RIYADH: Saudi Arabia’s gross domestic product has surged from SR2.6 trillion ($690 billion) to over SR4 trillion, propelling its G20 ranking to 16, said a top minister.
Speaking during a panel discussion at the Capital Market Forum in Riyadh on Feb. 19, Khalid Al-Falih, Saudi Arabia’s minister of investment, said capital formation in the Kingdom showed significant growth since the beginning of this decade, reaching 28 percent by the third quarter of 2023.
“At the beginning of this decade, the gross capital formation was less than 22 percent. By the third quarter of 2023, the capital formation is close to 28 percent,” said Al-Falih.
He added: “The target of the national investment strategy is to grow capital formation in the Kingdom, including capital spending and investment to grow to 30 percent.”
Capital formation is defined as the part of a country’s current output and imports that are not consumed or exported during the accounting period but are set aside as an addition to its stock of capital goods.
Al-Falih added that Saudi Arabia is now one of the favorite destinations for investors from abroad, with foreign direct investment stocks growing by 52 percent since the launch of Vision 2030.
The minister further highlighted that sectors like tourism bring a surplus of investments into the Kingdom.
“Saudi Arabia stands out as a beacon of hope, an island of stability, and as a destination for global investors,” he noted.
During the same panel discussion, Faisal Al-Ibrahim, Saudi Arabia’s minister of economy and planning, also underscored the growth of the tourism sector in the Kingdom and said that the region has revised its 100 million traveler target to 150 million by the end of this decade.
“There is a lot of progress. Tourism, for example, is achieving its 2030 targets, and we have up it to 150 million visitors by 2030,” said Al-Ibrahim.
Saudi Capital Market Forum began on Feb. 19, with financial experts gathering in Riyadh to discuss the future of finance, evolving strategies, and innovative ideas to boost the sector’s growth.
The two-day event, organized by Saudi Tadawul Group, is being held under the theme “Powering Growth” and is expected to serve as a nexus for transformative dialogue and innovation, fostering the convergence of emerging markets with established financial frameworks.
