Saudi Arabia becomes biggest GCC magnet
Flow of foreign direct investments in the Kingdom continued and captured the highest rates of the FDIs in the Gulf region by 60-70 percent. The report, issued by Global Investment House says the rate of Saudi GDP, which stood at 3.3 percent during 2011-2010, hit 6.8 percent in 2011 compared to 3.8 percent in 2010. Non-oil sector GDP grew by 14.2 percent in 2011 compared to 9.1 percent in 2010 thus exceeding the growth rates registered during the last five years which stood at 7.7 percent.
The Kingdom is following the right step aimed at diversifying its economy as it continues to receive flow of foreign direct investments and, reportedly, capturing between 60-70 percent of the GCC total FDIs.
The rate of FDIs to Saudi GDP fell to 6.5 percent in 2010 compared to 9.5 percent in 2009, the report says. Based on the fact that the oil sector GDP growth was as high as 41 percent, contribution of nonoil sector to the GDP dropped from 49 percent and 47 percent in 2010 and last five years, respectively, to 44 percent in 2011, according to the report.
The nominal GDP grew by 29 percent in 2011 due to the increased contribution of mining and quarrying sectors to the GDP which grew by 41 percent. On the other hand, increasing of oil production and its higher prices contributed notably to upward trend in GDP by 70 percent.