Digital Transformation Enhances Productivity, Competitiveness in Saudi Arabia

Tim Callen, the International Monetary Fund’s Mission Chief to Saudi Arabia. (Asharq Al-Awsat)
Tim Callen, the International Monetary Fund’s Mission Chief to Saudi Arabia. (Asharq Al-Awsat)
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Digital Transformation Enhances Productivity, Competitiveness in Saudi Arabia

Tim Callen, the International Monetary Fund’s Mission Chief to Saudi Arabia. (Asharq Al-Awsat)
Tim Callen, the International Monetary Fund’s Mission Chief to Saudi Arabia. (Asharq Al-Awsat)

Tim Callen, the International Monetary Fund’s Mission Chief to Saudi Arabia, said that the Saudi economy has made a major stride towards digital transformation, emphasizing the importance of cooperation between the Kingdom and the IMF.

In an interview with Asharq Al-Awsat, Callen said the Fund maintained contact with the Saudi authorities about domestic economic policies, stressing that the Kingdom was an important member of the IMF and contributed significantly to discussions and policies within the institution.

According to the latest IMF forecast, which was recently published in the World Economic Outlook, the global economy would grow by 6 percent and the Saudi economy by 2.9 percent during 2021, Callen told Asharq Al-Awsat.

The head of the IMF mission to Saudi Arabia emphasized that the non-oil economy was witnessing a strong growth in 2021.

He noted that oil GDP was growing at a slower pace as Saudi Arabia and its OPEC+ partners continue to implement the production agreement, which would enhance the knowledge economy, diversify economic resources and increase the competitiveness of Saudi non-oil products in global markets.

“Saudi non-oil products in the international markets still focus mainly on petrochemicals and other chemical products, although other sectors play some role,” Callen said, adding that pilgrimage was another area that brings foreign income to Saudi Arabia.

“All these sectors provide opportunities for growth, including renewable energy,” he noted.

Callen continued: “Increasing the competitiveness of Saudi products in international markets depends ultimately on aligning wages with productivity and investment in human, digital and traditional infrastructure.”

Asked about his expectations on the impact of vaccines on restoring confidence in the international economy, the head of the IMF mission to Saudi Arabia said that the future course of the global economy would be determined in part by the race between the virus and vaccines; where greater progress in this area could raise expectations, while new variants that evade vaccines might lead to poor growth.

He stressed, however, that an extended coverage of vaccines would enable closely connected sectors to resume work and increase travel, which would boost the most affected tourism and hospitality sectors.



Saudi Industry Minister Launches Second Phase of Saudi-Omani Industrial Integration

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef. (SPA)
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Saudi Industry Minister Launches Second Phase of Saudi-Omani Industrial Integration

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef and Omani Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef launched the second phase of industrial integration between Saudi Arabia and Oman, reported the Saudi Press Agency on Thursday.

The announcement was made as the ministers co-chaired a joint meeting at the ministry’s headquarters in Riyadh.

The second phase of industrial integration focuses on boosting direct trade, supporting integration in value chains, and stimulating qualitative industrial investments.

Objectives also include treating local products as national products in government procurements and facilitating procedures for exporters and investors.

The meeting reviewed the achievements of the first phase of industrial integration, which included several initiatives such as the Future Factories Program, an initiative aimed at transforming factories from reliance on labor-intensive processes to adopting advanced industrial solutions and boosting integration in supply chains.

It also discussed exchanging knowledge across various industrial sectors, as well as building national strategies and sharing industrial information.