Saudi Arabia: Fighting Corruption is Crucial for Sustainable Growth of National Economy

Crown Prince Mohammed bin Salman Council of Economic Affairs and Development (SPA)
Crown Prince Mohammed bin Salman Council of Economic Affairs and Development (SPA)
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Saudi Arabia: Fighting Corruption is Crucial for Sustainable Growth of National Economy

Crown Prince Mohammed bin Salman Council of Economic Affairs and Development (SPA)
Crown Prince Mohammed bin Salman Council of Economic Affairs and Development (SPA)

Crown Prince Mohammed bin Salman bin Abdulaziz, Deputy Premier and Chairman of the Council for Economic Affairs and Development, presided a regular meeting of the Economic Affairs Council at al-Yamamah Palace on Tuesday.

The Council reviewed a series of economic and development issues precisely the recent Royal Decree to establish a supreme committee for the investigation of public corruption and the investigation with several figures.

The council stated that tackling corruption within the rule of law and preventing the waste of public funds was crucial for the sustainable growth of the national economy, and for the fair treatment of all Saudis.

The Council stressed that the government of the Custodian of the Two Holy Mosques was fully committed to protecting the rights of individuals under investigation and would ensure their fair treatment by the justice system.

The Crown Prince instructed the relevant ministers to ensure that national and multinational companies operating inside and outside the Kingdom, including those wholly or partly owned by individuals under investigation, were not disrupted while investigations into corruption were underway

The Council recognized the importance of these companies for the national economy, and the importance of ensuring that investors could operate with confidence in Saudi Arabia.

In related news, Saudi Arabian Monetary Authority (SAMA) said late Tuesday the bank accounts of suspects detained in an anti-corruption probe have been frozen.

SAMA issued a statement explaining that the decision to suspend the bank accounts of some individuals was in response to the Attorney General's request pending investigations in their cases, and it is limited to the suspects’ personal bank accounts have been suspended, leaving corporate businesses unaffected and operational. It added that there were no restrictions on money transfers through proper banking channels.

"It is worth clarifying here that concerned individual accounts rather than their corporate businesses have been put in suspension until final court rulings. In other words, corporate businesses remain unaffected. It is business as usual for both banks and corporate," the statement said.



Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia's non-oil exports reached an unprecedented SAR515 billion in 2024, marking the highest value in the Kingdom's history. This achievement represents a significant 13% increase compared to the previous year and an impressive growth of over 113% since the launch of Vision 2030.

The robust growth spanned all export sectors. Merchandise exports climbed to SAR217 billion (+4%), fueled by respective increases of 2% and 9% in petrochemical and non-petrochemical exports, reported the Saudi Press Agency on Saturday.

Re-exports surged to SAR90 billion, demonstrating a remarkable 205% growth since the inception of Vision 2030. Services exports also reached an all-time high of SAR207 billion, exhibiting a 14% year-on-year increase and a substantial 220% rise since Vision 2030's announcement.

Saudi Export Development Authority CEO Abdulrahman Althukair attributed this historic non-oil export performance to the Kingdom's sustained efforts in economic diversification and enhancing the competitiveness of national products.

He highlighted the authority's commitment to facilitating national companies' access to new markets and bolstering their export capabilities through comprehensive programs encompassing training, empowerment, promotion, and advisory services. This aligns with Vision 2030's goals to establish a thriving economy where non-oil exports are a key driver of sustainable growth.

In 2024, petrochemical commodity exports amounted to SAR149 billion, constituting 68% of total commodity exports, and registered a 2% increase in value and weight compared to the previous year.

Non-petrochemical commodity exports achieved a remarkable SAR69 billion (32% of total commodity exports), the highest value in recent years. This included record export figures for over 205 Saudi products, such as food and dairy products, minerals, and building materials. Fertilizer exports also demonstrated exceptional growth, with product weight reaching a historic peak in 2024, increasing by 5% year-on-year, and more than fivefold in value since the launch of Vision 2030.

The Kingdom's re-export sector also delivered a historic performance in 2024, reaching SAR90 billion, a 205% increase compared to 2016, a 42% rise year-on-year, and a 114% increase compared to 2019. This was primarily driven by the re-export of mobile phones, which reached a record value of SAR25 billion, more than doubling their 2023 value. The operation of the integrated logistics zone at King Khalid International Airport played a significant role in this remarkable growth by enhancing supply chain efficiency and facilitating re-export operations.

Machinery, automated devices, transportation equipment, and parts thereof constituted 84% of total re-exports in 2024. Re-exports of aircraft parts also experienced substantial growth, increasing from SAR1.6 billion in 2022 to over SAR2 billion in 2024.

In 2024, the Kingdom exported goods, re-exports, and services to over 180 countries, with 37 countries registering record import values, including the UAE, Bahrain, Iraq, Oman, Algeria, Spain, France, Poland, Libya, and Syria. Other countries, such as Indonesia, Thailand, Morocco, Pakistan, Nigeria, Germany, Greece, and Bulgaria, also achieved record import volumes.

Services exports reached a record SAR207 billion in 2024, marking a 14% year-on-year increase and a 220% rise since 2016. The travel and tourism sector was a key driver, increasing by 270% since 2016. In 2024, Saudi Arabia welcomed approximately 30 million international tourists, contributing to a 150% increase in travel exports compared to 2019, representing 74% of total service exports.

The Kingdom also recorded a 69% increase in international tourist numbers compared to pre-pandemic levels and a 148% increase in tourism revenues compared to 2019. Saudi Arabia led the G20 in tourist number growth, with a 73% growth rate during the first seven months of 2024 compared to the same period in 2019. The transportation sector contributed 12% of total service exports, achieving a 5% year-on-year growth.