$1trillion.. What has the Saudi economy achieved?

The Kingdom of Saudi Arabia has reached an important milestone as its GDP has crossed the $1 trillion mark for the first time.

The Federation of Saudi Chambers revealed that the Kingdom achieved a gross domestic product of 4.15 trillion riyals ($1.11 trillion), achieving the state’s goals for the year 2025.

Economic growth

The Saudi Press Agency quoted the FSC study as saying that the Kingdom achieved an economic growth rate of 8.7 percent in 2022, which is the highest among the G20 member states.

The report also found that the private sector’s contribution to the economy rose to 1.63 trillion riyals, or 41 percent of GDP in 2022, with a growth rate of 5.3 percent.

Strengthening the non-oil private sector

Strengthening the non-oil private sector is one of the critical agendas of Saudi Arabia's Vision 2030, as the Kingdom's economy has steadily reduced its dependence on oil.

The report added that non-governmental investments rose to 907.5 billion riyals, with a growth rate of 32.6 percent in 2022, while the number of workers in the private sector increased from 8.08 million in 2021 to 9.42 million in 2022.

Saudis in the private sector

Moreover, the number of Saudi workers in the private sector increased from 1.91 million in 2021 to 2.19 million in 2022.

Highlighting Saudi Arabia's success in economic diversification efforts, the value of net non-oil tests reached 315.7 billion riyals in 2022, representing 20.5 percent of its commercial revenues.

Earlier this month, the International Monetary Fund said Saudi Arabia's near-term fiscal outlook is strong, with stocks widely held, driven by Vision 2030, which has been working to diversify the kingdom's economy since it came into being in 2016.

The UK's independent fiscal agency, Saudi Arabia, has sufficient prudential deficits, and the exchange rate peg to the US dollar serves the Kingdom well.

The other international fund added that Saudi Arabia maintained average price indices despite the rise in price indices.

Economic base

The spotlight resulted from Saudi Arabia's expected success in diversifying the economic base to support Saudi Arabia's penetration into the global diversification. Export orders for the Saudi economy increased by 54.4%, with a high degree of export capacity for the Saudi economy from 33% to 39.3% of domestic revenues.

It also succeeded in recording total services imports from 134.5% in 2021 to 171.9% in 2022, and non-oil imports amounted to 315.7 billion riyals, a growth of 13.7% and constituting 20.5% of goods sales, reaching 178 countries. all over the world.

The Saudi economic report, along with the private sector, is expected to continue its good performance, including compatibility with various economic participants and mobilizing government support, in addition to implementing various huge projects in all regions of the Kingdom.