Saudi Arabia’s GDP has ‘nearly doubled’ since 2016

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Saudi Arabia is exceeding expectations when it comes to attracting investment, according to the kingdom’s Minister of Investment, Khalid Al-Falih.

Al-Falih shared these highlights at the third Saudi Capital Market Forum (SCMF) in Riyadh during a panel session, which included Faisal Alibrahim, Minister of Economy and Planning of Saudi Arabia, and Mohamed AlTuwaijri, vice chairman of the Board of Directors at the Saudi National Development Fund.

The forum is being held under the theme “Powering Growth”.

The two-day event, which started on February 19, has brought together financial sector experts, government officials, exporters, and investors to engage in constructive dialogues that further the development of the kingdom’s financial markets sector.

H.E. Khaled Alfalih, Minister of Investment, shed light on the investment scene in the Kingdom and future aspirations under Vision 2030 during his participation in the events of the first day of the #SCMF24.@Khalid_AlFalih pic.twitter.com/07sIB9ZDQw

— Saudi Capital Market Forum (@scmf_sa) February 19, 2024

GDP surge, investment boost

Al-Falih noted that Saudi Arabia’s GDP has nearly doubled since the launch of Vision 2030, jumping from SAR2.6tn to over SAR4tn. Vision 2030 was enacted in 2016. This growth positions the kingdom as the 16th largest economy among G20 nations.

Gross capital formation, a key indicator of investment activity, has grown significantly, rising from less than 22 per cent to nearly 28 per cent by Q3 2023. This surpasses the initial target set by the National Investment Strategy and paves the way for further growth towards the 30 per cent goal, Al-Falih added.

Saudi Arabia sees foreign investment boom

Foreign direct investment (FDI) has seen remarkable progress, with stocks increasing by 52 per cent since Vision 2030’s inception.

Year-on-year FDI flows have also jumped, rising from below 1 per cent of GDP to over 3 per cent, with the ambitious target of reaching 4 per cent of GDP firmly in sight.

These achievements underline Saudi Arabia’s commitment to economic diversification and its efforts to establish itself as a global investment hub.

The nation’s strategic reforms and focus on fostering a business-friendly environment are also attracting significant interest from international investors.

Non-oil growth

In other news, Saudi Arabia’s Finance Minister Mohammed Al Jadaan told SCMF delegates that non-oil growth is expected to come in above 5 per cent in the medium term,

Read: Saudi finance minister expects above 5% non-oil growth

“If you look at the non-oil GDP, it is growing at very healthy numbers: 4 per cent and north of 4 per cent. We are expecting 5 per cent-plus in the medium term,” Jadaan announced.