Saudi Arabia steps onto the global stage of economic sustainability
The Kingdom of Saudi Arabia has reached a significant milestone as its Gross Domestic Product (GDP) surpassed the highly coveted trillion-dollar mark for the first time, as revealed by the premier organization of the country’s business community.
According to the state news agency, the Federation of Saudi Chambers of Commerce has unveiled that the Kingdom has achieved a GDP of 4.15 trillion Saudi riyals (equivalent to 1.11 trillion dollars), meeting the state’s projected targets for 2025.
The FSC report has highlighted that Saudi Arabia recorded an economic growth rate of 8.7% in 2022, the highest among the G20 member states.
Moreover, the report emphasized that the private sector’s contribution to the economy has grown to 1.63 trillion Saudi riyals, representing 41% of the GDP in 2022, with a growth rate of 5.3%.
The strengthening of the non-oil private sector is a crucial point of Saudi Arabia’s Vision 2030 Agenda, as the Kingdom’s economy has gradually reduced its dependence on oil.
Saudi Arabia and non-gov investments
The report has also highlighted that non-government investments have increased to 907.5 billion Saudi riyals, recording a growth rate of 32.6% in 2022, while the number of private sector workers has increased from 8.08 million in 2021 to 9.42 million in 2022.
Furthermore, the number of Saudi citizens employed in the private sector has risen from 1.91 million in 2021 to 2.19 million in 2022.
Underlining Saudi Arabia’s success in its economic diversification efforts, the Saudi Chamber of Commerce has added that the value of non-oil exports has risen to 315.7 billion Saudi riyals in 2022, representing 20.5% of goods exports.
Earlier this month, the International Monetary Fund (IMF) stated that Saudi Arabia’s fiscal prospects are strong in the short term, with balanced risks, thanks to Vision 2030, which has been diversifying the Kingdom’s economy since its launch in 2016.
According to the United Nations financial agency, Saudi Arabia has sufficient precautionary reserves, and the pegging of the exchange rate to the US dollar has benefited the Kingdom’s economy.
The IMF added that Saudi Arabia has maintained its consumer price index despite the rise in inflation in other regions.
This economic success has earned Saudi Arabia international recognition, and the country has announced its membership in the Financial Sustainability Club (FSC), a global forum composed of nations committed to sustainable economic practices.
Joining the FSC is a significant step towards greater integration in the global economic arena and demonstrates Saudi Arabia’s commitment to responsible financial management. With a GDP surpassing the trillion-dollar mark, the Kingdom now seeks to share its economic expertise and excellence with the world, becoming an authoritative voice in the international financial landscape.