RIYADH: Saudi Arabia’s non-oil sector expanded by 3.6 percent during the third quarter of 2023 compared to the same period last year, economic data released on Tuesday showed. According to the General Authority for Statistics, government activities also grew 1.9 percent compared to the same three months of 2022. However, oil-related activities declined 17.3 percent annually during the third quarter, leading to a 4.5 percent fall in the Kingdom’s seasonally adjusted real gross domestic product. The GASTAT report added that the Kingdom’s non-oil activities increased by 0.1 percent in the three months to the end of September this year compared to the previous quarter. Conversely, oil activities declined in the third quarter by 8.4 percent compared to the previous three-month period, while government affairs dropped 5.3 percent during the same time frame. In May, Saudi Arabia announced a voluntary production cut of 500,000 barrels per dat and extended it to December 2024. The Kingdom initiated an additional voluntary cut of 1 million bpd starting in July, extending the reduction until the end of this year. The Saudi decision to cut its oil production output was aligned with the objectives of the Organization of the Petroleum Exporting Countries and its allies to unify petroleum policies among member countries. The aim was to secure fair and stable oil prices for petroleum producers and ensure a regular supply of crude oil to consuming nations. Simultaneously, Russia has similarly extended its voluntary production cuts until the end of the year, intending to uphold stability and equilibrium in the oil markets, as announced by its deputy prime minister last month. Russia, as the world’s second-largest oil exporter, is committed to cutting down its exports by 300,000 bpd during this period. According to an International Monetary Fund report released in October, the decrease in the Kingdom’s economic growth for 2023 is attributed to its deliberate reduction in oil production output. Nevertheless, the IMF emphasized that the ongoing investments in large-scale projects were anticipated to strengthen the growth of the non-oil GDP. These investments are pivotal in diversifying the Saudi economy and mitigating its dependence on oil-related revenues.