Saudi Economy Surpasses $1 Trillion Mark, Grows 80% Since Vision 2030’s Launch

The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)

Riyadh: Bandar al-Mosalam

10:53-26 April 2026 AD ـ 09 Thul-Qi’dah 1447 AH

Riyadh: Bandar al-Mosalam

10:53-26 April 2026 AD ـ 09 Thul-Qi’dah 1447 AH

Saudi Economy Surpasses $1 Trillion Mark, Grows 80% Since Vision 2030’s Launch

The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)

Saudi Arabia’s economy has surpassed the $1 trillion mark for the first time, expanding by 80 percent since the launch of Vision 2030, according to the Kingdom’s 2025 Vision 2030 report.

The milestone underscores the impact of fiscal reforms and diversification efforts aimed at reducing dependence on oil. Non-oil activities now account for 55 percent of the economy, up from 45 percent in 2016, while non-oil government revenues have risen more than 170 percent, from SAR185.7 billion ($49.5 billion) in 2016 to SAR505 billion ($134.6 billion) last year.

The report said the gains reflected investment in growth sectors, legal reforms and a more attractive business climate.

Fiscal discipline, rising liquidity

Saudi authorities noted that fiscal policy remained anchored in spending discipline and sustainability, with deficit targets ranging between 5 percent and 7 percent of gross domestic product.

Liquidity reached a record SAR3.167 trillion in 2025, up from about SAR1.799 trillion in 2016.

Officials said expansionary spending had been directed toward strategic sectors linked to economic growth and living standards.

Debt low, reserves rise

Despite higher spending, Saudi Arabia has maintained one of the lowest debt burdens in the G20, with public debt below 50 percent of GDP. Foreign reserves rose to SAR1.7 trillion ($453.3 billion), their highest level in five years.

Real GDP growth accelerated from 1.7 percent in 2016 to 4.5 percent last year, the report said.

Competitiveness gains

Saudi Arabia rose 15 places between 2021 and 2025 in the IMD World Competitiveness Yearbook to rank 17th globally, placing fourth among G20 countries last year.

The government introduced more than 1,000 reforms and 1,200 regulatory measures in recent years, including allowing full foreign ownership in most sectors and implementing a new bankruptcy law. The measures improved transparency, dispute resolution and legal certainty for investors.

Saudi Arabia has also expanded support for small and medium-sized enterprises through Monshaat, the SME Bank and Saudi Venture Capital Company.

The number of SMEs exceeded 1.7 million by the end of 2025, employing around 8.88 million people and contributing 22.9 percent to GDP. More than 474,000 businesses are owned by young Saudis, according to the report.

Growth outlook

The International Monetary Fund projects Saudi growth of 3.1 percent this year and 4.5 percent in 2027. The World Bank forecasts growth of 4.3 percent in 2026 and 4.4 percent next year.

The Organization for Economic Cooperation and Development (OECD) expects growth of 4 percent this year and 3.6 percent in 2027. For its part, Saudi Arabia’s Finance Ministry forecasts growth of 4.6 percent in 2026 and 3.7 percent next year.

UK Offers Cheaper Chocolate, Tickets to the Zoo to Ease Cost of Living Squeeze

Britain’s Prime Minister Keir Starmer visits a children’s activity center in Essex, Britain, Thursday, May 21, 2026. Kin Cheung/Pool via REUTERS

London: Asharq Al Awsat

06:59-22 May 2026 AD ـ 05 Thul-Hijjah 1447 AH

London: Asharq Al Awsat

06:59-22 May 2026 AD ـ 05 Thul-Hijjah 1447 AH

UK Offers Cheaper Chocolate, Tickets to the Zoo to Ease Cost of Living Squeeze

Britain’s Prime Minister Keir Starmer visits a children’s activity center in Essex, Britain, Thursday, May 21, 2026. Kin Cheung/Pool via REUTERS

The British government is offering cheaper chocolate and discounted entry to theme parks as it seeks to ease a cost-of-living squeeze and win back voters.

Treasury chief Rachel Reeves on Thursday announced modest handouts to help alleviate rising costs sparked by the Iran war, including a reduction in import tax on cookies, chocolate and about 100 other supermarket products.

UK inflation fell to 2.8% in April, down from 3.3% in March, but is expected to spike again on the back of higher prices for fuel, heating gas and electricity.

To ease the impact, the government has postponed a planned increase in fuel duty and given truckers a yearlong reprieve from road tax to help offset soaring gasoline prices due to the effective closure of the Strait of Hormuz, a key oil transit route.

But Reeves did not commit to broader support for household heating bills, The Associated Press reported.

She announced measures designed to boost the summertime economy, including free bus travel for children in August. During the summer, tax on tickets for attractions including zoos, theme parks and museums will be slashed from 20% to 5%.

Reeves said she would pay for the cost-of-living support by closing tax loopholes for oil and gas companies with overseas operations.

“This summer I want every family to be able to enjoy themselves,” Reeves said. “As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”

The announcements came as Prime Minister Keir Starmer tries to keep calm and carry on while rivals in the governing Labour Party seek to oust him after a set of disastrous local election results.

The last two weeks have been devastating for Starmer, who led the party to a landslide victory less than two years ago. Scores of Labour lawmakers have called for him to resign, and he is widely expected to face a leadership challenge. Greater Manchester mayor Andy Burnham is aiming to win a seat in Parliament in a June 18 special election, and then challenge Starmer for the prime minister’s job.

Starmer insists he will not resign and will fight for his job. Under UK political rules, whoever took over from Starmer as party leader would also become prime minister, without the need for a national election.

Business

Oil Gains, Stocks Slip on Uncertain Mideast Peace Prospects

A fuel storage facility at Russia's main oil export hub in the Black Sea port of Novorossiysk (Reuters)

Asharq Al Awsat

15:44-21 May 2026 AD ـ 04 Thul-Hijjah 1447 AH

Asharq Al Awsat

15:44-21 May 2026 AD ـ 04 Thul-Hijjah 1447 AH

Oil Gains, Stocks Slip on Uncertain Mideast Peace Prospects

A fuel storage facility at Russia's main oil export hub in the Black Sea port of Novorossiysk (Reuters)

Oil prices jumped while stock markets mostly retreated and the dollar firmed Thursday as hopes of a Middle East peace accord faded on conflicting headlines on the state of talks.

US President Donald Trump has described the latest discussions as being on the "borderline" between a deal and renewed strikes.

Pakistan's army chief was due in Iran on Thursday, Iranian media reported, with Islamabad mediating as Tehran examines a new US proposal to end the war, AFP reported.

"Markets pulled back across Europe as the waiting game to end the Iran war rumbled on," said Dan Coatsworth, head of markets at AJ Bell.

Wall Street's main indices also dipped at the open.

There were earlier big gains for technology stocks in Asia after chip giant Nvidia posted record quarterly revenue of $81.6 billion, blowing past analyst forecasts on the voracious demand for artificial intelligence hardware.

Sentiment was also boosted by Elon Musk's filing for a public sale of SpaceX shares, which could be the largest initial public offering in history as the rocket and satellite company seeks to raise up to $75 billion.

"This could be a blockbuster summer for IPOs with OpenAI also expected to list in the coming weeks," said Kathleen Brooks, research director at XTB.

"How the market absorbs these new listings will be crucial for the future of the AI trade, as both companies are at the heart of the AI revolution," she said.

South Korea's benchmark Kospi index surged 8.4 percent, helped by Samsung Electronics shares after unions paused a 18-day strike.

Japan's Nikkei index ended with a gain of 3.1 percent.

But despite the group's profit growth, Nvidia shares failed to get a boost as they have in previous quarters, gaining 0.2 percent after trading got underway in New York.

With tech shares, whose staggering rises helped drive markets to record highs in recent months, now considered by many investors to be overvalued, investment analyst Bret Kenwell at eToro said there were worries that a pullback was in store.

"While geopolitical risks could still flare up, the more pressing issue appears to be macro-related," he said, pointing to the recent rise in sovereign bond yields and the prospect of central banks raising interest rates.

The yields demanded by investors to lend to governments by buying their bonds have peaked in recent days, indicating weakening confidence in their economies and inflation fears.

After tech gains in Asia, attention turned to US-Iran war developments and the potential fallout for economies on the continent, sending European stocks lower.

The EU warned Thursday that eurozone growth would be less than expected this year and inflation significantly higher than forecast, as the Mideast war and subsequent energy shock take their toll.

It came as a key survey revealed that business activity in the eurozone contracted further in May, weighed down by weak demand caused by a conflict.

British private-sector activity also unexpectedly contracted this month, marking the first decline in output in over a year, S&P Global added.

"The UK economy is facing a perfect storm, as rising political uncertainty adds to the growing impact from the war in the Middle East," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

In other corporate news, French video game giant Ubisoft saw its shares plunge around 11 percent after it reported disappointing annual results and forecast further pain in the coming year.

The "Assassin's Creed" and "Rayman" developer had warned in January of the likely impact, with seven games cancelled and six delayed.