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Alibrahim to Asharq Al-Awsat: Private Sector Driving Transformation in Saudi Arabia

Saudi Economy and Planning Minister Faisal Alibrahim participating at the World Economic Forum in Davos (WEF)
Saudi Economy and Planning Minister Faisal Alibrahim participating at the World Economic Forum in Davos (WEF)
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Alibrahim to Asharq Al-Awsat: Private Sector Driving Transformation in Saudi Arabia

Saudi Economy and Planning Minister Faisal Alibrahim participating at the World Economic Forum in Davos (WEF)
Saudi Economy and Planning Minister Faisal Alibrahim participating at the World Economic Forum in Davos (WEF)

Saudi Economy and Planning Minister Faisal Alibrahim has highlighted that the private sector is driving growth in the Kingdom, contributing 44.79% to the Kingdom’s economy by the end of Q3, 2023.

In an exclusive interview with Asharq Al-Awsat at the World Economic Forum in Davos, Alibrahim commended the private sector for achieving its highest-ever contribution to the real GDP.

He also noted that women now make up 36% of the workforce in the Kingdom, surpassing the 30% target set in Saudi Arabia’s national transformation plan, “Vision 2030.”

Alibrahim revealed significant growth in the social services sector, which includes sports and cultural activities, predicting over 10% growth in 2023.

Other sectors, such as transport, logistics, tourism, and entertainment, are also expected to see substantial growth.

The minister estimated the Saudi entertainment market to be worth $2.31 billion in 2023, projecting it to reach $3.8 billion by 2028, with an annual growth rate of 10.44%.

Regarding Saudi Arabia’s efforts to host regional headquarters for global companies, Alibrahim revealed that 275 international companies have been attracted, with over 89% choosing Riyadh as their primary location.

Advancements in Economic Diversification

Alibrahim praised Saudi Arabia’s strides in diversifying its economy, highlighting a positive 3.5% growth in non-oil economic activities during Q3 2023 compared to the same period in 2022.

The share of non-oil activities in the total nominal GDP also increased to 48%, and government activities saw a 2.3% rise compared to the previous year.

Alibrahim noted the ongoing positive performance of the Purchasing Managers' Index for the non-oil private sector, hitting 57.5 points in December 2023. This was backed by a continuous influx of new business and a rapid surge in exports, despite international economic challenges.

The minister explained that, according to data released with the announcement of the Saudi state budget for 2024, the initial estimates suggest a 4.4% growth in the country’s real GDP for the current year (2024).

This growth is driven by the non-oil sector, with the private sector expected to lead economic expansion. The Kingdom aims for a more favorable trade balance and remains committed to implementing initiatives aligned with Vision 2030 and regional strategies.

“The positive outlook for the Saudi economy continues the favorable trends seen since the beginning of 2021,” affirmed Alibrahim.

The Kingdom anticipates revenues of about SAR 1.17 trillion for the current year (2024), with expenses estimated at around SAR 1.25 trillion.

Private Sector’s Strong Role

Alibrahim praised 2023 as an outstanding year for the private sector in Saudi Arabia, noting its growth for the eleventh consecutive quarter since early 2021.

By the end of Q3 2023, the private sector's contribution to the Saudi economy reached a record 44.79%.

“This growth aligns with Saudi Vision 2030, aiming to increase the private sector's share of the total GDP from 40% to 65%,” said the minister.

Alibrahim also confirmed the private sector’s unprecedented contribution to the Kingdom’s real GDP, surpassing 322 billion riyals by the end of Q3 2023.

This marked its highest-ever contribution, with the GDP reaching SAR719.09 billion during the quarter.

Highlighting the private sector’s increasing role, Alibrahim mentioned the addition of over 44,000 citizens to the private workforce in the past month, bringing the total to 10.9 million workers in December 2023, including 2.3 million citizens.

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Business

Egypt's January-March Current Account Deficit Widens to $5.1 billion

The headquarters of the Central Bank of Egypt in downtown Cairo (Asharq Al-Awsat)
The headquarters of the Central Bank of Egypt in downtown Cairo (Asharq Al-Awsat)
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Egypt's January-March Current Account Deficit Widens to $5.1 billion

The headquarters of the Central Bank of Egypt in downtown Cairo (Asharq Al-Awsat)
The headquarters of the Central Bank of Egypt in downtown Cairo (Asharq Al-Awsat)

Egypt's current account deficit more than doubled to $5.1 billion in the January-March quarter from $2.3 billion a year earlier, central bank data showed on Sunday.

Net foreign direct investment inflows edged down to $3.7 billion from $3.8 billion in the same period of 2025, Reuters reported.

The central bank attributed the wider July-March current account deficit mainly to a larger merchandise trade deficit, partly offset by higher remittances, tourism revenue and Suez Canal receipts.

Remittances from Egyptians working abroad rose to $12.8 billion from $9.3 billion in the same quarter last year, Reuters reported.

Tourism revenue increased to $4.2 billion from $3.8 billion in the same period last year. Suez Canal revenues rose to $1 billion from $800 million a year earlier.

Oil imports increased to $5.7 billion in the same quarter, from $4.8 billion a year earlier, while exports rose slightly to $1.6 billion from $1.2 billion.

Business

Focus Turns to Building Stronger Institutions in Africa to Speed Shift to Renewable Energy

A solar power plant in Burkina Faso (Reuters)
A solar power plant in Burkina Faso (Reuters)
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Focus Turns to Building Stronger Institutions in Africa to Speed Shift to Renewable Energy

A solar power plant in Burkina Faso (Reuters)
A solar power plant in Burkina Faso (Reuters)

Africa’s biggest clean energy challenge is shifting from building projects to building the institutions, markets and regulatory systems needed to deliver them at scale, experts say.

That challenge is emerging even as clean energy reaches a historic milestone globally.

Renewables generated 34% of the world’s electricity in 2025, overtaking coal’s 33% share. Together with nuclear power, renewables are expected to provide half of global electricity by 2030.

As industrialization, artificial intelligence and electrification push demand higher, experts say the bottleneck in transitioning to cleaner energy has shifted from technology to the systems supporting it, including funding.

Overcoming such obstacles is vital for securing access to power for the 600 million people in Africa who are yet to be connected.

“Clean energy is now cheaper than fossil fuels in virtually every part of the world,” former New York City Mayor Michael R. Bloomberg, the UN Secretary-General’s Special Envoy on Climate Ambition and Solutions, said in late June while announcing a new $285 million Bloomberg Philanthropies initiative to strengthen clean energy industries in emerging and developing economies.

“But fixable obstacles are still slowing down deployment, and with energy demand rising at an unprecedented speed, we can’t allow those obstacles to continue standing in the way,” The Associated Press quoted him as saying.

Rather than financing solar farms or wind projects directly, the initiative will invest in strengthening market design, regulatory capacity, technical expertise and industry institutions, areas increasingly viewed as essential for attracting private investment and accelerating use of renewable energy.

It reflects a growing consensus that Africa’s energy transition is constrained less by a lack of renewable resources or viable technologies than by the institutional capacity needed to turn those advantages into financially viable projects and electricity on the grid.

Many projects remain delayed by weak market design, limited grid planning, slow permitting processes and fragmented regulatory systems.

“What has been missing is not the potential, but the institutional infrastructure and capabilities to unlock it,” said Saliem Fakir, executive director of the African Climate Foundation.

“Philanthropy that targets those gaps directly is the kind of intervention that can shift the trajectory of a continent’s energy system.”

Across Africa, renewable energy costs have fallen sharply while investment appetite continues to grow. However, investors say policy uncertainty, slow permitting processes and limited regulatory capacity are hindering projects.

Wangari Muchiri, founder and chief executive of RE.Think Energy, said the commitment signals that “the next phase of the energy transition is not about proving clean energy works, it’s about removing the barriers preventing it from scaling fast enough.”

The Bloomberg initiative is looking beyond ambitious renewable energy targets to focus on helping projects attract long-term investments and connect to national grids.

“The next chapter of Africa's renewable energy story will not be only by the projects it builds, but the institutions that make these projects possible,” Muchiri said.

Business

Volkswagen CEO Looks to Avoid Plant Closures as Automaker Moves to Cut Costs

FILE PHOTO: Oliver Blume, CEO of Volkswagen AG and Porsche AG, speaks during the annual Volkswagen Group press conference in Wolfsburg, Germany March 11, 2025. REUTERS/Liesa Johannssen/File Photo
FILE PHOTO: Oliver Blume, CEO of Volkswagen AG and Porsche AG, speaks during the annual Volkswagen Group press conference in Wolfsburg, Germany March 11, 2025. REUTERS/Liesa Johannssen/File Photo
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Volkswagen CEO Looks to Avoid Plant Closures as Automaker Moves to Cut Costs

FILE PHOTO: Oliver Blume, CEO of Volkswagen AG and Porsche AG, speaks during the annual Volkswagen Group press conference in Wolfsburg, Germany March 11, 2025. REUTERS/Liesa Johannssen/File Photo
FILE PHOTO: Oliver Blume, CEO of Volkswagen AG and Porsche AG, speaks during the annual Volkswagen Group press conference in Wolfsburg, Germany March 11, 2025. REUTERS/Liesa Johannssen/File Photo

Volkswagen's CEO indicated in comments published Sunday that he's trying to avoid closing plants as he seeks to turn around the automaker's performance.

The Wolfsburg, Germany-based company faces pressure to cut costs at home and increasingly intense competition in the lucrative Chinese market, in particular.

Last week, Volkswagen said its “fundamental realignment” over the past three years had reached its next phase, announcing plans to streamline the model lineup by up to half.

It didn't provide specifics, and questions remain over how else it will cut costs. There has been renewed speculation about the future of several plants in Germany.

“There are more intelligent solutions than closing plants,” CEO Oliver Blume told the Bild am Sonntag newspaper, according to The Associated Press.

He added that a cost-cutting program in Germany already is producing effects. “We were able to improve our factory costs in Germany by an average 20% last year alone,” he said, describing that as “strong progress.”

Blume argued that Volkswagen's products are very popular, but “we just earn too little money with them. So we must continue to reduce our costs. In all kinds of costs.”