Saudi Arabia Offers Set of Solutions to Advance Global Development Reform

Saudi Arabia put forward a set of effective solutions and proposals to advance global development and economic reforms, through its high-level participation at the meetings of the G20 Leaders Summit in Bali, Indonesia.

The Saudi delegation to the summit is headed by Crown Prince Mohammad bin Salman, and includes Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz and Prince Turki bin Mohammed bin Fahd bin Abdulaziz, Minister of State, as well as a number of cabinet ministers.

Energy transition

The Energy Minister emphasized the Kingdom’s commitment to collective action in order to reduce the effects of climate change by promoting the full and effective implementation of the Paris Climate Agreement.

He explained that the ministerial meeting of the Energy Transitions Working Group issued the Bali Charter, which included a set of voluntary principles to accelerate energy transition, including the implementation of the circular carbon economy approach and the shift towards more sustainable, balanced and equitable energy systems, as well as the continued flow of investments in clean energy technologies.

The minister said the Kingdom has called for focusing on the importance of comprehensive solutions and technologies, especially clean technologies, to curb greenhouse gas emissions, taking into account the security and stability of energy markets to ensure their continuity and the sustainability of their transformations.

Climate sustainability

He stated that the meetings of the Climate Sustainability Group dealt with aspects of sustainable recovery, developing ways and policies to confront the effects of climate change, reducing its negative effects on humans and population groups, implementing the Paris Agreement, and drafting plans and strategies to reduce greenhouse gas emissions.

Financial impact

For his part, Saudi Finance Minister Mohammad Al-Jadaan said that Saudi Arabia’s participation in the G20 Finance Ministers’ meeting came to push for mitigating the impact of the Covid-19 pandemic on global financial markets, and the necessary measures in the medium term to support the global economy during crises.

He affirmed the Kingdom’s commitment to working with its G20 partners to prepare a sustainable financing mechanism to strengthen the response to future pandemics, in addition to improving international governance and cooperation between global policy makers.

Labor markets

The Saudi Minister of Human Resources and Social Development, Engineer Ahmed Al-Rajhi, noted that the ministry, through its participation in the G20 meetings, highlighted the need for labor markets to flourish after the Covid-19 pandemic, and expressed support for the priorities of the Indonesian G20 presidency for work and employment, in addition to presenting the programs and initiatives launched by Saudi Arabia within the framework of Vision 2030.

Tourism development

Minister of Tourism Ahmed Al-Khatib, for his part, said that the meeting of the G20 tourism ministers reviewed the development of tourism in local communities and micro, small and medium-sized projects, and the importance of the creative economy, innovation and technology in the development of tourism globally, in addition to the recovery of the tourism sector from the effects of the pandemic.

Al-Khatib stressed Saudi Arabia’s support for the Bali Guidelines to improve the role of local communities and support micro, small and medium enterprises for tourism transformation, in addition to responding to calls to curb global warming emissions.

Comprehensive education

Minister of Education Youssef Al-Bunyan said that the topics discussed during the meetings focused on providing inclusive, high-quality education for all to overcome the rapid increase in educational inequality and poverty, reduce educational loss in light of the challenges imposed by the pandemic, and improve the use of digital technology in education.

Oversight and Accountability

The head of the General Auditing Bureau, Dr. Hossam Al-Anqari, said that the meeting of the G20 Supreme Audit Institutions (SAI20) highlighted the need to enhance cooperation and knowledge exchange among the relevant bodies, and implement the best auditing practices to strengthen oversight and good governance in the G20 countries.

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.

Saudi Arabia Offers Set of Solutions to Advance Global Development Reform