In 2022–2025, Saudi Arabia’s non-oil sector grew by about 5%, despite weak performance in the oil sector, Ahmed bin Nasser Al-Rajhi, deputy chairman of the Saudi Economic Association, said. In his assessment, this indicates greater independence of non-oil growth drivers and a reduction in the oil sector’s share of GDP to about 20%.
As Asharq Al-Awsat reports, Al-Rajhi also cited data showing non-oil sector growth of about 5% in 2016–2019, when oil prices were lower. In his view, economic diversification has become not only a development tool but also a factor of resilience to external shocks.
According to the Saudi Central Bank, the kingdom’s reserve assets stood at $487.3 billion as of the end of August 2026. Al-Rajhi believes that government reserves, assets and the condition of the banking sector provide a buffer against external risks.
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At the same time, he warned that growing government borrowing and companies’ financing needs could increase pressure on domestic liquidity, especially amid high interest rates. Among possible solutions, he named greater diversification of funding sources and more active use of international markets, which could expand small and medium-sized businesses’ access to credit.
Experts interviewed by the publication also link economic resilience to the availability of alternative export and transport routes. In particular, the East–West pipeline transports oil from the country’s eastern production areas to Yanbu on the Red Sea coast and reduces dependence on sea routes.
Tim Callen, former head of the IMF mission in Saudi Arabia, stressed that financial reserves alone are insufficient. In his view, resilience also depends on the diversification of production, exports, trading partners, transport infrastructure and the ability of state institutions to respond quickly to crisis situations.
Source: UA
