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IMF: Saudi Arabia Has Created a Favorable Environment for Growth

The World Economic Forum in Davos hosted a session titled “Economic Transformations in Saudi Arabia”, in the presence of key Saudi officials. (Asharq Al-Awsat) 
The World Economic Forum in Davos hosted a session titled “Economic Transformations in Saudi Arabia”, in the presence of key Saudi officials. (Asharq Al-Awsat) 
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IMF: Saudi Arabia Has Created a Favorable Environment for Growth

The World Economic Forum in Davos hosted a session titled “Economic Transformations in Saudi Arabia”, in the presence of key Saudi officials. (Asharq Al-Awsat) 
The World Economic Forum in Davos hosted a session titled “Economic Transformations in Saudi Arabia”, in the presence of key Saudi officials. (Asharq Al-Awsat) 

The World Economic Forum in Davos hosted a session titled “Economic Transformations in Saudi Arabia,” focusing on the Kingdom’s remarkable economic progress. IMF Managing Director Kristalina Georgieva praised Saudi Arabia for establishing a “favorable environment for growth” while maintaining fiscal discipline.

The session featured key Saudi officials, including Finance Minister Mohammed Al-Jadaan, Minister of Economy and Planning Faisal Al-Ibrahim, Minister of Communications and Information Technology Abdullah Alswaha, and BlackRock CEO Larry Fink.

Georgieva commended the Kingdom’s readiness to make tough decisions, underpinned by its solid economic foundations.

Finance Minister Mohammed Al-Jadaan highlighted the nation’s collective commitment to Vision 2030.

“The entire country—from citizens to businesses and government—is united behind this clear and transparent vision,” he stated.

He further underscored the leadership’s determination to make bold, long-term decisions to achieve the vision’s objectives, saying: “I believe this approach will succeed in Saudi Arabia and could succeed anywhere if similar conditions are met.”

Al-Jadaan explained that Vision 2030 is designed to increase economic resilience and reduce dependency on oil price fluctuations.

He noted: “The shift is happening at an extraordinary pace.”

Addressing Saudi-US relations, Al-Jadaan said: “For over eight decades, Saudi Arabia has forged highly strategic economic and trade ties with the United States, regardless of political changes in Washington. This partnership benefits both sides, and as long as it remains mutually advantageous, it will continue to thrive.”

Minister of Economy and Planning Faisal Al-Ibrahim emphasized Saudi Arabia’s role as a global model for transformation and a key engine of growth. He pointed out that the Kingdom has successfully diversified its economy, with non-oil activities now making up 52% of real GDP—a milestone reflecting significant progress.

Al-Ibrahim projected strong growth for the non-oil sector: 3.9% in 2025, 4.8% in 2026, and 6.2% in 2027. He described Saudi Arabia’s economic strategy as a blueprint for other nations, grounded in institutional reform, investment in human capital, and decisive policymaking.

For his part, Minister of Communications and Information Technology Abdullah Alswaha addressed the global demand for computing power—estimated at 63 gigawatts—to support artificial intelligence (AI) applications. He stressed this is equivalent to the energy needs of countries like India or the US over five years.

The minister also highlighted Saudi Arabia’s leadership in renewable energy to meet this demand.

“We’ve built the world’s largest green hydrogen plant in NEOM, with a capacity of 4 gigawatts, in partnership with Air Products and ACWA Power. This positions Saudi Arabia as a global energy hub, fueling the digital and AI-driven economies,” he stated.

On women’s empowerment, Alswaha pointed to a transformative rise in female workforce participation, jumping from 7% to 35%. He described this progress as “the boldest and most successful story of women’s empowerment in the 21st century.”

BlackRock CEO Larry Fink also praised the region’s entrepreneurial growth, noting: “There are many reasons to be optimistic. Humanity is progressing, and overall conditions are improving.”

He highly valued the substantial investment potential in Saudi Arabia and the wider region.

“This is a region of tremendous growth. As conditions continue to improve, tourism will rise, and new opportunities will flourish,” Fink concluded.

 

 

 

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Trump’s Copper, Aluminium Tariffs May Raise Costs for US Consumers 

President Donald Trump speaks to reporters aboard Air Force One en route from Miami to Joint Base Andrews, Md., Monday, Jan. 27, 2025. (AP)
President Donald Trump speaks to reporters aboard Air Force One en route from Miami to Joint Base Andrews, Md., Monday, Jan. 27, 2025. (AP)
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Trump’s Copper, Aluminium Tariffs May Raise Costs for US Consumers 

President Donald Trump speaks to reporters aboard Air Force One en route from Miami to Joint Base Andrews, Md., Monday, Jan. 27, 2025. (AP)
President Donald Trump speaks to reporters aboard Air Force One en route from Miami to Joint Base Andrews, Md., Monday, Jan. 27, 2025. (AP)

President Donald Trump's vow of tariffs on US copper and aluminium imports would result in higher costs for local consumers because of a shortfall of domestic production and the length of time it would take to renew the industry, analysts and industry participants said on Tuesday.

In a speech to Republican lawmakers on Monday, Trump said he would impose the tariffs on aluminium and copper - metals that are needed to produce US military hardware - as well as steel, to entice producers to make them in the United States.

"We have to bring production back to our country," he said.

Trump won the US presidency in November vowing to lower costs for consumers still smarting from an inflation surge in the first half of his predecessor Joe Biden's term. However, analysts argue his plan for tariffs on imports to bolster the country's manufacturing sector, another of his promises, may undercut his price-cutting pledge.

It was not clear how broadly the tariffs could be applied, but several mining CEOs have previously said they are preparing for different scenarios as markets brace for a potential change to trade flows.

"There’s a few unknowns here. Will these tariffs be enacted, and at what scale, and who will pay? Ultimately, they generally get paid by the consumer particularly in the case where there’s no domestic substitute," said analyst Daniel Morgan at Sydney investment bank Barrenjoey.

US aluminium and copper smelters have been closing and would need new infrastructure and power contracts to restart, among other measures, all of which take time, he said.

Aluminium producers in Canada such as Rio Tinto and Alcoa would be unlikely to take revenue hits, instead the costs would likely be rolled to automakers who would then pass them to US consumers, he added. Rio Tinto declined to comment.

An Alcoa spokesperson pointed to comments from CEO William Oplinger from a results call last week that flagged the potential for "wide ranging effects on supply, demand and trade flows". He estimated that a 25% tariff on current Canadian export volumes to the US could represent $1.5 billion to $2 billion of additional annual costs for US customers.

An executive at India's top mining lobby group noted the US is the biggest export market for its aluminium, and it expects India's government to take action by convincing Trump not to issue any levies.

"If Trump imposes tariffs, it will have an adverse impact particularly on aluminium because Europe is already on path to impose a carbon tax and the UK might do it too," said B.K. Bhatia, additional secretary general at the Federation of Indian Mineral Industries.

On copper, John Fennell, CEO of the International Copper Association Australia said any tariff on imports to the US would impact its industry given the country is a net copper importer, although it may speed the development of new mines such as Rio Tinto's Resolution in Arizona.

"This could be good for new mines like Resolution but that is many years off, and the pain would be felt by local manufacturers paying the tariffs in the interim," he said.

Freeport-McMoRan CEO Kathleen Quirk said last week that the miner would not be affected by any copper tariffs as they sell all their US copper domestically and their Indonesian metal goes to Asia. But she worried about any potential inflationary effects of copper tariffs.

In Japan, the world's third-largest steel maker, steel and aluminium tariffs during Trump’s previous term had a limited impact, noted Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting.

"The majority of Japan's steel exports are value-added specialty products. And since value-added products were excluded, we expect a similar approach this time. These value-added products are difficult to substitute, making them less likely to be targeted," Akuta said.