Saudi Arabia trillion dollar economy and massive growth in private sector

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Saudi Arabia trillion dollar economy and massive growth in the private sector; Saudi Arabia has made remarkable strides in enhancing key economic metrics, as attested by reports from the International Monetary Fund and other international bodies. In 2022, the Saudi economy stood out as one of the fastest-growing among G20 nations.

Saudi Arabia trillion dollar economy and massive growth in private sector

As per the Saudi Chambers of Commerce report, which coincided with the nation’s 93rd National Day celebration, Saudi Arabia’s Gross Domestic Product (GDP) soared to SR4.155 trillion, surpassing the trillion-dollar milestone for the first time, thus becoming part of the esteemed club of trillion-dollar economies worldwide. This remarkable feat was achieved ahead of the state’s 2025 targets and was accompanied by an impressive growth rate of 8.7%, the highest among G20 nations. This robust growth can be chiefly attributed to the nation’s robust productive capabilities, resulting in a self-sufficiency rate of 81.2% and a heightened investment rate, reaching 27.3%. These advancements have bolstered trust in the Saudi economy, leading to an increase in confidence in the Saudi riyal. Deposits in the local currency now constitute 67.7% of total savings, up from 66.5% in 2021.

On the global stage, Saudi Arabia has secured the 17th position in global economic rankings and ranks 17th out of 64 countries for the most competitive economy globally, according to the annual Global Competitiveness Report by the International Institute for Management Development (IMD). The country also holds the second position globally in terms of the growth rate of international tourism and ranks 51st in the Global Innovation Index. Saudi Arabia’s integration into the global economy has expanded to 63.1%.

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Regarding the Saudi private sector’s role, the report underscores its consistent strong performance as a vital partner in comprehensive development and in achieving the ambitious Vision 2030 objectives. The private sector’s GDP reached SR1.634 trillion, contributing 41% to the overall GDP with a growth rate of 5.3%. This contribution remains robust, thanks to significant growth in the oil sector, which expanded at a rate exceeding 15%. Non-governmental investments surged to SR907.5 billion, marking a growth of 32.6%, and accounting for approximately 87.3% of total fixed investments.

The private sector also played a pivotal role in employment, with the number of private sector employees rising from 8.084 million in 2021 to 9.422 million in 2022, marking a growth rate of 16.6%. In alignment with localization efforts, the number of Saudi employees in the private sector increased from 1.910 million in 2021 to 2.195 million in 2022, marking a growth rate of 14.9%, resulting in a 58.2% overall Saudi workforce participation in the private sector.

The report highlights the success of Saudi policies aimed at diversifying the economic base and supporting the expansion of Saudi exports into global markets. Exports of goods and services surged by 54.4%, with the export capacity of the Saudi economy climbing from 33% to 39.3% of the GDP. The capacity to cover imports of goods and services with exports also increased from 134.5% in 2021 to 171.9% in 2022. Non-oil exports reached 315.7 billion riyals, marking a 13.7% increase and accounting for 20.5% of total goods exports, reaching 178 countries worldwide.

The report anticipates that the Saudi economy, in tandem with the private sector, will continue to exhibit robust performance in alignment with various economic indicators, government support packages, and the implementation of extensive projects across the Kingdom’s regions.

Source: Saudi Gazette