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Saudi Arabia Expects Stronger Growth in Non-Oil Sector

Saudi Arabia Expects Stronger Growth in Non-Oil Sector

Sunday, 24 April, 2022 - 06:45
Saudi Arabia boosts the non-oil sector (AFP)

Saudi Minister of Finance Mohammed al-Jadaan said he is expecting stronger-than-expected growth this year in the non-oil sector underpinned by the structural reforms under Vision 2030.

Jadaan asserted that the Kingdom remains committed to prudent policies to maintain monetary and financial stability and preserve a solid fiscal position while accelerating structural reforms to enhance resilience against external shocks.

Jadaan chaired the Saudi delegation at the Spring Meetings of the International Monetary Fund (IMF) and the World Bank, held in Washington.

The delegation included the Governor of the Saudi Central Bank (Sama), Sultan al-Marshad, and several officials from the Ministry of Finance, the Central Bank, and the Saudi Fund for Development (SDF).

In his statement at the meeting of the International Monetary and Financial Committee, delivered on his behalf by the Sama Governor, he pointed out that the effects of the COVID-19 pandemic are still present, and addressing them is necessary.

He highlighted that the COVID-19 pandemic has profoundly impacted the global economy over the past two years, noting that it is not over yet.

He indicated that the Kingdom continues to support international efforts to restore peace and stability and alleviate the humanitarian suffering, including Ukraine.

The minister highlighted that Saudi Arabia ranks third among the world's top donors in global humanitarian assistance, according to the 2021 UN Financial Tracking Service (UNFTS).

Jadaan underscored that multilateralism is more critical now than ever to help the world overcome the rising challenges while maintaining economic integration.

He strongly emphasized the importance of climate policies to ensure stable energy market conditions and just transition to a greener economy necessary for global economic stability.

The minister reiterated Saudi Arabia's commitment to reaching net-zero emission by 2060 through the framework of the Circular Carbon Economy.

Meanwhile, the Finance Minister participated in the meeting of the Development Committee of the World Bank Group (WBG), where he flagged the importance of the IMF and WB's joint work to tackle global economic setbacks stemming from the recent geopolitical tensions and the ongoing COVID-19 pandemic that has profoundly affected the global economy over the past two years.

He explained that the spread of the coronavirus virus could lead to even more contagious variants, prompting further disruptions to the global economic recovery.

He urged individuals to continue to promote vaccinations everywhere, especially in low-income countries.

On low-income countries' debt, Jadaan called on the WBG and the IMF to redouble their efforts in light of the increasing challenges facing low-income countries.

The minister noted that the G20 Common Framework is an opportunity to address a longer-impact treatment of debt vulnerabilities in low-income countries, calling on the WBG and IMF to work closely to ensure that this initiative is effectively applied to manage debt.

Regarding digitization and its contribution to development, Jadaan explained that the COVID-19 pandemic highlighted the importance of using digital technologies.

Saudi Arabia ranked second among all G20 members on the "Top Digital Riser" list, which reflects comprehensive government support for digital transformation, said Jadaan.

The minister also noted that the UN International Telecommunication Union recognized Saudi Arabia for adopting the best policies, regulations, and transparent arrangements that support the digital economy, stimulate investment and innovation, and contribute to achieving Sustainable Development Goals (SDGs).

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