Copy of 2023-08-07T161328Z_1275854373_RC23J2A2SGAB_RTRMADP_3_UKRAINE-CRISIS-SAUDI-TALKS-1695458398095
The success of Saudi Arabia’s policies aimed at diversifying its economic base and bolstering exports to global markets has become increasingly evident. Image Credit: REUTERS
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Riyadh: Saudi Arabia’s Gross Domestic Product (GDP) has surpassed SR4.155 trillion ($1 trillion) for the first time, achieving this milestone ahead of the 2025 target, as reported by the Federation of Saudi Chambers on the occasion of the Kingdom’s 93rd National Day.

According to the report from the official Saudi Press Agency (SPA), the Saudi economy experienced a growth rate of 8.7 per cent, the highest among G20 member states. This growth was primarily driven by increased production capabilities, resulting in an 81.2 per cent self-sufficiency rate and a 27.3 per cent investment rate (the invested percentage of output). These factors contributed to boosted confidence in the national economy and the Saudi riyal as a stable store of value, reflected in the rise of local currency deposits to 67.7 per cent in 2022 from 66.5 per cent in 2021.

Stock - Riyadh skyline / Saudi economy / Saudi Arabia
The report also highlighted the continued strong performance of the Saudi private sector, which played a significant role in the comprehensive development process and the realization of the goals outlined in Vision 2030.

The private sector’s contributions to GDP reached SR1.634 trillion, constituting 41 per cent of the GDP, with a growth rate of 5.3 per cent.

Non-governmental investments have surged to SR907.5 billion, representing a substantial 32.6 per cent growth rate, and contributing significantly, at 87.3 per cent, to the total fixed investments. The workforce within the private sector has also expanded from 8.084 million in 2021 to 9.422 million in 2022, reflecting a growth rate of 16.6 per cent, as indicated in the report.

Diversifying the economy

The success of Saudi Arabia’s policies aimed at diversifying its economic base and bolstering exports to global markets has become increasingly evident. Exports of goods and services witnessed a remarkable 54.4 per cent surge, with the export capacity of the Saudi economy rising from 33 per cent to 39.3 per cent of the GDP.

This surge has translated into exports of goods and services reaching 171.9 per cent of the value of imports in 2022, up from 134.5 per cent in the preceding year. Non-oil exports, totaling SR315.7 billion, contributed 20.5 per cent to commodity exports and reached 178 countries worldwide, reflecting a growth rate of 13.7 per cent.