Saudi Arabia - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Saudi Arabia was 26.31 as of 2020. Its highest value over the past 52 years was 36.29 in 1978, while its lowest value was -13.41 in 1973.

Definition: Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 1993 SNA, net acquisitions of valuables are also considered capital formation.

Source: World Bank national accounts data, and OECD National Accounts data files.

See also:

Year Value
1968 27.63
1969 24.45
1970 22.40
1971 23.96
1972 20.16
1973 -13.41
1974 30.93
1975 17.40
1976 30.77
1977 30.60
1978 36.29
1979 26.28
1980 22.91
1981 21.16
1982 25.85
1983 34.35
1984 32.83
1985 21.45
1986 19.46
1987 17.72
1988 19.69
1989 19.45
1990 15.68
1991 19.99
1992 22.96
1993 25.06
1994 20.36
1995 20.29
1996 18.57
1997 18.78
1998 22.95
1999 21.51
2000 19.32
2001 19.62
2002 19.69
2003 19.49
2004 19.86
2005 20.17
2006 22.22
2007 26.47
2008 27.30
2009 31.72
2010 30.93
2011 26.97
2012 26.54
2013 26.47
2014 28.75
2015 34.17
2016 30.93
2017 28.85
2018 24.08
2019 28.78
2020 26.31

Limitations and Exceptions: Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total. Data on capital formation may be estimated from direct surveys of enterprises and administrative records or based on the commodity flow method using data from production, trade, and construction activities. The quality of data on government fixed capital formation depends on the quality of government accounting systems (which tend to be weak in developing countries). Measures of fixed capital formation by households and corporations - particularly capital outlays by small, unincorporated enterprises - are usually unreliable. Estimates of changes in inventories are rarely complete but usually include the most important activities or commodities. In some countries these estimates are derived as a composite residual along with household final consumption expenditure. According to national accounts conventions, adjustments should be made for appreciation of the value of inventory holdings due to price changes, but this is not always done. In highly inflationary economies this element can be substantial.

Statistical Concept and Methodology: Gross domestic product (GDP) from the expenditure side is made up of household final consumption expenditure, general government final consumption expenditure, gross capital formation (private and public investment in fixed assets, changes in inventories, and net acquisitions of valuables), and net exports (exports minus imports) of goods and services. Such expenditures are recorded in purchaser prices and include net taxes on products.

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts