Saudi Nominal Economy Surpasses $1 Tn for First Time

The Saudi economy is witnessing rapid growth due to recent government initiatives (Asharq Al-Awsat)
The Saudi economy is witnessing rapid growth due to recent government initiatives (Asharq Al-Awsat)
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Saudi Nominal Economy Surpasses $1 Tn for First Time

The Saudi economy is witnessing rapid growth due to recent government initiatives (Asharq Al-Awsat)
The Saudi economy is witnessing rapid growth due to recent government initiatives (Asharq Al-Awsat)

A recent report revealed that the Saudi economy has greatly surpassed challenging global conditions over the past three years, starting from the coronavirus pandemic and extending to the Russian-Ukrainian crisis and the subsequent global inflation wave.

As a result, the Kingdom has outperformed the economic growth of G20 countries in 2022, surpassing the trillion-dollar nominal value for the first time in history.

Data from the General Authority for Statistics (GASTAT) revealed a 3.8% increase in Saudi Arabia's real gross domestic product (GDP) during the first quarter of 2023, compared to the corresponding period in 2022.

According to the report, released by the Ministry of Economy and Planning on Sunday, Saudi Arabia has implemented numerous programs, initiatives, and structural reforms since the launch of “Vision 2030.”

These efforts aim to ensure stability, achieve sustainable development, and enhance the overall productivity of the economy.

Despite the continued role of the oil sector as a significant contributor to budget financing, the non-oil sector has witnessed an increase in its share of the GDP, noted the report.

This growth has been supported by government facilitations and programs that have provided a conducive environment for the growth of the private sector, it added.

The report predicted that the pace of this structural transformation towards sustainable economic growth will continue in the coming years.

This progress is expected to contribute to the ongoing advancement of the Saudi economy among the world’s largest economies.

The report emphasized that internationally recognized indicators endorse the significant changes happening in the Kingdom.

These changes are a result of the economic reforms driven by “Vision 2030,” which have received praise from various organizations in their thorough reports during 2022.

Additionally, reputable credit rating agencies have raised the Kingdom’s sovereign credit ratings and improved their outlook for the future of the Saudi economy.

As per the report, “Vision 2030” aimed to transform the structure of the Saudi economy into a diversified and sustainable economy.

This transformation focuses on enhancing productivity, increasing the contribution of the private sector to economic wealth creation, and engaging it in achieving the goals of the vision.

It is worth noting that the Economy and Planning Ministry publishes the report as part of providing regular, accurate, and detailed updates on the performance of both the global economy and the Kingdom’s economy.

The data for the report is gathered from various government sources, including GASTAT, the Saudi Central Bank, the Ministry of Finance, as well as international institutions.



Oil Gains Capped by Uncertainty over Sanctions Impact

FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo
FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo
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Oil Gains Capped by Uncertainty over Sanctions Impact

FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo
FILE PHOTO: An oil pump jack is seen at sunset near Midland, Texas, US, May 3, 2017. REUTERS/Ernest Scheyder/File Photo

Oil prices crept higher on Wednesday as the market focused on potential supply disruptions from sanctions on Russian tankers, though gains were tempered by a lack of clarity on their impact.

Brent crude futures rose 16 cents, or 0.2%, to $80.08 a barrel by 1250 GMT. US West Texas Intermediate crude was up 26 cents, or 0.34%, at $77.76.

The latest round of US sanctions on Russian oil could disrupt Russian oil supply and distribution significantly, the International Energy Agency (IEA) said in its monthly oil market report on Wednesday, adding that "the full impact on the oil market and on access to Russian supply is uncertain".

A fresh round of sanctions angst seems to be supporting prices, along with the prospect of a weekly US stockpile draw, said Ole Hansen, head of commodity strategy at Saxo Bank, Reuters reported.

"Tankers carrying Russian crude seems to be struggling offloading their cargoes around the world, potentially driving some short-term tightness," he added.

The key question remains how much Russian supply will be lost in the global market and whether alternative measures can offset the , shortfall, said IG market strategist Yeap Jun Rong.

OPEC, meanwhile, expects global oil demand to rise by 1.43 million barrels per day (bpd) in 2026, maintaining a similar growth rate to 2025, the producer group said on Wednesday.

The 2026 forecast aligns with OPEC's view that oil demand will keep rising for the next two decades. That is in contrast with the IEA, which expects demand to peak this decade as the world shifts to cleaner energy.

The market also found some support from a drop in US crude oil stocks last week, market sources said, citing American Petroleum Institute (API) figures on Tuesday.

Crude stocks fell by 2.6 million barrels last week while gasoline inventories rose by 5.4 million barrels and distillates climbed by 4.88 million barrels, API sources said.

A Reuters poll found that analysts expected US crude oil stockpiles to have fallen by about 1 million barrels in the week to Jan. 10. Stockpile data from the Energy Information Administration (EIA) is due at 10:30 a.m. EST (1530 GMT).

On Tuesday the EIA trimmed its outlook for global demand in 2025 to 104.1 million barrels per day (bpd) while expecting supply of oil and liquid fuel to average 104.4 million bpd.

It predicted that Brent crude will drop 8% to average $74 a barrel in 2025 and fall further to $66 in 2026 while WTI was projected to average $70 in 2025, dropping to $62 in 2026.