Saudi Arabia has recently achieved a historic milestone by surpassing one trillion dollars in its Gross Domestic Product (GDP), a significant achievement for the Kingdom. According to the Federation of Saudi Chambers (FSC), the Saudi GDP reached 4.15 trillion Saudi riyals, equivalent to 1.11 trillion dollars, thus meeting the state’s goals for 2025.
This notable economic success has been driven by an exceptional economic growth rate of 8.7% in 2022, the highest among G20 member states. The growth has been primarily led by the private sector, contributing 1.63 trillion Saudi riyals, accounting for 41% of the GDP in 2022, and registering a growth rate of 5.3%. This emphasis on the private sector, particularly non-oil industries, is a crucial aspect of Saudi Arabia’s Vision 2030 agenda, aimed at gradually reducing the country’s dependence on oil revenues.
The FSC’s report has also highlighted a significant increase in non-governmental investments, which grew by 32.6% in 2022, along with a notable increase in the number of private sector workers, rising from 8.08 million in 2021 to 9.42 million in 2022. Among these, 2.19 million are Saudi citizens, demonstrating the success of the economic diversification policies implemented by the Kingdom.
Saudi Arabia and the Role of Economic Diversification
The Saudi Chamber of Commerce has emphasized that, as a result of these economic diversification policies, the value of non-oil exports reached 315.7 billion Saudi riyals in 2022, accounting for 20.5% of the country’s total commodity exports. This further underscores the country’s progress in reducing its dependence on oil and expanding into other sectors of the economy.
The International Monetary Fund (IMF) has positively evaluated Saudi Arabia’s short-term fiscal outlook, considering it robust and well-balanced, largely attributed to Vision 2030. Furthermore, Saudi Arabia has successfully maintained a stable Consumer Price Index, despite increasing inflation in other regions, thanks to its substantial precautionary reserves and careful management of its currency pegged to the US dollar.
Saudi Arabia’s recent membership in the Financial Sustainability Club (FSC), a global forum dedicated to promoting sustainable economic practices, has further solidified the nation’s position in the global economic arena. With a GDP surpassing one trillion dollars, Saudi Arabia is now prepared to share its economic expertise with the world, assuming a prominent role in the international financial landscape. This economic achievement reaffirms its status as one of the region’s leading economic powers, laying the foundation for sustainable and diversified growth in the near future.