World Bank Official: Saudi Arabia Takes Economic Diversification Agenda Seriously

A session of the International Monetary Fund (IMF) and World Bank meetings in the Moroccan city of Marrakesh (Reuters)
A session of the International Monetary Fund (IMF) and World Bank meetings in the Moroccan city of Marrakesh (Reuters)
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World Bank Official: Saudi Arabia Takes Economic Diversification Agenda Seriously

A session of the International Monetary Fund (IMF) and World Bank meetings in the Moroccan city of Marrakesh (Reuters)
A session of the International Monetary Fund (IMF) and World Bank meetings in the Moroccan city of Marrakesh (Reuters)

The World Bank expects a sharp decline in the growth of the economies of the countries of the Middle East and North Africa region this year, reaching 1.9 percent from 6 percent last year, driven by reduced oil production, tight global financial conditions, and high inflation.

These forecasts were issued before the military escalation between Israel and Gaza, which will have repercussions on the economy at the regional and global levels. Bloomberg expects global growth to decline to 1.7 percent (from 1.9 percent according to recently issued International Monetary Fund estimates).

In an interview with Asharq Al-Awsat on the sidelines of the annual meetings of the International Monetary Fund (IMF) and the World Bank in Marrakesh, World Bank’s chief economist for the Middle East and North Africa region, Roberta Gatti, said that the region witnessed exceptional growth last year, which was the highest in about 15 years, driven by oil prices and the rise in oil exports after the Russian-Ukrainian war. In 2023, growth declined starkly, as demand for oil was below the expectations.

Hence, the largest decline in growth rates was registered in the oil-exporting countries of the Gulf Cooperation Council, where real GDP growth is expected to reach 1 percent in 2023, down from 7.3 percent in 2022, as a result of oil production cuts and lower oil prices. As for oil-exporting developing countries, growth is expected to decline from 4.3 percent in 2022 to 2.4 percent in 2023.

According to Gatti, Saudi Arabia recorded a significant decline in the oil sector, in parallel with a remarkable growth in non-oil activities by about 3.7 percent.

In this context, the World Bank official noted that Saudi Arabia “takes the economic diversification agenda seriously”, as it plans its expenditures and its financial budget in accordance with a fixed price rate for oil based on around $70.

Gatti noted that other countries in the region, such as Egypt and Tunisia, whose economies were already affected by the pandemic, were suffering severely due to high inflation rates. Thus, higher interest rates would make the economic situation more complex, as they lead to increased debt service, she remarked.

On Egypt, the World Bank chief economist said that adopting a flexible exchange rate was is an essential step for the country, in parallel with the need for financial and structural policies that are consistent with the reforms requested by the IMF.

The most important way to reduce the high public debt to GDP is to maximize the role of the private sector with the aim of achieving greater growth, she stressed.

Gatti went on to say that the World Bank’s vision of the labor market in the Middle East and North Africa region was closely linked to growth and social stability. She explained that countries must think about doubling their resistance to shocks and finding the necessary mechanisms to expand financial space, as World Bank figures show that the MENA region has the highest incidence of climate-related disasters compared to other countries in the world.



Saudi Arabia Calls for Global Water Cooperation to Advance Integrated Management

The first preparatory meeting for the 11th World Water Forum 2027 kicked off in Riyadh on Monday. (11th World Water Forum 2027 | Riyadh 2027 on X)
The first preparatory meeting for the 11th World Water Forum 2027 kicked off in Riyadh on Monday. (11th World Water Forum 2027 | Riyadh 2027 on X)
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Saudi Arabia Calls for Global Water Cooperation to Advance Integrated Management

The first preparatory meeting for the 11th World Water Forum 2027 kicked off in Riyadh on Monday. (11th World Water Forum 2027 | Riyadh 2027 on X)
The first preparatory meeting for the 11th World Water Forum 2027 kicked off in Riyadh on Monday. (11th World Water Forum 2027 | Riyadh 2027 on X)

The first preparatory meeting for the 11th World Water Forum 2027 kicked off in Riyadh on Monday with the participation of top scientists, experts, decision-makers from around the world.

Saudi Minister of Environment, Water and Agriculture Abdulrahman Alfadley, with the participation of World Water Council President Loïc Fauchon, inaugurated the official logo of the World Water Forum 2027.

In his remarks, Alfadley emphasized Saudi Arabia’s call for strengthened international cooperation and joint efforts among countries and organizations to tackle global water challenges. He underscored the importance of ensuring universal access to water and sanitation services as a key pillar in achieving Sustainable Development Goal 6 (SDG 6).

“Saudi Arabia prioritizes the water sector through various measures, including the adoption of a national strategy encompassing water production, storage, transportation, distribution, treatment, and reuse, all within a comprehensive institutional framework,” Alfadley added.

He further stated that the Kingdom has implemented Integrated Water Resources Management and enhanced supply chain governance. This is supported by the release of a long-term supply and demand plan that extends to 2050, alongside a commitment to environmental, social, and economic considerations in alignment with Saudi Vision 2030.

Highlighting the Kingdom's leading role in supporting regional and international water issues, Alfadley pointed to the launching of the Global Water Organization, aimed at fostering international collaboration, and the establishment of an International Water Research Center focused on water economics, water security, advanced technologies, and digital transformation.

Fauchon said the council, in collaboration with Saudi authorities, has developed a comprehensive framework outlining the thematic, regional, and political components that will shape the roadmap for the 11th edition of the forum that is being held in the Middle East for the first time.

He stressed the need to make water a top global priority, adding that this gathering will lay the foundation for future water policies. “The way ahead is still long, but we are confident we’re on the right path toward real solutions—solutions that can change lives,” he said.

Deputy Minister for Water at the Ministry of Environment, Water, and Agriculture Dr. Abdulaziz Alshaibani underscored the urgency of the current moment, describing the preparatory meeting as a call for serious and immediate action. Alshaibani emphasized the need to build upon existing progress in the water sector and to move decisively towards solidifying priorities.

He stressed the importance of greater coherence and integration across all sectors, along with the unification of all efforts, to achieve tangible solutions to global water challenges and to meet SDG 6. Alshaibani further noted that effective solutions must be anchored in several key pillars, including financing, innovation, diplomacy, and environmental considerations.

The World Water Forum 2027, organized by the World Water Council in Saudi Arabia, is a significant international platform for exchanging ideas and experiences in water management.