RIYADH: Saudi Arabia has reached a significant milestone as its gross domestic product crossed the coveted 1 trillion-dollar mark for the first time, revealed the umbrella body of the Kingdom’s business community.
According to the state-run news agency, the Federation of Saudi Chambers revealed that the Kingdom achieved the GDP of SR4.15 trillion ($1.11 trillion), meeting the state’s goals for 2025.
The Saudi Press Agency cited the FSC study reporting that the Kingdom achieved an economic growth rate of 8.7 percent in 2022, the highest among the member states of G20.
The report also found that the private sector’s contribution to the economy increased to SR1.63 trillion, or 41 percent of GDP in 2022, with a growth rate of 5.3 percent.
Strengthening the non-oil private sector is a crucial agenda 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 increased to SR907.5 billion, with a growth rate of 32.6 percent in 2022, while the number of private workers rose from 8.08 million in 2021 to 9.42 million in 2022.
Moreover, the number of Saudis working in the private sector increased from 1.91 million in 2021 to 2.19 million in 2022.
Highlighting Saudi Arabia’s success in its economic diversification efforts, the Saudi Chamber of Commerce added that the value of non-oil exports reached SR315.7 billion in 2022, accounting for 20.5 percent of commodity exports.
Earlier this month, the International Monetary Fund said Saudi Arabia’s fiscal prospects are solid in the near term, with risks broadly balanced, driven by Vision 2030, which has been diversifying the Kingdom’s economy since its launch in 2016.
According to the UN financial agency, Saudi Arabia has sufficient precautionary reserves, and the peg of the exchange rate to the US dollar served the Kingdom’s economy well.
IMF added that Saudi Arabia has maintained its average consumer price index despite rising inflation in other nooks.