Saudi Arabia’s gross domestic product (GDP) has surpassed the SAR 4.155T ($1T) milestone for the first time, with the country becoming a member of the trillion-dollar club and achieving its national objective well in advance of the 2025 target, as outlined in a new report released by the Federation of Saudi Chambers on the occasion of the Kingdom’s 93rd National Day.
As indicated in the report disseminated by the official Saudi Press Agency (SPA), the Saudi economy recorded an impressive growth rate of 8.7%, the highest among the G20 member states.
The nation’s production capabilities primarily drove this remarkable growth, increasing the self-sufficiency rate of the Saudi economy to 81.2% and raising the investment rate, which represented 27.3% of the output.
Such performance fostered enhanced confidence in the national economy and the Saudi riyal as a reliable store of value, with the ratio of local currency deposits to total savings deposits increasing from 66.5% in 2021 to 67.7% in 2022.
Private Sector Vital to Achieving Vision 2030 Goals
The report underscores the continued robust role and performance of the Saudi private sector, which serves as a crucial partner in the comprehensive development process and in achieving the objectives outlined in the ambitious Vision 2030.
The private sector’s contribution to GDP has risen to SAR 1.634T, constituting 41% of GDP and displaying a growth rate of 5.3%.
Furthermore, the report reveals that non-governmental investments have surged to SAR 907.5B, experiencing a substantial growth rate of 32.6% and contributing 87.3% to the overall fixed investments, according to WAM.
The workforce in the private sector expanded from 8.084 million in 2021 to 9.422 million in 2022, representing a growth rate of 16.6%.
Saudi Diversification Policies Drive Exports to New Heights
The report also highlights the effectiveness of Saudi Arabia’s policies in diversifying the economic base and promoting Saudi exports to global markets. Exports of goods and services have surged by 54.4%, and the export capacity of the Saudi economy has increased from 33% to 39.3% of the GDP.
The value of exports of goods and services has risen to 171.9% of the value of imports of goods and services in 2022, up from 134.5% the previous year.
Non-oil exports reached SAR 315.7B, displaying a growth rate of 13.7%, accounting for 20.5% of commodity exports and reaching 178 countries worldwide.
The report expects the Saudi economy and the private sector to continue performing strongly, as it cites a range of economic indicators, government support initiatives, and significant projects being executed across various regions of the Kingdom.