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Saudi Arabia to Boost GDP to $1.7 Trillion

Saudi Arabia to Boost GDP to $1.7 Trillion

Thursday, 14 October, 2021 - 10:15
Saudi Arabia’s Minister of Investment Khalid al-Falih (EPA)

Saudi Arabia wants to raise economic output to reach SAR 6.4 trillion ($1.71 trillion) by 2030, said Investment Minister Khalid al-Falih on Wednesday in a remark aimed at current efforts and economic reforms carried out by the Kingdom.

In statements he made at a press conference for discussing the national investment strategy, al-Falih said that the launch of the plan in 2021 was deliberate and pre-designed, indicating that it aims to lay a solid ground for investment in Saudi Arabia.

According to Al-Falih, Saudi Arabia is working to replicate the experiences of countries such as South Korea and China in terms of attracting investments and achieving annual growth of more than 10%.

He stressed the Kingdom’s goals to bring economic investment to 30% rate from the gross domestic product, compared to 22% in the best past conditions.

He pointed to economic growth targets of more than 10% of GDP, and “we will jump the investment rate to 30% of this output.”

He explained that by adding these numbers, the target would be 12.4 trillion riyals by 2030, with a gradual, deliberate, and achievable increase to be sustainable.

By 2030, the annual rate of the Kingdom’s total investments will exceed two trillion riyals, compared to 650 billion riyals, and this reflects a threefold doubling.

Al-Falih said this leap requires effort to empower the private sector, achieve profitability and sustainability of its investments, and provide the integrated investment environment provided by the national investment strategy in the Kingdom.

He said five economic zones would be established in the Kingdom, including fencing a part of King Abdullah Economic City in Rabigh and offering special incentives, including an exception to some legislation compatible with international agreements.

The statement comes on the heels of the launch of the National Investment Strategy, which aims to increase net foreign direct investment flows to the Kingdom to SR388 billion ($103.5 billion) annually by 2030.

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