• | 5:00 pm

Saudi GDP grows at a brisk pace, fueled by the oil sector

Inflated fuel prices are the driving force behind the healthy performance of Saudi Arabia’s economic performance

[Source photo: Venkat Reddy/Fast Company Middle East]

According to General Authority for Statistics reports, the Saudi GDP has grown by 11.8% in the second quarter of 2022. The report reveals that the oil sector, which grew at 23.1% during the same time this year, has been the major contributor to the overall growth.

This year-on-year growth had almost matched the numbers of 2011, when the Saudi GDP recorded a 13.6% uptick.

That is not all. The Saudi economy is also registering solid numbers in other sectors. Reports reveal that the non-oil segment saw a 5.4% positive year-on-year trend in the second quarter. Similarly, the upward trend can be seen in government activities as well.

“Saudi Arabia’s economic recovery is likely to be one of the strongest in the emerging world over the next couple of years, as oil output is ramped up and fiscal policy is loosened,” the report said.

Experts hint that the Saudi economy and other Gulf economies will keep riding the upward trend thanks to the increased oil prices. “Higher energy production and prices will result in all Gulf economies running twin budget and current account surpluses this year, providing scope for more fiscal support,” explained Capital Economics.

Even the International Monetary Fund has suggested that the higher oil prices will drive the kingdom’s economic growth, surpassing 7.66% in 2022.

We’ve already seen that Saudi Arabia’s retail sector has shown a strong recovery in the post-pandemic era. With eased travel restrictions, the kingdom’s monetary authority had already reported a 16 percent year-on-year rise in transactions.

Most Innovative Companies comes to the Middle East this October! Click here to know more.

More Top Stories: