Trillion dollars
Saudi Arabia has achieved a significant milestone, entering the trillion-dollar club in 2023. The Gross Domestic Product (GDP) of Saudi Arabia exceeded the $1 trillion (SAR 4.155 trillion) mark this year. It surpassed the national target for 2025 well ahead of schedule.
The Saudi Press Agency announced this breakthrough today with a report by the Federation of Saudi Chambers. The announcement coincided with the celebration of the Kingdom’s 93rd National Day.
The Kingdom’s remarkable successes have made substantial contributions to enhancing key economic indicators and elevating its global economic ranking, as recognized by institutions like the International Monetary Fund (IMF). In fact, the IMF declared the Saudi economy as the fastest-growing among the Group of Twenty (G20) member states in 2022.
The report indicates that the Saudi economy achieved an impressive growth rate of 8.7%, the highest among G20 member states, primarily driven by its robust production capabilities. This is evident in the increased self-sufficiency rate of the Saudi economy, which reached 81.2%, and the rise in the investment rate (the percentage of output invested) to 27.3%.
Such outstanding performance has bolstered confidence in the national economy and the Saudi riyal, solidifying the local currency’s role as a store of value. This is exemplified by the growth in the ratio of local currency deposits to total savings deposits, increasing from 66.5% in 2021 to 67.7% in 2022.
On a global scale, the Kingdom secured the 17th position in terms of economic competitiveness among the world’s 64 most competitive countries. According to the Global Competitiveness Report by the International Center for Management Development (IMD), Saudi Arabia ranked second globally in the growth rate of international tourism and 51st in the Global Innovation Index. The integration of the Saudi economy into the global economy surged by an impressive 63.1%.
The report also underscores the pivotal role and strong performance of the Saudi private sector, emphasizing its effectiveness as a key partner in the comprehensive development process and the realization of the ambitious Vision 2030 goals. The private sector’s contribution to GDP reached SAR 1.63 trillion, accounting for 41% of GDP, with a growth rate of 5.3%, as per the report.
Non-governmental investments surged to SAR 907.5 billion, with a remarkable growth rate of 32.6%, constituting 87.3% of total fixed investments. The workforce in the private sector expanded from 8.084 million in 2021 to 9.42 million in 2022, reflecting a growth rate of 16.6%, according to the report. Furthermore, in alignment with the workforce localization initiative, the number of Saudi citizens employed in the private sector increased from 1.91 million in 2021 to 2.12 million in 2022, with a growth rate of 14.9%, resulting in a higher percentage of Saudi workers in the private sector, reaching 58.2%.
The report also highlights the Kingdom’s successful policies aimed at diversifying its economic foundation and promoting Saudi exports to global markets. Exports of goods and services saw a substantial increase of 54.4%, and the export capacity of the Saudi economy expanded from 33% to 39.3% of GDP.
The value of exports of goods and services reached 171.9% of the value of imports of goods and services in 2022, a significant increase from the previous year, amounting to 2.35 times the previous figure. Non-oil exports reached SAR 315.7 billion, showing a growth rate of 13.7%, comprising 20.5% of commodity exports and reaching 178 countries worldwide.
