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Saudi Economic Affairs Council Follows up Performance of Vision 2030 Programs

File photo: Saudi Crown Prince Mohammed bin Salman bin Abdulaziz chairs a meeting of the Council of Economic and Development Affairs (Asharq Al-Awsat)
File photo: Saudi Crown Prince Mohammed bin Salman bin Abdulaziz chairs a meeting of the Council of Economic and Development Affairs (Asharq Al-Awsat)
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Saudi Economic Affairs Council Follows up Performance of Vision 2030 Programs

File photo: Saudi Crown Prince Mohammed bin Salman bin Abdulaziz chairs a meeting of the Council of Economic and Development Affairs (Asharq Al-Awsat)
File photo: Saudi Crown Prince Mohammed bin Salman bin Abdulaziz chairs a meeting of the Council of Economic and Development Affairs (Asharq Al-Awsat)

Saudi Arabia’s Council of Economic and Development Affairs reviewed the performance of the Vision 2030 realization programs for the second quarter of this year during a video conference on Wednesday.

The council was briefed on a periodic report from the Ministry of Economy and Planning, which provided an analysis of global economic developments, including interest rate reductions and their effects on major and emerging economies.

Additionally, the council examined a presentation from the Strategic Management Office on the performance report for the Vision 2030 realization programs during the second quarter of 2024. The report highlighted key achievements, strategic objectives, an assessment of the initiatives, and a comprehensive overview of performance, along with future aspirations. The report noted continuous progress across the three main pillars of Vision 2030: a vibrant society, a thriving economy, and an ambitious nation.

Recent indicators show sustained significant progress across all pillars. The total value of foreign direct investment (FDI) inflows into the Kingdom's economy reached approximately SAR19.4 billion, according to a recent report from the General Authority for Statistics (GASTAT). The report also revealed a 23.4% increase in net FDI inflows during the second quarter compared to the first quarter, totaling SAR11.7 billion.

In another positive sign, the unemployment rate for Saudi nationals dropped to a historic low of 7.1%, approaching the Vision 2030 target of 7%.

In the area of non-oil exports, a 19% increase was recorded in July 2023 compared to the same month in 2022. Furthermore, the Ministry of Justice’s electronic services index exceeded its target, reaching 108% during the second quarter of 2023.

Regarding the performance of public agencies, which saw an 83% achievement rate in Vision 2030 targets, the council reviewed a presentation from the National Center for Performance Measurement, detailing the work of public agencies and future plans to enhance national strategies.

The council also reviewed other reports and topics, including an executive summary of consumer and wholesale prices for July, a summary of the consumer price index for the same month, and a foreign trade report for June.

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Turkish Govt Defends Tax Plan to Fund Defense Industry

Finance Minister Mehmet Simsek said Türkiye must boost its 'deterrent power' due conflict in the region - AFP
Finance Minister Mehmet Simsek said Türkiye must boost its 'deterrent power' due conflict in the region - AFP
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Turkish Govt Defends Tax Plan to Fund Defense Industry

Finance Minister Mehmet Simsek said Türkiye must boost its 'deterrent power' due conflict in the region - AFP
Finance Minister Mehmet Simsek said Türkiye must boost its 'deterrent power' due conflict in the region - AFP

The Turkish government defended a proposed tax on credit cards on Tuesday, saying it was needed to fund the arms industry and protect the country as conflict rages in its neighbourhood.

Indignant Turks, who already face double-digit inflation, called their banks to lower their credit limits after the ruling AKP party submitted the tax bill to parliament on Friday.

"Our country has no choice but to increase its deterrent power. There's war in our region right now. We are in a troubled neighborhood," Finance Minister Mehmet Simsek told private broadcaster NTV.

The bill stipulates that people with a credit card limit of at least 100,000 liras (nearly $3,000) will have to pay an annual 750 lira ($22) in tax from January to bolster the defense industry.

"The purpose (of the bill) is obvious," Simsek argued.

"If we increase our deterrent power, then our ability to protect against fire in the region will increase," he said, though he added that the bill was in the hands of parliament and the ruling party could "re-evaluate" it.

AKP's parliamentary group chairman, Abdullah Guler, said when he proposed the tax on Friday that Israel's next target would be Türkiye, an argument often cited by President Recep Tayyip Erdogan.

"While we are in the middle of all these hot developments geographically, we need to make our defense industry stronger than ever," Guler said, AFP reported.

- Weapons industry -

A vocal critic of Israel's offensive in Gaza and Lebanon, Erdogan has warned that Israel's military operations could soon target Türkiye, prompting the opposition to demand an emergency session in parliament for the government to elaborate.

Addressing a conference hosted by his AKP party on Tuesday, Erdogan doubled down the threat posed by Israel.

"Even if there are those who cannot see the danger approaching our country... we see the risk and take all kind of measures," he said.

Turkey's defense industry has enjoyed a boom in recent years but Simsek said the sector needed a boost.

The defense industry is planning to invest in 1,000 projects, including a air defense system that would protect Türkiye from missile assaults, Simsek said.

"This requires resources," he added.

Türkiye has allocated 90 billion lira from the budget to fund the defense industry last year, he added.

"This year, we increased it to 165 billion lira. Maybe we will need to double this even more."

Türkiye's defense companies signed contracts in 2023 worth a total of $10.2 billion, according to Haluk Gorgun, the head of Türkiye's state Defense Industry Agency (SSB).

The top 10 Turkish defense exporters contributed nearly 80 percent of total export revenue, he said.

Sales of Turkish Baykar drones, used in Nagorno-Karabakh or Ukraine, amounted to $1.8 billion.

- 'Disguise the Economic Crisis' -

Last week, parliament held behind-closed-doors session for the government to explain why it saw Israel as a potential threat, but the opposition said it was not convinced.

The spokesman for Türkiye's main opposition CHP party, Deniz Yucel, said Monday the government was exploiting national feelings to sweep an "economic crisis" under the rug.

Inflation has spiralled over the past two years, peaking at an annual rate of 85.5 percent in October 2022 and 75.45 percent in May 2023.

Official data showed it slowed to 49.4 percent in September.

"The AKP is trying to create a fake 'foreign threat and war agenda' with the rhetoric of 'Israel may attack us'," Yucel said on Monday.

"We know and see that they are trying to disguise the economic crisis they caused."