Saudi Arabia Sees Medium-Term Non-Oil Growth at Over 5%, Below Previous Estimate

• Saudi Arabia's Finance Minister, Mohammed Al Jadaan, foresees non-oil growth to exceed 5% in the medium term, a slight reduction from the previous 6% projection, but still indicating robust growth in the economy.
• In alignment with Vision 2030, Saudi Arabia is intensifying efforts to diversify its economy away from oil. This involves a strategic focus on sectors such as tourism and industry, alongside initiatives to expand the private sector and stimulate job creation.
• The non-oil sector demonstrated notable resilience and growth, surpassing the oil sector in the preceding year. This marked outperformance significantly contributed to the overall expansion of the country's economy.
• Despite external challenges, including the COVID-19 pandemic and geopolitical risks, Saudi Arabia has exhibited economic resilience. Finance Minister Al Jadaan attributes this to comprehensive economic and social reforms, highlighting fiscal policies that successfully narrowed budget deficits from 15% to 2% or even lower. These reforms have positioned the country to better cope with external shocks.

(Source: Reuters)