Minister of Economy and Planning, H.E. Faisal F. Alibrahim, revealed that Saudi Arabia’s non-oil economy grew under the kingdom’s Vision 2030 strategy. He made the revelation during a panel discussion at Davos 2024, the World Economic Forum annual meeting. Since 2016, Saudi Arabia’s non-oil economy has grown by 20 percent, surpassing growth rates in the EU and the United States. Alibrahim projects further growth in 2024.
Economic growth
The minister also highlighted Saudi Arabia’s overall economic growth, expecting it to grow by 4.4 percent in 2024. Moreover, he stressed that Saudi Arabia expects its non-oil GDP to reach 4.5 to 5 percent this year.
Meanwhile, Moody’s Analytics expects Saudi Arabia’s non-oil GDP to average between 3 and 4 percent until 2030. This growth will push the non-oil economy forward to make up about 56 percent of the kingdom’s GDP according to Moody’s. On the other hand, the ratings firm expected oil production growth to be between 0.5 and 1.5 percent after 2025.
Standard & Poor’s Global, on the other hand, had expected the Saudi economy to recover next year to 2.7 percent from a contraction of 0.4 percent this year.
Greater economic integration
During the panel discussion, Alibrahim underscored the current lack of economic integration in the Middle East, noting that improvement is crucial for maximizing the region’s potential. He urged countries to work towards greater collaboration and integration, recognizing the youthfulness and strategic geographical position of the Middle East.
The minister also emphasized the importance of leveraging the abundant natural resources in the Middle East for sustained economic growth. Alibrahim encouraged countries in the region to invest wisely in their natural assets to drive economic development.
Moreover, Alibrahim emphasized the importance of ongoing economic reforms, urging both transforming nations and those facing challenges to continue their efforts. This call for continuous economic reform is seen as essential for navigating challenging times. Notably, Saudi Arabia sets an example for protecting its economy from turmoil through diversification efforts and investing in its non-oil economy.
Read: Davos 2024: Saudi Arabia to host World Economic Forum meeting in April
Middle East’s global integration
The minister also highlighted the increasing integration of the Middle East into the global economy. He emphasized that events in the region now have global implications. Moreover, he stressed that the region is now, more than ever, integrated with the global economy and what affects the global economy affects the MENA region and vice versa.
In this context, Alibrahim discussed Saudi Arabia’s proactive measures to maintain stability in the crude oil market, citing recent output cuts as part of the strategy. He explained that the kingdom, along with its partners, is committed to ensuring the long-term stability of the oil market.
The panel discussion at Davos highlighted the critical role of economic integration, Saudi Arabia’s non-oil economy, ongoing reforms, and strategic utilization of resources for the sustained growth of Middle Eastern countries. Saudi Arabia’s Vision 2030 showcases the region’s determination to navigate challenges and build a sustainable future.
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