The Saudi economy enjoys huge capabilities, capabilities and investment programs that made it one of the attractive economies, and as it is known, the Kingdom plays a leading role in stabilizing global energy markets, in addition to its great role in helping developing countries, and it occupies the 16th rank among the G20 countries in its contribution to the output It ranks 13th in global trade, 9th among the group in terms of area, 18th in terms of population, and 3th globally in its investment funds.
The Kingdom plays an important and influential role in international efforts to achieve global economic stability, and plays an important role in shaping a global economic system that contributes to achieving the group’s goal of encouraging strong, balanced and sustainable growth, within the framework of preserving the interests of all developed and developing countries alike.
Despite the Corona pandemic that paralyzed the global economy, and this was in conjunction with the Kingdom’s presidency of the Group of Twenty (G20) for the year 2020, it was able to ably lead the summit, as a result of the decisions and initiatives launched by the wise leadership – may God protect him – that made it lead the world towards economic recovery from the repercussions of the pandemic .
Among the initiatives launched to reduce the enormous negative effects on the economies of developing and poor countries is the approval of a program to support global efforts to address the value of 21 billion dollars, and the approval of exceptional measures to support the economies of developing countries by pumping more than 11 trillion dollars to support individuals and companies, in addition to to the expansion of social protection networks.
During its presidency of the Group of Twenty last year, the Kingdom provided $500 million to support global efforts to combat the Covid-19 pandemic, through the support provided to the initiative to accelerate the availability of tools to combat Covid 19 to increase the rate of vaccine manufacturing in low- and middle-income countries and to ensure the equitable distribution of diagnostic tools, vaccines and medicines For needy poor countries, these efforts began to bear fruit this year under the Italian presidency.
The G-20 also launched; In its meetings during the presidency of the Kingdom last year; The initiative to suspend debt service payments for the poorest countries, to contribute to giving 73 poor countries financial space to spend on social, health and economic aspects, to confront the Corona pandemic, with the continuation of the Kingdom’s efforts during the Italian presidency, which was to extend the initiative until the end of the year 2021.
At the local level, initiatives to stimulate the economy and support the private sector within the Kingdom contributed to the rapid response of the local economy to the pandemic challenge. In the first half of 2021, the non-oil GDP recorded a growth of 5.4%, supported by the growth of the private sector GDP, which recorded a growth of 7.5%. in the first half of the year, exceeding pre-pandemic levels. The International Monetary Fund expects the Saudi economy to grow by about 2.8% in 2021.
The Saudi economy is resilient and is one of the fastest economies to recover from the repercussions of the pandemic according to international indicators, as the Kingdom ranked second globally, equal with China in the Japanese Nikkei index for recovery from the Covid 19 pandemic out of 121 countries, and 13th out of 184 countries in the global Covid index The GCI adopted by the World Health Organization, as reports indicated to the stability of working conditions at the beginning of the second half of 2021, and the improvement of indicators of new orders in production, employment and inventory of purchases, and the continued achievement of the Saudi trade balance in surplus during June 2021, amounting to 38.69 billion riyals, which is the highest in 17 months, bringing it since the beginning of the year to 170.7 billion riyals, and the results of foreign direct investment flows for the whole of 2020 AD indicate a growth of about 20%.
The Kingdom has achieved economic successes at the global level and the great development in the legislative system by issuing more than 770 reforms that had a great impact on improving the competitiveness of the business environment and the investment environment of the Kingdom, which contributed to the Kingdom’s progress from 26th to 24th place in the Global Competitiveness Yearbook 2020 report. The Kingdom also advanced in the report “Women, Business Activities and the Law, 2021” from 70.6 degrees out of 100 in 2020 to 80 degrees in 2021, as the employment rates of Saudi women in the private sector reached 31.3%, and they jumped 41% in the government sector, The Saudi Stock Exchange “Tadawul” also advanced to become one of the top 10 financial markets around the world, and the Kingdom advanced to 12th place in the Availability of Venture Capital Index, 3rd globally in the Protection of Minority Investors Index, 1st in digital competitiveness at the G20 level, and 1st in Internet speed on the fifth generation.
The Saudi private sector continued its strong role and performance as an effective strategic partner in the process of achieving comprehensive development and implementing the aspirations and goals of the Kingdom’s Vision 2030, due to the record growth achieved by the non-oil private sector by 11.1%, which is the best growth for it in a decade, as the national private sector witnessed a development A significant increase in its work environment and a significant increase in its small, medium and large projects, in addition to the increase in the contribution of the Public Investment Fund to enhancing the contribution of the national private sector by launching a series of giant projects such as: the establishment of Neom City and the launch of The Line, and the start of the establishment of giant projects such as: Amaala and the Red Sea Qiddiya, and the establishment of many giant companies to develop economic sectors that contribute to the expansion and diversification of the economic base, and the launch of promising sectors such as tourism, entertainment, sports and energy, as well as the large support programs launched by the state with a vision to stimulate the growth of the sector, including the private sector stimulus program and the allocation of 200 One billion riyals to support the private sector, in addition to supporting the sector during the pandemic period.
In 2021, the Saudi economy witnessed a qualitative movement, during which many initiatives were launched, including the launch of His Royal Highness Prince Muhammad bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Chairman of the Council for Economic and Development Affairs – may God protect him – the national investment strategy, which is one of the main possibilities To achieve the objectives of the Kingdom’s Vision 2030. It will also contribute to the growth of the national economy and diversify its sources, which will achieve – God willing – many of the goals of the Kingdom’s Vision 2030, including raising the private sector’s contribution to the GDP to 65%, and promoting foreign direct investment to reach its contributions. To 5.7% of GDP, increasing the proportion of non-oil exports from 16% to 50% of non-oil GDP, reducing the unemployment rate to 7%, and advancing the Kingdom to one of the top ten positions in the global competitiveness index by 2030.
The national investment strategy revolves around empowering investors, providing investment opportunities, providing financing solutions, enhancing competitiveness, and contributing to increasing the effectiveness of the partnership between the public sector and the private sector.
Investment constitutes an essential and pivotal element in the system of economic growth and sustainable development under the umbrella of the Kingdom’s Vision 2030, as investments exceeding 12 trillion riyals will be pumped into the local economy until 2030 (5 trillion riyals from the initiatives and projects of the “Shrek” program), and 3 trillion riyals from the Public Investment Fund. earmarked for local investment, and 4 trillion riyals of investments by various national and international companies, under the umbrella of the national investment strategy), and the economy will receive an injection of about 10 trillion riyals of government spending through the state’s general budget over the next ten years, and another 5 trillion riyals of private consumption spending For the same period, the total of this spending will amount to approximately 27 trillion riyals until 2030 (equivalent to 7 trillion dollars).
The national investment strategy aims to raise net foreign direct investment flows to 388 billion riyals annually, and increase domestic investment to reach about 1.7 trillion riyals annually by 2030. It is expected that the investment ratio to the Kingdom’s GDP will rise from 22% in 2019 to 30%. In 2030 AD, which will contribute to the growth of the Saudi economy to become one of the 15 largest economies in the world.