RIYADH: Saudi Arabia solidified its status as a regional investment leader with a 7.4 percent year-on-year growth in gross fixed capital formation in the third quarter of 2024, led by the non-government sector.

The Ministry of Investment reported an 8.3 percent increase in the non-government division, reflecting the Kingdom’s ongoing efforts to boost private sector participation in its diversifying economy.

Government-related entities contributed to the overall GFCF growth, with a 2.3 percent increase in the third quarter of 2024.

The non-government sector’s performance aligns with Saudi Arabia’s Vision 2030 objectives, which aim to shift the economy from oil dependency by fostering a vibrant private division. 

In line with these goals, the Ministry of Investment issued 3,810 investment licenses in Q3 2024, marking a significant 73.7 percent year-on-year increase.

Non-oil sectors grew by 4.3 percent year-on-year during the same period, further supporting the Kingdom’s economic diversification efforts.

Key sectors saw notable growth, including wholesale and retail trade, restaurants, and hotels rose 5.8 percent, and construction increased 4.6 percent. Transport and communication grew by 4.5 percent, and finance and real estate advanced by 4.2 percent, driven by consumer spending and a dynamic financial sector.

These expansions contributed to the Kingdom’s overall real gross domestic product growth of 2.8 percent year-on-year for the quarter, despite a marginal 0.05 percent increase in oil activities.

The real estate sector also played a pivotal role in the third quarter of 2024, with the Real Estate Price Index rising by 2.6 percent y-o-y. While residential property costs increased by 1.6 percent, commercial properties saw a more pronounced growth of 6.4 percent. However, agricultural real estate prices declined by 8.7 percent, reflecting sectoral disparities. 

Complementing these trends, real estate loans by banks witnessed a 13.3 percent year-on-year increase, showcasing heightened investor interest in property development and acquisitions. 

Saudi Arabia’s economic resilience is further evident in labor market improvements. The unemployment rate dropped to 3.7 percent in this period, a 0.5 percentage point decrease from the same quarter in 2023. The Saudi unemployment rate fell to 7.8 percent, a one percentage point decline year-on-year.

RIYADH: King Abdulaziz International Airport in the Saudi port city of Jeddah served 49.1 million passengers in 2024, representing a 14 percent growth compared to the previous year. 

In a statement, Jeddah Airports Co. said that this achievement marks a “historic milestone,” as KAIA handled the highest annual operational figure in the history of airports in the Kingdom in 2024. 

The airport’s busiest day ever recorded was on Dec. 31, 2024, when it served more than 174,600 passengers. 

December also became the busiest month in the airport’s history, with passenger numbers surpassing 4.7 million. 

Strengthening the aviation sector is crucial for Saudi Arabia, as the Kingdom aims to position itself as a global tourism hub by the end of this decade. 

The National Tourism Strategy of Saudi Arabia aims to attract 150 million visitors by 2030 and increase the sector’s contribution to the nation’s gross domestic product from 6 percent to 10 percent.

KAIA also reported a significant increase in total flights last year, which exceeded 278,000, marking an 11 percent increase compared to 2023. 

The press statement added that KAIA also handled 47.1 million bags in 2024, with a 21 percent growth in operational throughput. 

Mazen Johar, CEO of Jeddah Airports attributed this rise in numbers to the KAIA’s accelerated operational growth, enabled by the Kingdom’s leadership and the close oversight of the Ministry of Transport and Logistics. 

Saudia achieves the highest punctuality rate

The Kingdom’s national carrier, Saudia, has topped the list of global airlines in departure on-time performance with a punctuality rate of 88.82 percent in 2024, according to new data from the independent aviation tracking site Cirium. 

According to a press statement, Saudia also ranked second globally in arrival on-time performance, achieving a rate of 86.35 percent. 

Over the past 12 months, the airline successfully operated 192,560 flights across its network of over 100 destinations spanning four continents. 

“We are proud to sustain excellence in global operational performance, which aligns with the objectives of the National Transport and Logistics Strategy and the National Aviation Sector Strategy,” said Ibrahim Al-Omar, director general of Saudia Group. 

He added: “This achievement reflects the collective efforts of Saudia Group employees across all business units and highlights the integrated role played by various sectors in ensuring operational efficiency. These efforts are directly tied to enhancing and improving the guest experience.” 

Saudia operates over 530 daily flights, connecting more than 100 destinations across four continents to the Kingdom with a fleet of 144 aircraft.

In the statement, the airline added that it plans to expand its fleet with 130 new aircraft in the coming years, increasing flight frequency and seat capacity to existing destinations while introducing new destinations to its network.