Saudi Arabia Facts and Figures

Saudi Arabia, a powerhouse in the Middle East, is characterized by its blend of traditional heritage and ambitious modernization. Geographically dominating the Arabian Peninsula, Saudi Arabia is bordered by Jordan, Iraq, Kuwait, Bahrain, Qatar, the UAE, Oman, and Yemen. It is further defined by its Red Sea and Persian Gulf coastlines, which serve as significant gateways for global trade. Saudi Arabia's position has established it as a vital link between East and West and as the center of the Arab and Islamic worlds, highlighted by the religious significance of Mecca and Medina.

Riyadh, the capital and largest city, symbolizes Saudi Arabia’s progress and modern ambitions. It stands as a global hub for finance, business, and development, drawing talent, investment, and visitors from around the world. Known for its striking skyscrapers and architectural marvels, Riyadh is the beating heart of Saudi Arabia’s economic aspirations, embodying both innovation and the preservation of its rich heritage.

Demographics of Saudi Arabia

With a population of approximately 36.9 million (2023), Saudi Arabia has one of the youngest demographics in the region, with a median age of 31 and a high working-age population of 71.2%. Its urbanization rate of 85% demonstrates a clear shift toward city living, reflecting Saudi Arabia’s focus on urban development through ambitious projects like NEOM and the Red Sea Project. The country’s population grows at an annual rate of 1.5%, supported by a relatively high fertility rate of 2.4, signaling sustained demographic vitality. Life expectancy stands at 78 years, reflecting ongoing improvements in healthcare and quality of life.

Economic Profile

Saudi Arabia’s economy is among the largest in the world, with a GDP of $1.07 trillion (2023), ranking 19th globally. Benefiting from a 7.5% GDP growth rate in 2023, Saudi Arabia’s economy is driven primarily by industry, which contributes 53.2% of GDP, underscored by the prominence of the oil and gas sector. However, the Vision 2030 initiative has spurred diversification into sectors like manufacturing (14.4% of GDP) and services (39.8% of GDP). With inflation maintained at a low 2.3% in both 2023 and 2024, Saudi Arabia offers a stable business environment. In terms of trade, exports reached $322.3 billion in 2023, with a positive trade balance of $111.2 billion, reflecting the strength of its export-driven economy. Unemployment dropped to 4.9% in 2023, indicating robust labor market improvements.

Public Finance and Fiscal Policy

Saudi Arabia's public finance strategy underscores its emphasis on fiscal prudence, growth, and economic transformation under the Vision 2030 initiative. With limited reliance on external support, evidenced by a net ODA (Official Development Assistance) received rate of -0.03% of GNI (2007), Saudi Arabia has historically prioritized self-sufficiency in funding its projects and development initiatives.

Recent fiscal data shows a shift in Saudi Arabia’s net lending and borrowing as a percentage of GDP, moving from a surplus of 2.49% in 2022 to a deficit of -2.00% in 2023. This change reflects Saudi Arabia’s commitment to substantial public investment and strategic borrowing to drive growth, infrastructure, and diversification efforts. The central government debt, although higher than previous decades, remains manageable at 22.57% of GDP in 2022, rising from 3.01% in 2012. The country's relatively low debt burden enables it to invest in transformative projects without compromising fiscal stability.

Security Investment and Regional Influence

Saudi Arabia is a leading player in regional security, with defense spending constituting 7.4% of GDP, one of the highest in the world. With a military personnel count of approximately 227,000, Saudi Arabia places a premium on stability and defense, maintaining its role as a regional power while ensuring security for its economic assets.

Growing Tourism and Cultural Heritage

The Saudi tourism sector is rapidly expanding under the Vision 2030 framework, which seeks to attract international visitors to its cultural and historical sites. From the ancient rock formations of AlUla to the pristine beaches of the Red Sea and the urban allure of Riyadh, Saudi Arabia’s appeal is increasingly global. Initiatives to open up tourism, such as the easing of visa restrictions, have positioned Saudi Arabia as a unique destination in the Middle East, aiming to draw millions of visitors annually.

Conclusion

With its diverse demographic structure, dynamic economy, and ambitious Vision 2030 initiatives, Saudi Arabia offers significant opportunities but also presents complexities for foreign businesses. Market research in Saudi Arabia is essential for understanding its evolving economic landscape, regulatory environment, and consumer behavior. Comprehensive market insights enable businesses to make informed decisions, allowing them to tap into Saudi Arabia’s potential as a pivotal player in the region and on the global stage.