Saudi Arabia wants economic output to reach $1.7 trillion

Web Desk BOL News

14th Oct, 2021. 10:25 am
Foreign investment in Saudi Arabia up 16%

RIYADH: Saudi Arabia wants its economic output to reach 6.4 trillion riyals ($1.71 trillion), Arab News quoted Investment Minister Khalid Al-Falih, as saying.

The minister was speaking about the kingdom’s economic development strategy to year 2030, the channel said.

He said the kingdom aims at boosting annual total investments to over SR2 trillion by 2030, compared to the current SR650 billion.

Al-Falih said Saudi Arabia plans to boost the investment rate to 30 per cent as compared to the current 22 per cent and seeks to achieve GDP target of 10 per cent.

The minister said this leap requires efforts to empower the private sector by providing an integrated investment environment in the kingdom.

He said five economic zones will be established in the kingdom, including fencing a part of King Abdullah Economic City in Rabigh, and offering special incentives, including an exception to some legislation that is compatible with international agreements.

The statement comes on the heels of the launch of the National Investment Strategy, which aims to increase net foreign direct investment flows to the kingdom to SR388 billion ($103.5 billion) annually by 2030.

The strategy will contribute to the growth and diversification of the Kingdom’s economy, which, in turn, will achieve many of Vision 2030’s goals, including raising the private sector’s contribution to GDP to 65 per cent, while increasing the contribution of foreign investments to GDP to 5.7 per cent.

World Bank forecast

On Tuesday, the World Bank revised Saudi Arabia’s 2022 growth forecast from 3.3 per cent to 4.9 per cent. Its October’s economic update for the Middle East and North Africa region said the Kingdom’s growth will partly be driven by a significant rebound in the oil sector in 2022 following OPEC+ production cuts that are in place until December 2021.

The World Bank report upgraded Saudi Arabia’s exports growth by more than double from 4.7 per cent to 9.6 per cent.

The kingdom’s industrial output is now expected to grow by 5.4 per cent, up from April’s forecast of 2.4 per cent.

Improving vaccination rates, elimination of pandemic-related restrictions and resumption of religious tourism will likely boost Saudi non-oil output, which is expected to grow by 4 per cent in 2021 and 3.3 per cent in 2022.

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