Saudi Arabia well on its way to top 15 economies, says Al-Falih

RIYADH: One of Saudi Arabia’s goals is to be among the top 15 nations globally in terms of gross domestic product, and the Kingdom is well on its way to achieving it, said Khalid Al-Falih, minister of investment and chairman of the Economic Cities and Special Zones Authority.
“We went from the 20th before the launch of the Saudi Vision 2030 to the 17th (spot) by the end of last year,” said the minister at the Saudi Special Economic Zones Investment Forum held in Riyadh on Monday.
In partnership with the Regional Headquarters Program, the forum discussed the special economic zones, a cornerstone of Saudi Arabia’s National Investment Strategy and the National Industrial Development and Logistics Program.
“Our GDP is 70 percent higher, and our non-oil revenues are more than double what they were when we started Vision 2030 in 2016,” said the minister.
Al-Falih said: “As we diversify our economy (away) from oil dependence, non-oil growth was recorded at 5.5 percent in 2022.”
The minister added that early indicators from 2023 show that non-oil GDP is continuing to grow at more or less the same pace as it did in 2022.
He said that last year, the Kingdom’s economy grew at an impressive 8.7 percent leading the G20 nations.
Additionally, Saudi Arabia’s credit rating has been strong and was recently upgraded to “A-1” and “A+” by Moody’s and Fitch, respectively, he added.
He further said: “On the fiscal side, Saudi Arabia has the second lowest debt-to-GDP ratio among the G20 with a budget surplus amounting to $27 billion.”
The country’s unemployment rate, which stood at 13 percent seven years ago, is already down to eight, just 1 percentage point shy of following Vision 2030.
The minister said that the most dramatic shift had been Saudi Arabia’s emergence as an investment destination, with foreign direct investment quadrupling since 2016.
“Last year, Saudi Arabia’s capital formation, to the total investment from all sources, grew by an amazing 31 percent and exceeded SR1 trillion ($266.6 billion) for the first time.”
He added that the Kingdom is exhibiting a ratio of total capital formation to GDP of 25 percent.
“Capital formation is being driven by the private sector, not by government projects as in the past, and it’s across enterprises of all sizes and within all of the key targeted sectors.”
The minister also highlighted the country’s investment landscape for large-scale projects led by the private sector.
“We have closed SR285 billion worth of deals in the last year across various sectors ranging from auto to ICT, agriculture, aerospace, petrochemicals, mining, and renewable energy.”
Al-Falih explained that the first wave of special economic zones launched on April 13 by Crown Prince Mohammed bin Salman is pivotal to the Kingdom’s present and future as an investment destination and reflects its sustained commitment to creating opportunities for global investors.
“That commitment has helped make Saudi Arabia’s economy and investment in climate among the world’s healthiest and most dynamic.”
Following Al-Falih’s opening remarks, Nabil Khojah, secretary-general of the Economic Cities and Zones Authority, provided licenses to the four SEZs.

Saudi Arabia well on its way to top 15 economies, says Al-Falih