According to the IMF, the Saudi economy was the fastest-growing among the Group of Twenty (G20) member states in 2022. A report by the Federation of Saudi Chambers, issued on the occasion of the kingdom’s 93rd National Day, revealed that the kingdom’s gross domestic product (GDP) reached SAR 4.155 trillion, exceeding the ceiling of $1 trillion for the first time.
This achievement has made the kingdom a member of the ‘trillion-dollar’ club and marks the achievement of the national goal well ahead of the target date of 2025, reported the Saudi Press Agency (SPA). Moreover, Saudi Arabia has achieved many milestones, ranging from improving its major economic indicators to upgrading the ranking of the national economy by global institutions, including the International Monetary Fund (IMF).
According to the IMF, the Saudi economy was the fastest-growing among the Group of Twenty (G20) member states in 2022. The report shared that the Saudi economy achieved a growth rate of 8.7 per cent – the highest among the G20 member states – driven primarily by its production capabilities. The Saudi economy’s self-sufficiency rate has increased to 81.2%, and the investment rate—the proportion of output invested—has increased to 27.3%, both of which indicate this.
Likewise, this performance led to increased confidence in the national economy and the Saudi riyal as a store of value by increasing the ratio of local currency deposits to total savings from 66.5 per cent in 2021 to 67.7 per cent in 2022, SPA reported. The kingdom also ranked 17th in the global economy out of the world’s 64 most competitive countries.
Saudi Private Sector Shows Growth
According to the Global Competitiveness Report of the International Centre for Management Development, Saudi Arabia ranked second in the world in terms of the growth rate of international tourists, and it ranked 51st in the Global Innovation Index. The rate of integration of the Saudi economy into the global economy increased by 63.1 per cent.
The report indicated that the Saudi private sector will continue its strong role and performance thanks to its status as an effective partner in the comprehensive development process and in achieving the goals of the ambitious Vision 2030. The private sector’s contributions to GDP increased to SAR 1.634 trillion, or 41 per cent of GDP, with a growth rate of 5.3 per cent, the report showed.
Besides, the report said non-governmental investments increased to SAR 907.5 billion, with a growth rate of 32. Per cent, with an 87.3 per cent contribution to the total fixed investments. The number of workers in the private sector has increased from 8.084 million in 2021 to 9.422 million in 2022, with a growth rate of 16.6 per cent, according to the report.
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Economic Diversification Reflected
Under the localisation effort of the labour force, the number of Saudis working in the private sector has increased from 1.910 million in 2021 to 2.195 million in 2022, with a growth rate of 14.9 per cent. According to SPA, this resulted in a rise in the proportion of Saudi employees working in the private sector to 58.2%.
The kingdom’s policies were also in the spotlight; these contributed to diversifying the economic base and supporting exports to global markets. Exports of goods and services increased by 54.4 per cent, and the export capacity of the Saudi economy increased from 33 to 39.3 per cent of the GDP. Meanwhile, the value of exports of goods and services rose to 171.9 per cent of the value of imports of goods and services in 2022, up from 134.5 per cent the previous year.
The value of non-oil exports reached SAR 315.7 billion, with a growth rate of 13.7 per cent, accounting for 20.5 per cent of commodity exports, and reaching 178 countries around the world. Eventually, the report expected the Saudi economy and the private sector to continue their strong performance, citing various economic indicators, government support packages, and huge projects being implemented in various regions.
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