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Saudi Economy Grows by 9.6% in 1st Quarter of 2022, its Highest Since 2011

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
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Saudi Economy Grows by 9.6% in 1st Quarter of 2022, its Highest Since 2011

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

The General Authority for Statistics (GASTAT) published flash estimates of the Saudi Gross Domestic Product (GDP) growth rate for the first quarter of 2022, reported the Saudi Press Agency.

The figures reveal that the GDP has made the highest growth rate in 10 years, achieving a growth of 9.6% during the first quarter of 2022 compared to the same period in 2021.

This was driven by a significant increase in oil activities by 20.4%, in addition to an increase in non-oil activities by 3.7% and an increase in government services activities by 2.4%.

The figures showed that the seasonally adjusted real GDP in the Kingdom grew by 2.2% in the first quarter of 2022 compared to the previous year.

This increase was due to the positive growth in oil activities by 2.9%, and an increase in non-oil activities by 2.5%, while government services activities decreased by 0.9%.

According to the Methodology of Flash Estimates of Quarterly GDP Definition, a flash estimate of quarterly GDP is defined as a process of estimating the quarterly national accounts conducted during a short period after the end of the reference quarter and is published 30 days after the end of the reference quarter when the data relating to the quarter is still incomplete.

It is the same estimates that are performed in the quarterly national accounts, but it adopts simplified assumptions about the extrapolation of some indicators (monthly or quarterly). It uses many indicators related to production, expenditures, income, price, and foreign trade.

Flash estimates are related to the quarterly GDP of the entire national economy and are presented without any details of economic sectors and activities.

They are used by decision-makers, academics, and researchers who seek to obtain a long-term future view of the GDP data for economic activities. International organizations use seasonally adjusted data to make economic comparisons between different countries.

GASTAT is the official and only statistical reference for statistical data and information in the Kingdom. It implements all statistical activities, technical supervision of the statistical sector, design and implementation of field surveys, conduct of statistical studies and research, data and information analysis.

It is responsible for all work of documenting and preserving information and statistical data that covers, documents, classifies and analyzes all activities in the Kingdom from its various sources and extracts its statistical indicators.

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PepsiCo: $2.4 Billion Has Been Invested in Saudi Arabia

The inauguration of PepsiCo’s new regional headquarters in Riyadh.
The inauguration of PepsiCo’s new regional headquarters in Riyadh.
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PepsiCo: $2.4 Billion Has Been Invested in Saudi Arabia

The inauguration of PepsiCo’s new regional headquarters in Riyadh.
The inauguration of PepsiCo’s new regional headquarters in Riyadh.

US multinational food and beverage giant PepsiCo announced the launch of a new research and development center in Riyadh, as part of its strategic expansion across the Middle East.

With an investment of SAR 30 million (approximately $8 million), the center will be the largest of its kind in the Gulf region and will focus on developing new products tailored to local and regional consumer preferences.

The announcement came during the inauguration of PepsiCo’s new regional headquarters in the Saudi capital, underscoring the company’s long-term commitment to the Kingdom. Since 2017, PepsiCo has invested SAR 9 billion ($2.4 billion) in Saudi Arabia’s agriculture and food industries.

The company has grown its operational footprint to 86 sites and, in collaboration with local partners, has helped generate approximately 9,000 jobs—highlighting its role in advancing economic, industrial, and social development across the Kingdom.

Ahmed El-Sheikh, President and General Manager of PepsiCo Foods for the Middle East, North Africa, and Pakistan, told Asharq Al-Awsat that PepsiCo is deeply engaged in the agriculture, manufacturing, and trade sectors.

“We are investing in expanding agricultural output, and our Lay’s potato chips are now 100% locally sourced. Through modern irrigation techniques, we’ve also reduced agricultural water consumption by 22% in recent years,” he said.

El-Sheikh revealed that PepsiCo has committed SAR 300 million to its Dammam-based factory and an additional SAR 300 million to its new regional office and expanded R&D operations. Several of the company’s products manufactured in Saudi Arabia are now exported to Gulf and Levant markets.

“Choosing Saudi Arabia was a natural move, as it is the largest economy in the Middle East,” he said. The company worked closely with key ministries—including investment, industry, and environment—to facilitate the launch of its new headquarters, he went on to say.

The Riyadh office will oversee operations across the Gulf and Africa. El-Sheikh noted that PepsiCo had received wide-ranging support from the Saudi government, citing recent regulatory reforms that have made the investment climate increasingly favorable. Saudization within the company has reached 50% across all departments.

Mohamed Shelbaya, PepsiCo’s General Manager for Beverages in MENA, said Vision 2030 continues to draw major foreign investments by eliminating barriers, updating regulations, and offering incentives. “Saudi Arabia offers one of the region’s strongest investment cases, thanks to its large population, young demographic, and rapidly growing economy,” he stressed.

Shelbaya also spoke on PepsiCo’s commitment to innovation amid growing competition in the local market. “We are opening an R&D division to create new flavors that suit Saudi tastes, with potential for global expansion,” he said. “We’re also working with the government on localizing manufacturing inputs to lower costs and increase local investor participation.”

 

 

The inauguration of PepsiCo’s new regional headquarters in Riyadh.