Economy
From The Report: Saudi Arabia 2023
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Saudi Arabia, started 2023 with its most rapid economic expansion in over a decade, outpacing the growth of its G20 peers despite global economic challenges. The Kingdom benefitted from higher energy prices amid Russia’s invasion of Ukraine, elevating oil sector activity by 15.4% during the year. This boost led to a fiscal surplus, offering flexibility for diversification efforts and non-oil sector growth. Saudi Arabia continues to be a vibrant destination for business, attracting both major corporations collaborating with government entities and smaller firms benefitting from private sector expansion. While dynamics of the global energy market still influence Saudi Arabia’s economy, non-oil sectors play an increasingly pivotal role in driving overall growth. With Vision 2030 guiding the way, the country is balancing tradition with innovation – presenting opportunities for companies of all sizes.

This chapter contains interviews with Mohannad Basodan, CEO, National Center for Privatization & PPP; Meshaal bin Omairh, Group CEO, Abdullah Al Othaim Investment; and Fahad Al Jubeir, Mayor, Eastern Province Municipality.

Articles from this Chapter

Overview

Strategic surplus: High energy prices are driving public revenue as giga-projects and diversification efforts support long-term dynamism
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Saudi Arabia entered 2023 on the back of its fastest economic expansion in over a decade, with its growth rate exceeding that of other G20 countries in the face of a variety of macroeconomic headwinds. Factors buffeting Western economies as a result of Russia’s invasion of Ukraine, not least higher energy prices, proved to be a boon for the Kingdom, lifting oil sector activity by 15.4% over the course of the year (see Energy & Utilities chapter). Additional revenue has helped generate a rare…

Interview

Promising progress: Mohannad Basodan, CEO, National Center for Privatization & PPP (NCP), on efforts to boost private sector involvement
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Interview:Mohannad Basodan How do you assess the progress being made in increasing private sector participation? MOHANNAD BASODAN: A number of significant steps were taken to promote privatisation and public-private partnerships (PPPs) in 2023. The current pipeline, which has been published on NCP’s website, contains more than 200 approved projects across 16 sectors, and another 300 projects in various stages of preparation. This represents one of the largest portfolios in the world. Since…

Analysis

Integrated development: New special economic zones target strategic sectors to expand the Kingdom’s role in the region and beyond
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In April 2023 the Economic Cities and Special Zones Authority (ECZA) announced the launch of four new special economic zones (SEZs) that will have far-reaching implications for the Kingdom’s industrial sector, trade performance and the broader economy. These include King Abdullah Economic City (KAEC) SEZ in Rabigh, Ras Al Khair SEZ in the country’s north-east, Jazan SEZ on the Red Sea coast and the decentralised Cloud Computing SEZ. Each of the zones has been designed with a unique focus and…

Interview

Key projects: Meshaal bin Omairh, Group CEO, Abdullah Al Othaim Investment, on opportunities to develop retail, tourism and entertainment
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Interview:Meshaal bin Omairh How can the public and private sectors enhance collaboration to expand investment opportunities in commercial and retail development? MESHAALBIN OMAIRH: It is important to recognise government efforts to advance the private sector. This commitment is exemplified by measures such as providing the necessary support, forging enduring alliances, and amplifying the sector’s investment horizons and opportunities for sustainability. These collective actions are…

Interview

Career opportunities: Fahad Al Jubeir, Mayor, Eastern Province Municipality, on the diversification of the local economy
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Interview:Fahad Al Jubeir Which industries can contribute the most to economic diversification in the Eastern Province? FAHADAL JUBEIR: Having Aramco’s headquarters in the Eastern Province makes the region a hub for the energy sector and a centre for related businesses. There are significant prospects that can drive economic growth and provide jobs, such as renewables and recycling. Investing in solar and wind power can reduce the region’s carbon footprint, and create new industries…

Analysis

Positive outlook: Surpluses from oil revenue are enhancing regional integration and economic diversification among GCC countries
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While 2022 was a year of global economic uncertainty fuelled by inflation, geopolitical crises and supply chain insecurity, the Middle East witnesseda second consecutive year of economic growth, with countries in the region investing in new technologies and projects that could herald greater integration in the years ahead. In April 2023 the IMF’s “World Economic Outlook” projected that global GDP expansion would slow from 3.4% in 2022 to 2.8% in 2023. Oil-exporting countries in the Middle…