عربي English Türkçe اردو فارسى
Logo
Latest News
Business

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)
TT
TT

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.

Most Viewed

 
 
Business

Thiaw Ahead of COP16: $355 Billion Needed Annually to Combat Desertification

Ibrahim Thiaw, Under-Secretary-General and Executive Secretary of the United Nations Convention to Combat Desertification (UNCCD)
Ibrahim Thiaw, Under-Secretary-General and Executive Secretary of the United Nations Convention to Combat Desertification (UNCCD)
TT
TT

Thiaw Ahead of COP16: $355 Billion Needed Annually to Combat Desertification

Ibrahim Thiaw, Under-Secretary-General and Executive Secretary of the United Nations Convention to Combat Desertification (UNCCD)
Ibrahim Thiaw, Under-Secretary-General and Executive Secretary of the United Nations Convention to Combat Desertification (UNCCD)

With the 16th Conference of the Parties to the United Nations Convention to Combat Desertification (COP16) set to take place in Riyadh in early December, the world is focusing on solutions to one of the planet’s most urgent environmental challenges.

Ibrahim Thiaw, Executive Secretary of the convention, told Asharq Al-Awsat that the global economic cost of desertification is estimated at $878 billion annually. He emphasized that increased investment is essential to restore degraded lands and address this pressing issue effectively.

COP16 will gather global leaders and policymakers to explore strategies for combating drought and advancing green initiatives both regionally and globally. Thiaw highlighted the critical funding gap in combating desertification. From 2025 to 2030, the world will need $355 billion annually, but current funding levels are only $77 billion, leaving a $278 billion shortfall, he said, adding that without urgent action, 100 million hectares of land could degrade each year, directly impacting 1.3 billion people.

Uncontrolled land degradation poses severe risks, including up to a 50% reduction in crop yields in some regions by 2050, according to Thiaw. He noted that this decline would drive food prices up by 30% and significantly worsen food insecurity, especially in vulnerable areas. By mid-century, half of the global grain supply could face extreme water scarcity. The annual economic toll of desertification, land degradation, and drought represents approximately 2% of global GDP.

Thiaw expressed hope that COP16 will achieve tangible progress by prioritizing investments in land restoration to enhance resilience against drought. He emphasized that restoring degraded lands could significantly improve soil health, potentially boosting global crop yields by 2% by 2050. This progress would be particularly impactful in regions like the Middle East and North Africa.

Implementing sustainable land management practices could also mitigate the effects of drought by improving water retention and increasing ecosystem resilience. In this regard, the executive secretary of COP16 stressed the importance of partnerships among governments, international organizations, and the private sector to attract investments and fund sustainable projects. He pointed to public-private collaborations and blended financing as key mechanisms, alongside international support through grants and loans, especially in Africa, where the annual investment gap stands at $191 billion.

Thiaw further said that restoring land addresses multiple global challenges, including food security, poverty, climate change, biodiversity loss, and forced migration. He underlined the role of sustainable agriculture in improving soil health, creating green jobs, and building community resilience, while ensuring long-term sustainability.

Moreover, emerging technologies, such as artificial intelligence, are crucial for monitoring land degradation and enabling timely interventions. Thiaw encouraged countries to adopt these technologies to improve land management and restoration efforts.

He also highlighted the vital role of women in combating desertification, noting that while women produce 80% of the world’s food, they own less than 20% of its land. Empowering women and securing their land rights could lead to more sustainable practices and strengthen communities’ resilience to desertification and drought, he stated.