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Council of Economic Development Highlights Continued Strong Growth of Saudi Economy 

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
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Council of Economic Development Highlights Continued Strong Growth of Saudi Economy 

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

The Saudi Council of Economic and Development Affairs convened on Monday for an overview of the national economy across its various sectors.

The council reviewed the Ministry of Economy and Planning's quarterly economic report, which included an analysis of the latest developments in major economies, the outlook for the global economy, future projections, and the key assumptions and drivers supporting growth prospects. It noted that the Kingdom's economy continued its strong growth, driven by the positive performance of all economic activities.

The council reviewed the state budget performance report for the third quarter of the fiscal year 2025, submitted by the Ministry of Finance. This report detailed the financial performance up to the end of the third quarter of the current year, including revenue, expenditure, and public debt indicators.

The report's findings confirm the continued support for development and service projects, the implementation of government reforms aimed at achieving fiscal sustainability, and the diversification of income sources within the framework of Saudi Vision 2030.

The council discussed the Ministry of Health's report on progress in the health transformation process, particularly regarding the completion of regulatory and operational requirements and the readiness to begin implementing the second phase of the transformation. This phase aims to empower the Health Holding Company and the Center for National Health Insurance as key pillars in restructuring the health sector.

The report reviewed the objectives of the health transformation and the most prominent steps taken to implement it during the past period, including developing the healthcare model and expanding the application of its preventive and curative pathways. This has contributed to improving access to services, raising the quality and efficiency of healthcare, and boosting prevention against health risks, in line with the objectives of the Health Sector Transformation Program within Vision 2030.

The progress made in adopting the draft regulations for healthcare institutions joining the Center for National Health Insurance network was also reviewed. These regulations, once finalized, will define the framework for healthcare institutions and clusters to join the network and regulate their relationship with the center.

This will enable the center to manage an integrated, results-based healthcare network, ensuring quality healthcare, facilitating access for beneficiaries, increasing their satisfaction, guaranteeing the effectiveness and sustainability of healthcare, and optimizing resource utilization to boost the efficiency of the healthcare system in the Kingdom.

The council reviewed the joint presentation from the ministries of education, economy and planning, and human resources and social development regarding professional accreditation and a study of professional licenses. The presentation addressed the progress of the professional accreditation program in implementing Cabinet Resolution No. 195, which ensures that expatriate workers possess the qualifications, skills, and practical experience required by the Saudi labor market, both before and after entering the Kingdom through the professional verification track. The aim is to regulate the entry of expatriate workers, improve the quality of labor market data, and bolster the skill level of the workforce.

The presentation also included the results of a study on organizing and standardizing professional licensing procedures in the Kingdom, which will improve labor market data and enhance the efficiency and quality of services provided.

The council reviewed the semi-annual presentation submitted by the Human Capability Development Program and the Ministry of Media regarding the progress of the Saudipedia. The presentation addressed the encyclopedia's development since its launch across multiple languages, the growing audience seeking encyclopedic content, and efforts to enhance the user experience through artificial intelligence applications to provide information. It outlined the encyclopedia's future steps to expand its reach to an international audience and to improve operational efficiency, reflecting the Kingdom's progress across all areas and solidifying its position as a reliable source, thereby strengthening trust between the encyclopedia and its users.

The presentation noted a 20% increase in the encyclopedia's visibility on search engines during September and October, compared to July and August, as well as a more than 70% increase in audience engagement with the website, which is 10% higher than the previous period.

The council reviewed several procedural matters, including the draft law for the National Curriculum Center, the national insurance sector strategy, the Kingdom's objectives for the football system, and the draft document on geographical scopes for non-Saudi property ownership.

The council reviewed other reports and presentations on its agenda, including a study on the feasibility of establishing specialized professional programs in infection prevention and control, the results of a field survey measuring the development of food loss and waste rates in the Kingdom, and a study on implementing cognitive development tests for health programs in the Kingdom.

The council was also briefed on the results of the quarterly report on the real estate price index, the semi-annual reports on government entities' electricity and water consumption, the monthly executive summary of foreign trade, summaries of the monthly consumer price index and wholesale price index reports, and the underlying reports on which these summaries were based.

The council adopted the necessary decisions and recommendations related to these issues.

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Business

IEA, IMF and World Bank to Coordinate Response to Middle East War's Impact

A displaced man prepares his shisha, at a temporary encampment for displaced people, amid escalating hostilities between Israel and Hezbollah, in Beirut, Lebanon, April 1, 2026. REUTERS/Raghed Waked
A displaced man prepares his shisha, at a temporary encampment for displaced people, amid escalating hostilities between Israel and Hezbollah, in Beirut, Lebanon, April 1, 2026. REUTERS/Raghed Waked
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IEA, IMF and World Bank to Coordinate Response to Middle East War's Impact

A displaced man prepares his shisha, at a temporary encampment for displaced people, amid escalating hostilities between Israel and Hezbollah, in Beirut, Lebanon, April 1, 2026. REUTERS/Raghed Waked
A displaced man prepares his shisha, at a temporary encampment for displaced people, amid escalating hostilities between Israel and Hezbollah, in Beirut, Lebanon, April 1, 2026. REUTERS/Raghed Waked

The heads of the International Energy Agency, International Monetary Fund, and World Bank on Wednesday said they will form a coordination group to maximize their response to the significant economic and energy impacts of the war in the Middle East.

In a joint statement, the three global bodies noted that the war had caused major disruptions in the region and triggered one of the largest supply shortages in global energy market history.

"At these times of high uncertainty, it is paramount that our institutions join forces to monitor developments, ⁠align analysis, and coordinate ⁠support to policymakers to navigate this crisis," the heads of the IMF, IEA and World Bank said.

The new coordination group will assess the severity of impacts across countries, coordinate a response mechanism, and mobilize stakeholders to deliver support to countries in need, the international bodies said.

The response mechanism could include targeted policy advice, assessment of potential financing needs ⁠and related provision of financial support, including through low or zero-percent financing, as well as unspecified risk mitigation tools, they said.

Thousands of people have been killed across the Middle East in the war, which began when the US and Israel struck Iran on February 28, triggering Iranian attacks on Israel, US bases and the Gulf states, while opening a new front in Lebanon.

Now in its second month, the conflict has spread across the region, disrupting energy supplies and threatening to send the global economy into a tailspin.

"The impact is substantial, global, and highly asymmetric, disproportionately ⁠affecting energy ⁠importers, in particular low-income countries," Reuters quoted the IMF, IEA and World Bank as saying.

They noted that the war was already resulting in higher oil, gas and fertilizer prices, while triggering concerns about food prices and affecting global supply chains of helium, phosphate, aluminum, and other commodities. Tourism had also been hit.

"The resulting market volatility, weakening of currencies in emerging economies, and concerns about inflation expectations raise the prospect of tighter monetary stances and weaker growth," the organizations said.

"We are committed to working together to safeguard global economic and financial stability, strengthen energy security, and support affected countries and people on their path to sustained recovery, growth, and job creation through reforms," they said.

Business

Saudi Arabia: Mawani Announces Commencement of Container Terminal Operations at Jubail Port

Jubail Commercial Port. SPA
Jubail Commercial Port. SPA
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Saudi Arabia: Mawani Announces Commencement of Container Terminal Operations at Jubail Port

Jubail Commercial Port. SPA
Jubail Commercial Port. SPA

The Saudi Ports Authority “Mawani” has announced the commencement of container terminal operations at Jubail Commercial Port under a privatization contract with Saudi Global Ports (SGP), backed by private sector investments exceeding SAR2 billion ($533 million).

The new move is in line with the objectives of the National Transport and Logistics Strategy under Saudi Vision 2030, Mawani said in a statement on Wednesday.

“The commencement of operations comes as part of the implementation of the privatization contract signed between the two parties, which includes the development of infrastructure and the modernization of operational equipment,” it said.

“This includes increasing berth length from 1,000 m to 1,400 m, deepening berths from 14 m to 18 m, increasing the number of STS cranes from 6 to 10, and raising the number of RTG cranes from 13 to 29 automated, environmentally friendly cranes,” the statement added.

According to Mawani, the launch will increase the container terminal’s handling capacity from 1.5 million TEUs to 2.4 million TEUs annually, across an area of 460,000 square meters.

This will enable the terminal to accommodate large next-generation vessels, enhance operational efficiency, and reinforce Jubail Commercial Port’s position as a key logistics gateway supporting the Kingdom’s sustainable growth.

It will also strengthen operational integration with the Group’s terminals across the Eastern Coast ports.

Business

Germany Growth Forecasts Slashed as Mideast War Hits Economy

Germany's economy is struggling with fierce Chinese competition in sectors from cars to chemicals © Ronny HARTMANN / AFP/File
Germany's economy is struggling with fierce Chinese competition in sectors from cars to chemicals © Ronny HARTMANN / AFP/File
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Germany Growth Forecasts Slashed as Mideast War Hits Economy

Germany's economy is struggling with fierce Chinese competition in sectors from cars to chemicals © Ronny HARTMANN / AFP/File
Germany's economy is struggling with fierce Chinese competition in sectors from cars to chemicals © Ronny HARTMANN / AFP/File

Leading economic institutes more than halved their growth forecast for Germany on Wednesday, warning that the energy shock caused by the Middle East war would hit Europe's top economy hard.

A group of leading institutes slashed their joint GDP growth forecast for 2026 to 0.6 percent, down from a September prediction of 1.3 percent.

Inflation is now forecast to rise to 2.8 percent, up from 2.0 percent, "weighing on household purchasing power".

"The energy price shock triggered by the Iran war is hitting the recovery hard," said economist Timo Wollmershaeuser of the Ifo institute, adding that increased government spending was nevertheless "preventing a stronger slide", AFP reported.

Oil and natural gas prices have surged since the end of February, when the United States and Israel attacked Iran, killed its supreme leader and plunged the Middle East into war.

Iran has since closed the Strait of Hormuz to ships of countries it considers allied with the US and Israel, effectively blocking a sea lane that normally transports about a fifth of the world's oil and liquefied natural gas.

Higher inflation in Germany would hit consumer spending, the institutes said, weighing on an already weak economy that has barely grown since a burst of pent-up demand after the Covid pandemic in 2022.

The government on Wednesday introduced rules allowing petrol stations to only raise prices once a day, at noon.

But motorist Sebastian, a 49-year-old estate agent who did not want to give his surname, told AFP at a Frankfurt petrol station that this was not enough to protect his spending power.

"Whether the price of petrol changes once a day or 10 times a day doesn't really matter," he said, adding it was "certainly not enough" to lower his costs.

Germany's economy, struggling with fierce Chinese competition in sectors from cars to chemicals, was in the doldrums even before US President Donald Trump last year imposed sweeping new tariffs before starting the Mideast war in late February.

Chancellor Friedrich Merz, who took office last May, vowed to borrow and spend hundreds of billions through a special infrastructure fund over coming years in what was dubbed a spending "bazooka" aimed at getting the economy back on its feet.

But the economists said that much of the money was simply paying for day-to-day spending.

"Government expenditure on consumption is rising much more sharply than investment," economist Oliver Holtemoeller of the Halle Institute for Economic Research said. "That was not the idea behind changing the financing rules."

The outlook for the longer term was also dire.

Citing low productivity, industrial decline and an ageing population, the institutes warned that Germany's economy would soon be unable to grow sustainably.

"We have also reassessed the structural changes in the German economy and, in particular, revised our forecast for industrial growth downwards," Wollmershaeuser said.

In an era when "demographic change is hitting with full force", he said, "potential growth will come to a standstill by the end of the decade, and we will have to get used to average GDP growth rates of zero percent".

Speaking to broadcaster Welt TV, Economy Minister Katherina Reiche said the government was working on reducing labour taxes and energy costs but that Germans would have to get used to working more over the course of their lives.

"We need to make this country vigorous again," she said. "Germany needs to get its will to win back."