Saudi Non-Oil GDP Growth Forecast to Grow 3.9% in 2021

A night view of Riyadh, Saudi Arabia. (Reuters file photo)
A night view of Riyadh, Saudi Arabia. (Reuters file photo)
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Saudi Non-Oil GDP Growth Forecast to Grow 3.9% in 2021

A night view of Riyadh, Saudi Arabia. (Reuters file photo)
A night view of Riyadh, Saudi Arabia. (Reuters file photo)

The International Monetary Fund (IMF) projected Saudi Arabia’s real GDP growth at 2.1 percent this year, noting that the real non-oil GDP growth recovery is expected to reach 3.9 percent in 2021.

Real oil GDP growth is projected to reach -0.5% in 2021, according to the OPEC+ agreement output levels.

Further, the IMF forecast the Saudi deficit to decline to 4.2 percent of the GDP this year.

The statement underscored the positive results of the Saudi economic reforms, projected continuation in the economic recovery, an expected decline in the unemployment rate and inflation.

It also highlighted the success of the Saudi government's swift and decisive containment measures to limit COVID-19 cases and fatalities.

The statement further commented on the effective role of fiscal policies, and financial sector, and employment initiatives launched by the government and the Saudi Central Bank (SAMA) that helped cushion the impact of the pandemic on individuals and the private sector.

This coincides with the great progress in implementing the vaccination campaign during recent months.

The IMF also lauded the Kingdom's strong economic fundamentals supported by Vision 2030, which helped establish robust governance and cooperation between ministries and entities.

In light of this, it highlighted the progress made by the "Etimad" platform in strengthening government financial management.

In addition, it commended the impressive pace of equity and debt market reforms taken by the Saudi Capital Market Authority (CMA) and the National Debt Management Center, which contributed to increasing capital raising options for companies and investment opportunities.

Regarding Saudi women's employment in the labor market, the statement praised the wide steps taken by the government, as estimations show that the rate of Saudi women in the total workforce has increased by 13 points to exceed 33 percent during the past two years.

In addition, it welcomed the Saudi Arabia Green Initiative and its potential in boosting growth and employment, as well as reducing greenhouse gas emissions.

The Ministry of Finance welcomed the IMF statement.

Minister of Finance Mohammed Al-Jadaan said that the statement reaffirms the success of the Kingdom's government in achieving positive results and tangible successes during the most challenging year for the whole world.

"Such results have been achieved despite the impact of the COVID-19 pandemic, fluctuations in oil prices, sharp economic fluctuations, decline in global demand, receding growth and other challenges that the Saudi government has risen to.

“The continued implementation of Vision 2030 programs, plans and goals has enabled the Kingdom to introduce many economic and structural reforms that demonstrate the efforts in developing the financial sector and achieving fiscal sustainability that enhances the Saudi economy's strength despite all the challenges,” Jadaan added.



Kazakhstan Anticipates Completion of ACWA Power’s Wind Energy Project

ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)
ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)
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Kazakhstan Anticipates Completion of ACWA Power’s Wind Energy Project

ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)
ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)

Kazakh Ambassador to Saudi Arabia, Madiyar Menilbekov, announced that his country eagerly anticipates the completion of ACWA Power’s first wind energy project in the Zhetysu region. This project, led by the Saudi company, will have a total capacity of 1 gigawatt and an investment value of approximately $1.5 billion.
ACWA Power announced last March that it would execute this project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. Construction is expected to commence in the summer of 2025.
Menilbekov told Asharq Al-Awsat that both countries “have established a solid political dialogue at a high level, along with cooperation in trade, economics, culture, and parliamentary exchange.” He expects this high-level dialogue to continue at the upcoming COP 16 summit in Riyadh.
He further emphasized that trade, economic, and investment cooperation is the cornerstone of the bilateral relationship, noting: “Both countries share a similar outlook on economic development, reflected in Kazakhstan’s Strategic Program 2050 and Saudi Arabia’s Vision 2030.”
The Kazakh ambassador highlighted that last September, the Islamic Development Bank approved financing for projects in Kazakhstan focused on water resource development, enhancing agricultural productivity, and ensuring food security, with total allocations amounting to $1.153 billion.
In tourism, he noted significant progress toward establishing direct flights between the two countries. Air Astana launched flights between Shymkent and Jeddah in October and announced a route from Almaty to Medina, bringing the total to six direct flights. Additionally, Kazakh companies in construction, oil services, and IT have recently opened offices across Saudi Arabia. The Farabi Innovation Center was inaugurated in Riyadh to attract talented entrepreneurs and innovative startups from Nur-Sultan and Central Asia to the Kingdom.
Menilbekov explained that since gaining independence, Kazakhstan’s GDP has grown 17-fold, with foreign trade reaching $139.8 billion last year. He added: “Since 1993, Kazakhstan has attracted a total of $441 billion in foreign direct investment, allowing our economy to remain one of the most dynamic in Central Asia and the post-Soviet region.”
According to Menilbekov, Kazakhstan is the world’s largest producer and exporter of natural uranium, responsible for more than 45% of global production and exports. He also noted that Kazakhstan produces 18 of the 34 raw materials identified by the European Union as “critical materials.”
Menilbekov further mentioned that Kazakhstan possesses 200 million hectares of agricultural land, with about 100 million hectares currently under regular cultivation.