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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

Saudi Arabia Links Recruitment to Digital Systems to Strengthen Compliance and Wage Protection

Participants at the Global Labor Market Conference in Riyadh (SPA)
Participants at the Global Labor Market Conference in Riyadh (SPA)
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Saudi Arabia Links Recruitment to Digital Systems to Strengthen Compliance and Wage Protection

Participants at the Global Labor Market Conference in Riyadh (SPA)
Participants at the Global Labor Market Conference in Riyadh (SPA)

Saudi Arabia’s labor market is undergoing rapid transformation driven by reforms under Vision 2030, aimed at strengthening compliance, protecting wages, and improving the efficiency of the business environment. These efforts run in parallel with expanding the integration of recruitment into digital systems, advancing international partnerships to regulate labor mobility, and supporting workforce diversification, thereby reinforcing institutional trust and international cooperation in labor market governance.

In this context, Dr. Tariq Al-Hamad, Deputy Minister for International Affairs at the Ministry of Human Resources and Social Development, told Asharq Al-Awsat that labor market reforms in the Kingdom have delivered tangible progress in modernizing regulations, enhancing worker protection, and creating a more dynamic and inclusive work environment. He noted that these transformations are no longer confined to the domestic level, but have expanded to include a more structured international dimension through bilateral agreements, including those signed with Nepal and Nigeria, which serve as governance tools to regulate labor mobility and strengthen worker protection.

Labor market shifts

Al-Hamad said the reforms have achieved measurable progress in updating regulatory frameworks, enhancing worker protection, and improving operational efficiency, with clear gains in participation, compliance, and productivity. He added that updates to labor mobility regulations since 2021 have enabled greater flexibility for workers to move between employers within regulatory frameworks aligned with international best practices. This shift was reinforced by the Contractual Relationship Improvement Initiative launched in March 2021, which marked a pivotal transformation in regulating job mobility.

At the institutional level, more than 11 million employment contracts have been documented via the Qiwa Platform, enhancing transparency and raising compliance levels in the private sector. He added that the implementation of a wage protection system has introduced preventive safeguards and strengthened trust between parties to employment contracts.

Strengthening worker protection

Alongside these changes, the worker protection framework has seen notable progress. Al-Hamad stated that more than 90 percent of private-sector establishments are compliant with the Wage Protection Program, ensuring accurate and timely salary payments.

He added that labor dispute resolution procedures have become faster, more efficient, and more transparent. The reforms have also driven greater inclusivity, with female labor force participation more than doubling between 2018 and 2024, one of the fastest growth rates globally. Meanwhile, around 2.48 million Saudis have joined private-sector jobs since 2020.

Deputy Minister for International Affairs at the Ministry of Human Resources and Social Development, Dr. Tariq Al-Hamad (Asharq Al-Awsat)

International cooperation

As reforms accelerate, they are no longer confined to the domestic level, increasing the need for a structured international framework to sustain them. Al-Hamad emphasized that organized international labor cooperation is a strategic priority, as it strengthens the Kingdom’s position as a partner committed to ethical recruitment, regulatory modernization, and shared responsibility. It also reinforces institutional trust and diplomatic cooperation in labor markets.

He explained that these agreements align cross-border labor mobility with modern regulatory standards, transparency requirements, and digital compliance systems. The expansion of such agreements, including those with Bangladesh, Nepal, and Nigeria, reflects a shift from traditional recruitment models toward long-term institutional partnerships between governments, providing more stable labor mobility channels and strengthening trust.

Governance enhancement

Reflecting this direction, Al-Hamad said agreements with Nepal and Nigeria regulate the full worker lifecycle, from recruitment licensing and contract documentation to wage transparency and dispute coordination and resolution mechanisms. He added that they enhance oversight of recruitment agencies, clarify contractual obligations, and establish institutional cooperation between governments to monitor compliance and resolve complaints efficiently.

He also noted that linking these agreements to digital infrastructure, such as the Qiwa platform and the Wage Protection Program, ensures that commitments are translated into enforceable mechanisms supported by real-time monitoring. This is complemented by joint oversight frameworks and regular information exchange, strengthening continuous supervision and accelerating the handling of labor cases.

Aligning skills with economic needs

As part of improving market efficiency, Al-Hamad stressed that aligning labor mobility with sectoral economic needs is a core pillar of the labor market strategy. Recent agreements are increasingly based on specific sector needs, ensuring recruitment is driven by actual demand rather than volume, particularly in sectors such as construction, tourism, logistics, healthcare, and advanced services.

He explained that the ministry relies on digital data through the Qiwa platform to continuously analyze market needs and identify skills gaps, allowing recruitment to be directed in line with economic requirements. Coordination with partner countries prior to worker arrival also helps verify skills, improve workforce readiness, and reduce skills gaps from the outset of employment.

He added that workforce planning is increasingly integrated with major national projects to ensure expatriate labor complements, rather than replaces, localization efforts. This is supported by programs such as Nitaqat, which incentivize the hiring of national talent across sectors.

International recognition of reforms

At the global level, these reforms have received growing recognition. Al-Hamad noted that the International Monetary Fund has pointed to tangible outcomes, including declining unemployment among Saudis, increased female participation in the labor market, and growth in private-sector employment.

He added that the “A Decade of Progress” report, developed in cooperation with the World Bank, highlighted structural transformations in the labor market.

The International Labour Organization has also commended the Kingdom’s role in developing labor policies and engaging in global dialogue, reflecting its growing status as a model in labor market reform, inclusivity, and economic flexibility.

Future priorities

Al-Hamad concluded that the next phase will focus on deepening international cooperation at both bilateral and multilateral levels by expanding labor agreements with new countries and strengthening partnerships with international organizations such as the International Labour Organization and the World Bank. These efforts aim to support knowledge transfer and policy development.

He added that the ministry is working to enhance collaboration with the private sector, academic institutions, and international stakeholders to keep pace with labor market transformations, with the goal of consolidating the Kingdom’s position as a trusted global partner in labor market development and delivering sustainable outcomes.

Business

Gold Steady as Investors Await Clarity on US-Iran Talks

Gold bracelets and necklaces displayed for sale in a gold shop at the Grand Bazaar in Istanbul (AFP)
Gold bracelets and necklaces displayed for sale in a gold shop at the Grand Bazaar in Istanbul (AFP)
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Gold Steady as Investors Await Clarity on US-Iran Talks

Gold bracelets and necklaces displayed for sale in a gold shop at the Grand Bazaar in Istanbul (AFP)
Gold bracelets and necklaces displayed for sale in a gold shop at the Grand Bazaar in Istanbul (AFP)

Gold prices held largely steady, as investors stayed on the sidelines awaiting clarity on the stalled peace talks between the United States and Iran.

Spot gold was steady at $4,709.50 per ounce, as of 0553 GMT. Last week, the metal fell 2.5% to snap a four-week winning streak.

US gold futures for June delivery fell 0.3% to $4,725.10.

"We're just sort of watching now whether there's progress in the (US-Iran) talks at all in the coming days and that's going to be the biggest driver for gold," said Kyle Rodda, a senior financial market analyst at Capital.com.

Lending support to bullion, the dollar eased after a report said that Iran through Pakistani mediators gave the US a new proposal on reopening the Strait of Hormuz and ending the war, Reuters reported.

US President Donald Trump said on Sunday that Iran could telephone if it wants to negotiate an end to their two-month war and stressed it can never have a nuclear weapon.

Trump cancelled a trip by two US envoys to Iran war mediator Pakistan on Saturday, dealing a setback to peace prospects.

Oil prices rose as the stalled talks prolonged the disruption of Middle East energy exports.

Higher crude oil prices can stoke inflation by raising transportation and production costs, increasing the likelihood of higher interest rates.

While gold is considered an inflation hedge, high interest rates make yield-bearing assets more attractive, weighing on its appeal.

Investors now await the US Federal Reserve's interest rate decision on Wednesday.

"It could either be a support to gold or an increased headwind, depending on if the Fed sort of indicates whether it sees itself potentially keeping policy unchanged for the rest of the year because of the inflationary impacts of the energy crisis," said Rodda.

Spot silver fell 0.1% to $76.61 per ounce, platinum gained 0.2% to $2,015.63, and palladium was down 0.6% at $1,487.73.

Business

Türkiye Unveils Steep Tax Cuts to Boost Competitiveness, Investment

Commuters arrive to take a ride across the Bosphorus at Karakoy ferry terminal in Istanbul, Türkiye, Thursday, April 23, 2026. (AP)
Commuters arrive to take a ride across the Bosphorus at Karakoy ferry terminal in Istanbul, Türkiye, Thursday, April 23, 2026. (AP)
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Türkiye Unveils Steep Tax Cuts to Boost Competitiveness, Investment

Commuters arrive to take a ride across the Bosphorus at Karakoy ferry terminal in Istanbul, Türkiye, Thursday, April 23, 2026. (AP)
Commuters arrive to take a ride across the Bosphorus at Karakoy ferry terminal in Istanbul, Türkiye, Thursday, April 23, 2026. (AP)

Türkiye unveiled details on Monday of a broad package of incentives aimed to boost competitiveness and attract investment, and also position its biggest city Istanbul as a leading financial gateway across the region.

At a press conference, Finance Minister Mehmet Simsek said Türkiye was extending a tax exemption on services exports to 100% to target high-value sectors like software, gaming, medical tourism.

At the same time, it is reducing manufacturing exporters' corporate tax rate ‌to 9% to ‌boost competitiveness and attract foreign direction investment (FDI), he ‌said.

The ⁠tax reductions are ⁠long-term and "here to stay," he told reporters, days after President Recep Tayyip Erdogan first floated the comprehensive legislative package including the tax plans.

The package aims to bolster an economy that officials hope is emerging from a years-long inflationary crisis that cut deeply into individuals' and companies' savings and earnings, prompting many Turks to seek stability ⁠abroad. Inflation was above 30% last month.

Some of the incentives, including zero corporate income tax on transit trade, are focused on the companies located ‌in the Istanbul Financial Center (IFC), a new state-backed clutch of glassy towers on the city's Asian side.

The ⁠rate is ⁠95% for those located outside the IFC, Simsek said, noting it was set at 50% in years past.

The package aims to "export more goods and services, attract more talent, entrepreneurs, capital, a new home that's more encouraging local citizens to use Türkiye as a center of their activities and ... placing IFC as one of the key regional hubs," he said.