Saudi Arabia leaps to 16th rank among G20 countries in terms of GDP
In a remarkable economic advancement, Saudi Arabia has seen its Gross Domestic Product (GDP) soar from SAR 2.6 trillion to over SAR 4 trillion, propelling the kingdom to the 16th position among the G20 countries. This significant growth was highlighted by Khalid Al-Falih, the Saudi Minister of Investment, during a panel discussion at the Capital Market Forum held in Riyadh on February 19.
The forum, which commenced on February 19, was a congregation aimed at deliberating on the future of finance, discussing the evolution of strategies, and brainstorming innovative ideas to amplify the growth of the sector. It was within this setting that Al-Falih pointed out the stride in capital formation within the Kingdom. Since the onset of the decade, there has been appreciable growth, peaking at 28 percent by the third quarter of 2023. Capital formation embodies the segment of a nation’s current output and imports that, within the accounting period, are neither consumed nor exported but are reserved as an enhancement to its capital goods inventory.
Al-Falih further underscored the burgeoning sectors such as tourism, which not only generate a surplus of investment for Saudi Arabia but also position the Kingdom as a chosen destination for foreign investors. Since the initiation of Saudi Vision 2030, foreign direct investment stocks in the nation have witnessed a spike of 52 percent.
The ambitious Vision 2030 is Saudi Arabia’s long-term plan aimed at reducing the country’s dependence on oil, diversifying its economy, and developing public service sectors such as health, education, infrastructure, recreation, and tourism. Tourism, in particular, stands as a pivotal sector with the nation achieving its earlier set targets efficiently. Faisal Al-Ibrahim, Saudi Arabia’s Minister of Economy and Planning, shared during the panel that the Kingdom has elevated its traveler goal from 100 million to 150 million by 2030, demonstrating the significant progress within this sector.
This leap in the global economic standings acknowledges not just the fiscal growth of Saudi Arabia but also accentuates the strategic shifts the country is making towards establishing a diversified and sustainable economy. As the Kingdom continues to attract more foreign investment and expand its tourism industry, it aligns closer to the objectives laid out in Vision 2030, setting a remarkable precedent for economic transformation and growth on the global stage.
