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Saudi Arabia’s economy joins trillion-dollar club: Report

Saudi Arabia’s gross domestic product (GDP) has exceeded the ceiling of $1 trillion (SAR 4.155 trillion) for the first time, with the Kingdom joining the trillion-dollar club and achieving the national goal well ahead of the target date of 2025, according to a new report.

The figures were revealed in a report by the Federation of Saudi Chambers, issued on Friday, on the Kingdom’s 93rd National Day, and released by the official Saudi Press Agency (SPA).

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It comes during the same week when the International Monetary Fund (IMF) said the Saudi economy was the fastest-growing among the Group of Twenty (G20) member-states in 2022.

The Saudi Chambers report detailed that the Kingdom had achieved a growth rate of 8.7 percent – the highest among the G20 member-states – spurred mainly by its production capabilities, which is reflected in the increase in the self-sufficiency rate of the Saudi economy to 81.2 percent, and the increase in the country’s investment rate (the invested percentage of output) to 27.3 percent.

The report indicated that the Saudi private sector will continue its strong role and performance – thanks to its status as an effective partner in the comprehensive development process and in achieving the goals of the ambitious Vision 2030.

The private sector’s contributions to GDP increased to $440 billion (SAR 1.634 trillion), or 41 percent of its GDP, with a growth rate of 5.3 percent, according to the report issued by the Federation of Saudi Chambers.

The number of workers in the private sector has increased from 8.084 million in 2021 to 9.422 million in 2022, with a growth rate of 16.6 percent, the report revealed.

Under the localization endeavor of the labor force, the number of Saudis working in the private sector has increased from 1.910 million in 2021 to 2.195 million in 2022, with a growth rate of 14.9 percent, which was reflected in an increase in the percentage of Saudi workers in the private sector to 58.2 percent.

The report highlighted the success of the Kingdom’s policies regarding diversification of the economic base and support for Saudi exports to global markets. While export of goods and services increased by 54.4 percent, the export capacity of the Saudi economy rose from 33 percent to 39.3 percent of the GDP. The value of exports of goods and services rose to 171.9 percent of the value of imports of goods and services in 2022 – up from 134.5 percent the previous year.

The value of non-oil exports reached $84 billion, with a growth rate of 13.7 percent, accounting for 20.5 percent of commodity exports and reaching 178 countries around the world.

The report projected Saudi economy and the private sector in the country to continue with their strong showing, citing various economic indicators, government support packages, and huge projects being implemented in various regions across the Kingdom.

According to the Global Competitiveness Report of the International Center for Management Development (IMD), the Kingdom ranks second in the world in terms of the growth rate of international tourists and is on the 51st spot in the Global Innovation Index. In keping with the overall economic trend, the rate of integration of the Saudi economy into the global economy registered a 63.1 percent increase.

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