Saudi ministers and a panel of finance experts said at the World Economic Forum in Davos that their country is a “bright spot” for a global economy facing a slowdown this year. Finance Minister Mohammed Al-Jadaan claimed that the Kingdom had anticipated the trend of global inflation earlier than other countries.
He mentioned that the Saudi government saw the danger that international stimulus packages posed to the Saudi economy in time to take steps to fix it by July 2021. One of the measures, he said, was to put a freeze on energy prices in the area.
Saudi Arabia And The Global Economy
The panelists agreed that the Kingdom’s economic stability can be attributed in part to Vision 2030’s focus on the long term. They asserted the vision assisted Saudi Arabia in adjusting to international challenges such as the pandemic, inflation, and food and energy insecurity.
Around the world, inflation is well over 8%, but only 2.6% on average in Saudi Arabia. The minister said that in 2023, inflation in the Kingdom “will not be as high.” Also, efforts are being made to protect the Saudi economy while also benefiting the global economy. According to him, the Kingdom is adjusting how it helps its allies. They are shifting from making unconditional direct deposits and grants to recipients.
The International Monetary Fund’s Managing Director, Kristalina Georgieva, recently pointed out that Saudi Arabia’s Vision 2030 had made the country a shining example of economic success in a time of global economic uncertainty. As a global slowdown was predicted to persist in 2023 due to the Russia-Ukraine war and China’s latest COVID-19 emergency, she claimed that the Kingdom would provide the economic growth that the world needed. She stated that Saudi was pursuing economic diversification, had a strong fiscal policy, and eliminated energy and food insecurity. She said she was unsure how many nations were brave enough to raise their debt-to-income ratio from 6 to 15% during this challenging time. Indeed, Saudi Arabia took action. In light of its good fortune, Saudi Arabia is taking on a leading role in energy and food security and confronting the enormous challenge of debt.
Finance Minister Al-Jadaan stated that the Kingdom of Saudi Arabia seeks to “bridge the divide” and encourage communication with the United States and Europe. This is for the “benefit of the world” in regard to US-Saudi relations. Together, they can tackle issues like energy and food insecurity and make the switch to renewable power. He claims that Saudi Arabia is actively contributing to international stability.
The IMF’s Georgieva also shared her thoughts on gender equality reforms. She noted that the rise of working women was a major factor in the country’s economic growth and that Saudi Arabia had already surpassed its own goal of having women make up 30% of the workforce by 2030 by seven percentage points. Saudi’s Minister of Communications and Information Technology, Abdullah Al-Swaha, also stated that the country had increased the percentage of women working in technology from 7% to 32%, a rate that is higher than the EU, G20, and Silicon Valley averages.
Takeaways
Saudi Arabia’s vision to be a bright spot for the global economy is evident in its initiatives, visions, reforms, and international relations. The Kingdom, over the years, has reached numerous milestones that reflect that it is drawing closer to its visions.
