A Report: Saudi Economy Achieves Trillion-Dollar Milestone

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IMF Report: In 2022, Saudi Arabia Outpaced G20 Peers in Economic Growth.

A recent report from the Federation of Saudi Chambers, released in honor of the 93rd National Day of the kingdom, disclosed that Saudi Arabia’s gross domestic product (GDP) has surged to SAR 4.155 trillion, surpassing the remarkable milestone of $1 trillion for the first time.

This remarkable accomplishment has propelled the kingdom into the esteemed ‘trillion-dollar’ club, achieving its national goal well ahead of the 2025 target date, as per the Saudi Press Agency (SPA).

Saudi Arabia has attained numerous milestones, encompassing enhancements in its key economic indicators and an elevated global ranking of its national economy by institutions such as the International Monetary Fund (IMF).

According to the IMF, in 2022, the Saudi economy outpaced all other Group of Twenty (G20) member states, securing its position as the fastest-growing among them.

The report highlights that the Saudi economy achieved an impressive growth rate of 8.7%, the highest among G20 member states. This remarkable growth is primarily attributed to its robust production capabilities, as evidenced by an increase in the self-sufficiency rate of the Saudi economy to 81.2% and a rise in the investment rate, which now stands at 27.3% of the total output.

This remarkable performance supported confidence in the national economy and the Saudi riyal as a reliable store of value. The Saudi Press Agency (SPA) reported an increase in the proportion of local currency deposits to total savings, rising from 66.5% in 2021 to 67.7% in 2022.

On a global scale, the kingdom secured the 17th position among the world’s 64 most competitive countries, further underlining its economic prowess.

The Global Competitiveness Report from the International Center for Management Development revealed that Saudi Arabia stood second globally in terms of the growth rate of international tourists and was ranked 51st in the Global Innovation Index. The Saudi economy’s integration into the global arena increased by an impressive 63.1%.

The report also emphasized the Saudi private sector’s enduring strength and pivotal role, underscoring its effectiveness as a critical partner in the comprehensive development process and realizing the ambitious Vision 2030 goals.

Contributing significantly to the Gross Domestic Product (GDP), the private sector’s share grew to SAR 1.634 trillion, accounting for 41 % of GDP, with a growth rate of 5.3 %, as outlined in the report.

Furthermore, non-governmental investments surged to SAR 907.5 billion, boasting a remarkable growth rate of 32 % and comprising 87.3 % of the total fixed investments.

The workforce in the private sector expanded from 8.084 million in 2021 to 9.422 million in 2022, reflecting a notable growth rate of 16.6 %, as detailed in the report.

As part of labor force localization efforts, the number of Saudi employees in the private sector increased from 1.910 million in 2021 to 2.195 million in 2022, with a growth rate of 14.9 percent. According to SPA, this growth led to an increase in the percentage of Saudi workers in the private sector, which now stands at 58.2 %.

The kingdom’s policies played a pivotal role in diversifying the economic base and promoting exports to global markets. Exports of goods and services soared by 54.4 %, with the export capacity of the Saudi economy expanding from 33 to 39.3 % of GDP.

The value of goods and services exports increased to 171.9 percent of the value of imports in 2022, up from 134.5 percent in the previous year.

Non-oil exports reached SAR 315.7 billion, showing a growth rate of 13.7 percent and accounting for 20.5 percent of commodity exports, reaching 178 countries worldwide.

The report expected continuing the strong performance of the Saudi economy and the private sector, supported by various economic indicators, government-backed initiatives, and the implementation of extensive projects across different regions.

Source: Gulfbusiness