Kickstarting the year 2021 with momentum gained from previous successes achieved against the coronavirus pandemic and during its presidency of 2020 G20 Riyadh Summit, Saudi Arabia is set on track for economic growth.
Saudi Shura Council member Fadl Bin Saad Al-Buainain told Asharq Al-Awsat that the Saudi economy is projected to grow over 3% in 2021, underpinned by recovering oil prices and production and improving world markets.
Despite the Kingdom working to diversify its economy, it is still largely dependent on the oil sector, Buainain noted, adding that any improvement in oil prices and the volume of production will be significantly reflected in the Saudi economic output.
As for the diversification of the economy, its results have begun to gradually emerge and will constitute one of the economic pillars that promote growth, Buainain explained, stressing that the tourism sector is likely to witness good growth and have a greater contribution to national GDP.
“The government is betting on the tourism sector at the present time with the presence of huge strategic projects that will contribute to transforming the Kingdom's tourism face, making it an important tourist destination in the region,” he said.
“One of the most important elements for diversifying the economy is the expansion of the mining sector and strengthening its contribution to the domestic product,” Buainain added.
The Shura Council member went on to say that other aspects of diversification, such as establishing military and defense industries, will have a sizable contribution to the total economic output of the Kingdom.
He pointed out that renewable energy will produce a vital sector in the Saudi economy.
Buainain revealed that the Kingdom plans to export electric power generated from renewable energy.
“The logistical services sector has started to take shape and it needs time ... but it will be among the important and main components of the economy,” Buainain added.
