Saudi Economy and Planning Minister Faisal Alibrahim has highlighted that the private sector is driving growth in the Kingdom, contributing 44.79% to the Kingdom’s economy by the end of Q3, 2023.
In an exclusive interview with Asharq Al-Awsat at the World Economic Forum in Davos, Alibrahim commended the private sector for achieving its highest-ever contribution to the real GDP.
He also noted that women now make up 36% of the workforce in the Kingdom, surpassing the 30% target set in Saudi Arabia’s national transformation plan, “Vision 2030.”
Alibrahim revealed significant growth in the social services sector, which includes sports and cultural activities, predicting over 10% growth in 2023.
Other sectors, such as transport, logistics, tourism, and entertainment, are also expected to see substantial growth.
The minister estimated the Saudi entertainment market to be worth $2.31 billion in 2023, projecting it to reach $3.8 billion by 2028, with an annual growth rate of 10.44%.
Regarding Saudi Arabia’s efforts to host regional headquarters for global companies, Alibrahim revealed that 275 international companies have been attracted, with over 89% choosing Riyadh as their primary location.
Advancements in Economic Diversification
Alibrahim praised Saudi Arabia’s strides in diversifying its economy, highlighting a positive 3.5% growth in non-oil economic activities during Q3 2023 compared to the same period in 2022.
The share of non-oil activities in the total nominal GDP also increased to 48%, and government activities saw a 2.3% rise compared to the previous year.
Alibrahim noted the ongoing positive performance of the Purchasing Managers' Index for the non-oil private sector, hitting 57.5 points in December 2023. This was backed by a continuous influx of new business and a rapid surge in exports, despite international economic challenges.
The minister explained that, according to data released with the announcement of the Saudi state budget for 2024, the initial estimates suggest a 4.4% growth in the country’s real GDP for the current year (2024).
This growth is driven by the non-oil sector, with the private sector expected to lead economic expansion. The Kingdom aims for a more favorable trade balance and remains committed to implementing initiatives aligned with Vision 2030 and regional strategies.
“The positive outlook for the Saudi economy continues the favorable trends seen since the beginning of 2021,” affirmed Alibrahim.
The Kingdom anticipates revenues of about SAR 1.17 trillion for the current year (2024), with expenses estimated at around SAR 1.25 trillion.
Private Sector’s Strong Role
Alibrahim praised 2023 as an outstanding year for the private sector in Saudi Arabia, noting its growth for the eleventh consecutive quarter since early 2021.
By the end of Q3 2023, the private sector's contribution to the Saudi economy reached a record 44.79%.
“This growth aligns with Saudi Vision 2030, aiming to increase the private sector's share of the total GDP from 40% to 65%,” said the minister.
Alibrahim also confirmed the private sector’s unprecedented contribution to the Kingdom’s real GDP, surpassing 322 billion riyals by the end of Q3 2023.
This marked its highest-ever contribution, with the GDP reaching SAR719.09 billion during the quarter.
Highlighting the private sector’s increasing role, Alibrahim mentioned the addition of over 44,000 citizens to the private workforce in the past month, bringing the total to 10.9 million workers in December 2023, including 2.3 million citizens.
