Saudi Arabia in 2024: Positive Expectations Underpinned by Political Will and Economic Capacities

Saudi Crown Prince Mohammed bin Salman and the South Korean President attend a session of the Future Investment Initiative (SPA)
Saudi Crown Prince Mohammed bin Salman and the South Korean President attend a session of the Future Investment Initiative (SPA)
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Saudi Arabia in 2024: Positive Expectations Underpinned by Political Will and Economic Capacities

Saudi Crown Prince Mohammed bin Salman and the South Korean President attend a session of the Future Investment Initiative (SPA)
Saudi Crown Prince Mohammed bin Salman and the South Korean President attend a session of the Future Investment Initiative (SPA)

In an increasingly uncertain world, constants remain our main reference for forecasting the near future. These constants, the factors upon which projections about the future are based, can be summarized into three factors: The first is political will, the primary determinant of the direction a state will take and the objectives it sets.

The second is economic capacity, which enables states to execute their political will and allows them to turn plans into tangible reality.

As for the third factor, it is global changes, which can either positively or negatively affect the implementation of these plans. This is the major cause for uncertainty regarding the future, and state policies play a crucial role in determining it. When applying this perspective to the Kingdom of Saudi Arabia, one can anticipate what the next year might look like.

Saudi Arabia 2023

Starting with political will, domestically, the Kingdom continues to pursue its ambitious Vision 2030 - a pursuit reinforced by the fact that it has achieved targets ahead of schedule. Many of these initiatives have certainly started to bear fruit, especially those that began early in restructuring some of the state's sectors.

The Kingdom did not stop at the programs it launched with the inception of its Vision. It pursued many projects and initiatives in sectors such as tourism, entertainment, and sports. In the latter, the implications of the state's determination to transform plans into reality are particularly evident. In just a few years, the Saudi football league has stolen the spotlight from globally followed football leagues, with the world turning its attention to the Kingdom after the sports sector was restricted and the role of the private sector in the sports system was invigorated.

Since the Vision is comprehensive and encompasses all vital sectors, the interconnections of its different projects and their mutual reinforcement of one another have become evident. For example, recognizing the need for logistical support in the tourism sector, the Public Investment Fund launched Riyadh Air to help the Kingdom reach tourism targets.

This principle of interconnectedness applies to many intersections within the Vision. The progress made in these various sectors is further enhanced by the direct oversight of the Kingdom's senior leadership over national strategies, which ensures the integration and staves off redundancies.

Political will in the Kingdom also has obvious implications for its foreign relations with other countries. For years, the Kingdom has built bridges of communication with the world under the banner of shared interests and the exchange of values. 2022 concluded with the visit of the Chinese President to Riyadh, and these high-level visits continued into 2023, with the Kingdom hosting several major summits, such as the Saudi-African Summit, the Gulf-ASEAN Summit, the Saudi-Caribbean Summit, the Arab Summit, and the Islamic Summit.

The objectives of these summits vary and include political, economic, and cultural aspects. However, the Kingdom takes the same approach to all countries with shared interests and mutual benefits.

The Kingdom also participated in global summits, notably the G20 Summit in India and the Summit for a New Financing Pact in Paris. The impact of these efforts and international visits became apparent when the Kingdom won the bid to host Expo 2030 by attaining the majority of votes from countries and leveraging its strong global relationships.

Economic capacity

The second factor is economic capacity, which may be represented by the state budget for the next year. The Kingdom has continued to expand spending, setting a budget of over 1.2 trillion Riyals, while making conservative revenue projections. The deficit in the state's general budget did not exceed 2 percent, and the government continues to spend on various sectors without making any significant changes, thereby ensuring the continuity of the state's strategies for these sectors and their alignment with the shifts all around us.

While oil revenues decreased due to OPEC's proactive policy to maintain market stability, non-oil revenues continued to increase, reaching 441 billion riyals - about 37 percent of the state's revenues, up from approximately 32.5 percent in 2018.

The Kingdom's capacity to keep up this spending reflects two things: first, it is confident that its economy is solid, and it can sustain this expansionary spending without increasing public debt relative to GDP or depleting its reserves; second, its commitment to pursuing the programs of Vision 2030 and its reassurance about their positive outcomes for the national economy.

Global changes

The third factor is global changes, which can either pose risks or create opportunities for the Kingdom. These changes could be geopolitical, such as the ongoing Russian-Ukrainian war, which affects the stability of oil prices, or changes in the course of Israel’s assault on Gaza, which impacts the entire region, or the Houthi attacks disrupting maritime navigation in the Red Sea.

These changes may also be reflected in the global economy. Global economic growth remains slow due to factors such as inflation, the austere monetary policies adopted by central banks to curb it, and the aftermath of the pandemic, which has had an impact on global supply chains.

Saudi Arabia 2024

The forecasts for the Saudi economy in the next year are generally positive. Fitch predicted that the Saudi economy would grow between 2.6 and 3.3 percent, while Moody's expects growth of around 4.6 percent. The International Monetary Fund (IMF) raised its growth projections for the Kingdom to 4 percent in a short period. The preliminary budget statement from the Ministry of Finance has said that real GDP is expected to grow by 4.4 percent.

These forecasts are driven by several factors, including the events of 2023 and the policies being pursued by the Kingdom. Despite reducing its oil production, the Kingdom's revenues increased this year. This increase was driven by rising non-oil revenues, and these revenues are expected to continue to rise next year, as they have over the past five years.

This increase is due to the increasing role of the private sector, which has been invigorated by various government measures and programs tied to Vision 2030. This approach taken by the Saudi government is to mitigate potential risks in global oil markets. That is among the major axes of Vision 2030, which aims to diversify revenue sources in order to ensure sustainable growth and development in the Kingdom.

The developments seen in 2023 reflect a number of projections. For example, it would not be surprising if Saudi Arabia launched several projects related to its hosting of Expo 2030. These could include determining the location of the event, holding activities such as conferences tied to the Expo, like exhibitions, and strategic plans, and possibly establishing a governmental body tasked with overseeing this major event.

Moreover, we can also expect changes in the Saudi sports sector next year. Given that Saudi Arabia began privatizing clubs by transferring the ownership of four clubs to the Public Investment Fund, this trend could continue next year, with more clubs being transferred to major Saudi companies.

An increase in pace at the Ministry of Sports can also be anticipated in preparation for the expected announcement of its successful bid to host the 2034 FIFA World Cup. This preparation might involve submitting a proposal that includes constructing new stadiums and infrastructure to ensure that the Kingdom provides fans with a distinguished experience and that the sports sector meets the high aspirations that have been set for it.

With Saudi Arabia hosting Expo 2030 and the 2034 World Cup, many infrastructure projects are anticipated. These include ongoing large-scale infrastructure projects in Riyadh, such as King Salman Airport, the Qiddiya Project, King Salman Park, and other significant initiatives. Other cities in the Kingdom that may play an important role, especially in organizing the World Cup, are also expected to see major projects.

Those following the progress being made on Vision 2030 projects can see that it started with several ambitious projects like NEOM, Red Sea, Amaala, and Qiddiya. It began with the launch of numerous projects in Riyadh at the start of Vision 2030, and then we saw other projects in other cities, such as Jeddah Central, Rua Al Medina, and the Sudah and Abha Airport projects.

This might indicate that more projects will be seen in other cities across the Kingdom, whether broad infrastructure projects or sight-specific ones, like agricultural projects suited to cities and their geography and environment. This means that the next year will see the persistence, God willing, of Vision 2030, and the expansion of its initiatives to more Saudi cities that align with their cultural and geographical characteristics.

Flexibility of the Kingdom

The Kingdom has shown itself to be flexible through how it has dealt with economic and political events in recent years. It was not significantly affected by the inflation generated by the pandemic, unlike other countries, and it managed to stave off the negative repercussions of global geopolitical conflicts. Rather, it launched global initiatives aimed at addressing the ramifications of these developments, as it had with its initiatives for global supply chains.

It is not surprising that this approach will continue next year, with precautions being taken to avoid any changes that could negatively impact its economic and strategic interests. The Kingdom will leverage the robustness of its economy and global relationships to find solutions that ensure prosperity, all while maintaining its national project aimed at elevating its strategic and vital sectors.



Early US Intelligence Report Suggests US Strikes Only Set Back Iran’s Nuclear Program by Months

A woman walks past a residential building that was hit in an Israeli strike covered with a big Iranian flag, in Tehran on June 25, 2025. (AFP)
A woman walks past a residential building that was hit in an Israeli strike covered with a big Iranian flag, in Tehran on June 25, 2025. (AFP)
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Early US Intelligence Report Suggests US Strikes Only Set Back Iran’s Nuclear Program by Months

A woman walks past a residential building that was hit in an Israeli strike covered with a big Iranian flag, in Tehran on June 25, 2025. (AFP)
A woman walks past a residential building that was hit in an Israeli strike covered with a big Iranian flag, in Tehran on June 25, 2025. (AFP)

A US intelligence report suggests that Iran’s nuclear program has been set back only a few months after US strikes and was not “completely and fully obliterated” as President Donald Trump has said, according to two people familiar with the early assessment.

The report issued by the Defense Intelligence Agency on Monday contradicts statements from Trump and Israeli Prime Minister Benjamin Netanyahu about the status of Iran's nuclear facilities. According to the people, the report found that while the Sunday strikes at the Fordo, Natanz and Isfahan nuclear sites did significant damage, the facilities were not totally destroyed. The people were not authorized to address the matter publicly and spoke on condition of anonymity.

The White House rejected the DIA assessment, calling it “flat-out wrong.” On Wednesday, Director of National Intelligence Tulsi Gabbard said in a post on X that “New intelligence confirms” what Trump has stated: “Iran’s nuclear facilities have been destroyed. If the Iranians chose to rebuild, they would have to rebuild all three facilities (Natanz, Fordo, Esfahan) entirely, which would likely take years to do.”

Gabbard’s office declined to respond to questions about the details of the new intelligence, or whether it would be declassified and released publicly.

The office of the director of national intelligence coordinates the work of the nation’s 18 intelligence agencies, including the DIA, which is the intelligence arm of the Defense Department, responsible for producing intelligence on foreign militaries and the capabilities of adversaries.

The DIA did not respond to requests for comment.

The US has held out hope of restarting negotiations with Iran to convince it to give up its nuclear program entirely, but some experts fear that the US strikes and the potential of Iran retaining some of its capabilities could push Tehran toward developing a functioning weapon.

The assessment also suggests that at least some of Iran’s highly enriched uranium, necessary for creating a nuclear weapon, was moved out of multiple sites before the US strikes and survived, and it found that Iran’s centrifuges, which are required to further enrich uranium to weapons-grade levels, are largely intact, according to the people.

At the deeply buried Fordo uranium enrichment plant, where US B-2 stealth bombers dropped several 30,000-pound bunker-buster bombs, the entrance collapsed and infrastructure was damaged, but the underground infrastructure was not destroyed, the assessment found. The people said that intelligence officials had warned of such an outcome in previous assessments ahead of the strike on Fordo.

The White House pushes back Trump defended his characterization of the strike's impact.

“It was obliteration, and you’ll see that,” Trump told reporters while attending the NATO summit in the Netherlands. He said the intelligence was “very inconclusive” and described media outlets as “scum” for reporting on it.

Defense Secretary Pete Hegseth, who was also at the NATO summit, said there would be an investigation into how the intelligence assessment leaked and dismissed it as “preliminary” and “low confidence.”

Secretary of State Marco Rubio said, “These leakers are professional stabbers.”

The intelligence assessment was first reported by CNN on Tuesday.

The Israel Atomic Energy Commission said its assessment was that the US and Israeli strikes have “set back Iran’s ability to develop nuclear weapons by many years.” It did not give evidence to back up its claim.

Trump special envoy Steve Witkoff, who said he has read damage assessment reports from US intelligence and other nations, reiterated Tuesday that the strikes had deprived Iran of the ability to develop a weapon and called it outrageous that the US assessment was shared with reporters.

“It’s treasonous so it ought to be investigated,” Witkoff said on Fox News Channel.

Trump has said in comments and posts on social media in recent days, including Tuesday, that the strike left the sites in Iran “totally destroyed” and that Iran will never rebuild its nuclear facilities.

Netanyahu said Tuesday in a televised statement: “For dozens of years I promised you that Iran would not have nuclear weapons and indeed ... we brought to ruin Iran’s nuclear program." He said the US joining Israel was “historic” and thanked Trump.

Outside experts had suspected Iran had likely already hidden the core components of its nuclear program as it stared down the possibility that American bunker-buster bombs could be used on its nuclear sites.

Bulldozers and trucks visible in satellite imagery taken just days before the strikes have fueled speculation among experts that Iran may have transferred its half-ton stockpile of enriched uranium to an unknown location. And the incomplete destruction of the nuclear sites could still leave the country with the capacity to spin up weapons-grade uranium and develop a bomb.

Iran has maintained that its nuclear program is peaceful, but it has enriched significant quantities of uranium beyond the levels required for any civilian use. The US and others assessed prior to the US strikes that Iran’s theocratic leadership had not yet ordered the country to pursue an operational nuclear weapon, but the head of the International Atomic Energy Agency has repeatedly warned that Iran has enough enriched uranium to make several nuclear bombs should it choose to do so.

Vice President JD Vance said in a Monday interview on Fox News Channel that even if Iran is still in control of its stockpile of 408.6 kilograms (900.8 pounds) of enriched uranium, which is just short of weapons-grade, the US has cut off Iran's ability to convert it to a nuclear weapon.

“If they have 60% enriched uranium, but they don’t have the ability to enrich it to 90%, and, further, they don’t have the ability to convert that to a nuclear weapon, that is mission success. That is the obliteration of their nuclear program, which is why the president, I think, rightly is using that term,” Vance said.

Approximately 42 kilograms of 60% enriched uranium is theoretically enough to produce one atomic bomb if enriched further to 90%, according to the UN nuclear watchdog.

What experts say Iranian Foreign Minister Abbas Araghchi informed UN nuclear watchdog chief Rafael Grossi on June 13 — the day Israel launched its military campaign against Iran — that Tehran would “adopt special measures to protect our nuclear equipment and materials.”

American satellite imagery and analysis firm Maxar Technologies said its satellites photographed trucks and bulldozers at the Fordo site beginning on June 19, three days before the Americans struck.

Subsequent imagery “revealed that the tunnel entrances into the underground complex had been sealed off with dirt prior to the US airstrikes,” said Stephen Wood, senior director at Maxar. “We believe that some of the trucks seen on 19 June were carrying dirt to be used as part of that operation.”

Some experts say those trucks could also have been used to move out Iran’s enriched uranium stockpile.

“It is plausible that Iran moved the material enriched to 60% out of Fordo and loaded it on a truck,” said Eric Brewer, a former US intelligence analyst and now deputy vice president at the Nuclear Threat Initiative.

Iran could also have moved other equipment, including centrifuges, he said, noting that while enriched uranium, which is stored in fortified canisters, is relatively easy to transport, delicate centrifuges are more challenging to move without inflicting damage.

Apart from its enriched uranium stockpile, over the past four years Iran has produced the centrifuges key to enrichment without oversight from the UN nuclear watchdog.

Iran also announced on June 12 that it has built and will activate a third nuclear enrichment facility. IAEA chief Grossi said the facility was located in Isfahan, a place where Iran has several other nuclear sites. After being bombarded by both the Israelis and the Americans, it is unclear if, or how quickly, Isfahan’s facilities, including tunnels, could become operational.

But given all of the equipment and material likely still under Iran’s control, this offers Tehran “a pretty solid foundation for a reconstituted covert program and for getting a bomb,” Brewer said.

Kelsey Davenport, director for nonproliferation policy at the Arms Control Association, a nonpartisan policy center, said that “if Iran had already diverted its centrifuges,” it can “build a covert enrichment facility with a small footprint and inject the 60% gas into those centrifuges and quickly enrich to weapons grade levels.”

But Brewer also underlined that if Iran launched a covert nuclear program, it would do so at a disadvantage, having lost to Israeli and American strikes vital equipment and personnel that are crucial for turning the enriched uranium into a functional nuclear weapon.