Saudi GDP passes $1.1 trn, tops G20 nations

Kingdom economy achieved remarkable 8.7 percent growth rate
Saudi GDP passes $1.1 trn, tops G20 nations
Riyadh (Photo from Reuters)

On the occasion of Saudi Arabia’s 93rd National Day, a recent report by the Federation of Saudi Chambers reveals a significant milestone. Riyadh, on the 23rd of September, 2023, announced that the Kingdom’s gross domestic product (GDP) has surpassed SAR 4.155 trillion ($1 trillion) for the first time. This achievement propels Saudi Arabia into the esteemed trillion-dollar club, surpassing the national goal well ahead of the targeted date of 2025.

As per the report published by the official Saudi Press Agency (SPA), the Saudi economy has achieved a remarkable growth rate of 8.7 percent. This growth stands as the highest among the G20 member states. The driving force behind this achievement lies in the Kingdom’s enhanced production capabilities, which is evident in the rise of the self-sufficiency rate of the Saudi economy to 81.2 percent. Additionally, the investment rate, representing the percentage of output invested, has increased to 27.3 percent. Such impressive performance has instilled greater confidence in the national economy and the Saudi riyal as a reliable store of value. This is evidenced by the rise in the ratio of local currency deposits to total savings deposits, which has increased from 66.5 percent in 2021 to 67.7 percent in 2022.

Read more: Saudi GDP grew seven straight quarters since pandemic

Strong performance

According to the report, the Saudi private sector is expected to maintain its significant role and strong performance. This is attributed to its status as an effective partner in the comprehensive development process and in the realization of the ambitious goals outlined in Vision 2030. Notably, the private sector’s contributions to GDP have reached SAR 1.634 trillion, accounting for 41 percent of the total GDP. Furthermore, it has achieved a growth rate of 5.3 percent.

Additionally, findings revealed non-governmental investments have surged to SAR 907.5 billion, experiencing a remarkable growth rate of 32.6 percent. This constitutes an 87.3 percent contribution to the total fixed investments. Additionally, the number of workers in the private sector has risen from 8.084 million in 2021 to 9.422 million in 2022, reflecting a growth rate of 16.6 percent, as stated in the report.

Effective policies

Additionally, the report emphasized the effectiveness of the Kingdom’s policies in diversifying the economic base and promoting Saudi exports in global markets. Notably, there was a significant increase of 54.4 percent in exports of goods and services. Moreover, the export capacity of the Saudi economy expanded from 33 percent to 39.3 percent of the GDP. In 2022, the value of exports of goods and services reached 171.9 percent of the value of imports of goods and services, a notable increase from 134.5 percent in the previous year.

Furthermore, with a growth rate of 13.7 percent, the value of non-oil exports has reached SAR 315.7 billion. These non-oil exports account for 20.5 percent of commodity exports and have successfully reached 178 countries across the globe.

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