Kingdom continues to lead international efforts towards economic recovery
RIYAD – The Saudi economy is considered to be a very attractive destination for investors given the impressive capacities and investment programs it enjoys, as the Kingdom plays a leading role in stabilizing global energy markets, by more than its key role in helping developing countries.
The Kingdom’s GDP ranks 16th among G20 countries, 13th for world trade, 9th among the G20 in terms of area, 18th in terms of population and 3rd worldwide for its investment funds.
In addition to its vital and influential contribution to international efforts to ensure global economic stability, Saudi Arabia plays an important role in shaping a global economic system that helps achieve the group’s goal of fostering strong growth. , balanced and sustainable, within the framework of the preservation of the interests of all developed and developing countries.
Despite the coronavirus pandemic that crippled the global economy, which coincided with the Kingdom’s (G20) presidency in 2020, Saudi Arabia was able to lead the summit, seen in its decisions and initiatives launched by the wise leadership of the country that made him lead the world towards an economic recovery from the repercussions of the pandemic.
Among the initiatives launched to reduce the enormous negative effects on the economies of developing countries and poor countries is the adoption of a $ 12 billion program to support global efforts to combat the impact of the pandemic.
In addition, he endorsed the taking of exceptional measures to support the economies of developing countries by injecting more than 11 trillion dollars to support individuals and businesses, in addition to the expansion of social protection networks.
During its G20 presidency last year, the Kingdom provided $ 500 million to support global efforts to fight the COVID-19 pandemic, while supporting the initiative to accelerate the availability of tools for fight COVID-19 in order to increase the rate of vaccine manufacture to low- and middle-income countries and to ensure equitable distribution of diagnostic tools, vaccines and medicines to countries in need, because these efforts started to bear fruit this year under the Italian Presidency.
In addition, the G-20 also launched, during its meetings during Saudi Arabia’s presidency, the initiative to suspend debt service payments from the poorest countries, which helped to give 73 poor countries a financial space to be devoted to social, health and economic aspects, to face the pandemic, because this initiative continued until the end of 2021 during the Italian presidency of the Group.
Locally, various initiatives have been launched to stimulate the economy and support the private sector as part of the Kingdom’s contribution to the rapid response to the pandemic challenge, leading to 5.4% growth in non-oil GDP over the course of half-year 2021, supported by 7.5% private sector GDP growth over the same period, exceeding pre-pandemic levels.
The International Monetary Fund expects the Saudi economy to grow by around 2.8% in 2021.
Saudi Arabia’s economy is resilient and is one of the fastest growing economies to recover from the repercussions of the pandemic, according to international indicators, as the Kingdom ranked second globally, tied with China in the Nikkei Japan index of recovery from the COVID-19 pandemic. out of 121 countries and 13th out of 184 countries in the GCI Global Index, adopted by the World Health Organization.
In addition, they underlined the stability of working conditions at the start of the second half of 2021, and the improvement of order intake indicators in production, employment and the stock of purchases, and the continuation of the realization of the Saudi trade surplus in June 2021 amounting to SR 38.69 billion, the highest in 17 months, bringing it since the beginning of the year to SR 170.7 billion, and the results of Foreign direct investment flows for 2020 indicate growth of about 20%.
Overall, the Kingdom has achieved economic successes and great development in the legislative system by issuing more than 770 reforms that have had a significant impact on improving the competitiveness of business and the investment environment of the Kingdom, this which has contributed to the advancement of the Kingdom from 26th to 24th place in the Global Competitiveness Yearbook 2020 report.
The Kingdom also made progress in the Women, Business and the Law, 2021 report, from 70.6 degrees in 2020 to 80 out of 100 degrees in 2021, as the employment rates of Saudi women in the private sector reached 31.3% and jumped to 41.% in the public sector.
The Saudi “Tadawul” Stock Exchange also rose to become one of the top 10 financial markets in the world, and the Kingdom reached 12th place in the venture capital availability index, 3rd globally in the index of protection of minority investors, 1st in digital competitiveness at the G20 level, and 1st in Internet speed on the fifth generation.
The Saudi private sector has also continued its strong role and performance as an effective strategic partner in the overall development process and the implementation of the aspirations and goals of the Kingdom’s Vision 2030, as evidenced by the record growth achieved by the private non-oil sector. sector of 11.1%, the best growth rate in a decade.
The national private sector has developed considerably and has marked an increase in its working environment and a significant increase in its small, medium and large projects.
This is in addition to the increased efforts of the Public Investment Fund to increase the contribution of the private sector by launching a series of megaprojects such as: establishing the city of NEOM and launching “The Line”, and launching other projects. giants such as: Amaala, Red Sea and Qiddiya, and the creation of many giant enterprises to develop economic sectors that will contribute to the expansion and diversification of the economic base.
It has also seen the launch of promising sectors such as tourism, entertainment, sports and energy, as well as major support programs launched by the state as part of its vision to stimulate the growth of the sector, notably the private sector stimulus program and the allocation of RS 200 billion to support the private sector, in addition to supporting the sector during the pandemic period.
In 2021, the Saudi economy experienced qualitative traffic, during which many initiatives were launched, including the launch of Crown Prince Muhammed Bin Salman, Deputy Prime Minister and Chairman of the Economic Affairs and Development Council (CEDA) , the national investment strategy.
This strategy is one of the main empowerment tools to achieve the goals of the Kingdom Vision 2030. It will also contribute to the growth of the national economy and to the diversification of its sources.
This will ultimately lead to the achievement of many of the Kingdom’s Vision 2030 objectives, including increasing the private sector’s contribution to GDP to 65%, and promoting foreign direct investment contributions to 5.7% of GDP, increasing the share of non-oil exports from 16% to 50% of non-oil GDP, reducing the unemployment rate to 7% and making the Kingdom one of the top ten in the global competitiveness index by 2030.
The national investment strategy aims to empower investors, provide investment opportunities, propose financing solutions, improve competitiveness and help increase the effectiveness of the partnership between the public and private sectors.
Investment is an essential and pivotal engine of economic growth and sustainable development under the aegis of the Kingdom’s Vision 2030, as investments exceeding SR 12 trillion will be poured into the local economy by 2030 (5 SR trillion will come from initiatives and projects of the “Shareek” program), SR 3 trillion intended for local investments from the Public Investment Fund and SR 4 trillion from investments by various national and international companies, in the framework of the national investment strategy).
The economy will receive approximately SR10 trillion of government spending through the general state budget over the next 10 years, in addition to SR5 trillion of private consumption expenditure for the same period, totaling these expenditure to nearly SR 27 trillion through 2030 (equivalent to $ 7 trillion).
The national investment strategy aims to increase net foreign direct investment flows to SR 388 billion per year and to increase domestic investment to approximately SR 1.7 trillion per year by 2030. It is expected to that the Kingdom’s investment-to-GDP ratio increases from 22% in 2019 to 30% by 2030, which will help the Saudi economy grow to become one of the 15 largest economies in the world . – SPA