong growth in the non-oil private sector.  


Public Investment Fund creates Balad Development Co. to develop historic Jeddah area 

Public Investment Fund creates Balad Development Co. to develop historic Jeddah area 
Updated 8 sec ago
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Public Investment Fund creates Balad Development Co. to develop historic Jeddah area 

Public Investment Fund creates Balad Development Co. to develop historic Jeddah area 

RIYADH: The Public Investment Fund has established a new company to develop the historic Jeddah district of Al-Balad into a global tourist destination.


Saudi Tourism Authority joins forces with Huawei to boost Chinese tourism

Saudi Tourism Authority joins forces with Huawei to boost Chinese tourism
Updated 34 min 20 sec ago
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Saudi Tourism Authority joins forces with Huawei to boost Chinese tourism

Saudi Tourism Authority joins forces with Huawei to boost Chinese tourism

RIYADH: In a bid to enhance the experience for travelers and bolster Chinese visits to Saudi Arabia, the Saudi Tourism Authority has collaborated with Huawei Mobile Services and its advertising branch, Petal Ads. 

The partnership was cemented through a memorandum of understanding signed during the Approved Destination Status launch ceremony in Beijing, according to a press release. 

Fahd Hamidaddin, CEO of the Saudi Tourism Authority, signed the deal alongside Walter Ji Rengui, president of Huawei Consumer Cloud Service Global Ecosystem Development & Operations. 

The primary objective of this collaboration is to reshape the way visitors explore Saudi Arabia by digitizing travel services, with a specific focus on attracting Chinese tourists, the press release added. 

Choon Yang Quek, chief technology officer at the STA, stated: “The partnership with Huawei Mobile Services and Petal Ads is part of Saudi’s innovative approach to marketing tourism and enhancing visitor experiences.”  

He added: “By joining forces with Huawei, known for its strong consumer connections, and combining it with Saudi’s commitment to visitor satisfaction, we can now reach new audiences more effectively through established Huawei channels and gain deeper insights into Chinese travelers to tailor their Saudi journeys.” 

This agreement reflects the ongoing partnership between the two entities and their shared dedication to showcasing Saudi Arabia as a dynamic destination to Chinese audiences, the press release added. 

Alhasan Al-Dabbagh, president of Asia-Pacific markets at the STA, said: “By incorporating Huawei’s cutting-edge technology into the travel experience, we can leverage established channels to reach a wider audience and gain a deeper understanding of potential visitors.” 

Through the integration of Huawei Mobile Services’ advanced technology solutions, tourists visiting Saudi Arabia can anticipate a smarter travel experience. 

This includes features such as seamless navigation, language translation services, and augmented reality-guided tours, all aimed at helping tourists make the most of their time while exploring the Kingdom. 

The partnership is part of the STA’s efforts to enhance the tourist experience through technology while highlighting Saudi Arabia’s cultural heritage, landscapes, and hospitality. 

This comes as the Kingdom aims to deliver personalized experiences for Chinese tourists, with readily available support throughout their trip. 

In partnership with Petal Ads, the STA looks to attract more Chinese tourists to discover Saudi Arabia’s attractions.  


OIC plans cooperation framework on contract farming among members   

OIC plans cooperation framework on contract farming among members   
Updated 44 min 55 sec ago
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OIC plans cooperation framework on contract farming among members   

OIC plans cooperation framework on contract farming among members   

RIYADH: A new framework to help boost food security across the Muslim world will be unveiled at the next meeting of the Organization of Islamic Cooperation, set to be held in 2025, it has been announced.

The OIC confirmed the move at its latest gathering in Doha on Tuesday, as it called for a new business model entered on contract farming for its member nations.    

This initiative is expected to be in the spotlight at the next OIC ministerial conference due to in the capital of Chad in 2025, with the exact date yet to be announced.  


Monsha’at, E-Commerce Council organize tour to promote online trade 

Monsha’at, E-Commerce Council organize tour to promote online trade 
Updated 03 October 2023
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Monsha’at, E-Commerce Council organize tour to promote online trade 

Monsha’at, E-Commerce Council organize tour to promote online trade 

RIYADH: Saudi Arabia can expect a considerable penetration of online trading as the General Authority for Small and Medium Enterprises, or Monsha’at, organized the third phase of its tour with the E-Commerce Council on Monday. 

According to the Saudi Press Agency, the tour concludes on Wednesday and has witnessed the participation of service providers and e-commerce specialists. 

The tour included discussions on developing an environment conducive to developing e-commerce in the Kingdom and the platform's role in various government sectors, including transportation, rural and municipal affairs, housing and SMEs. 


Saudi Arabia dispatches first crude iron shipment to US

Saudi Arabia dispatches first crude iron shipment to US
Updated 03 October 2023
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Saudi Arabia dispatches first crude iron shipment to US

Saudi Arabia dispatches first crude iron shipment to US

RIYADH: Saudi Arabia has strengthened its position in global supply chains after a ship loaded with 37,000 tons of crude iron set sail from the Port of Jazan City to New Orleans, US.

According to the Saudi Press Agency, this product marks a significant milestone as it is the first to be manufactured within the region, produced at the Advanced Smelting Industries Co. factory in Jazan.

Crude iron, also known as pig iron, is a more brittle form of the material and is used in steel production.

Traditionally recognized for its vast oil reserves, the Gulf nation has been proactively pursuing economic diversification, as outlined in Vision 2030.

The successful production and export of crude iron are crucial steps toward achieving this goal.

The Port of Jazan City boasts extensive capabilities and advanced logistical transportation services, solidifying its status as a pivotal trade hub in Saudi Arabia.

Positioned as one of the region’s most modern ports, it lies along the international trade route through the Red Sea, in close proximity to the Bab Al-Mandab Strait, various African nations, and the maritime Silk Road.

Consequently, this port is a crucial gateway for the southern regions and neighboring countries.