Saudi Arabia's Economic Flexibility Supported by Long-Term Plans, says Finance Minister

Riyadh: The Minister of Finance of Saudi Arabia, Mohammed Al-Jadaan, highlighted the importance of economic flexibility as a key element supported by the long-term plans (LTPs) of Saudi Vision 2030. Speaking at the World Economic Forum's special meeting on global collaboration, growth, and energy for development in Riyadh, Al-Jadaan emphasized that flexibility is crucial for successfully managing economic shocks in an unpredictable landscape.

Addressing the audience, Al-Jadaan stated that geopolitical tensions pose the main danger to the global economy. These tensions have far-reaching consequences, including economic fragmentation, protectionist policies, and the use of the economy to achieve geopolitical objectives. These factors often result in trade restrictions and limitations on technology, among other aspects.

Looking ahead, Al-Jadaan emphasized the need for Saudi Arabia to focus on human capital development, which plays a significant role in driving innovation and refinement. These factors are essential for achieving high-quality growth in the long term.

Highlighting the importance of debt sustainability, Al-Jadaan underscored that countries cannot prioritize growth while burdened by excessive debt. He noted that Saudi Arabia reported a healthy 4.4% growth in non-oil GDP in 2023 compared to global output.

Al-Jadaan further emphasized that Saudi Arabia's potential GDP growth of up to 25% could be achieved by producing 12 million barrels per day (mmb/d) of oil. However, he emphasized that true growth should prioritize quality over quantity.

Regarding the progress of Saudi Vision 2030, Al-Jadaan assured that the objectives are on track at 87%. However, he acknowledged that there are still challenges that require modifications, acceleration of certain projects, and a reduction in the volume of others.

Saudi Arabia's focus on economic flexibility, human capital development, and debt sustainability reflects its commitment to long-term growth and resilience in the face of global economic challenges.