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Saudi Economic and Development Affairs Council Launches Privatization Program

Saudi Crown Prince Chairs Economic and Development Affairs Council (SPA)
Saudi Crown Prince Chairs Economic and Development Affairs Council (SPA)
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Saudi Economic and Development Affairs Council Launches Privatization Program

Saudi Crown Prince Chairs Economic and Development Affairs Council (SPA)
Saudi Crown Prince Chairs Economic and Development Affairs Council (SPA)

Saudi Council of Economic and Development Affairs approved the executive plan for the "Privatization Program", a key plan of Vision 2030 that aims to raise efficiency of the national economy performance and ameliorate the services provided to reach as many as possible beneficiaries.

The Council convened on Tuesday under the chairmanship of Crown Prince Mohammed bin Salman, Vice President of the Council of Ministers and Minister of Defense.

The Program’s objective is to strengthen the role of the private sector by unlocking state-owned assets for investment and privatizing selected government services.

In addition, it will increase employment opportunities of national workforce, attract the latest technologies and innovations as well as support economic development by involving qualified enterprises in providing these services to increase private sector's contribution in GDP from 40 percent to 65 percent by 2030.

The Program also aims at capitalizing on the successful previous experiments, with the participation of the private sector, in the field of infrastructure and a broad spectrum of various service sectors such as energy, water, transportation, telecommunications, petrochemicals and finance.

It is based on three basic pillars beginning with laying the legal and regulatory foundations including developing regulations of privatization to benefit citizens and the private sector.

The program also aims to establish institutional basis that contributes to the existence of capable entities to implement privatization in the manner and mechanism that preserves the interests of the government and guarantees the fairness of the process for participants from the private sector. The third pillar is to steer privatization programs initiatives through executing the program's initiatives.

The privatization program is expected to strengthen the role of the private sector and it will also contribute to bringing direct foreign investments and improving payments balance.

It is noteworthy that strong economic indicators are expected to positively affect the private sector in Saudi Arabia during 2018. The latest and most influential indicator was Saudi's announcement a few months ago about the largest spending budget in the history of the country, which reached about $293.3 billion.

According to 2018 Saudi budget, the Kingdom has allocated $260.8 billion for spending, in addition to $22.1 billion to be invested and pumped through the Public Investment Fund and $13.3 billion will be dedicated to national funds in various sectors such as housing, industry, and mining.

Saudi Arabia's budget for fiscal year 2018 is very positive. The figures show a projected decline in the country's public deficit and increase in non-oil revenues reaching $77.6 billion, 37.1 per cent of total public revenues expected during 2018.

The impact of the budget is expected to include economic growth in general and the private sector in particular, as the budget has largely taken this into account.

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Trump Hits Back with Tariffs of 125%, after China Raises Its Tariff on US Goods to 84%

A general view shows the Huangpu River and the financial district in Shanghai on April 9, 2025. (AFP)
A general view shows the Huangpu River and the financial district in Shanghai on April 9, 2025. (AFP)
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Trump Hits Back with Tariffs of 125%, after China Raises Its Tariff on US Goods to 84%

A general view shows the Huangpu River and the financial district in Shanghai on April 9, 2025. (AFP)
A general view shows the Huangpu River and the financial district in Shanghai on April 9, 2025. (AFP)

President Donald Trump on Wednesday raised tariffs on China to 125%, hours after China boosted taxes on American imports to 84% and vowed to "fight to the end" in an escalating battle that threatens to disrupt trade between the world's two largest economies.

The new rate levied by Beijing, which has taken effect, comes in response to Trump's earlier move to raise the tariff on Chinese products to 104% as part of increases that hit US trading partners worldwide. Europe and Canada also hit back Wednesday with new tariffs on imports from America.

Citing lack of respect, Trump responded by raising tariffs on China to 125%, while pausing tariffs on most countries for 90 days.

The hikes are the latest in an ongoing trade war that threatens to raise prices for consumers in America and derail China's attempts to reinvigorate its sluggish economy. The response from the Chinese government signals its determination not to bend to Trump's pressure, despite the risks.

"If the US insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end," the Ministry of Commerce said before announcing its latest tariff hike.

Beijing also imposed restrictions on doing business with nearly a dozen American companies and said it was launching a new challenge to the American tariffs at the World Trade Organization.

China is a major exporter to US but no longer No. 1  

The United States sent a record $199 billion in exports to China last year, while China exported $463 billion in goods and services to the United States, third behind Mexico and Canada, according to the US Commerce Department.

China was the top source of US imports as recently as 2022 but it has lost ground to America’s neighbors amid heightened tensions with the United States.

The European Chamber of Commerce in China accused the US of rolling back many of the principles that have underpinned its approach to trade and investment. It said that Trump's tariffs would have a significant impact on European companies exporting from China to the US, forcing them to rethink their business models and supply chains.

"This will lead to a substantial increase in operational costs and inefficiencies, and ultimately higher prices for consumers," it said.

No ‘easy path’ to restarting US-China trade talks

Though the US and China may want to find a way back to the negotiating table, "this won’t be an easy path to navigate with both countries doubling down and bilateral engagement at a virtual standstill," said former US trade official Wendy Cutler, a vice president at the Asia Society Policy Institute.

China does not appear interested in bargaining, as some other countries have started doing.

"If the US truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit," Foreign Ministry spokesperson Lin Jian said.

The Chinese Ministry of Culture and Tourism issued a travel advisory asking its citizens to evaluate the risks of visiting the US as tourists and to exercise caution. The advisory, which came shortly after the announcement of the tariff hike, cited the deterioration in economic and trade relations as well as the "safety situation" in America.

China's response has gone from measured to tough 

Trump has now raised the tariff on Chinese goods five times since taking office in January. The first two hikes of 10% each were met with what analysts described as a measured response from China that left the door open for talks.

But after Trump announced an additional 34% tariff on Chinese goods last week, along with tariffs on other countries in his "Liberation Day," China matched that with a 34% tariff on imports from the US.

Trump then added a 50% tariff on goods from China, saying negotiations were terminated, and bringing the cumulative US tariff to 104%. China responded by raising the tariff on American products by the same amount, bringing its total rate to 84%.

China's latest measures include adding 11 American companies to an "unreliable entities" list that bars Chinese companies from selling them goods that could have military uses. Among the companies are American Photonics, and SYNEXXUS, which both work with the American military.

A Chinese position paper issued Wednesday said that the US has not honored the promises it made in an earlier "Phase One" trade deal concluded during Trump’s first term. As an example, it said a US law that would ban TikTok unless it is sold by its Chinese parent company violates a promise that neither would "pressure the other party to transfer technology to its own individuals."

Trump signed an order to keep TikTok running for another 75 days last week after a potential deal to sell the app to American owners was put on ice. Representatives from ByteDance, the parent company, told the White House that the Chinese government would no longer approve a deal until there could be talks on trade.

"History and facts have proven that the United States’ increase in tariffs will not solve its own problems," the Commerce Ministry said in a statement introducing the paper. "Instead, it will trigger sharp fluctuations in financial markets, push up US inflation pressure, weaken the US industrial base and increase the risk of a US economic recession, which will ultimately only backfire on itself."