Saudi Arabia’s GDP rises nearly 12% in Q2 on oil gains – Times of India


RIYADH: Saudi Arabia’s annual economic growth reached nearly 12 percent for the second quarter, led by a surging oil sector, the government’s statistics agency said Sunday.
The Middle East’s largest economy has benefited from a spike in oil prices following Russia’s invasion of Ukraine, and has largely resisted calls from Western countries to increase production to lower prices.
Growth in the second quarter was 11.8 percent compared to the same period last year, according to the first “flash” estimates published by the General Statistical Authority.
“This dynamic growth was primarily due to the 23.1 percent increase in oil business,” the agency said.
Non-oil economic activities grew 5.4 percent and government services grew 2.2 percent compared to the second quarter of 2021.
The war in Ukraine and the resulting rise in crude prices has been a boon to oil-producing states such as Saudi Arabia, the world’s largest exporter of crude oil, whose gross domestic product is expected to grow by 7.6 percent by 2022. according to the International Monetary Fund.
As the war got underway, Saudi Arabia and the United Arab Emirates emphasized their commitment to the OPEC+ oil alliance, which Riyadh and Moscow lead, underscoring Riyadh and Abu Dhabi’s increasing independence from long-standing ally Washington.
US President Joe Biden, who once vowed to make Saudi Arabia a “pariah” for human rights abuses, visited the kingdom earlier in July and was criticized by human rights activists for greeting the crown prince Mohammed bin Salman with a fist.
Oil was on the agenda during Biden’s meeting with Saudi leaders and at a subsequent summit of regional leaders, but the visit ended with no agreements to increase production.
The OPEC+ group will meet on Wednesday.
The main US contract, West Texas Intermediate crude, rose more than five percent to above $100 a barrel on Friday.

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