Saudi Arabia’s gross domestic product (GDP) has surpassed the SAR 4.155 trillion (USD 1 trillion) ceiling for the first time, with the Kingdom joining the trillion club and reaching the national target well ahead of the 2025 target date, according to a new report issued by the Federation of Saudi Chambers on the 93rd National Day of the Kingdom.
According to the report of the official Saudi Press Agency (SPA), the Saudi economy has achieved a growth rate of 8.7 percent – the highest among G20 member states – mainly due to its production capabilities, which is reflected in the increase in the Saudi self-sufficiency rate economy to 81.2 percent, and the increase in the investment rate (the percentage of production invested) to 27.3 percent. Such achievements 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 deposits from 66.5 percent in 2021 to 67.7 percent in 2022.
The report indicated that the Saudi private sector will continue its strong role and performance due to its status as an effective partner in the comprehensive development process and in achieving the goals of the ambitious Vision 2030. Private sector contributions to GDP have increased to SAR 1.634 trillion, or 41 percent of GDP, with a growth rate of 5.3 percent.
According to the report, non-governmental investments increased to SAR 907.5 billion, with a growth rate of 32.6 percent, contributing 87.3 percent to total fixed asset investments. The number of private sector employees increased from 8.084 million in 2021 to 9.422 million in 2022, with a growth rate of 16.6 percent, according to the report.
The report highlighted the success of the Kingdom’s policies in diversifying the economic base and supporting Saudi exports to global markets. Exports of goods and services increased by 54.4 percent, and the export capacity of the Saudi economy increased from 33 percent to 39.3 percent of GDP. The value of exports of goods and services rose to 171.9 percent of the value of imports of goods and services in 2022, compared to 134.5 percent the year before.
The value of non-oil exports reached SAR 315.7 billion, with a growth rate of 13.7 percent, accounting for 20.5 percent of commodity exports, reaching 178 countries around the world.
The report expected the Saudi economy and private sector to continue their strong performance, citing various economic indicators, government support packages and massive projects being implemented in various regions across the kingdom.
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