Khalid Al-Falih, the Minister of Investment, recently announced significant growth in Saudi Arabia’s private sector, revealing that its contribution to the gross domestic product (GDP) has doubled over the past decade. The figure surged from SAR1.1 trillion ($293.31 billion) in 2016 to approximately SAR2.3 trillion ($613.28 billion) today. Al-Falih emphasized the necessity of continuing this upward trend, aiming for the private sector’s contribution to exceed SAR2.4 trillion within the next five years.
These comments came during a meeting with Hassan Alhwaizy, Chairperson of the Federation of Saudi Chambers (FSC), along with various representatives from Saudi chambers of commerce and foreign business councils at the FSC headquarters. The gathering also included key figures such as Assistant Minister of Investment Ibrahim Al-Mubarak and CEO of the Saudi Investment Promotion Authority (SIPA) Khaled Alkhattaf.
Highlighting the pivotal role of the private sector in stimulating economic progress, Al-Falih noted a remarkable 76 percent increase in domestic investment for 2024, with local investments now constituting about 30 percent of the nation’s GDP. Furthermore, he revealed that foreign investment inflows have quadrupled since the initiation of Saudi Vision 2030, totaling nearly SAR120 billion in 2024. The total stock of foreign direct investment has now surpassed SAR1 trillion ($266.65 billion), marking a 100 percent increase since 2016.
These encouraging indicators suggest that Saudi Arabia’s economic transformation journey is reliant on continued collaboration between the public and private sectors. The meeting aimed to enhance strategic partnerships with the FSC, exploring new opportunities for collaboration while addressing investment challenges to align with the ambitious goals of Saudi Vision 2030 and its accompanying National Investment Strategy.
This significant growth trajectory underlines the Kingdom’s commitment to fostering a robust economic environment, indicating a promising outlook for the nation’s private sector as it seeks to play a key role in the overall economic landscape. The focus on partnership and investment signals a future ripe for innovation and development, positioning Saudi Arabia as a competitive player in the global market.