Saudi Arabia has attained a remarkable milestone as its Gross Domestic Product (GDP) has surpassed the coveted $1 trillion mark for the first time, according to a statement by the Federation of Saudi Chambers (FSC), the apex body representing the Kingdom’s business community.
The FSC, in partnership with the Saudi Press Agency, announced that Saudi Arabia has achieved a GDP of SR4.15 trillion ($1.11 trillion), successfully meeting the state’s ambitious goals set for 2025.
This significant economic achievement was underpinned by an impressive economic growth rate of 8.7 percent in 2022, making it the highest among the member states of the G20, as reported in the FSC’s study.
The report also highlighted the substantial contribution of the private sector to the Saudi economy, which amounted to SR1.63 trillion, constituting 41 percent of the GDP in 2022. This surge in private sector growth was reflected in a robust growth rate of 5.3 percent.
The development of the non-oil private sector has been a central agenda of Saudi Arabia’s Vision 2030, which aims to reduce the nation’s reliance on oil and diversify its economy.
Furthermore, the report revealed that non-governmental investments experienced substantial growth, reaching SR907.5 billion with a remarkable growth rate of 32.6 percent in 2022. Concurrently, the number of private sector employees in Saudi Arabia surged from 8.08 million in 2021 to 9.42 million in 2022.
In addition to this, the number of Saudi nationals employed within the private sector saw a significant increase from 1.91 million in 2021 to 2.19 million in 2022, underlining the success of the Kingdom’s initiatives to boost local employment.
Highlighting the nation’s achievements in economic diversification, the Saudi Chamber of Commerce noted that the value of non-oil exports reached SR315.7 billion in 2022, representing 20.5 percent of commodity exports.
Earlier this month, the International Monetary Fund (IMF) lauded Saudi Arabia’s fiscal stability in the near term, with risks well-balanced, attributing this strength to Vision 2030’s ongoing diversification efforts. Launched in 2016, Vision 2030 has been instrumental in broadening the Saudi economy.
According to the UN financial agency, Saudi Arabia has maintained ample precautionary reserves, and the pegging of the exchange rate to the US dollar has proven advantageous for the Kingdom’s economy.
IMF also acknowledged that despite inflation challenges in other regions, Saudi Arabia has managed to keep its average consumer price index stable, demonstrating its resilience in the face of external economic pressures.
