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IMF: Saudi Arabia Has Created a Favorable Environment for Growth

The World Economic Forum in Davos hosted a session titled “Economic Transformations in Saudi Arabia”, in the presence of key Saudi officials. (Asharq Al-Awsat) 
The World Economic Forum in Davos hosted a session titled “Economic Transformations in Saudi Arabia”, in the presence of key Saudi officials. (Asharq Al-Awsat) 
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IMF: Saudi Arabia Has Created a Favorable Environment for Growth

The World Economic Forum in Davos hosted a session titled “Economic Transformations in Saudi Arabia”, in the presence of key Saudi officials. (Asharq Al-Awsat) 
The World Economic Forum in Davos hosted a session titled “Economic Transformations in Saudi Arabia”, in the presence of key Saudi officials. (Asharq Al-Awsat) 

The World Economic Forum in Davos hosted a session titled “Economic Transformations in Saudi Arabia,” focusing on the Kingdom’s remarkable economic progress. IMF Managing Director Kristalina Georgieva praised Saudi Arabia for establishing a “favorable environment for growth” while maintaining fiscal discipline.

The session featured key Saudi officials, including Finance Minister Mohammed Al-Jadaan, Minister of Economy and Planning Faisal Al-Ibrahim, Minister of Communications and Information Technology Abdullah Alswaha, and BlackRock CEO Larry Fink.

Georgieva commended the Kingdom’s readiness to make tough decisions, underpinned by its solid economic foundations.

Finance Minister Mohammed Al-Jadaan highlighted the nation’s collective commitment to Vision 2030.

“The entire country—from citizens to businesses and government—is united behind this clear and transparent vision,” he stated.

He further underscored the leadership’s determination to make bold, long-term decisions to achieve the vision’s objectives, saying: “I believe this approach will succeed in Saudi Arabia and could succeed anywhere if similar conditions are met.”

Al-Jadaan explained that Vision 2030 is designed to increase economic resilience and reduce dependency on oil price fluctuations.

He noted: “The shift is happening at an extraordinary pace.”

Addressing Saudi-US relations, Al-Jadaan said: “For over eight decades, Saudi Arabia has forged highly strategic economic and trade ties with the United States, regardless of political changes in Washington. This partnership benefits both sides, and as long as it remains mutually advantageous, it will continue to thrive.”

Minister of Economy and Planning Faisal Al-Ibrahim emphasized Saudi Arabia’s role as a global model for transformation and a key engine of growth. He pointed out that the Kingdom has successfully diversified its economy, with non-oil activities now making up 52% of real GDP—a milestone reflecting significant progress.

Al-Ibrahim projected strong growth for the non-oil sector: 3.9% in 2025, 4.8% in 2026, and 6.2% in 2027. He described Saudi Arabia’s economic strategy as a blueprint for other nations, grounded in institutional reform, investment in human capital, and decisive policymaking.

For his part, Minister of Communications and Information Technology Abdullah Alswaha addressed the global demand for computing power—estimated at 63 gigawatts—to support artificial intelligence (AI) applications. He stressed this is equivalent to the energy needs of countries like India or the US over five years.

The minister also highlighted Saudi Arabia’s leadership in renewable energy to meet this demand.

“We’ve built the world’s largest green hydrogen plant in NEOM, with a capacity of 4 gigawatts, in partnership with Air Products and ACWA Power. This positions Saudi Arabia as a global energy hub, fueling the digital and AI-driven economies,” he stated.

On women’s empowerment, Alswaha pointed to a transformative rise in female workforce participation, jumping from 7% to 35%. He described this progress as “the boldest and most successful story of women’s empowerment in the 21st century.”

BlackRock CEO Larry Fink also praised the region’s entrepreneurial growth, noting: “There are many reasons to be optimistic. Humanity is progressing, and overall conditions are improving.”

He highly valued the substantial investment potential in Saudi Arabia and the wider region.

“This is a region of tremendous growth. As conditions continue to improve, tourism will rise, and new opportunities will flourish,” Fink concluded.

 

 

 

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Business

China's Finance Ministry: Fiscal Policies Will be More 'Proactive' in 2026

A man walks on a street in Beijing, China, 24 December 2025. EPA/WU HAO
A man walks on a street in Beijing, China, 24 December 2025. EPA/WU HAO
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China's Finance Ministry: Fiscal Policies Will be More 'Proactive' in 2026

A man walks on a street in Beijing, China, 24 December 2025. EPA/WU HAO
A man walks on a street in Beijing, China, 24 December 2025. EPA/WU HAO

China's finance ministry on Sunday said fiscal policies will be more proactive next year, reiterating its focus on domestic demand, technological innovation and a social safety net.

The statement comes as trading partners urge the world's second-biggest economy to reduce its reliance on exports, underscoring the urgency to revive confidence at home where a prolonged property crisis has rippled ⁠through the economy, weighing on sentiment.

China will boost consumption and actively expand investment in new productive forces and people's overall development, the ministry said in a statement after a two-day meeting at which it set ⁠2026 goals.

In addition, Reuters quoted the ministry as saying that it will support innovation to foster new growth engines, and improve the social security system by providing better healthcare and education services.

Other tasks for next year include promoting integration between urban and rural areas, and propelling China's transformation into a greener society.

China is likely to stick to ⁠its annual economic growth target of around 5% in 2026, government advisers and analysts told Reuters, a goal that would require authorities to keep fiscal and monetary spigots open as they seek to snap a deflationary spell.

Leaders this month promised to maintain a "proactive" fiscal policy next year that would stimulate both consumption and investment to maintain high economic growth.

Business

Bulgaria Adopts Euro Amid Fear and Uncertainty

Customers shop in a grocery store in the village of Chuprene, northwestern Bulgaria on December 7, 2025. (Photo by Nikolay DOYCHINOV / AFP)
Customers shop in a grocery store in the village of Chuprene, northwestern Bulgaria on December 7, 2025. (Photo by Nikolay DOYCHINOV / AFP)
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Bulgaria Adopts Euro Amid Fear and Uncertainty

Customers shop in a grocery store in the village of Chuprene, northwestern Bulgaria on December 7, 2025. (Photo by Nikolay DOYCHINOV / AFP)
Customers shop in a grocery store in the village of Chuprene, northwestern Bulgaria on December 7, 2025. (Photo by Nikolay DOYCHINOV / AFP)

Bulgaria will become the 21st country to adopt the euro on Thursday, but some believe the move could bring higher prices and add to instability in the European Union's poorest country.

A protest campaign emerged this year to "keep the Bulgarian lev", playing on public fears of price rises and a generally negative view of the euro among much of the population.

But successive governments have pushed to join the eurozone and supporters insist it will boost the economy, reinforce ties to the West and protect against Russia's influence.

The single currency first rolled out in 12 countries on January 1, 2002, and has since regularly extended its influence, with Croatia the last country to join in 2023.

But Bulgaria faces unique challenges, including anti-corruption protests that recently swept a conservative-led government from office, leaving the country on the verge of its eighth election in five years.

Boryana Dimitrova of the Alpha Research polling institute, which has tracked public opinion on the euro for a year, told AFP any problems with euro adoption would be seized on by anti-EU politicians.

Any issues will become "part of the political campaign, which creates a basis for rhetoric directed against the EU", she said.

While far-right and pro-Russia parties have been behind several anti-euro protests, many people, especially in poor rural areas, worry about the new currency.

"Prices will go up. That's what friends of mine who live in Western Europe told me," Bilyana Nikolova, 53, who runs a grocery store in the village of Chuprene in northwestern Bulgaria, told AFP.

The latest survey by the EU's polling agency Eurobarometer suggested 49 percent of Bulgarians were against the single currency.

After hyperinflation in the 1990s, Bulgaria pegged its currency to the German mark and then to the euro, making the country dependent on the European Central Bank (ECB).

"It will now finally be able to take part in decision making within this monetary union," Georgi Angelov, senior economist at the Open Society Institute in Sofia, told AFP.

An EU member since 2007, Bulgaria joined the so-called "waiting room" to the single currency in 2020, at the same time as Croatia.

The gains of joining the euro are "substantial", ECB president Christine Lagarde said last month in Sofia, citing "smoother trade, lower financing costs and more stable prices".

Small and medium-sized enterprises stand to save an equivalent of some 500 million euros ($580 million) in exchange fees, she added.

One sector expected to benefit in the Black Sea nation is tourism, which this year generated around eight percent of the country's GDP.

Lagarde predicted the impact on consumer prices would be "modest and short-lived", saying in earlier euro changeovers, the impact was between 0.2 and 0.4 percentage points.

But consumers -- already struggling with inflation -- fear they will not be able to make ends meet, according to Dimitrova.

Food prices in November were up five percent year-on-year, according to the National Statistical Institute, more than double the eurozone average.

Parliament this year adopted empowered oversight bodies to investigate sharp price hikes and curb "unjustified" surges linked to the euro changeover.

But analysts fear wider political uncertainty risks delaying much needed anti-corruption reforms, which could have a knock-on effect on the wider economy.

"The challenge will be to have a stable government for at least one to two years, so we can fully reap the benefits of joining the euro area," Angelov said.

Business

Syria Prepares to Launch New Currency Amid Major Challenges

Syrian Central Bank Governor Abdulkader Husrieh (X)
Syrian Central Bank Governor Abdulkader Husrieh (X)
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Syria Prepares to Launch New Currency Amid Major Challenges

Syrian Central Bank Governor Abdulkader Husrieh (X)
Syrian Central Bank Governor Abdulkader Husrieh (X)

Syria’s central bank governor, Abdulkader Husrieh, said the new Syrian pound is not merely a means of exchange but a symbol of the success of the Syrian revolution, national belonging, and confidence in the country’s ability to recover.

In a Facebook post, Husrieh said that with the launch of the new currency, Syrians were not just celebrating a banknote, but also celebrating their sovereignty and national identity, noting that many international experiences show that national currencies become strong when people rally around them, according to the Syrian Arab News Agency.

He pointed to Germany’s experience, where the introduction of the mark after the war marked the starting point of economic recovery, and to France, where the new French franc became the financial symbol of the new republic, known as the Fifth Republic.

Husrieh said the central bank would carry out its role with a clear understanding of the challenges and opportunities, while committing to responsibility, transparency, and the protection of the national currency. He added that the cornerstone remains public solidarity and trust, because a strong currency begins with the people's belief in it.

He called for turning the launch into a dignified national occasion through which Syrians express awareness, confidence, and adherence to the pound as a symbol of sovereignty and a national choice.

Husrieh added that supporting the pound is supporting the nation, and taking pride in it is a matter of pride in the future for Syrians and their children. He described the move as an opportunity for a new success following the success of the revolution in liberation and the lifting of economic sanctions that had shackled Syria’s economy for nearly fifty years.

Husrieh had recently announced that Jan. 1, 2026, would mark the launch of the new Syrian currency and the start of the exchange process for the old notes, with the exchange to be carried out through 66 companies and 1,000 designated outlets.

Restoring confidence

Political and economic researcher Bassel Kouwefi said the exchange plans, if well implemented, could serve as an entry point for rebuilding confidence in the national economy, encouraging domestic investment, and paving the way for broader reforms in the financial sector. However, he warned against failing to address the root causes of inflation and economic collapse during the previous regime's rule.

Speaking to Asharq Al-Awsat, Kouwefi described currency exchange and the removal of zeros as complex economic measures.

He said their main benefits include simplifying daily transactions, reducing the volume of banknotes in circulation, boosting confidence in stability, lowering printing and transportation costs, simplifying accounting records and financial software, and reducing currency speculation driven by corruption networks seeking to undermine stability in Syria.

Kouwefi said the exchange plans, if well-executed, could help restore confidence in the macroeconomy, but stressed the challenges posed by failing to tackle the fundamental causes of past inflation and collapse, including fiscal deficits, instability, and weak production. He said a comprehensive economic and financial program was therefore essential.

He added that the process also requires strong banking infrastructure, an organized transition period, and sufficient liquidity in the new denominations.

He said these remain major challenges under current Syrian conditions, alongside the need to mitigate social impacts that could lead to public confusion, market exploitation, and difficulties for less informed segments of society.