Saudi Private Sector Contribution To GDP Doubles Over The Past Decade

Minister of Investment Khalid Al-Falih highlighted the essential role of the private sector in Saudi Arabia's investment landscape. He noted its significant impact on economic growth, with its contribution to the GDP doubling over a decade. From SAR1.1 trillion in 2016, it has now reached approximately SAR2.3 trillion. The minister stressed the need to further increase this figure beyond SAR2.4 trillion within five years.

The meeting took place on Sunday at the Federation of Saudi Chambers (FSC) headquarters. Al-Falih met with Hassan Alhwaizy, Chairperson of FSC, along with heads and representatives from Saudi chambers of commerce, joint Saudi-foreign business councils, and national committees. Key figures like Assistant Minister Ibrahim Al-Mubarak and CEO of SIPA Khaled Alkhattaf were also present.

Al-Falih emphasized that the private sector is crucial for economic development, noting a 76 percent rise in domestic investment by 2024. Local investments now make up about 30 percent of Saudi Arabia's GDP. This growth reflects the sector's pivotal role in driving the nation's economy forward.

Foreign investments have also seen substantial growth since the launch of Saudi Vision 2030. Inflows have quadrupled, reaching nearly SAR120 billion by 2024. The total foreign direct investment stock has surpassed SAR1 trillion, marking a 100 percent increase compared to 2016.

The meeting aimed to bolster strategic partnerships between the ministry and FSC. It sought to explore new collaboration opportunities with the private sector while addressing investment challenges aligned with Saudi Vision 2030 and its National Investment Strategy.

Al-Falih underscored that these positive indicators highlight the necessity for ongoing cooperation between public and private sectors. This collaboration is vital for sustaining the Kingdom’s economic transformation journey.

The gathering was attended by several deputies, general directors, and senior officials from the ministry, reflecting a unified effort to enhance investment strategies and foster economic growth across various sectors.

Saudi Arabia continues to focus on expanding its investment landscape through strategic initiatives and partnerships. By leveraging both local and foreign investments, it aims to achieve sustainable economic growth while aligning with its long-term vision for development.

With inputs from SPA