Saudi Arabia’s Prosperity Shines Among the G20

Saudi Arabia, one of the world’s largest economies, is very important to the G20 because of its Vision 2030 plans for economic growth.

Saudi Arabia is also a superpower in the energy sector, as it contributes directly and indirectly to global energy markets through its role in stabilising oil prices and ensuring the stability of global energy supplies. This is of interest to the members of the G20.

Geopolitical Capabilities

The Kingdom has regional geopolitical capabilities in the Middle East that enable it to address regional challenges and stabilise the region, which receives great attention in the G20 discussions on global security and political issues. Saudi Arabia is a crucial player in global investments and trade, and through its participation in the G20, it helps in conducting discussions on international trade policies, investment opportunities, and economic cooperation.

At the same time, Saudi Arabia has had extensive participation over the past years and has provided many solutions regarding the global challenges addressed by the G20, including climate change, sustainable development, and global health issues. Saudi Arabia’s membership in the G20 generally reflects its economic and geopolitical importance worldwide and its participation in addressing critical global issues.

Strategic Location

Saudi Arabia’s strategic location at the crossroads of three continents makes it a major transit centre for trade and business. Saudi Arabia’s growing influence in the global economy contributes to the diversification of its economy and its increased integration with the world’s economies, making it a crucial voice in the G20 discussions. This enables it to play a role in shaping the global economic agenda.

Moreover, Saudi Arabia has contributed greatly to finding broad solutions to some of the world’s most pressing challenges, and during the past period, it worked on finding diverse solutions to many global issues and challenges.

Sustainable Development

Economist Fadel bin Saad Al-Buainain, a member of the Saudi Shura Council, said that the Kingdom has become one of the countries most involved in achieving sustainable development through “Saudi Vision 2030,” which has had the greatest impact on the Saudi economy. It achieved the highest growth rate among the countries of the group. %8.7.

He added, “This growth prompted the International Monetary Fund to praise the prosperity of the Saudi economy in addition to the development and reform programs that contributed to achieving positive results.”

Al-Buainain noted that the sustainable development file is one of the most vital issues that the current G20 meeting will address. Further, Al-Buainain noted that Saudi Arabia is a model for sustainable development plans, particularly in developing nations that require development strategies and programs that accomplish sustainable development goals, due to its prosperity, development path, and key initiatives.

Food Security and Renewable Energy

Al-Buainain explained that one of the most critical files is the file on ensuring food security, through “stimulating smart agriculture to face the climate,” as in “NEOM,” Saudi Arabia is presently implementing a cutting-edge initiative. for smart agriculture, and it is greatly expanding in providing its local food needs and has succeeded in important aspects of it.

Furthermore, he mentioned that one of the concerns brought up was the promotion of renewable energy in various economic endeavours. He pointed out that the Kingdom’s program for renewable energy through solar and wind energy has become the most prominent in the region.

Al-Buainain said, “If we add the production of green hydrogen in (NEOM) and the huge project launched by the NEOM Green Hydrogen Company with a total investment of $8.4 billion, which is the largest plant to produce carbon-free green hydrogen in the world, the Kingdom will also be a pioneer in the renewable energy file. This makes it more capable of enriching the group and contributing to achieving the goals of the current summit files”.

The Unemployment File

Al-Buainain discussed the issue of unemployment, which is one of the most important topics addressed by the Fund, and praised the measures that led to reducing the unemployment percentage to %8, and women’s participation in the labour market exceeded the %30 targeted in Vision 2030.

Meanwhile, Vision 2023 programmes contributed to achieving crucial results in the unemployment rate and reducing it to %8. It is noteworthy that the majority of economic and reform programs had a positive impact on the unemployment index.

Diversified Investments

Al-Buainain said that the Public Investment Fund has a direct role in achieving these positive results through pumping investments into various economic sectors, its partnerships with international companies, and its stimulation of marginalised but promising economic areas.

In addition, there is strong non-oil GDP growth, which was confirmed by the official second-half data issued by the General Statistics Authority. This is currently the most significant due to its implications for the diversification of economic sectors and private sector growth.

Al-Buainain concluded by saying, “In general, I believe that the positive IMF report on the performance of the Saudi economy is only a true reflection of the results of the economic reforms led by Saudi Crown Prince Mohammed bin Salman through the Saudi Vision 2030,” he continued by stressing that “what has been achieved reflects positively on the Kingdom’s participation in the G20 and its contribution to achieving the group’s goals, especially regarding the files of sustainable development and renewable energy.”

Containing Inflation

The International Monetary Fund praised the Kingdom’s efforts to contain inflation, which cast its shadow on the global economy. It explained that local assistance kept it contained, setting a ceiling on the prices of several products, and the strong value of the dollar. The average of the main consumer price index reached % 2.5% in January. 2022. Pointing out that although the average index rose in early 2023 to %3.4, it fell again to %2.8 in May 2023.

According to the report, the ongoing Saudi Vision 2030 reforms are a step forward in the country’s efforts to diversify its economy and lessen its reliance on oil. With an average growth rate of 4.9% in 2023, it seems that the strong momentum of non-oil GDP growth will continue, propelled by robust consumer spending, growing private investment through initiatives and programmes that support private sector growth, as well as the quicker pace of project implementation.

Read more: Saudi Research & Development: Investing Qualitatively in Vision 2030