From Davos: The World Looks to Saudi Vision, from Reform to Delivery

The logo of the World Economic Forum at the Davos Conference Center (AFP)
The logo of the World Economic Forum at the Davos Conference Center (AFP)
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From Davos: The World Looks to Saudi Vision, from Reform to Delivery

The logo of the World Economic Forum at the Davos Conference Center (AFP)
The logo of the World Economic Forum at the Davos Conference Center (AFP)

At the 2026 World Economic Forum in Davos, Saudi Arabia offered a compelling account of how long-term ambition can be translated into measurable results.

Through a narrative grounded in data and outcomes, Saudi ministers traced the evolution of Vision 2030 from structural reform to disciplined execution, presenting the Kingdom as one of the world’s most attractive investment destinations.

Rising capital-formation rates now place Saudi Arabia alongside major economies such as China and India, underscoring growing international confidence in the strength and future of its economy.

On the margins of the forum, a high-level dialogue at the Saudi House pavilion brought together Princess Reema bint Bandar Al Saud, Saudi ambassador to the United States; Minister of Investment Khalid Al-Falih; Minister of Finance Mohammed Al-Jadaan; Minister of Economy and Planning Faisal Alibrahim; IMF Managing Director Kristalina Georgieva; and Lubna Olayan, Chair of Olayan Financing.

Titled From Reform to Delivery: Implementing Change at Scale, the session examined the next phase of Vision 2030 and how it has enhanced the government’s capacity for evidence-based planning and execution.

Saudi Arabia’s presence at the 2026 forum runs from Jan. 19-23 through an expanded Saudi House program - the largest since its launch - bringing together ministers, senior officials, business leaders and global thinkers.

From vision to policy discipline

Al-Jadaan emphasized that visions and reform agendas cannot be taken for granted. The true test, he said, lies not in designing strategies but in sustaining their execution, an area where many reform efforts around the world lose momentum. Saudi Arabia’s fiscal framework, supported by record foreign reserves at the central bank, has provided the flexibility needed to absorb shocks and maintain reform momentum.

He noted that 93 percent of Vision 2030’s key performance indicators have either been achieved or are progressing as planned. He added that reform has moved beyond individual initiatives to become a permanent institutional practice, supported by a 22 percent rise in financial reserves between 2022 and 2025.

He also stressed that trust and credibility are central to this process. Sustained progress depends on maintaining confidence with markets and stakeholders through pragmatic fiscal discipline and clear prioritization of resources. With fiscal space always finite, sequencing and focus are essential. He pointed to IMF Article IV consultations as a rigorous external validation of Saudi Arabia’s economic direction, noting that ambitions set a decade ago are now reflected in tangible outcomes, with hundreds of indicators either exceeding targets or firmly on track.

Converting strategy into outcomes

Building on this theme, Alibrahim said that turning strategies into results requires clarity of purpose, institutional adaptability and the ability to adjust course quickly. He explained that sustainable transformation cannot be achieved without a conscious approach to managing risk.

According to Alibrahim, Vision 2030’s long-term perspective has strengthened the government’s ability to plan, execute and respond to data, allowing it to change direction when needed while balancing risks and opportunities over both short and long horizons.

Attracting global capital

Al-Falih placed Saudi Arabia’s experience within a broader global context marked by geopolitical uncertainty, strained supply chains and rapid technological change. He noted that capital cannot avoid risk entirely but must find ways to balance it with the need for growth, particularly at a time when the world requires vast investment to navigate major transitions. These include energy digitization and the restructuring of global artificial intelligence supply chains.

He further explained that investors are increasingly drawn to markets that combine scale with access to global opportunities. This, in turn, requires skilled human capital, reliable energy, credible decarbonization pathways, advanced physical and digital infrastructure, and transparent, predictable regulatory systems. He said that few countries offer all these elements together, adding that Saudi Arabia has succeeded in doing so.

Al-Falih continued that foreign direct investment has risen to five times its pre–Vision 2030 level, while domestic investors have also increased their commitments. Capital formation as a share of GDP now matches levels seen in China and India, with visible effects across global supply chains, from shipbuilding on the eastern coast to automotive manufacturing on the western coast, as well as green and blue hydrogen projects developed with international partners.

Energy, markets and new frontiers

Al-Falih noted that the availability of Saudi capital, combined with a partnership-driven approach, has been a decisive factor. The government co-invests alongside the Public Investment Fund, major national companies and the private sector, aligning capital with strategic priorities.

While petrochemicals, fertilizers and mining remain important, the scope of transformation has broadened significantly. Saudi capital markets have become more integrated, the exchange-traded fund ecosystem has expanded, and inclusion in major global indices has lowered barriers for international investors.

At the same time, he said that the Kingdom is moving beyond its traditional role as an oil and gas supplier. It is investing in hydrogen, accelerating renewable energy localization and developing cross-border electricity interconnections with Africa, the Gulf, Iraq and Egypt. Investments in critical minerals and global supply chains now extend to joint ventures in the United States and Asia, supporting demand in a low-carbon economy. Saudi Arabia, Al-Falih concluded, also aims to position itself as a hub for the new economy, including data and artificial intelligence.

Georgieva: A transformation that inspires

Georgieva described Saudi Arabia’s reform journey as a “generational transformation” that spans sectors and places the Kingdom in a position of global leadership. Reforms that reduced the state’s direct role while enabling the private sector to flourish, she said, now underpin the country’s economic resilience.

She highlighted the breadth of diversification — from finance and tourism to sports and fashion — as particularly striking, adding that Saudi Arabia has also emerged as a partner and sponsor of reform beyond its borders, with the IMF office in Riyadh helping to share the Saudi experience with other countries. Concluding her remarks, she urged Saudi leaders and officials to maintain momentum and continue supporting others on similar paths.

Princess Reema, for her part, emphasized that human capital remains the engine of long-term growth. She said that investment in youth, job creation and a supportive social environment, encouraged many young Saudis to build their futures at home.

Lubna Olayan observed that the business landscape has undergone a notable shift. Where large corporations once dominated, small and medium-sized enterprises are now playing a growing role, supported by banks and new financing channels. She noted that economic diversification has opened private-sector opportunities, particularly in tourism, a labor-intensive service industry.

Powell: A model with global relevance

In a separate Saudi House session, Dina Powell McCormick, Vice Chair of Meta’s board, said her 25-year relationship with Saudi Arabia has given her a firsthand view of “extraordinary progress” under Vision 2030.

Recalling discussions in Washington in 2017 during her tenure as US deputy national security advisor under President Donald Trump, she described a long-term roadmap centered on unlocking the potential of a population that is more than 65 percent under the age of 35 and on the expanding role of women as entrepreneurs and leaders.

On technology, Powell said the world is approaching a pivotal moment that could reshape humanity within just three to eight years, making Saudi Arabia’s execution-focused transformation a model of growing relevance well beyond the region.



World Bank, IMF Back Changes to Debt Framework for Poor Countries

01 November 2009, US, Washington: The logo of the World Bank is seen at the headquarters in Washington. (dpa)
01 November 2009, US, Washington: The logo of the World Bank is seen at the headquarters in Washington. (dpa)
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World Bank, IMF Back Changes to Debt Framework for Poor Countries

01 November 2009, US, Washington: The logo of the World Bank is seen at the headquarters in Washington. (dpa)
01 November 2009, US, Washington: The logo of the World Bank is seen at the headquarters in Washington. (dpa)

The World Bank and International Monetary Fund said on Monday that both their executive boards had approved proposed reforms of their joint framework for evaluating the debt of low-income countries to reflect a more complex and riskier environment.

A joint review, the first since 2017, recommended changes in several areas, including beefing up the analysis of domestic debt held by poor countries, and broadening consideration of long-term development challenges, including climate change. It stopped short of calling for a wholesale redesign.

The reforms are intended to refine how the IMF and World Bank measure a country's debt-carrying capacity and provide new tools to better differentiate between countries facing some risk of debt stress and those whose debt is deemed unsustainable.

The World Bank and IMF said they would also work ‌to enhance the tools ‌and stress tests used to ensure the consistency and accuracy of forecasts, while ‌encouraging ⁠countries to improve reporting ⁠and transparency of their debt data. They left the discount rate used in making assessments unchanged at 5%.

"Overall, our goal is a very practical one. It is to help countries identify vulnerabilities earlier and also more precisely, so that they can make better-informed financing choices and better-informed policy choices," said Allison Holland, who worked on the new debt sustainability framework and now serves as deputy director in the IMF's African Department.

Holland said recent shocks had reversed improvements in the debt landscape seen since 2021, taking the number of countries at high risk or already in debt distress back ⁠to pre-pandemic levels.

"Around 14% of low-income countries are in debt distress, and another 33% ‌are at high risk. About 23% of emerging market countries are at ‌high risk of overall sovereign stress," she said.

The revised framework could help inform a debt restructuring requested earlier this month ‌by Senegal in exchange for a $2.2 billion IMF bailout two years after a hidden debt scandal that pushed ‌it into crisis. The IMF has said it will assess Senegal's debt sustainability using the current framework, "while taking into account the implications of the transition" to the new one.

The IMF has not provided details on how the revised framework — with consideration of domestic debt — could affect Senegal's debt restructuring.

TAKING EFFECT IN SECOND HALF OF 2027

The changes, which will become operational in the second half ‌of 2027, should help countries better assess how much they can invest in needed development and climate adaptation measures while containing debt vulnerabilities over the long ⁠term, the IMF and World ⁠Bank said.

A review completed in July confirmed that the debt sustainability framework, first introduced in 2005, had worked well to identify debt distress episodes ahead of time and help countries make informed borrowing and lending decisions.

But it recommended changes to account for higher debt levels in many low-income countries and a shift in financing sources to include more domestic and external borrowing on commercial terms. The IMF and World Bank have a separate framework for assessing the debt sustainability of advanced and emerging market economies that will be reviewed in coming years.

The IMF said near- and medium-term economic projections that feed into the analyses had generally been reliable, but longer-term forecasts of exports and revenues had shown some "optimism bias" and left data gaps, including for state-owned enterprises.

The new framework introduces a long-term module to add granularity to risk assessments, as well as specific thresholds for overall public debt stress.

But IMF board members agreed to temporarily hold off publishing the models used to assess unsustainable debt to give time to adjust to the new methodologies. Stand-alone staff notes would be used to share data with the board for now, it said.


'AlUla Peregrina': From Fields to Global Markets

A Saudi woman works on products derived from the Peregrina tree in AlUla.
A Saudi woman works on products derived from the Peregrina tree in AlUla.
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'AlUla Peregrina': From Fields to Global Markets

A Saudi woman works on products derived from the Peregrina tree in AlUla.
A Saudi woman works on products derived from the Peregrina tree in AlUla.

In AlUla, where the Peregrina tree has been part of the local environment for generations, the tree is taking a new path from fields to laboratories and global markets. Rather than simply marketing raw materials, AlUla Peregrina is seeking to develop oils, extracts, and natural ingredients for applications in beauty and personal care, adding value to a local resource before it reaches overseas markets.

AlUla Peregrina was established in 2021 by the Royal Commission for AlUla, with the aim of developing economic uses for the tree and its extracts. The company is now expanding its applications in skincare, haircare, and wellness products, while also developing its presence in international markets.

The strategy comes as efforts to increase the added value of local resources and expand non-oil exports gain importance. The company is betting that developing and manufacturing ingredients within Saudi Arabia can generate greater economic returns than exporting raw materials, while creating opportunities for products that carry Saudi knowledge and technology into international markets.

In an exclusive interview with Asharq Al-Awsat, Eng. Abobakar Alanazi, Chairman of the Board of AlUla Peregrina, said the company's ambition is to establish AlUla Peregrina as a leading Saudi platform for high-quality active natural ingredients, expanding from AlUla into regional and global markets, with a focus on skincare, haircare, and personal care.

Added Value

According to Alanazi, the company is gradually building a presence in international markets, benefiting from growing demand for natural ingredients with traceable origins and scientific evidence, alongside increasing interest in responsible supply chains.

He said the goal extends beyond exporting a Saudi product to developing ingredients and products based on local natural resources and combining scientific research, development, and manufacturing within Saudi Arabia, thereby increasing the product's added value before it reaches overseas markets.

Development efforts focus on the Arabian Peregrina tree, Moringa peregrina, and its natural compounds, including ceramides, plant exosomes, bioactive peptides, and antioxidants. Alanazi said the company has developed a range of oils and extracts that can be used in various skincare applications.

The development of these products is based on scientific research, laboratory testing, and clinical evaluations to verify their effectiveness before moving into commercial applications. Alanazi said these efforts have resulted in four registered patents, reflecting part of the company's research and development work.

Hospitality Sector

In the hospitality sector, Alanazi said the company is developing customized formulations and solutions for hotels and spas, inspired by Arab traditions of personal care but presented in contemporary formulations. These solutions include formulations and fragrances that can be tailored to reflect the identity of each establishment rather than offering a standardized product.

He explained that product development begins by identifying the needs of the market and partners, followed by scientific and technical evaluation before arriving at the final formulation.

On sustainability, he said responsible practices form part of the company's business model and supply chain, from cultivation and harvesting in cooperation with local farmers to the processing and development of ingredients in AlUla. The company is focusing on tracing raw materials and identifying their sources and journey throughout the production process, alongside responsible sourcing practices.

He noted that the supply chain has undergone verification by the Union for Ethical BioTrade (UEBT) in relation to responsible sourcing, in line with relevant international standards. He said developing processing and production operations within Saudi Arabia contributes to increasing local added value and supports the emergence of an integrated economic value chain around the activity in the region.

The company is also working to strengthen the participation of local farmers and suppliers, transfer knowledge, and develop the capabilities needed to support the growth of the natural ingredients sector in Saudi Arabia.

Economic Diversification

Alanazi said AlUla Peregrina's business model aligns with several objectives of Saudi Vision 2030, particularly economic diversification, increasing local content, and developing value-added industries, while also benefiting from growth in the tourism and hospitality sectors.

“We are transforming a natural resource from AlUla into ingredients and products that are developed and manufactured locally, creating economic value beyond the sale of raw materials,” he said.

He added that the growth of tourism and hospitality in Saudi Arabia is creating opportunities to develop Saudi solutions for hotels, resorts, and the wellness sector that are connected to the identity of the place and the visitor experience.

He pointed to an opportunity to develop a specialized sector for natural ingredients and their applications in personal care and beauty that could expand beyond the domestic market, bringing together natural resources, scientific research, manufacturing, and services linked to tourism and hospitality.

International Expansion

The Chairman of the Board said exports are a key pillar of the company's growth strategy, amid growing global demand for natural ingredients with traceable origins and scientific evidence supporting their use.

“What distinguishes our model is that the added value is created within Saudi Arabia, starting with the natural resource and research and development, through processing and manufacturing, and ultimately to the finished product or ingredient tailored for overseas markets,” he said.

He explained that the company is not simply seeking to export raw materials, but to develop specialized, higher-value products and ingredients.

Alanazi revealed that the company is working to expand its commercial relationships and presence in international markets through trade fairs and specialized platforms, as well as by building partnerships with global companies and brands. He said international expansion could support the growth of Saudi non-oil exports while opening new markets for products and ingredients developed locally.

The long-term goal, he added, is for products developed in AlUla to reach global markets under the “Made in Saudi” brand, reflecting not only their country of origin but also the development, knowledge, and manufacturing added to the products locally.


Saudi Crown Prince Launches CEER's Flagship Vehicles

Saudi Crown Prince Mohammed bin Salman (SPA)
Saudi Crown Prince Mohammed bin Salman (SPA)
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Saudi Crown Prince Launches CEER's Flagship Vehicles

Saudi Crown Prince Mohammed bin Salman (SPA)
Saudi Crown Prince Mohammed bin Salman (SPA)

Prince Mohammed bin Salman bin Abdulaziz Al Saud, Saudi Crown Prince, Prime Minister and Chairman of the Board of Directors of the Public Investment Fund (PIF), has launched EXOBOT, the flagship electric vehicles from CEER, Saudi Arabia's national automotive company.

This national milestone reflects Saudi Arabia's strategic direction toward developing an advanced industrial sector aligned with the objectives of Saudi Vision 2030 and further strengthening Saudi Arabia’s position in the global automotive industry, SPA reported.

Commenting on this occasion, the Crown Prince said: "The launch of CEER's first vehicles represents another step forward in Saudi Arabia's progression to build a sustainable and prosperous industrial ecosystem. It further enables the automotive sector as a key driver of economic growth, through attracting investments, empowering national talent, and expanding the private sector's role to further position Saudi Arabia to become a leading regional and global hub for this industry."

The EXOBOT sedan and SUV vehicles represent part of a planned portfolio of seven models that will be launched over the next five years, including midsize and compact vehicles with various propulsion options to serve different customer needs.

These vehicles will be manufactured at CEER Manufacturing Complex (CMC), the largest automotive production facility in the Middle East and one of the most technologically advanced in the world.

Additionally, the EXOBOT sedan and SUV feature a distinctive design inspired by Saudi Arabia's landscape, rooted in its culture, and reflective of its vision. Designed and engineered locally, the vehicles have been developed according to the highest global standards, further strengthening Saudi Arabia's position as a rising force in the global automotive industry.

By 2034, CEER is projected to contribute over SAR30 billion ($8 billion) to Saudi Arabia's GDP, over SAR80 billion ($21 billion) to trade balance improvement, and create quality direct and indirect jobs.

The announcement aligns with PIF's efforts to develop an integrated and competitive local automotive ecosystem, as part of PIF's mandate as a key driver of Saudi Arabia's economic diversification. PIF launched CEER in 2022 as the first Saudi vehicle brand to support the development of the national industrial ecosystem, attract investments, create opportunities for the private sector, and increase Saudi GDP.