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Saudi Energy Minister: Coordination with OPEC+ Boosts Market Stability

The Saudi Minister of Energy, Prince Abdulaziz bin Salman (Asharq Al-Awsat)
The Saudi Minister of Energy, Prince Abdulaziz bin Salman (Asharq Al-Awsat)
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Saudi Energy Minister: Coordination with OPEC+ Boosts Market Stability

The Saudi Minister of Energy, Prince Abdulaziz bin Salman (Asharq Al-Awsat)
The Saudi Minister of Energy, Prince Abdulaziz bin Salman (Asharq Al-Awsat)

The Saudi Minister of Energy, Prince Abdulaziz bin Salman, has said that coordination with OPEC+ countries is the "cornerstone" of Saudi efforts to enhance the stability of global oil markets and maintain their balance and security.

Prince Abdulaziz affirmed that Saudi Arabia's interest in cooperation with Arab countries in energy is an integral part of its interest in boosting relations with them.

The official told Saudi Press Agency (SPA) Thursday that the cooperation is embodied in coordination for joint Arab action in numerous projects, programs, and initiatives.

He said that his country had signed several memorandums of understanding (MoU) with Arab countries in the energy sector to enhance cooperation in electricity, renewable energy, clean hydrogen, petroleum and gas, petrochemicals, and other energy-related fields.

The minister added that there are also electrical interconnection projects between the Kingdom and Arab countries, connecting Saudi Arabia to all the Gulf countries, and direct interconnection projects being implemented between the Kingdom and Iraq, Jordan, and Egypt.

Prince Abdulaziz noted that these projects aim to enhance the security and reliability of interconnected national networks and increase their ability to absorb the entry of renewable energy projects.

They also help create a regional commercial market for the exchange and passing of electric energy to achieve optimal investment and operation of national generation stations, export renewable energy, and link the Middle East and North Africa networks.

He stressed that coordination and cooperation with Arab countries are continuous, whether through councils or joint committees in the various fields of energy and related issues.

It included exchanging expertise in electricity, renewable energy, efficient energy production and consumption, digital transformation in energy uses and its applications, climate change programs, and plans, including the circular carbon economy approach, emissions reduction techniques, and others.

He hoped the Arab League’s Jeddah summit would be a new opportunity to achieve more significant and practical cooperation, integration, and coordination between Arab countries in all fields.

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Growth of Non-Oil Sectors Position Saudi Arabia Among Leading Global Economies

 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
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Growth of Non-Oil Sectors Position Saudi Arabia Among Leading Global Economies

 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia’s economy continued its upward trajectory in 2024, solidifying its status as one of the world’s most stable and fastest-growing markets. This momentum is being driven by the Kingdom’s unwavering commitment to economic diversification — a central pillar of Vision 2030 — which has significantly boosted non-oil sectors, expanded private sector participation, and increased the economy’s ability to generate jobs and attract investment.

Non-oil activities now contribute a record 51% to real GDP, marking a major milestone in the country’s transformation journey.

According to the Vision 2030 annual report, Saudi Arabia’s real non-oil GDP grew by 3.9% in 2024 compared to the previous year, fueled by ongoing investments across diverse sectors. Non-oil activities alone expanded by 4.3% year-on-year, reflecting the success of structural reforms and strategic national programs.

At the heart of Vision 2030 is the ambition to build a thriving economy. One of the key benchmarks is improving Saudi Arabia’s position in global GDP rankings. In 2016, the Kingdom ranked 20th worldwide. By 2030, it aims to break into the top 15, with a targeted GDP of SAR 6.5 trillion ($1.7 trillion).

In early 2024, Saudi Arabia adopted a new moving-chain methodology to measure GDP more accurately. Under this updated system, real GDP has grown consistently since 2016 at a compound annual rate of 1.75%, excluding the pandemic-induced downturn in 2020. Non-oil GDP, meanwhile, has shown even stronger performance, expanding at a 3.01% annual pace over the same period.

While the 2024 non-oil GDP target was narrowly missed, the outcome reached 98% of the goal — a strong showing amid global uncertainties. Leading contributors included wholesale and retail trade, hospitality, transportation, logistics, and information technology.

Non-oil exports also played a pivotal role in economic growth, achieving over 75% of their annual targets. Gains came primarily from increased exports of non-oil goods and a sharp rise in re-exports, underlining Saudi Arabia’s growing role in global trade flows.

The private sector’s role in the economy has expanded significantly, with its contribution to GDP reaching 47% — surpassing the 2024 target. Since 2016, this contribution has grown at a compound annual rate of 1.94%.

This progress reflects ongoing efforts to reduce reliance on oil, empower private enterprise, and enhance the Kingdom’s global competitiveness. Key initiatives include national strategies aimed at unlocking sectoral potential, the Public Investment Fund’s push to stimulate private capital, and the successful drive to attract global companies to relocate their regional headquarters to Saudi Arabia.

The government continues to foster a dynamic business environment, supporting small and medium enterprises (SMEs) through regulatory reforms and major development projects. These efforts span several sectors, including manufacturing, transport, logistics, and foreign investment.

Global Confidence, Positive Outlook

International confidence in the Saudi economy remains strong. In 2024, the world’s top three credit rating agencies affirmed the Kingdom’s sovereign creditworthiness. Moody’s assigned a rating of “Aa3” with a stable outlook; Fitch rated it “A+” with a stable outlook; and S&P awarded an “A/A-1” rating, also with a stable outlook.

Global institutions are also optimistic about the Kingdom’s growth prospects. The Organisation for Economic Co-operation and Development (OECD) forecasts Saudi economic growth at 3.8% in 2025 and 3.6% in 2026 — well above the global average.