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Saudi Arabia: Quality of Life Program 2020 Broadens Economy's Productivity

Governor of Saudi Arabian General Investment Authority (SAGIA) Eng. Ibrahim al-Omar (SPA)
Governor of Saudi Arabian General Investment Authority (SAGIA) Eng. Ibrahim al-Omar (SPA)
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Saudi Arabia: Quality of Life Program 2020 Broadens Economy's Productivity

Governor of Saudi Arabian General Investment Authority (SAGIA) Eng. Ibrahim al-Omar (SPA)
Governor of Saudi Arabian General Investment Authority (SAGIA) Eng. Ibrahim al-Omar (SPA)

Council of Economic and Development Affairs launched the "Quality of Life Program 2020" with a total expenditure of SR130 billion and aims at achieving 20 percent growth in gross domestic product, according to Governor of Saudi Arabian General Investment Authority (SAGIA) Eng. Ibrahim al-Omar.

The Program also contributes to local content in the relevant sectors by 67 percent as one of the outcomes of Vision 2030 and its multiple achievements with its three axes: "more prosperous economy, vibrant Saudi society, and ambitious country."

The engineer noted the positive impact of the Program in encouraging the private sector and foreign investors to invest in many vital markets related to improving the quality of life.

The main objective of the Program is to increase the involvement of the private sector in the development of the strategy by improving participation in vital areas that require high capital expenditures, and the return on investment is initially low, encouraging private sector investment in the future, indicated Omar.

Quality of Life 2020 aspires to provide economic and investment opportunities for sustainable growth and development. Creative industries have proved to be key drivers of economic growth around the world. There are many opportunities for these sectors to thrive in the Kingdom; number of funding models will be developed in order to stimulate the private sector to invest, in both capital expenditures and operating expenses.

The Program contributes to the development and diversification of entertainment opportunities in the Kingdom in order to provide various activities to suit all society segments in different regions.

To achieve this goal, the Program encourages the private sector and foreign investors to play a major role in various sectors, namely the entertainment sector which is considered one of the sectors targeted in the strategy of the General Authority for Investment.

To achieve this, the Program seeks to create a water park, 3 theme parks and 16 family entertainment centers by 2020.

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Saudi SAMA Explores Potential of Digital Currencies to Facilitate Payments Globally

The Saudi Central Bank. (Asharq Al-Awsat)
The Saudi Central Bank. (Asharq Al-Awsat)
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Saudi SAMA Explores Potential of Digital Currencies to Facilitate Payments Globally

The Saudi Central Bank. (Asharq Al-Awsat)
The Saudi Central Bank. (Asharq Al-Awsat)

With many consumers abandoning physical cash, and in light of the accelerating development of crypto-currencies, central banks in the world have started working to ensure a legal and safe cover for the use of digital currencies.

According to the Bank for International Settlements (BIS), 135 countries and monetary unions, representing 98 percent of global GDP, are exploring digital currencies for central banks, compared to only 35 countries in 2020.

The International Monetary Fund (IMF) indicates that about two-thirds of the countries in the Middle East and Central Asia are considering adopting digital currencies for their central banks as a means to enhance financial inclusion and improve the efficiency of cross-border payments.

The Central Bank of Saudi Arabia (SAMA) joined as a full participant in a multi-country digital currency initiative, known as the mBridge project, which was positioned as a potential alternative to the SWIFT payment system to enable faster and potentially cheaper international payments.

Head of Development at Binance in Saudi Arabia Bandar Altunisi told Asharq Al-Awsat that the mBridge project was a cooperative initiative led by the BIS to explore the potential of digital currencies issued by central banks to facilitate trade and instant cross-border payments.

The project includes the central banks of China, Thailand, Hong Kong, the United Arab Emirates and Saudi Arabia.

In addition to the five participating central banks, the project includes 27 other official entities with observer status, such as the IMF, the World Bank, and central banks in many countries, including Norway, South Korea, and Türkiye, according to Altunisi.

“The mBridge project, which was launched in 2021, represents an innovative solution to address the gaps and challenges of inequality in the current procedures used for cross-border payments,” he explained.

Altunisi believes that the success of this project will contribute to accelerating cross-border payments and reducing their cost.

As for the importance of this project for Saudi Arabia, he noted that it will provide new settlement solutions for oil and gas exports. On a broader scale, trade will become more efficient, ultimately benefiting all parties involved, including the final consumer, he remarked.

He added that additional expertise in the field of Blockchain and distributed ledger technologies (DLT) provided by the mBridge project will give regulatory authorities in Saudi Arabia more comfort and ease in allowing broader regulation and application of crypto-currencies and other solutions based on Blockchain technology.

Altunisi spoke about the difference between digital currencies that central banks are considering adopting and encrypted ones, such as Bitcoin and Ethereum. He noted that the latter are decentralized currencies that use encryption techniques to boost the security of transactions and rely on Blockchain technology to ensure transparency and immutability of transaction records.

Digital currencies are digital copies of paper currencies issued and regulated by central banks, Altunisi stated, adding: “Unlike crypto-currencies, these digital currencies are centralized and usually aim to improve the efficiency of payment systems, bolster financial inclusion, and provide governments with better monetary policy tools.”