Highest Spending Budget Recorded in 2018 As Vision 2030 Vitalizes Saudi Economy

Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser
Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser
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Highest Spending Budget Recorded in 2018 As Vision 2030 Vitalizes Saudi Economy

Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser
Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser

Saudi Arabia’s Vision 2030 has pushed the national economy to employ its strengths by creating new opportunities that will diversify economic wealth and stimulate investment. The ambitious vision is positively reshaping the economy through a package of qualitative measures.

Saudi Arabia - one of the 20 most powerful economies in the world - has played an important role in energy markets over the past years. The Kingdom is among the top countries that achieve balance in providing oil,
which has helped stimulate the global economy towards more production and manufacturing processes.

As the Saudis celebrate the 88th anniversary of the national day, the Saudi economy has recorded in 2018 the highest spending budget in the country’s history exceeding one trillion riyals ($266.6 billion).

With regards to the Saudi budget for 2018, the financial performance indicators of the general budget for Saudi Arabia for the first half of the current year showed that the total revenue amounted to about SAR439.8 billion ($117.2 billion), an increase of 43% compared to the same period last year.

According to available figures, total expenditure for the first half of 2018 amounted to SAR481.5 billion ($128.4 billion), an increase of 26 percent, while the actual disbursement rate at the end of the first half was about 49 percent of the total estimated budget during the year. Socio-economic sectors such as education, health, social development, and municipal services accounted for 42 percent of total expenditure in the first half of 2018.

These figures came as the Saudi economy, the biggest in the Middle East, achieved positive growth in the first quarter of 2018, which was translated into effective economic reforms that diversify the economy and reduce dependence on oil.

Statistics showed that Saudi gross domestic product (GDP) rose by 1.2 percent at the end of the first quarter of 2018 to reach SAR647.8 billion ($172.7 billion), compared to SAR640.4 billion ($170.7 billion) during the same period last year.

In a move that will increase the non-oil sector contribution to GDP and add value to the national economy, the Saudi cabinet decided in July to turn the non-oil revenue development unit into a full-fledged center called the Non-Oil Revenue Development Center.

As for the financial markets, MSCI International Equity Index announced the inclusion of the MSCI Saudi Arabia Index in the MSCI Emerging Markets Index, which will sharply expand the Kingdom’s investor base, in a move that confirms the efficiency of the Saudi financial market.

Saudi Arabia is today one of the world’s most successful countries to attract world-class investments. The Kingdom enjoys the confidence of many investors, who consider the Saudi economy one of the world’s most dynamic and vital economies that overcome market volatility.



Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
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Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA

The Saudi Export-Import Bank (Saudi EXIM) hosted the Berne Union's Country Risk Specialist Meeting, providing a platform for experts and thought leaders in risk management from the export credit community.
At the meeting, which took place from November 19 to 21 in Riyadh, the attendees exchanged best practices to better protect the industry amid shifting global dynamics.
According to a press release issued by the Saudi EXIM on Saturday, the event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions.
By strengthening institutional resilience, the industry is ready to turn global economic challenges into opportunities for economic prosperity, said the release, adding that it played a crucial role in advancing global trade, strengthening international cooperation, and developing credit solutions that empower export activities while controlling risk, SPA reported.
According to the release, discussions centered on critical risks impacting international trade and the global economy, such as debt sustainability and geopolitical tensions, along with innovative approaches to risk modelling. Participants also explored the global shifts in infrastructure, energy and critical minerals sectors, and were given an overview of Saudi Arabia's National Industrial Strategy, which focuses on economic diversification through investments, developing new sectors, and promoting local industries.
In his opening remarks, Saudi EXIM CEO Eng. Saad bin Abdulaziz Al-Khalb said the meeting is an ideal platform to address risks impacting global economic decision making.
He stated: "Through such meetings, we can turn challenges into strategic opportunities and enhance our resilience in an ever-changing world. At Saudi EXIM, we remain committed to enabling companies by offering expert financial and non-financial solutions to navigate risks effectively."
He also said that "at Saudi EXIM, we place great emphasis on risk management. In alignment with the main objective of this meeting, I am pleased to announce the completion of our independent country risk model, which is supported by advanced modelling tools and machine learning. This model will provide country ratings and predictions of default risks. We look forward to collaborating with our partners in other export credit agencies to exchange knowledge and expertise, and to strengthening our risk management functions with greater responsibility and effectiveness."
Associate Director at Berne Union Eve Hall said: "The global risk landscape today is highly volatile and highly interconnected. As we navigate our way around the ongoing transformations connected to energy transition and shifting industrial strategies, the traditional concept of 'country risk' is becoming increasingly complex. Our industry excels at understanding, quantifying and pricing these risks, and by bringing together this community of experts for technical exchange the Berne Union is able to help support the development of the industry as a whole. The initiatives announced by our colleagues at Saudi EXIM, making use of new technology in risk analysis, provide a fantastic example of where collaboration in this field can be effectively applied."
The release disclosed that Saudi EXIM's membership in Berne represents a significant strategic step, and is consistent with the Kingdom's commitment to expanding collaboration and integration in the global economy.
This is achieved by building partnerships with leading institutions to address the challenges facing the export credit sector. It also aligns with the bank's goal of developing the export of national products and services through partnerships with national and international financial and funding organizations.
Berne Union works with global trade organizations to encourage the adoption of best practices in export credit insurance, and to cooperate in maintaining the stability of global trade.
Saudi EXIM, a development bank under the National Development Fund, contributes to diversifying the Kingdom's economic base by improving the efficiency of non-oil export ecosystems, bridging financial gaps, and minimizing export risks. This plays a role in helping the non-oil national economy grow, in line with Vision 2030.