Hidayatullah.com — Saudi Arabia overtook India as the world’s fastest growing economy, with the non-oil sector growing the fastest in a year.

Non-oil economy per year Saudi Arabia rose 6.2 during the fourth quarter of 2022, the highest since the third quarter of 2021, according to the General Statistics Authority. The oil economy grew 6.1%, data showed on Tuesday.

Overall, the economy grew by around 8.7% last year, the Saudi government said, in line with International Monetary Fund (IMF) forecasts, putting the oil-rich country well ahead of the rate 6.8% growth in India.

Speaking at the World Economic Forum in Davos in January, IMF chief Kristalina Georgieva said the fund “gratefully” viewed Saudi Arabia’s growth rate as a boon to the global economy.

Reported EEC On Tuesday (01/02/2023), Saudi Arabia recorded one of its fastest economic growth in decades as war in Ukraine pushed up energy prices.

Saudi Arabia’s economic growth stands out at a time when much of the world is bracing for a recession. Saudi Arabia and the other Gulf countries have generally avoided the worst global inflation in history, exacerbated by rising energy prices.

The kingdom uses oil revenues to pursue megaprojects such as the $500 billion Neom megacity, a new airport in Riyadh and the Red Sea project.

Riyadh is also bidding on strategic overseas mining and mining assets while investing in everything from Korean cartoons to US tech stocks. In 2021, acquired English football club, Newcastle United.

Year 2023

Saudi Arabia’s Public Investment Fund (PIF), chaired by Crown Prince Mohammed bin Salman, is at the forefront of efforts to diversify the kingdom’s economy away from its dependence on fossil fuels.

The crown prince has introduced several social reforms, opening up the conservative empire to Western entertainment and trying to make it more attractive to global businesses, even as he mounts a crackdown on dissent at home.

While the IMF hails Saudi Arabia’s progress in diversifying its economy, the kingdom’s recent slump in growth in 2023 shows how fossil fuels continue to dominate its economy.

On Tuesday, the IMF predicted that Saudi Arabia would grow by 2.6% in 2023, underperforming the wider region and marking a 1.1 percentage point drop from the October forecast of the funds.

“The downgrade for 2023 primarily reflects lower oil production in line with the OPEC+ deal, while non-oil growth is expected to remain strong,” the IMF said in a report.*