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.



China Vows Tougher Action against Smuggling of Strategic Minerals

A woman holds an umbrella to shelter from the sun walks along a street in Beijing, China, Thursday, July 17, 2025. (AP Photo/Mahesh Kumar A.)
A woman holds an umbrella to shelter from the sun walks along a street in Beijing, China, Thursday, July 17, 2025. (AP Photo/Mahesh Kumar A.)
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China Vows Tougher Action against Smuggling of Strategic Minerals

A woman holds an umbrella to shelter from the sun walks along a street in Beijing, China, Thursday, July 17, 2025. (AP Photo/Mahesh Kumar A.)
A woman holds an umbrella to shelter from the sun walks along a street in Beijing, China, Thursday, July 17, 2025. (AP Photo/Mahesh Kumar A.)

China vowed on Saturday to step up a crackdown and toughen law enforcement against smuggling of strategic minerals seen as vital to national security and critical for development.

The remarks by the commerce ministry came a day after the state security ministry accused foreign spy agencies of having tried to "steal" rare earths and pledged to crack down on infiltration and espionage targeting the critical sector.

The world's largest supplier of dozens of strategic minerals, China began imposing export curbs in 2023 on supplies vital to sectors ranging from chipmaking and the energy transition to defense.

The commerce ministry remarks, describing smuggling and export of strategic minerals as a severe problem to be combated, came at a meeting of officials responsible for export control coordination and other government bodies.

"Cases of smuggling by a small number of criminals for their own selfish interests and collusion between domestic and foreign parties are still occurring," it said in a statement.

Evasive methods such as false declarations and third-country transshipment were taking on increasingly covert forms, it added, urging government bodies to prevent illegal outflows of strategic minerals and related technologies.

China has adopted a "zero-tolerance" approach to smuggling and export of strategic minerals, which it will fight with a heavy hand, through special efforts to toughen law enforcement, the ministry said.

In May China said it would strengthen controls on the entire supply chains of strategic mineral exports while tightening its grip on materials deemed crucial to national interest.

Earlier, Beijing launched a special campaign to tackle smuggling of strategic minerals such as gallium, germanium, antimony, tungsten and some rare earths.