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.



Saudi Arabia, US Unveil Plans to Deepen Economic and Strategic Ties

Saudi Investment Minister addresses audience in opening remarks at the Saudi-US Investment Forum 2025 (Asharq Al-Awsat)
Saudi Investment Minister addresses audience in opening remarks at the Saudi-US Investment Forum 2025 (Asharq Al-Awsat)
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Saudi Arabia, US Unveil Plans to Deepen Economic and Strategic Ties

Saudi Investment Minister addresses audience in opening remarks at the Saudi-US Investment Forum 2025 (Asharq Al-Awsat)
Saudi Investment Minister addresses audience in opening remarks at the Saudi-US Investment Forum 2025 (Asharq Al-Awsat)

Saudi Arabia and the United States announced efforts to strengthen economic relations and expand their growing strategic alliance through private-sector-led partnerships targeting key industries including energy, artificial intelligence, defense, tourism and advanced technologies.

The announcement was made during the Saudi-US Investment Forum, which was held on Tuesday in Riyadh.

The event drew senior ministers and officials from both sides, along with top executives from leading corporations and financial institutions in the two countries.

The forum coincided with the visit of US President Donald Trump to the Kingdom, where he was received by Crown Prince Mohammed bin Salman.

Saudi Arabia plans to boost investment ties with the US by up to $600 billion over the next four years, spanning public and private sector deals across key industries such as defense, semiconductors, transportation, space exploration and advanced technologies.

The Kingdom’s private sector is expected to play a central role in driving these investments.

Washington views Riyadh as a key partner in maintaining global oil market stability and supply reliability, with Saudi Arabia being one of the world’s largest crude exporters. The two countries are also working toward a landmark agreement on peaceful nuclear energy cooperation, alongside potential deals in energy, mining, and energy infrastructure.

US officials have expressed support for Saudi Arabia’s Vision 2030, which aims to diversify the economy and implement sweeping social changes.

Washington also welcomed Riyadh’s efforts to increase women’s participation in the workforce and promote interfaith dialogue.

Saudi Arabia is among the United States’ largest trading partners in the region, with bilateral trade reaching $32 billion in 2024. Saudi exports to the US stood at $13 billion, while imports from the US totaled $19 billion.

US foreign direct investment in the Kingdom reached $15.3 billion last year.

American investors are increasingly drawn to Saudi Arabia’s sweeping transformation, which is unlocking new opportunities in commercial space exploration, renewable energy, healthcare, infrastructure, advanced technology and artificial intelligence.

Vision 2030 initiatives and mega-projects are also opening doors for US firms in strategic sectors such as mining, petrochemicals, manufacturing, renewable energy, tourism, financial services, healthcare and pharmaceuticals.

In his opening remarks at the Saudi-US Investment Forum in Riyadh, Saudi Investment Minister Khalid Al-Falih said Vision 2030 had opened “unprecedented horizons” for investment, renewing his country’s commitment to a strategic partnership with the United States that spans more than 90 years.

“We are living a historic moment in which we reaffirm a strategic partnership built on trust, mutual respect and shared interests,” he said.

Falih pointed to the Kingdom’s stable economic policies, low debt levels, strong financial reserves and stable inflation as key pillars of its investment appeal. He also noted that Saudi Arabia hosts one of the world’s fastest-growing financial markets.

“We are not merely seeking capital inflows. We are building strategic partnerships that transfer knowledge, localize technology and develop homegrown industries,” Falih said, highlighting opportunities in renewables, advanced manufacturing, biotech, tourism, logistics and supply chain development.

Saudi Finance Minister Mohammed Al-Jadaan, speaking in a joint panel with US Treasury Secretary Scott Bessent, described the scale of the Kingdom’s economic transformation in recent years as “unprecedented.”

“What we’ve achieved in record time is a structural transformation,” he said, noting that the share of private investment in GDP rose from under 16% to more than 23%, a significant jump for any emerging economy.

Bessent underscored the strength of economic ties between Washington and Riyadh, describing the relationship as “historic and robust,” and highlighting its importance to US policy.

He also noted that his first official engagement in office was with his Saudi counterpart, a clear indication of how high this relationship ranks on Washington’s agenda.

He added that the Trump administration is working to position the US as the world’s leading investment destination by focusing on three pillars: trade liberalization, tax reduction, and deregulation.

Bessent reaffirmed that the US views Saudi Arabia as a key economic partner in the region and a promising platform for investment and collaboration across multiple sectors.