Saudi Arabia's trade in services reached SAR540 billion in 2023, reflecting an annual growth rate of 7%, Minister of Commerce Dr Majid Al-Kassabi said during a session on Trade in Services at the World Economic Forum in Davos.

 

Dr Al-Kassabi highlighted the global significance of the services sector, which constitutes approximately 65% of the world’s gross domestic product (GDP), 60% of foreign investments, and serves as the largest provider of jobs worldwide, particularly benefiting women, said a Saudi Press Agency report. 

 

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 SAR93.7 billion already spent and an additional SAR75 billion 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 organizations to establish legislative frameworks that protect investments and advance human resource development and has created a Center 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 Center 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.