Saudi Gazette report

RIYADH — Saudi Arabia has achieved escalating success contributing to improvements in key economic indicators, as reflected in reports from the International Monetary Fund and related international organizations. The Saudi economy was ranked as one of the fastest-growing among the G20 nations in 2022.

According to a report by the Saudi Chambers of Commerce, released in celebration of the country's 93rd National Day, Saudi Arabia's Gross Domestic Product (GDP) reached SR4.155 trillion, exceeding the trillion-dollar mark for the first time and joining the global trillion-dollar economies. This achievement comes ahead of the state's 2025 targets and is accompanied by an impressive growth rate of 8.7%, the highest among G20 nations. This growth is primarily attributed to its robust productive capabilities, leading to a self-sufficiency rate of 81.2% and an increased investment rate, reaching 27.3%. These developments have bolstered confidence in the Saudi economy, leading to an uptick in trust in the Saudi riyal. Deposits in the local currency now account for 67.7% of total savings, up from 66.5% in 2021.

Internationally, Saudi Arabia has secured the 17th position in the global economic rankings and ranks 17th out of 64 countries as the most competitive economy globally, according to the annual Global Competitiveness Report by the International Institute for Management Development (IMD). The country also ranks second globally in the growth rate of international tourists and 51st in the Global Innovation Index. The Saudi economy's integration into the global economy has increased to 63.1%.

Regarding the role of the Saudi private sector, the report underscores its continued strong performance as an effective partner in comprehensive development and in achieving the ambitious Vision 2030 goals. The private sector's GDP reached SR1.634 trillion, contributing 41% to the overall GDP with a growth rate of 5.3%. This contribution remains steady due to significant growth in the oil sector, which expanded at a rate exceeding 15%. Non-governmental investments reached SR907.5 billion, growing by 32.6%, and accounted for approximately 87.3% of total fixed investments. The private sector also played a pivotal role in employment, as the number of employees in the private sector increased from 8.084 million in 2021 to 9.422 million in 2022, a growth rate of 16.6%. In line with localization efforts, the number of Saudi employees in the private sector rose from 1.910 million in 2021 to 2.195 million in 2022, a growth rate of 14.9%, resulting in a 58.2% overall Saudi workforce participation in the private sector.

The report highlights the success of Saudi policies aimed at diversifying the economic base and supporting the penetration of Saudi exports into global markets. Exports of goods and services increased by 54.4%, with the export capacity of the Saudi economy rising from 33% to 39.3% of the GDP. The capacity of exports to cover imports of goods and services also increased from 134.5% in 2021 to 171.9% in 2022. Non-oil exports reached 315.7 billion riyals, growing by 13.7% and accounting for 20.5% of total goods exports, reaching 178 countries worldwide.

The report predicts that the Saudi economy, along with the private sector, will continue its robust performance in line with various economic indicators and government support packages, as well as the implementation of various large-scale projects across the Kingdom's regions.