Energy Minister Prince Abdulaziz bin Salman said at the 2021 Budget Forum: “The Kingdom is not far from renewable energy, and it has a serious shift to the use of renewable energy with more reliance on gas to provide electricity,” indicating that it will export electricity to Iraq, Jordan, Egypt, and possibly Europe. Pointing out that the Kingdom is working on a program for the Gulf electrical connection.
His Highness affirmed that the Crown Prince is a statesman who was able to manage the repercussions of the oil crisis in light of difficult circumstances, adding: The diversification of the Kingdom’s income, and the lack of reliance on oil revenues, is in line with the Kingdom’s 2030 vision, which aims to diversify, which is what the state has begun to implement. He pointed out that the state of the oil market has improved significantly, as the price of a barrel in April was $ 29, and the day before yesterday it closed at $ 51 a barrel, and this is the result of the Kingdom’s leadership, which has done a mighty and great job using the tools available to it. His Highness explained that there is no value to high prices if they lead to a sharp decline, indicating that it is a given not to interfere in market mechanisms and we do not target specific prices. He added: Any market must have a regulator, and it must be benign. We are not talking about prices, but we are talking about stable markets that support investment and development, as whatever markets are stable and sustainable, they invite the investor to enter into investment.
He added: The Kingdom had a different opinion than everyone else in the OPEC meetings, and unfortunately during the first two months there was no consensus in the perceptions of taking measures. The epidemic itself, reducing the ability to move and move. He said: With the beginning of the Coronavirus crisis, and after OPEC + disagreed and leaving the oil market without management according to free market mechanisms; Harm the market and prove to everyone the importance of keeping up with international developments in the sector. The Minister of Energy said: The transport sector had the largest part of the repercussions of Corona. He added: In 3 days we were able to bring together OPEC + and reached an agreement to reduce production, and for the first time the agreement was for a period of more than a year.
His Highness reviewed the evidence and evidence of the impact of the global economy in crises, and said: We are aware of the importance of citizen participation and citizenship, and we have not seen a country that dealt with its citizens during the Corona pandemic like the Kingdom. He said: “If we want to be responsible, we must be honest and honest, the negative effects of the Corona pandemic for 2021 may continue, and I hope citizens understand that.”
A plan to localize imported consumer products
The Minister of Industry – Bandar Al-Khorayef revealed a clear plan to localize a large number of consumer products imported from abroad on a commercial basis, stressing that there are factors that encourage work to localize products, represented in the good purchasing power, as well as the high growth of the population, indicating that the Kingdom has launched a bank Export and import with a capital of 30 billion riyals, and in its first year, operations exceeded 5 billion riyals to support exports.
He stressed that the industrial sector in the Kingdom is very important and strong, and has huge industrial cities in Jubail, Yanbu and other areas, indicating that the job opportunity provided by the industrial sector provides in return from 5 to 10 jobs in other sectors.
Al-Khorayef stressed that the mining sector is promising, noting that the kingdom’s mineral wealth has not been used adequately, and the mining system that was recently approved will enter into force at the beginning of 2021. He pointed out that a geological survey program has been launched, with a cost exceeding two billion riyals, which will cover a third of the Kingdom’s area, specifically an area. Arabian Shield. Alkhorayef revealed that the Ministry of Industry and Mineral Resources issued 800 industrial licenses during the Corona pandemic, and 151 factories entered production last month.
On the local content side, the Minister of Industry and Mineral Resources stated that the regulations and legislation that the Local Content and Government Procurement Authority is working on have a very important role to create an opportunity for local investments aimed at strengthening the Saudi economy, and for money to remain in the wheel of the local economy, whether by making use of the products that It comes from the industrial sector, the services sector, or the Saudi workforce, stressing that these legislations contribute to attracting investments and are in line with international practices.
Al-Khorayef drew attention to the existence of one of the largest programs of the Kingdom’s Vision 2030, which is the National Industry Development and Logistics Program, which contributed greatly to the integration between the roles of government agencies, through its supervision of 4 of the most important economic sectors, industry and mining, energy and logistics services, adding that the Kingdom’s vision 2030 is built on the basis of economic diversification, and this diversity involves the industrial and mining sectors, by making use of natural resources, as well as the complementary industrial sectors that serve consumer goods, and it will have a role in deepening the added value, and the localization of locally consumed products by stimulating industrial investment and transforming What we import into local production, and also contributed to the adoption of the Fourth Industrial Revolution, as well as creating opportunities based on global and future demand.
Legislative reforms for investment and special economic zones
Saudi Minister of Investment Khaled Al-Falih said: We are seeking to establish special economic zones, which are in the final stages of review. They will have exceptions and will attract Saudi and foreign investors aiming to build new industries. We will soon announce the National Investment Strategy, which will include legislative and regulatory reforms.
1.3 trillion riyals of investment fund assets
The Governor of the Public Investment Fund, Yasser Al-Rumayyan, said that at the end of the third quarter of 2020, the total assets of the fund reached more than 1.3 trillion riyals, an increase of more than 100% compared to its assets in 2015.
Al-Rumayyan explained to the recipient of the budget that the fund is working to bring the Lucid company to the Kingdom, saying: “We invest internationally in sectors such as electric cars and the Lucid company, in which investment in them is not considered international, but is integrated with local investment if we can bring them into the Kingdom. This is what we are working on. ” He pointed out that the fund has established more than 30 companies since 2015 in various sectors, such as tourism, military industries and recycling. He stated that the fund’s liquidity is ample and large, and this will enable the fund’s investment strategy to support.
A broad amendment of regulations and legislation related to the tourism sector
Tourism Minister Ahmed Al-Khatib revealed that there is a target to attract new investments of 220 billion riyals until 2023, and more than 500 billion riyals until 2030, stressing that investors are enthusiastic and optimistic to invest in the promising Saudi tourism sector, in the coming years.
Al-Khatib indicated in a session on future sectors at the budget forum that the tourism sector in the Kingdom constitutes 3.5% of the total GDP, and we aim to raise this percentage to 10%, noting that this sector contributes 4% of the total employment in the Kingdom. Hotel occupancy increased to more than 80% with the return of tourism. Al-Khatib said: “We have proposed more than 17 tourist destinations to the Kingdom, and 8 out of 17 tourist destinations have been surveyed to clearly find out what they need.” He pointed out that there is a wide movement in terms of amending the regulations. And legislation related to tourism, saying: “We have a long way to go to improve tourism legislation, and we will make it easier for hotels to obtain licenses and reduce the period to 10 days only in exchange for obtaining a license in a time that used to take a long time in the past.” Al-Khatib pointed out that the Kingdom has opened Its doors to tourists, according to the Kingdom’s tourism strategy, which was launched last year, and it received more than 500,000 visitors before the Corona pandemic.
He said: “We have all the basics that make us go in the tourism sector to be one of the largest contributors to it in the world, and Vision 2030 focused on the tourism sector, to increase its contribution to the economy, and the necessary plans were laid for it, and we have a long way to reach 10% of the global average, and before The pandemic has reached 500,000 tourists. ”He added: We have growth incentives. All foundations are available. We have historical sites, main cities and wonderful beaches with a very strong culture of construction, eating and art. We have a wonderful, hospitable and welcoming people. About 10% to 80%, and on the tourist sites, he said: “We have made huge investments in tourism projects such as the Neom project, Qiddiya, the Red Sea project and Diriyah. We have coordinated with banks and the Tourism Development Fund to finance part of these projects.”