JEDDAH: Saudi Arabia’s gross domestic product (GDP) grew by 3.4 percent in 2007 while its budget surplus in the year reached 12.3 percent of the GDP, according to the 44th annual report of the Saudi Arabian Monetary Agency (SAMA).
Presenting the report to Custodian of the Two Holy Mosques King Abdullah during a ceremony at Al-Safa Palace in Makkah yesterday, SAMA Gov. Hamad Al-Sayari said the Kingdom’s private and public sectors grew by 5.8 percent and 2.7 percent respectively in 2007.
“The general financial situation improved considerably with the Kingdom having budget surplus for the fifth consecutive year,” Al-Sayari said. The Kingdom’s balance of payment also recorded surplus for the ninth consecutive year, reaching 24.9 percent of the GDP.
The monetary and banking sector played an effective role by ensuring adequate liquidity to finance development projects, Al-Sayari added. He commended the remarkable economic progress achieved by the Kingdom since the formation of the Supreme Economic Council (SEC). Chaired by King Abdullah, the SEC has been instrumental in promoting economic reforms.
“This has resulted in enhancing the Kingdom’s economic competitiveness, optimum utilization of productive factors and creating an attractive atmosphere for domestic and foreign investment,” the governor said. Saudi Arabia has won 16th position in a list of 181 countries published by World Bank’s International Finance Corporation, in terms of business competitiveness.
“Since its establishment, SEC has adopted 60 major decisions on economic reforms and more than 130 decisions on administrative and organizational reforms,” he said. “As a result of the reforms, the private sector had an average growth rate of 5 percent during the past years with nonoil exports growing 23.1 percent annually, amounting to 7.3 percent of the GDP by the end of 2007.”
“In the light of the present economic facts and performance indicators, it is expected that the Kingdom would continue to make strong and comprehensive growth in the coming years,” the SAMA chief told the king.
King Abdullah praised the SAMA report and the agency’s efforts to strengthen the Kingdom’s economy without being affected by international developments.
