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Saudi Arabia Presents before Davos G20 Summit Priorities

The World Economic Forum is holding its 50th annual meeting in Davos, Switzerland. (Reuters)
The World Economic Forum is holding its 50th annual meeting in Davos, Switzerland. (Reuters)
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Saudi Arabia Presents before Davos G20 Summit Priorities

The World Economic Forum is holding its 50th annual meeting in Davos, Switzerland. (Reuters)
The World Economic Forum is holding its 50th annual meeting in Davos, Switzerland. (Reuters)

The World Economic Forum hosted on Thursday a session on Saudi priorities in the G20 Summit, which will be held in Riyadh in November.

Saudi Energy Minister Prince Abdulaziz bin Salman underlined the Kingdom’s openness to share its economic progress experience, especially in the energy fields.

He noted that his country attached great importance to climate issues and the need to reduce emissions, giving as an example the city of Neom, which he said would be an urban eco-friendly model.

Saudi Finance Minister Mohammed al-Jadaan, for his part, said that Saudi Arabia assumed the chairmanship of the G20 this year, amid several challenges facing the world, including geopolitical issues, climate change, technology problems and the volatility of foreign debts in countries of the world.

“We have new ways to study and benefit from technology, and we will focus on investing in the opportunities of the 21st century,” he told the participants.

Al-Jadaan continued that the world was becoming more interconnected, so are the challenges facing the countries.

“That’s why we must work together to face these challenges through international cooperation,” he remarked.

He noted that the Kingdom’s G20 plan was based on three main goals, which are empowering people, preserving the environment and the planet, and shaping new horizons by taking advantage of technology to serve the people of the world. He explained that one of the Saudi priorities during the G20 meeting was comprehensive financing and sustainable development.

Saudi Assistant Minister of Commerce Iman al-Mutairi emphasized the role of women in Saudi Arabia, saying that her country has engaged in serious reforms in this regard.

Also on Thursday, officials announced the next Middle East summit of the World Economic Forum (WEF) will be held in April.

“The next Middle East summit will be held in Saudi Arabia on April 5 and 6 this year,” WEF President Borge Brende told delegates.

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Saudi Arabia’s Private Sector Ends 2024 with Strongest Sales Growth

 The Saudi capital, Riyadh (AFP)
 The Saudi capital, Riyadh (AFP)
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Saudi Arabia’s Private Sector Ends 2024 with Strongest Sales Growth

 The Saudi capital, Riyadh (AFP)
 The Saudi capital, Riyadh (AFP)

Saudi Arabia’s non-oil private sector concluded 2024 on a high note, with significant increases in sales and business activity fueled by robust domestic and international demand.
The Kingdom’s non-oil GDP is expected to grow by over 4% in both 2024 and 2025, supported by notable improvements in business conditions, according to Riyad Bank’s Purchasing Managers’ Index (PMI) report.
Despite inflationary challenges, the Riyad Bank PMI recorded 58.4 points in December, reflecting strong and accelerated economic recovery, albeit slightly lower than November’s 59.0 points.
The solid performance highlights improvements across non-oil sectors, with new business activity in December growing at its fastest pace in 12 months. This growth reflects rising domestic and global demand. Renewed marketing efforts and strong customer demand encouraged companies to boost production and expand operations, particularly in wholesale and retail.
The PMI has remained above the neutral threshold of 50.0 points since September 2020, signaling continuous expansion in Saudi Arabia’s non-oil economic activity.
The International Monetary Fund (IMF) previously projected sustained momentum in Saudi Arabia’s non-oil reforms, estimating non-oil GDP growth for 2024 at between 3.9% and 4.4%. The IMF noted that growth could reach 8% if reform strategies are fully implemented.
Expansion in International Markets
A surge in exports was among the key factors driving non-oil economic growth in Saudi Arabia. December saw the largest increase in export orders in 17 months, underscoring the success of Saudi policies in opening new markets and fostering strong international trade relationships, supported by ongoing product innovation.
Higher domestic and international demand boosted production levels in December. Companies also worked to enhance operational efficiency, leading to a notable increase in inventory. Purchasing activity accelerated to its highest level in nine months, reflecting the sector’s ability to effectively meet rising demand.
Cost Pressures on Production
Despite significant growth in production and sales, the sector continues to face challenges related to sharp inflation in input costs, driven by heightened demand for raw materials. These pressures have led to higher product prices, although some companies opted to reduce prices to remain competitive and address elevated inventory levels.
Meanwhile, wage cost increases were less pronounced, helping mitigate economic pressures related to salaries.
Future Outlook
Dr. Naif Al-Ghaith, Chief Economist at Riyad Bank, highlighted the positive end to 2024 for the Kingdom’s non-oil private sector, reflecting the progress achieved under Saudi Arabia’s Vision 2030. He noted that the PMI score of 58.4 points demonstrates the sector’s resilience and ongoing expansion.
Al-Ghaith expects non-oil GDP to grow by over 4% in 2024 and 2025, driven by improved business conditions and rising new orders, signaling increased market confidence and demand. Elevated domestic demand and export growth have pushed total sales to their highest level in a year. This, in turn, has led to strong increases in business activity and inventory levels, demonstrating the sector’s ability to meet and capitalize on excess demand, he underlined.