The Saudi Minister of Finance asserted on Thursday that since its initiation in 2016, the national transformation plan of the Kingdom, known as Vision 2030, has incorporated a diverse range of sectoral and regional strategies.
“These strategies include a large number of projects and the Kingdom has been conducting a comprehensive review of all these strategies over the last two years,” said Mohammed Al-Jadaan.
“We are currently halfway through the Vision,” he added, underlining the need for the optimum utilization of the limited revenues and resources so as to achieve the greatest economic return.
Al-Jadaan highlighted the focus of Vision 2030 on economic diversification, particularly on non-oil domestic products, with a targeted range of approximately 18%-21%.
The minister stressed that the range should not be exceeded, otherwise it will be a burden on the economy.
Addressing the first dialogue session of the Budget 2024 Forum, titled “Sustainable Finance” in Riyadh, Al-Jadaan discussed the concept of financial capacity in local debt markets and its considerations with the private sector.
“In its borrowing endeavors, the Kingdom takes into account the needs of the private sector, considering their access to financing in banks for small and medium-sized enterprises, consumer loans, and providing financial support,” noted the minister.
He highlighted the global market, international loans, and the allocation of approximate amounts for each country based on risk diversification, economic strength, credit rating, pointing to indicators such as debt service to the gross domestic product (GDP) and non-oil GDP, emphasizing financial sustainability.
On his part, Minister of Economy Faisal Al-Ibrahim affirmed that Saudi Arabia seeks to achieve optimal economic diversification.
Al-Ibrahim also confirmed that many targets of Vision 2030 have been realized.
The institutional capacities of government entities, coupled with their collaboration with other sectors, have become well-established and of high quality, added Al-Ibrahim.
He pointed out that exports of services rose to SAR135 billion currently, compared to SAR65 billion in 2016, which contributed to improving the Kingdom’s trade balance.
The contribution of non-oil revenues to covering costs jumped from 19 percent to 35 percent, which is due to the basic growth of the non-oil economy, said Al-Ibrahim while noting that unemployment rates continue to decline systematically.
Al-Ibrahim said that the Kingdom’s Vision 2030 created a fertile environment for economic diversification, building national capabilities and raising the efficiency of government institutions, in addition to improving the trade balance.
He underlined the need to support the private sector to reach the government target.
The minister also stressed that all sectoral strategies and mega projects aimed to enable the private sector to exploit available opportunities and grow to respond to demand within the Kingdom and also compete with other producers outside Saudi Arabia.