RIYADH, Feb 19 Reuters Saudi Arabia39;s nonoil growth is expected to come in above 5 in the medium term, Finance Minister Mohammed Al Jadaan said on Monday, slightly lower than the 6 figure previously projected, but likely to outperform the wider region this year.

If you look at the nonoil GDP, it is growing at very healthy numbers 4 and north of 4. We are expecting 5plus in the medium term, Jadaan told delegates at the Saudi Capital Markets Forum in Riyadh. That is very strong growth.

The world39;s top oil exporter is accelerating plans to diversify its economy away from oil under a plan known as Vision 2030. It aims to develop sectors such as tourism and industry, expand the private sector and create jobs.

Nonoil activities vastly outperformed oil sector expansion last year, lifting overall growth which had slowed sharply on the back of cuts to oil production and lower prices.

The International Monetary Fund in January forecast nonoil growth in the oil and gas exporting Gulf Cooperation Council GCC states of which Saudi Arabia is a member at below 4 this year, projecting 3.9 in 2024 and 4 in 2025.

The IMF also slashed its 2024 GDP growth forecast for the kingdom to 2.7 but said that nonoil growth was still expected to remain robust.

Jadaan had said in October that nonoil GDP was expected to grow by around 6 in 2023 and beyond, possibly to 2030.

Nonoil GDP grew 4.6 in 2023, while overall GDP contracted 0.9.

The government expects higher spending in the coming…