IMF: Reforms will grow in the Saudi non-oil sector

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Dr. Iman bint Muhammad, an economist from the International Monetary Fund, expected that the non-oil sector would grow at a greater rate than it was before the past five years, due to the structural reforms that were carried out in accordance with “Vision 2030”, as well as the stimulus package presented by the Central Bank during the Corona pandemic. Which contributed to the recovery of the Saudi economy in the short term.
“Our expectations are that the Saudi economy will grow by 2.1 percent during the current year 2021, and by 4.8 percent in 2022, in support of the non-oil sector, which will grow by 3.6 percent and the oil sector by 6.3 percent, which gives a growth The real national product is a good percentage in 2022.”
This came during a virtual symposium hosted by the Center for Communication and Financial Knowledge “Mutamam” entitled: “Consultations of Article 4 of the IMF… and Aspirations for Vision 2030”, yesterday as part of a series of virtual meetings through which the Center aims to enrich knowledge in economic and financial aspects.
On the Kingdom’s management of the Covid-19 crisis, the expert said that the Kingdom entered the crisis in a good financial position, and the public debt was relatively low, in addition to the Kingdom’s possession of very important financial assets, in addition to several positive indicators, but what made the control of the Corona crisis very possible are reforms. Which took place before the pandemic that came within the vision of 2030.”
She stated that the Kingdom must move forward with economic reforms in the medium and short term, and seek to reduce the public finance deficit with two types of policies through diversifying revenues and rationalizing government spending, and moving forward with energy and water price reforms, revenue reform, rationalizing government capital spending and reducing unnecessary expenditures in the long run. average.
Iman bint Mohammed added that the increase in investments in the non-oil sector, especially the promising sectors with added value, will lead the Kingdom to a strong and diversified economy, pointing out that these investments contribute directly to providing job opportunities for Saudis, reducing unemployment and paving the way for investors to enter these sectors.
She pointed out that the expansion of digital transformation plays a major role in citizens’ preservation of their jobs, as well as the reform of the sponsorship system, which contributed to a significant increase in productivity, and the high role of women in the labor market, where their contribution to the labor market exceeded 33 percent, an increase of 13 percent in two years. A very big number.
For his part, Muhammad Al-Omair, Director of the Financial Sustainability Program and Director of the Acting Privatization Program, said that during 2015 the deficit levels were more than 15 percent, but in 2019 it decreased to 4.5 percent of GDP, which strengthens the financial position of the Kingdom, in addition to other programs. Which enhance financial sustainability, such as the initiative of the Spending Efficiency and Governmental Projects Authority, where 430 billion riyals were saved in the past years.
Al-Omair added that all these components help in controlling debt levels, in addition to the work of the financial sustainability program to serve the public debt center to attract investments to the Kingdom, as well as the creation of a citizen account, which benefited about 13 million citizens by depositing 96 billion riyals during the past three years.
For his part, Mohammed Abunayyan, Chairman of the Board of Directors of ACWA Power, states that “what has been achieved through Vision 2030 is a great thing and gives us the impression that the future is much greater. The vision has changed the laws and the investment environment, working in an institutional manner and a real partnership between the private and public sectors, and for example the energy sector is witnessing A big shift from normal energy to clean energy, and today we have a clear strategy where 50 percent of energy will be clean in 2030 and the other 50 percent will be gas.”
For his part, Dr. Riyadh Al-Khorayef, Undersecretary for International Relations at the Ministry of Finance, indicated that the International Monetary Fund praised the Kingdom, its vision, and its success in economic reforms, especially in the face of the impact of the Corona pandemic, and Saudi Arabia worked to build an empowered institutional work and speed of decision-making. Al-Khorayef added that the Kingdom led global efforts through its presidency of the Group of Twenty to provide vaccines to countries, provide debt services and restructure them for some.





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