Abdullah Al-Alami*
The White
House is actively preparing to host Saudi Crown Prince Mohammed
bin Salman next week, where
the U.S. and Saudi Arabia will formalize multiple economic and defense
agreements. During this visit, dozens of CEOs are expected to attend a meeting
of the U.S.-Saudi Business Council.
The Saudi
economy recorded unprecedented growth of 5% during the third quarter of 2025,
the highest expansion rate in ten consecutive quarters. The Kingdom has
succeeded in building a robust economy, supported by three factors: increased
oil production, accelerated growth in non-oil sectors by 4.5%, and becoming an attractive destination for regional and international investment.
Saudi Arabia also
aims to increase the insurance market by 75% to 140 billion over the next 4 years. Economic
momentum is expected to continue in the coming years, driven by the expansion
of the private sector, rising employment rates, increased female participation
in the labor market, and mega-projects that are reinforcing the Kingdom's
position as a leading economic hub regionally and globally.
At the same
time, non-oil sectors continue to be the largest contributors to real GDP,
accounting for 2.6 percentage points of total growth, compared to 2.0
percentage points for oil activities and 0.2 percentage points each for
government activities and net taxes on products. As such, Real GDP growth is
projected for 2025 at 5%, supported by the strong performance of non-oil
sectors and the acceleration of sustainable development projects. I am
referring to tourism, industry, and agriculture contribute over 50% to GDP.
Furthermore,
there’s a decline of more than 38 percent in the average selling price of real
estate, and over 841,000 citizens benefited from housing support programs
between June 2017 and the end of the first half of 2025, with funding exceeding
590 billion riyals. Also, primary jobs rose by 16.5%, adding approximately
760,000 new jobs, jumping from 4.58 million to over 5.34 million.
In addition, local
and foreign investment projects such as NEOM, the Red Sea Project, and Qiddiya represent a fundamental pillar for strengthening the national economy and
achieving sustainable and balanced growth. Among the other positive
developments is the increase in women's property ownership, and surplus in the
travel item in the Saudi balance of payments during the second quarter of 2025, which amounted to approximately SAR 5.44 billion.
Let me remind
you that growth is no longer solely dependent on the volatility of oil markets,
but rather the result of well-considered fiscal policies and structural reforms
aimed at building a diversified and sustainable economy. I mean tourism,
technology, renewable energy, and logistics.
The
relocation of global financial companies to their new regional headquarters in
the King Abdullah Financial District in Riyadh is undoubtedly a positive step
towards strengthening their position and facilitating better service for their
clients. This reinforces the Kingdom's position as the largest economy in the
Arab world and among the top twenty global economies.
I hope that Crown
Prince Mohammed bin Salman's visit to the U.S. promises fresh knowledge transfer
to support the localization of industries and economic diversification. I am
sure this objective will be accomplished as Saudi Arabia is a critical
strategic partner for innovation, security, and regional stability.
*Saudi
writer
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