Saudi Arabia saw service sector trade reach $144bn in 2023 and the Kingdom is investing in infrastructure to further boost the developing market.
Minister of Commerce Dr. Majid Al Kassabi announced during a session on Trade in Services at the World Economic Forum in Davos that the Kingdom’s trade in services reached SR540bn ($144bn) in 2023, reflecting an annual growth rate of 7 per cent.
Dr. Al Kassabi highlighted the global significance of the services sector, which constitutes approximately 65 per cent of the world’s gross domestic product (GDP), 60 per cent of foreign investments, and serves as the largest provider of jobs worldwide, particularly benefiting women.
Saudi service sector
He emphasised the need for global collaboration to reduce regulatory and procedural obstacles in the services sector, adding that simplifying these systems would enhance competitiveness and alleviate burdens on small and medium enterprises (SMEs), thereby boosting their economic contribution.
Dr. Al Kassabi outlined Saudi Arabia’s significant investments in digital infrastructure, including SR93.7bn ($25bn) already spent and an additional SR75bn ($20bn) allocated for future projects.
The investments, he said, aim to support digital transformation, enhance businesses, and attract foreign investments.
He noted that the Kingdom has partnered with international organisations to establish legislative frameworks that protect investments and advance human resource development and has created a Centre for Distinguished Residence to attract skilled talents.
The World Economic Forum emphasised the critical importance of collaboration between the public and private sectors for the future of trade in services.
It highlighted its partnership with the National Competitiveness Centre on the Facilitating and Developing Trade in Services initiative, which focuses on key sectors such as information and communications technology (ICT), finance, transportation and logistics services, and mining.
The sectors are vital as they underpin all economic activities.
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