Saudi Arabia’s real GDP grows 3.2% in 2021

Saudi Arabia’s real gross domestic product (GDP)  for the year 2021 grew by 3.2 per cent.

The growth resulted from the economy recovering from the Covid-19 pandemic through the growth of non-oil activities by 6.1 per cent, while government activities grew by 1.5 per cent, and oil activities expanded by 0.2 per cent.

Meanwhile, the kingdom’s real GDP grew by 6.7 per cent in the fourth quarter of last year compared to Q4 2020 and 1.6 per cent compared to Q3 2021. The growth was attributed in large part to the high increase in oil activities (10.9 per cent year-on-year). Furthermore, non-oil activities also increased 5.1 per cent, while government activities expanded by 2.4 per cent, according to the GDP and National Accounts report for the fourth quarter of 2021, released by the General Authority for Statistics (GASTAT) .

Meanwhile, Saudi Crown Prince and Deputy Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud launched the National Development Fund (NDF)’s strategy, which aims to make the fund a key enabler for the economic and social objectives of the Saudi Vision 2030, Saudi Press Agency reported.

Saudi Crown Prince and chairman of the board of directors of National Development Fund, said, “NDF’s strategy aspires to create a long-term and sustainable economy through transforming the fund into a Development Finance Institution (DFI) to contribute to achieving Saudi Vision 2030 objectives; as it seeks, through its development funds and banks, to stimulate a threefold increase in the private sector’s development impact on the kingdom’s economy by 2030. Moreover, NDF will contribute to Saudi Arabia’s real GDP growth by injecting more than SAR570bn by 2030. Additionally, NDF targets to achieve more than a threefold increase of non-oil GDP to reach SAR605bn, in addition to generating many job opportunities in the kingdom by 2030.”

The NDF’s strategy activates the kingdom’s development objectives by securing liquidity for development funds and banks, in addition to enabling it to achieve a sustainable business model portfolio, as well as mobilising the private sector to enhance its role in development finance. Furthermore, NDF’s strategy aims to launch initiatives to improve performance and transparency, increase efficiency, as well as develop internal capabilities required to meet its objectives long-term development finance.

The NDF oversees the financing activities carried out by its development funds and banks. The fund has injected more than SAR690bn through its affiliates since inception, becoming one of the largest development finance funds in terms of the ratio of assets to GDP in G20 economies, with assets amounting to SAR496bn.

Stephen Groff, governor of NDF, added: “At NDF, we have a huge opportunity to enhance the efficiency of government development funds and banks in terms of identifying and investing in financing opportunities across the kingdom. As the NDF’s strategy gains momentum, we will bear fruit in ensuring high levels of prosperity, improving the quality of life, generating new and sustainable jobs, and positioning the kingdom as a new hub of foreign investments.”