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Saudi GDP Exceeds $1 Tln, Shows Kingdom’s Economy Is on Right Track

Saudi Minister of Finance Mohammed Al-Jadaan speaks at the second Financial Sector Conference in Riyadh on Wednesday. (Bashir Saleh)
Saudi Minister of Finance Mohammed Al-Jadaan speaks at the second Financial Sector Conference in Riyadh on Wednesday. (Bashir Saleh)
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Saudi GDP Exceeds $1 Tln, Shows Kingdom’s Economy Is on Right Track

Saudi Minister of Finance Mohammed Al-Jadaan speaks at the second Financial Sector Conference in Riyadh on Wednesday. (Bashir Saleh)
Saudi Minister of Finance Mohammed Al-Jadaan speaks at the second Financial Sector Conference in Riyadh on Wednesday. (Bashir Saleh)

The size of Saudi Arabia’s GDP, which reached $1.7 trillion in 2016, demonstrated that the Kingdom’s economy is on the right path as it advances the implementation of Vision 2030.

Vision 2030 is a unique transformative blueprint that aims to diversify and double the size of the Saudi economy, so it becomes one of the largest world economies. It also looks to establish a sustainable future in all fields.

Speaking at the second Financial Sector Conference in Riyadh, Minister of Finance Mohammed Al-Jadaan affirmed that the Kingdom has achieved remarkable results within the comprehensive development process, whose features were drawn by Vision 2030.

The progress took place under the directives of Custodian of the Two Holy Mosques King Salman bin Abdulaziz and the direct supervision of Prince Mohammed bin Salman, Crown Prince and Prime Minister.

Al-Jadaan opened on Wednesday the two-day conference organized by the partners of the Financial Sector Development Program, including the Ministry of Finance, Saudi Central Bank and Capital Market Authority.

Relationship with Iran

Al-Jadaan stressed that the re-establishment of Saudi-Iranian diplomatic relations paves the way for discussing opportunities for cooperation and investment between the two countries.

The minister noted that Iran is a neighboring country, and there are no obstacles that prevent normalization. He added that the Kingdom is committed to the principles of the recently concluded agreement with Iran.

Bank assets

According to Al-Jadaan, top achievements since the launch of Vision 2030 include Saudi Arabia becoming one of the fastest-growing financial markets worldwide.

Saudi banking assets have increased by 37% since 2019, reaching SAR3.6 trillion ($960 billion) by the end of last year. Moreover, the number of financial technology companies has risen from 20 in 2019 to 147 in 2022.

The minister added that the financial sector holds the key to the prosperity of the Kingdom’s traditional and digital infrastructure, and that ambitious goals have been set for the development of the financial sector.

International institutions

“The Kingdom is a reliable investor partner. In this regard, five international financial institutions have joined the local First Traders’ Program, where the Public Investment Fund issued the first-ever $3 billion international green bond in October; the second issue of $5.5 billion was completed last month, boosting the Kingdom’s successes,” said Al-Jadaan.

“Also, the National Development Fund (NDF) last year injected some $4 billion to support domestic and international investors to implement projects in the industrial, energy, mining, and logistics sectors,” he added.

E-Payments

The minister revealed that the percentage of electronic payments in the retail sector amounted to about 57% of the total transactions.

Furthermore, Al-Jadaan said that the number of small and medium sized enterprises (SMEs) has nearly doubled since 2016 as the share of bank financing going to SMEs reached 7.9 % and 45 % of SMEs are owned by Saudi women.

Al-Jadaan explained that the Kingdom today has strong economic and financial foundations, with an average inflation rate of 2.5 % in 2022. This figure is one of the lowest among G20 countries.

In addition, non-oil revenues reached 35% of expenditures in 2022.

GDP growth in 2022 reached 8.7 %, supported by a healthy growth in non-oil GDP, which amounted to 5.4 %.

Localization rate

Al-Jadaan also talked about the high rates of localization in the private sector.

“The Female participation rate in the labor market is now 37 %. Consumption is strong and home ownership has grown to a record 62 %, while real estate lending quadrupled since 2018,” he said.

Al-Jadaan said that the Saudi Privatization Program has a pipeline of over 200 projects in 17 targeted sectors, creating tremendous opportunities for investors.

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Business

Oil Eases as Weaker Demand Outlook Counters Mideast Supply Concerns

Oil pumpjacks are pictured in an Ecopetrol oil field in Barrancabermeja, Colombia October 11, 2024. (Reuters)
Oil pumpjacks are pictured in an Ecopetrol oil field in Barrancabermeja, Colombia October 11, 2024. (Reuters)
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Oil Eases as Weaker Demand Outlook Counters Mideast Supply Concerns

Oil pumpjacks are pictured in an Ecopetrol oil field in Barrancabermeja, Colombia October 11, 2024. (Reuters)
Oil pumpjacks are pictured in an Ecopetrol oil field in Barrancabermeja, Colombia October 11, 2024. (Reuters)

Oil prices eased on Thursday after gains in previous sessions, as attention turned to expectations of weaker global oil demand this year, while there was no progress on opening the vital Strait of Hormuz.

Brent futures slipped 42 cents, or 0.47%, to $88.56 a barrel by 0405 GMT. US, trimming gains made over the previous six sessions.

West Texas Intermediate (WTI) crude fell 55 cents, or 0.66%, to $82.72, after advancing over the past five sessions.

A senior Iranian source said ‌on Wednesday there ‌had been no progress in talks to revive an interim ‌deal ⁠agreed in June ⁠and define a timeframe to implement it.

"There was little in the way of fresh developments between the US and Iran, with both sides remaining in a deadlock," said ING analysts in a note on Thursday.

"Meanwhile, the latest large drone attack on Russia's Novorossiysk port appears to have spared oil infrastructure, with no reports of damage to oil terminals as of now."

With no change in the prospect of reopening the ⁠Strait of Hormuz, the key factor that had driven prices ‌higher over the past week, attention turned to ‌the demand outlook following a surprise build in US crude stocks and lower consumption forecasts from ‌OPEC and the International Energy Agency.

US commercial crude oil inventories posted their ‌largest weekly gain since January 2023 as exports slumped, data from the Energy Information Administration showed on Wednesday.

Crude inventories rose by 17.4 million barrels to 424.4 million barrels in the week ended August 7, their highest since June 5, the EIA said, compared with analysts' ‌expectations in a Reuters poll for a 1.4-million-barrel draw.

On the same day, the Organization of the Petroleum Exporting Countries ⁠lowered its world ⁠oil demand growth forecast for 2026 to 580,000 barrels per day in its monthly oil market report.

At the same time, the International Energy Agency said it expects a 1.6 million bpd contraction in consumption this year, down from a forecast of 1 million bpd last month, with demand curtailed by higher prices and restricted supply due to the US-Israeli war with Iran.

Still, the deadlocked talks between Iran and the US to end the war in the region have kept a floor under prices.

"The safety situation for navigation in these waters has further deteriorated, forcing vessels to turn off their signals, which reduces transparency in shipping and makes it more difficult for the market to track and assess actual supply levels," analysts at Haitong Futures said in a note.

Business

Dollar Treads Water as Fed Hike Bets Pared on Benign US Inflation

A picture illustration shows US 100 dollar bank notes taken in Tokyo August 2, 2011. (Reuters)
A picture illustration shows US 100 dollar bank notes taken in Tokyo August 2, 2011. (Reuters)
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Dollar Treads Water as Fed Hike Bets Pared on Benign US Inflation

A picture illustration shows US 100 dollar bank notes taken in Tokyo August 2, 2011. (Reuters)
A picture illustration shows US 100 dollar bank notes taken in Tokyo August 2, 2011. (Reuters)

The dollar's advance stalled on Thursday after an overall benign US inflation reading overnight spurred traders to pare back bets for a near-term Federal Reserve interest rate hike.

The greenback was little changed against the yen in Asia's afternoon, but remained on course to gain about 1% this week as markets bought back the currency pair following recent joint US-Japan intervention that saw it plummet to a three-month low.

The dollar index, which measures the US currency against the yen and five other major peers, was flat at 99.976 on Thursday, ‌but on course ‌for a 0.4% weekly rise.

US consumer prices increased 0.1% ‌in ⁠July, in line ⁠with economists' expectations, leading money markets to reduce the odds of a September rate hike to 40%, down from 54% a week ago, according to CME Group's FedWatch.

Michael Wan, a currency strategist at MUFG, said the primary dilemma for the Fed now lies in weighing inflation risks against a softening labor market, particularly after the weaker-than-expected July payrolls report released last Friday.

"We think that the FOMC is likely to maintain a restrictive holding pattern in September rather than a pivot towards ⁠a hike," Wan said in a note.

The dollar changed hands at 159.35 ‌yen, close to the 160 level that some market ‌participants see as a line in the sand following the rare joint intervention at the end of ‌July. The action helped pull the exchange rate down from near a four-decade peak close ‌to 164 to 155.20 over the course of three days.

Shusuke Yamada, head of Japan FX/rates research at Bank of America, said investors can only judge the authorities' commitment to defending the yen through dollar-yen price action and the policy response that follows.

"A break above 160 would likely be interpreted as a sign ‌of limited policy resolve, while successful intervention that pushes USD/JPY below 155 would have strengthened perceptions of strong commitment at least until recently," ⁠Yamada said.

"Confidence in Japan's ⁠commitment to defending the yen improved after coordinated intervention with the US on July 31. However, as USD/JPY has rebounded without any intervention over the past week, that credibility appears to have eroded."

The euro was little changed at $1.1525. Sterling edged down 0.04% to $1.3491 ahead of a slew of UK data due later in the day, including GDP.

The Australian dollar eased 0.2% to $0.7048, but was still close to Wednesday's 10-week high of $0.7091. Reserve Bank of Australia Assistant Governor Christopher Kent told a Reuters NEXT Newsmaker event in Sydney that the risks on inflation were very much to the upside and if those risks materialized, rates would have to rise again.

The New Zealand dollar slid 0.4% to $0.5833 after a surprisingly low reading on inflation expectations stirred doubts about the need for aggressive rate hikes. The currency has retreated gradually after hitting the highest levels since early June earlier this month.

Bitcoin was slightly higher at around $63,883.

Business

Saudi Digital Government Authority Announces Rise in Digital Experience Maturity Index to 87.06% in 2026

People are seen at an edition of the Digital Government Forum. (SPA)
People are seen at an edition of the Digital Government Forum. (SPA)
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Saudi Digital Government Authority Announces Rise in Digital Experience Maturity Index to 87.06% in 2026

People are seen at an edition of the Digital Government Forum. (SPA)
People are seen at an edition of the Digital Government Forum. (SPA)

Saudi Arabia’s Digital Government Authority (DGA) announced on Wednesday the results of the Digital Experience Maturity Index for 2026, which reached 87.06%, achieving an "Advanced" maturity level.

The index conducted a comprehensive assessment of 59 digital platforms across four main perspectives comprising 20 themes, covering beneficiary satisfaction, user experience, complaints handling, and technologies and tools, supporting the improvement of digital services and enhancing the beneficiary experience.

Governor of the Digital Government Authority Eng. Ahmed bin Mohammed Alsuwaiyan stated that the index results reflect the continuous advancement of digital services in Saudi Arabia and government agencies’ commitment to improving their services and leveraging beneficiary feedback.

These efforts contribute to delivering digital services that are more accessible, efficient, and reliable, improving quality of life, and enhancing government performance efficiency, he said.

He stressed that this progress is an extension of the support and empowerment provided to the digital government ecosystem by Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, toward achieving the objectives of Saudi Vision 2030 and strengthening Saudi Arabia’s global position in digital government.

The index recorded growth in 2026 compared to the previous year, with the number of platforms included in the assessment increasing to 59, compared to 50 platforms in 2025.

Meanwhile, participation in the "Evaluate Your Digital Experience" survey exceeded 805,500 participants, compared to 374,000 participants in the previous year, reflecting the expanding impact of the index and its role in supporting the continuous improvement journey of government digital services.

The Digital Inclusion sub-index also achieved 76.98% within the "Competent" level, underscoring government agencies’ commitment to designing inclusive digital services that enable all segments of society, including persons with disabilities and older persons, to access and benefit from digital services independently.

The results highlighted the top 10 performing digital platforms as follows: Absher (94.38%), Etimad (94.36%), Senaei (92.83%), Balady (92.56%), Tawakkalna (92.50%), Musaned (92.20%), Qiwa (92.14%), Logisti (91.72%), Nama (91.53%), and the Ministry of Tourism Portal (91.16%).

The DGA launched the Digital Experience Maturity Index in 2022 to measure the maturity of government digital platforms and services and enable government agencies to develop their services based on beneficiary feedback and global best practices.

The index continues to evolve its methodology annually in line with emerging trends in digital experience design and measurement. This progress has contributed to strengthening Saudi Arabia’s standing in international indexes, ranking second globally in the GovTech Maturity Index (GTMI) 2025, issued by the World Bank Group, as well as ranking first regionally for the fourth consecutive time in the Government Electronic and Mobile Services Maturity Index (GEMS) 2025, issued by the United Nations Economic and Social Commission for Western Asia (ESCWA).