The Council of Economic and Development Affairs held an important virtual meeting to review the latest developments in the Kingdom's economic performance, reflecting its close monitoring of the National Transformation Program. The meeting highlighted positive indicators confirming the success of economic diversification strategies, most notably the significant growth in non-oil activities and industrial production.
General context: Vision 2030 as a key driver
These developments come within the context of Saudi Arabia’s ongoing efforts to achieve the goals of Vision 2030, the ambitious plan launched in 2016 to reduce reliance on oil as the primary source of income and build a diversified and sustainable economy. The Council of Economic and Development Affairs, established in 2015, is the main executive body overseeing the realization of this vision, working to coordinate economic and social policies across various government entities to ensure the achievement of national objectives.
Promising economic indicators
During the meeting, the Council discussed the monthly report submitted by the Ministry of Economy and Planning, which demonstrated the national economy's ability to adapt to global challenges. The report highlighted the continued growth of non-oil activities, which have become the main driver of GDP, alongside the recovery of oil activities and the growth of industrial production. The report also noted that the inflation rate remained stable at reasonable levels, partly due to effective government measures to control prices and stabilize the real estate sector.
The importance of the event and its expected impact
This growth in non-oil sectors is of great strategic importance on various levels:
- Locally: This transformation contributes to creating new and sustainable job opportunities for citizens, enhances the stability of the national economy in the face of fluctuations in global oil prices, and raises the quality of life through the development of new sectors such as tourism, entertainment, and technology.
- Regionally: Diversified economic growth enhances the Kingdom’s position as a leading economic power in the Middle East, and makes it an attractive regional hub for investment and business.
- Internationally: It enhances the Kingdom’s competitiveness on the global stage and attracts foreign direct investment, thus supporting its plans to become a pivotal player in the global economy.
Privatization program and the future of the private sector
The Council also reviewed the progress of the privatization program, which successfully completed its establishment phase and is now moving into the implementation phase through the “National Privatization Strategy.” The program has contributed to strengthening the private sector’s role in development, improving the efficiency of government assets, and developing a legislative environment conducive to investment—a key pillar for achieving the desired economic diversification.
At the conclusion of the meeting, the Council reviewed the level of implementation of previous decisions and recommendations, and examined the latest data related to foreign trade and GDP, emphasizing the approach of continuous follow-up and taking the necessary decisions to ensure progress towards achieving a prosperous and sustainable economy.
