Saudi Arabia’s private sector climbed to an all-time high of just under half the domestic economy in the third quarter of 2023 as the world’s largest oil exporter is pushing ahead with reforms within its Vision 2030, its Economy and Planning Minister has said.

Faisal Al-Ibrahim told the Saudi daily Asharqalawsat that the Kingdom is determined to attain its target of making the private sector the dominant component of the economy given its massive resources.

Ibrahim, speaking from Davos, was quoted on Friday as saying Vision 2030 targets an increase in the private sector’s contribution to GDP from 40 percent to 65 percent and that in the third quarter its share peaked at nearly 44.79 percent.

“The private sector’s contribution to GDP hit an all-time high of 322 billion Saudi riyals ($85.8 billion) in the third quarter of 2023….real GDP during that period was estimated at around SAR719.09 billion ($191.7 billion),” the Minister said.

He noted that Vision 2030 is paying off in terms of non-oil sector growth, with transport and logistics surging by 9 percent in the first nine months of 2023.

The hospitality sector expanded by 7.2 percent and trade by 6.8 percent during the same period, Ibrahim said, adding that other non-oil activities were expected to grow by over 5 percent.

He said Saudi Arabia, the largest Arab economy, also targets direct investments of 5.7 percent of GDP at the end of Vision 2030.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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