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Saudi Arabia Forging ahead with Economic Reforms, Tackling Rising Costs

Saudi Arabia Forging ahead with Economic Reforms, Tackling Rising Costs

Wednesday, 6 July, 2022 - 10:30
Muslim pilgrims arrive outside the Grand Mosque in Saudi Arabia's holy city of Makkah on July 5, 2022. (AFP)

Saudi Arabia is carrying on with its economic reform process to achieve economic sustainability and mitigate the effect of global economic changes and developments.


The government has developed financial planning that has contributed to creating tools capable of influencing and handling financial and economic variables.


These tools have also been capable of boosting financial control and controlling the deficit ratios of the gross domestic product.


On Monday, Custodian of the Two Holy Mosques King Salman bin Abdulaziz ordered the allocation of SAR20 billion ($5.33 billion) to tackle the effects of rising global prices.


Of this amount, SAR10.5 billion ($2.6 billion) will be allocated as direct cash transfers to social security beneficiaries and the Citizen Account program.


Also on Monday, Crown Prince Mohammed bin Salman, Deputy Prime Minister and Minister of Defense, called on relevant government authorities to monitor international developments, including those related to supply chains, ensure the availability of product in the local market, prevent price manipulation, protect and encourage fair competitiveness and confront monopolistic practices that affect consumers.


Member of the Saudi Shura Council Fadel al-Buainain underscored the importance of implementing the economic reforms based on the strategic vision and specific programs.


He ruled out the possibility that internal and external developments would force the suspension of the reforms.


Al-Buainain stressed that the success of strategic plans depends on their actual implementation, provided that they are efficient.


He said necessary adjustments can be made to address any unexpected development.


He further cited King Salman’s announcement on Monday, noting that it confirms that the leadership is carefully following up on the results of the economic reforms and the global repercussions that fueled inflation and the rising cost of living.


Moreover, the official remarked that the coronavirus pandemic forced governments to bear unforeseen financial expenses, all of which were pumped into the health sector and into support packages to protect the economy, the private sector and citizens.


Despite the huge amounts allocated in the sector, the Saudi government is determined to forge ahead with its plans, including achieving financial stability and boosting financial reserves.


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