Saudi Arabia GDP grew 1.3% in 2024, govt estimate shows
ABU DHABI - Saudi Arabia's economy returned to growth in 2024, with real gross domestic product increasing 1.3% compared to the prior year, showed preliminary government data released on Thursday.
GDP growth surged 4.4% in the fourth quarter versus the same period a year earlier, estimates from the General Authority for Statistics showed, with non-oil activity increasing 4.6%.
The Saudi economy shrunk 0.8% in 2023 as oil production cuts and lower oil prices hit growth in the world's biggest crude exporter.
(Reporting by Rachna Uppal; Editing by Christopher Cushing)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
6 hours ago
- Gulf Today
Saudi CDF celebrates KSA handicrafts through showcase in Selfridges, London
The Saudi Cultural Development Fund (CDF) is showcasing a curated collection by Saudi artisans at Selfridges London, one of the world's leading luxury retail destinations, June 3-22. The initiative highlights the cultural and economic value and salience of Saudi handicrafts, providing an international platform for local artisans and cultural entrepreneurs to introduce their work to a global audience, as part of CDF's ongoing efforts to amplify the impact of the Year of Handicrafts 2025 in KSA. In collaboration with Turquoise Mountain, a global non-profit dedicated to reviving traditional arts and empowering craftspeople, the showcase offers visitors a curated selection of handcrafted pieces in a dedicated space within Selfridges. Themed with references to Saudi Arabia's natural and architectural heritage, the activation highlights work crafted from locally sourced, sustainable materials, reimagined through a contemporary creative lens. The collection features handicraft pieces in palm handicrafts, jewellery and accessories and leather crafts created by artisans from across the Kingdom, together representing the diverse and rich landscape of Saudi artisanship. Examining a product. The programme runs in parallel with a Saudi fashion showcase at Selfridges, also enabled by CDF in collaboration with the Saudi Fashion Commission. It features a curated lineup of Saudi fashion brands — beneficiaries of CDF and the Saudi 100 Brands initiative — presenting their collections alongside Selfridges' leading international labels, highlighting the dynamism and rapid growth of Saudi Arabia's cultural sector. Through the multifaceted show, CDF aims to empower artisans and cultural entrepreneurs to showcase their work on a global stage, stimulate investment in the handicrafts and fashion sectors, and reinforce the international visibility of Saudi heritage during the Year of Handicrafts 2025 in Saudi Arabia. The showcase builds on CDF's ongoing Year of Handicrafts initiatives to empower the Saudi cultural sector, maximise economic and social contributions of traditional crafts, and broaden their reach, both locally and internationally. A key milestone in the efforts is the recent launch of the Nama' Accelerators: Handicrafts Track — a dedicated enablement solution that supports cultural businesses through specialised training, mentorship, and financial incentives. By developing scalable, sustainable enterprises, Nama' drives community growth, enhances innovation, enriches national identity, and reinforces heritage crafts as dynamic contributors to Saudi Arabia's broader economic diversification. Through Nama' and other empowerment solutions, CDF strives to strengthen the creative entrepreneurial ecosystem and ensure that traditional crafts thrive as both cultural treasures and engines of economic growth. Founded in 2021, CDF seeks to enrich Saudi Arabia's cultural landscape. It is organisationally linked to the Saudi National Development Fund and aims to foster the development of a self-reliant cultural sector. By supporting cultural activities and projects, empowering those involved in them and facilitating investment in the sector, CDF works to improve the cultural sector's profitability, in alignment with the National Culture Strategy and Saudi Vision 2030. Selfridges is a London icon. Aligned with the Ministry of Culture's ambitious goals, the Saudi Fashion Commission was established to empower and support the fashion sector in Saudi Arabia. The Commission's strategy focuses on supporting the fashion community throughout the total value chain, from the design process through production, development, and product lifecycle management. The Commission recognises the fashion industry as a pillar of local culture, reflecting Saudi Arabia's rich heritage. It works to amplify Saudi heritage and identity within the industry, contributing to fulfilling global needs and achieving a positive impact on the national economy. The Commission's mission is to enable the development of a thriving Saudi fashion sector that is sustainable, inclusive, and fully integrated to support local talent. Handicrafts have long held a special place in Saudi Arabia's cultural fabric, representing a prosperous heritage passed down through generations. Rooted in the creativity and skill of Saudi artisans, traditional crafts symbolise the nation's ingenuity and resilience, while highlighting its diverse cultural identity. Throughout 2025, the Saudi Ministry of Culture is organising an array of events, exhibitions, educational programmes and competitions under the banner of the 'Year of Handicrafts'. The activities aim to emphasise the cultural and historical significance of handicrafts, while supporting their relevance in contemporary life. By highlighting artisanry across various sectors, the initiative seeks to foster appreciation for traditional arts and encourage their continued practice and preservation. Handicrafts, including palm weaving, metalwork and pottery, serve as enduring symbols of Saudi culture, blending tradition with modernity. They are not only artistic expression, but also a reflection of the Kingdom's history, values, and adaptability. By celebrating them, the Year of Handicrafts aims to inspire new generations to engage with their heritage and highlight the talent of Saudi artisans to local and global audiences. The initiative also seeks to empower artisans by enhancing opportunities for their crafts in contemporary markets and strengthening their connection with the global community. Through partnerships across the public, private, and non-profit sectors, the Year of Handicrafts cultivates sustainable practices, fosters innovation, and contributes to cultural dialogue. As a testament to the Ministry of Culture's commitment to safeguarding Saudi Arabia's heritage, the Year of Handicrafts also provides a platform to celebrate the stories, skills, and traditions that form the foundation of the Kingdom's cultural identity. Selfridges is an upscale department store, stocking designer and popular clothing brands plus housewares and gifts. The Oxford Street icon is a London landmark and a luxury shopping experience, home to both affordable and premium brands, offering fashion, beauty, time pieces and jewellery to home and technology and haute cuisine.
Arabian Post
2 days ago
- Arabian Post
From petrostate to deal state: Gulf IPO markets mature
Maein Khalid Since the pandemic, IPO activity across GCC capital markets has surged – offering a sharp contrast to the stop-start pace on New York's Nasdaq and the near standstill on London's LSE. Nearly 300 IPOs have raised around $50 billion across the Gulf since 2021. ADVERTISEMENT Below I outline six key macro themes shaping this post-Covid IPO boom in the GCC. First, contrary to expectations, the number, size and aftermarket performance of IPOs in the GCC have shown little correlation with oil prices. Since 2021 Brent crude has swung wildly, yet IPO momentum has remained resilient, even in hydrocarbons-heavy markets like Saudi Arabia. Second, the sheer variety of sectors that contributed to regional IPO deals demonstrates that non-oil growth, industry deregulation, private sector entrepreneurship and e-commerce are powerful macro themes in the Gulf. The two largest IPOs in the GCC last year were the $2 billion food delivery app Talabat's IPO, listed in Dubai's DFM, and the $1.8 billion Lulu hypermarket, a 50-year-old family-owned grocery chain listed on Abu Dhabi's ADX. ADVERTISEMENT Last year saw 48 IPOs from sectors as varied as grocery chains, software and IT services, e-commerce, education, healthcare, financial services, remittance solutions, leisure, transportation and real estate. Third, Saudi Arabian deal flow both dominated the IPO pipeline and dramatically outperformed its GCC peers in aftermarket trading. For instance, 38 out of the 48 deals in the GCC that raised $12.06 billion in 2024 originated from the kingdom, and the average aftermarket performance in the week following the IPO was a spectacular 45 percent. The kingdom's first three IPOs on the main market this year all went 'limit up', surging on their first day of trading by the maximum 30 percent allowed. It is no mistake that the first aviation IPO in the region in almost two decades – Flynas is seeking to raise $1.1 billion – is taking place in the kingdom. This is a testament to both the vast liquidity available in the Saudi new issue market and the magnetic power of the kingdom's junior exchange, Nomu, which saw 27 companies listed in 2024 alone. New listings on Nomu are typically domestic Saudi firms operating in high-growth sectors tied to the kingdom's digital transformation – highlighting a clear link between rising tech literacy among its youthful population and a growing appetite for high-risk, high-reward IPOs. Fourth, the GCC IPO constellation is dominated by Saudi Arabia and the UAE, with Oman a distant third. Saudi Arabia's 38 IPOs in 2024 dwarfed seven from the UAE, two from Oman and a solitary flotation in Kuwait. This spectacular asymmetry in the national origin of IPOs reflects the vast differences in the capital markets milieu, investor ecosystems and liquidity preferences among the six GCC states. Fifth, the recent IPO boom has attracted global investor interest in the Gulf's emerging capital markets, as sovereign wealth funds from the region have become a significant force in Wall Street and Silicon Valley deal-making. This trend will both broaden and deepen the GCC capital markets, evidencing that they are no longer an illiquid sideshow in the emerging markets universe. Historically the GCC IPO landscape was dominated by state-led privatisations and secondary offerings, with governments selling minority stakes in national champions. The most iconic example remains the 2019 Saudi Aramco listing – still the largest IPO in history – which raised $25.6 billion by selling just 1.5 percent of the company on Riyadh's Tadawul exchange. But the market has since evolved, moving beyond oil giants and into broader, more diversified territory. Saudi Aramco subsequently raised $12 billion in a secondary offering last year. These mega deals played a crucial role in the development of the kingdom's capital markets infrastructure and set the stage for the current bullish IPO environment. The UAE's role as the most diversified, cosmopolitan and networked economy in the Arab world can be gauged by the fact that it contributed to the two largest IPOs of 2024 – both private sector businesses with no connection to oil and gas or the government. The 2025 IPO of Bahrain-based Investcorp Capital marked a milestone for the region – positioning Abu Dhabi where it listed not just as an oil-rich emirate, but as a rising power in global finance. By listing a world-class alternative investment manager on the Abu Dhabi Securities Exchange, the UAE has shown it is no longer just deploying capital abroad – it's building the infrastructure to manage it at home. As a growing nexus for hedge funds and private capital, Abu Dhabi is fast becoming a noodle point in the global alternatives ecosystem. Mixed IPO outlook I predict the Saudi Arabian sovereign wealth fund PIF will midwife the next generation of privatisation IPOs in the kingdom, as it did with Saudi Aramco in 2019. But while the IPO market outperformance and the sheer scale of domestic liquidity flows make mega privatisation listings viable, the same cannot be said for smaller GCC states like Oman and Bahrain. Facing tighter fiscal constraints, their private investor base tends to favour quasi-debt, high-yield instruments issued by state-owned blue-chips over equity exposure. The sale of a 25 percent stake in OQ Gas Networks by Oman's state energy company suggests that it is problematic to engineer an IPO or even a state-owned energy colossus when oil prices are mired in a bearish downtrend. While the IPO marked a milestone for the Muscat bourse, it also revealed the limitations of investor appetite when crude prices are under pressure. Unlike Saudi Arabia's liquidity-fuelled listings, Oman's experience shows that timing – and broader market sentiment – can still make or break even the most strategic flotations. Also published on Medium. Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.
Arabian Post
4 days ago
- Arabian Post
Saudi Arabia Pushes for Larger OPEC+ Oil Output Increases
Arabian Post Staff -Dubai Saudi Arabia is advocating for accelerated increases in oil production within the OPEC+ coalition, aiming to reclaim market share lost during past output cuts. The kingdom is reportedly pressing the group to raise supplies by more than 400,000 barrels per day for August and possibly September, signalling a clear shift in strategy amid evolving global energy demands. The decision underscores Saudi Arabia's intent to capitalise on high seasonal demand in the northern hemisphere summer months. By scaling back production curbs more aggressively, Riyadh seeks to boost revenue and solidify its influence over global oil markets as supply dynamics shift. This approach reflects broader geopolitical and economic calculations, especially as global economies adjust to fluctuating energy needs and the ongoing transition to cleaner energy sources. ADVERTISEMENT OPEC+ has been managing oil supply carefully since 2020, following the severe demand shock caused by the pandemic and ensuing market volatility. Initial drastic cuts helped stabilise prices, but the alliance has gradually increased output to balance rising demand. Saudi Arabia, as the largest producer within OPEC+, holds substantial sway in determining the group's production policies and has been central to managing these supply adjustments. This move to hasten production hikes also coincides with concerns over emerging market demand and the possible impact of economic slowdowns in key economies such as China and Europe. Saudi officials appear confident that increased output will prevent rivals, including the US shale sector and other non-OPEC producers, from expanding their share amid tightening market conditions. Industry experts highlight that Saudi Arabia's push for faster supply growth may be aimed at pre-empting market share erosion by ensuring that OPEC+ remains the dominant supplier globally. Since mid-2022, the kingdom has carefully recalibrated its production to respond to volatile price trends and geopolitical uncertainties, including tensions in the Middle East and disruptions caused by sanctions on Russia. The timing of the proposed output rise is critical. Summer months traditionally bring peak consumption due to higher energy needs for cooling in developed markets, which can drive up prices. Saudi Arabia's intention to increase supply during this window suggests an effort to maximise returns while stabilising prices to avoid sharp fluctuations that could undermine consumer confidence and economic recovery. Global oil markets remain sensitive to a variety of factors including inflationary pressures, currency fluctuations, and shifting consumer behaviour. While demand for fossil fuels is under pressure from environmental policies and the accelerating transition to renewables, oil remains a crucial commodity in the global energy mix. Saudi Arabia's strategy to secure market share through supply management is thus seen as a pragmatic response to balancing short-term profitability with long-term market relevance. ADVERTISEMENT OPEC+ member countries have historically struggled to reach consensus on output levels, with diverse national interests shaping negotiations. Saudi Arabia's dominant position, reinforced by its vast production capacity and financial reserves, often allows it to influence group decisions. However, some members have expressed concerns about aggressive supply increases potentially undermining prices and fiscal stability. The broader geopolitical landscape also plays a role in shaping OPEC+ policies. Tensions involving key players such as Russia, which holds a significant share in the alliance, and ongoing conflicts in the Middle East add layers of complexity to supply decisions. Riyadh's leadership in pushing for larger hikes indicates confidence in managing these risks while maintaining its strategic goals. Market analysts note that US shale producers have responded to higher prices by increasing output, albeit with some operational constraints. Saudi Arabia's efforts to accelerate OPEC+ production are seen as a counterbalance to this trend, aiming to keep global supply within manageable limits and avoid price spikes that could trigger demand destruction or accelerate the shift to alternatives. Saudi Aramco, the kingdom's state-owned oil giant, plays a pivotal role in implementing the supply strategy. Its vast infrastructure, including refineries and export terminals, supports the planned output increases. Aramco's ability to ramp up production rapidly without incurring excessive costs provides Saudi Arabia with a competitive edge in the global energy market. Environmental considerations also influence production decisions. While the global push for net-zero emissions is intensifying, OPEC+ nations, led by Saudi Arabia, continue to argue for the essential role of oil in energy security and economic development. The kingdom is simultaneously investing in cleaner technologies and diversifying its economy to reduce dependence on hydrocarbons in the long term. The interaction between Saudi Arabia's production policy and global economic indicators remains closely monitored by investors and policymakers alike. Oil prices affect inflation rates, trade balances, and geopolitical stability, making OPEC+ decisions crucial beyond the energy sector. The kingdom's assertive stance on output could signal a more proactive approach to managing these broader economic impacts. Analysts emphasize that while Saudi Arabia seeks to regain market share, the volatility of global markets and uncertainties surrounding demand growth require cautious optimism. Supply increases must be balanced against potential oversupply risks, which could trigger price declines detrimental to all producers within OPEC+.
