Saudi Arabia was in the midst of a process of economic diversification when Covid-19 hit, as it sought to develop new non-oil growth engines and stimulate private sector job creation. The Kingdom’s resilience to the pandemic was enhanced by sustained investment in health care infrastructure and strong macroeconomic fundamentals, underpinned by its status as the world’s second-largest and most cost-efficient oil producer.
Although the resulting global economic headwinds have temporarily slowed progress on some major transformation projects, the fiscal shock has also underlined the importance of broadening the economic base and strengthening competitiveness. As such, Saudi Arabia’s industrial companies have a key role to play in supporting the economic recovery by enhancing productivity and strengthening local value chains, which should reduce vulnerabilities to global supply disruptions and provide solid foundations for sustainable growth over the long term.
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