Saudi Arabia’s economy joins trillion-dollar club, says report
- 23 Sep 2023
Saudi Arabia’s gross domestic product (GDP) has exceeded the ceiling of SAR 4.155 trillion ($1 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 issued by the Federation of Saudi Chambers on the Kingdom’s 93rd National Day.
According to the report carried by the official Saudi Press Agency (SPA), the Saudi economy achieved a growth rate of 8.7% -- 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%, and the increase in the investment rate (the invested percentage of output) to 27.3%. Such performance led to increased confidence in the national economy and the Saudi riyal as a store of value by increasing the ratio of local currency deposits to total savings deposits from 66.5% in 2021 to 67.7% in 2022.
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 SAR 1.634 trillion, or 41% of GDP, with a growth rate of 5.3%. The report said non-governmental investments increased to SAR 907.5 billion, with a growth rate of 32.6%, to an 87.3% contribution to the total fixed investments. 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%, according to the report.
The report highlighted the success of the Kingdom’s policies regarding diversifying the economic base and supporting Saudi exports to global markets. Exports of goods and services increased by 54.4%, and the export capacity of the Saudi economy increased from 33% to 39.3% of the GDP. The value of exports of goods and services rose to 171.9 % of the value of imports of goods and services in 2022, up from 134.5 per cent the previous year.The value of non-oil exports reached SAR 315.7 billion, with a growth rate of 13.7%, accounting for 20.5% of commodity exports, and reaching 178 countries around the world.The report expected that the Saudi economy and the private sector to continue their strong performance, citing various economic indicators, government support packages, and huge projects being implemented in various regions across the Kingdom.
On Friday it was revealed that the volume of trade exchange between the UAE and the Kingdom of Saudi Arabia grew by 28 per cent in 2022, reaching Dhs137.51 billion, compared to Dhs107.41 billion in 2018. This brings the total non-oil trade between the two countries to Dhs586.75 billion over five years.
As per Ministry of Economy data, in 2022, the bilateral trade between the two countries was divided into Dhs34.31 billion in imports, Dhs36.01 billion in non-oil exports, and Dhs67.18 billion in re-exports.
The statistics included data on trade exchange between the two countries during the period from 2018 to 2022, indicating the growth of trade exchange between the two sides in 2019 to reach Dhs113.25 billion, compared to Dhs107.41 billion in 2018.
The year 2021 also recorded growth, reaching Dhs124.65 billion, compared to Dhs103.91 billion in 2020. The volume of trade exchange between the two sides reached Dhs137.51 billion last year.
The fruitful relations between the two countries have had a positive impact on the comprehensive and sustainable development in both countries in various fields, including trade exchange, economic cooperation, and joint investment. This serves the process of progress and sustainable development and is in the interest of improving the quality of life and the well-being and prosperity of the two brotherly peoples.
Saudi Arabia ranked third among the five largest destinations for non-oil UAE exports in the first half of 2023. UAE imports from Saudi Arabia accounted for 25 per cent of total non-oil bilateral trade, while national exports and re-exports to Saudi Arabia made up 75% in 2022.
Saudi Arabia was the third trading partner for the UAE’s non-oil trade with the world in 2022. The UAE’s imports from Saudi Arabia grew to Dhs34.49 billion in 2022, a 23 percent increase from 2018. The UAE’s non-oil exports to Saudi Arabia grew to Dhs35.96 billion in 2022, a 14 percent increase from 2018.
The value of UAE re-exports to Saudi Arabia increased to Dhs67.16 billion in 2022, a 40 per cent rise from 2018. The UAE is the second-largest re-export market for Saudi Arabia, and is also the second-largest export destination and the third-largest import source for Saudi Arabia.
The economic, investment, and trade cooperation relations between the UAE and Saudi Arabia are witnessing increasing growth in various fields, which contributes to the strengthening, development, and prosperity of the two brotherly countries and peoples.
