Minister of Investment, Engineer Khalid Al-Falih, revealed record figures reflecting the strength of the Saudi economy, announcing that the Kingdom's GDP has doubled in less than a decade, rising from 2.6 trillion riyals in 2016 to about 4.7 trillion riyals in 2024. Al-Falih confirmed that this growth came at an annual rate of 8%, driven mainly by the strong performance of the non-oil sectors, which now constitute 56% of the total GDP, reflecting the success of economic diversification policies.
Indicators of economic transformation and Vision 2030
During a government press conference held in Riyadh today (Monday) to review indicators of economic and investment transformation, Al-Falih explained that the evaluation of the achievements of "Vision 2030" has moved from the planning stage to the "measurement by numbers" stage. This shift comes within the framework of the state's strategy aimed at reducing dependence on oil as the sole source of income and diversifying the economic base by attracting quality investments and localizing industries and services.
This jump in GDP is tangible evidence of the effectiveness of the structural reforms launched by the Kingdom since the announcement of the Vision in 2016, which focused on improving the business environment, facilitating procedures, and opening up new sectors such as tourism, entertainment, and mining to local and international investors.
Labor market recovery and empowerment of national talents
Regarding labor market indicators, the Minister of Investment reviewed the positive developments witnessed by the sector, noting that the Saudi economy has succeeded in providing about 800,000 jobs since 2016. This growth in jobs has been directly reflected in unemployment rates, which have declined significantly from 13% to slightly over 7%, approaching 7.5% according to local coverage.
The improvement wasn't limited to quantity; it extended to quality as well. Al-Falih pointed to a cumulative growth in the average wages of Saudis in the private sector exceeding 45%. He also noted a "qualitative leap" in women's empowerment, with their participation in the labor market doubling. This reflects the depth of the social and economic transformation the Kingdom is undergoing and underscores the state's commitment to increasing the contribution of all segments of society to development.
Unprecedented investment flows
Regarding foreign direct investment, the minister revealed figures that reinforce the Kingdom's position as a global investment destination, with inflows reaching 119 billion riyals during 2024, with initial expectations to exceed 140 billion riyals in 2025, compared to only about 28 billion riyals in 2017. This significant increase reflects the confidence of international investors in the stability and growth of the Saudi economy.
As for total investment, it witnessed a huge jump from about 672 billion riyals in 2017 to reach 1.44 trillion riyals by the end of 2024, with expectations to exceed 1.5 trillion riyals during the next year 2025. In a related context, total fixed capital formation reached 1.441 trillion riyals, indicating the enormity of the capital and infrastructure projects being implemented.
Attractive environment and regional headquarters
The minister touched on the expansion of the investor base, indicating that the number of licensed foreign companies has increased significantly to reach 62,000 companies, compared to only about 6,000 companies in 2016. He confirmed that foreign investments have exceeded one trillion riyals, supported by the program to attract regional headquarters, as more than 700 licenses were issued to global companies that moved their regional headquarters to Riyadh, which enhances the position of the Saudi capital as a major financial and commercial center in the Middle East.
In contrast, the local business sector is witnessing remarkable activity, with the number of commercial registrations for Saudis reaching about 1.8 million, reflecting the vitality of the private sector and its growing role in driving sustainable economic development.
