عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Launches Institutional Transformation Plan to Boost Non-oil Exports

Ceremony to inaugurate Institutional Transformation Strategy (Asharq Al-Awsat)
Ceremony to inaugurate Institutional Transformation Strategy (Asharq Al-Awsat)
TT
TT

Saudi Arabia Launches Institutional Transformation Plan to Boost Non-oil Exports

Ceremony to inaugurate Institutional Transformation Strategy (Asharq Al-Awsat)
Ceremony to inaugurate Institutional Transformation Strategy (Asharq Al-Awsat)

Saudi Export Development Authority (Saudi Exports) launched Institutional Transformation Strategy to boost non-oil exports, in line with the objectives of Vision 2030, which seeks to diversify the local economy.

Saudi Exports announced that over 220 exporting companies benefited from the 'Saudi Export Stimulus' Program, while the 'Made in Saudi Arabia' Program attracted over 1,200 local companies and introduced their products to global markets.

The Saudi government focuses on boosting non-oil exports by providing programs and initiatives aligned with Vision 2030, including Made in Saudi Arabia program, created under the National Industrial Development and Logistics Program (NIDLP).

The Program aims to support national products through an effective economy and unify production services. It combines the identity of Saudi products and services to promote them locally and internationally.

Saudi Exports announced the new strategy at a ceremony sponsored by the Minister of Industry and Mineral Resources, Bandar al-Khorayef.

The authority's new strategy aims to boost the participation of non-oil exports from 16 percent to at least 50 percent of the gross domestic product (GDP) by 2030, in line with Vision 2030.

Saudi Exports Sec-Gen Faisal al-Bedah stated that institutional transformation is a qualitative roadmap, with plans aligned with the Kingdom's development visions for the economy.

Bedah explained that the strategy aims to achieve a true partnership with the private sector, especially with exporters, improve the trade environment, develop exporters' capacities, enhance their competitiveness in global markets and increase readiness to face global challenges.

He added that this had been achieved thanks to a series of ongoing efforts by Saudi Exports, notably cooperation with relevant authorities to solve issues in the export environment in the country, with over 160 complaints addressed in 2021.

Bedah also announced that the Saudi Export Stimulus Program was launched to encourage and assist companies in building and enhancing their competitive capabilities and expanding their global presence.

The Program provides nine incentives that over 220 exporting companies benefited from during the past year, aligned with the Kingdom's commitments to the World Trade Organization (WTO).

The Institutional Transformation Strategy came when Saudi non-oil exports recorded remarkable growth as they increased by 34 percent during the first nine months of 2021, until the third quarter, compared to the same period in 2020.

Most Viewed

 
 
Business

After Trump’s Victory, Arab Demands for Competitive Advantages Due to Regional Tensions

Donald Trump addresses his supporters at the West Palm Beach Convention Center in Florida on Wednesday. (EPA)
Donald Trump addresses his supporters at the West Palm Beach Convention Center in Florida on Wednesday. (EPA)
TT
TT

After Trump’s Victory, Arab Demands for Competitive Advantages Due to Regional Tensions

Donald Trump addresses his supporters at the West Palm Beach Convention Center in Florida on Wednesday. (EPA)
Donald Trump addresses his supporters at the West Palm Beach Convention Center in Florida on Wednesday. (EPA)

With the election of Donald Trump as US president, the global economy has gained direction for the coming years. Trump’s policies favor corporate tax cuts, increased investment, and expansionary monetary policies. He also promotes local production to boost job creation, which involves imposing significant tariffs on trade partners, particularly in Asia. This approach could trigger a trade war, affecting inflation in both the US and worldwide.

The US economy is already grappling with high prices, slower economic growth, and rising unemployment, alongside a national debt nearing 99% of GDP. This backdrop underscores the importance of economic issues in the recent election.

For the new US administration, domestic concerns will not be the sole priority. Ongoing geopolitical tensions, especially recent Middle Eastern conflicts, will also impact the US economy. To gain regional insights, Asharq Al-Awsat consulted economists from various Arab nations on their expectations and requests from the US president regarding the Middle East.

Priority of Regional Stability

Dr. Mohamed Youssef, an Egyptian economist, emphasized that regional stability is crucial, benefiting the economy and paving the way for resolving complex issues like the Nile Dam dispute affecting Egypt. He highlighted the American role in fostering calm in the region.

Iraqi economist Durgham Mohamed Ali noted that US relations vary across the Middle East; while Lebanon and Yemen remain outside current US alliances, Sudan and Somalia require international aid to rebuild infrastructure.

Competitive Advantage for Arab Countries

Ahmed Moaty, a global markets expert from Egypt, suggested that reduced US tariffs would improve Arab economies’ competitiveness. However, he pointed out the American high debt could motivate the administration to impose tariffs to protect local industries and reduce imports. Ali observed that US tariffs are interest-driven and selective, favoring allies like Japan, Taiwan, and South Korea while being stringent toward BRICS members, such as China, Brazil, and South Africa. He linked tariff policies to regional geopolitics, especially the conflicts involving Israel, Lebanon, Palestine, and Iran, which could influence US economic decisions.

Dr. Mohamed Youssef also argued that easing US-China competition could benefit the global economy, as high tariffs on Chinese goods reduce China’s growth, decreasing demand for key commodities like oil.

Ibrahim Al-Nwaibet, CEO of Saudi Arabia’s Value Capital, predicted that a Republican win could positively impact oil and interest rates, revitalizing the petrochemical and trade finance sectors.

On currency, Moaty noted the strong US dollar pressures emerging markets, especially in the Middle East. He suggested offering US Treasury bonds with higher yields to Arab countries as a counterbalance. Ali added that the dollar’s strength poses challenges for countries heavily reliant on US currency amid global liquidity shortages.

The BRICS Bloc

Ali also mentioned the high levels of US debt, explaining: “In general, the entire world is concerned about rising US debt, slowing growth rates... and is wary of the BRICS alliance, which some Arab countries hope to join. The question remains whether a cold economic war will ensue.”

Youssef also discussed the BRICS, which could play a role in attracting the new US president’s attention to countries joining the alliance. He added: “This may provide new competitive advantages for countries in the region, particularly as countries like Egypt, the UAE, and Iran recently joined BRICS, while Saudi Arabia is still evaluating the benefits of such move.”