Azour: Saudi Arabia Adapts to Global Challenges Thanks to Reforms, Strong Reserves

Asharq Al-Awsat

26-05-2025

Saudi Arabia continues to demonstrate resilience in the face of global economic challenges, bolstered by structural reforms and substantial financial reserves, According to Dr. Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF).
He said the Kingdom is well-equipped to manage fluctuations in global oil prices.
Speaking to Asharq Al-Awsat on the sidelines of an IMF-hosted panel in Riyadh on global and regional economic developments, Azour stressed that Saudi Arabia has significant reserves that act as a financial buffer against external shocks. These reserves, coupled with ongoing structural reforms under Saudi Vision 2030, have greatly enhanced the Kingdom's economic adaptability.
Azour noted that the reforms are not only increasing the economy's flexibility but are also successfully diversifying income sources and boosting the contribution of non-oil sectors to the GDP. This shift toward developing promising new sectors is reducing dependency on oil revenues while creating sustainable economic opportunities.
He stressed that the mechanisms in place in the Kingdom, the adopted fiscal policies, and the implementation of Vision 2030 allow it to adapt to global shifts, despite current challenges.
Earlier this month, Saudi Minister of Economy and Planning Faisal Alibrahim confirmed the Kingdom's readiness to face all possible oil price scenarios, noting that Saudi Arabia has sufficient safety margins.
A mission to Syria
In a notable development, the IMF is sending a mission to Syria this week to assess the country's financial and economic landscape in the first such visit in over a decade.
Azour confirmed the visit will focus on evaluating the central bank, finance ministry, and statistical agencies to determine technical needs and explore cooperation frameworks.
The mission aims to establish priorities for providing technical assistance and institutional support, and reflects the IMF's renewed engagement with Syria. Azour himself plans to visit Damascus at the end of June following the mission's report.
The move comes after the IMF appointed Ron van Rooden as its mission chief to Syria in April 2025, the first such appointment since the Syrian conflict began.
Azour said initial discussions with Syrian officials began at the Emerging Markets Forum in AlUla, Saudi Arabia, earlier this year and continued during the IMF-World Bank Spring Meetings in Washington.
The talks were attended by Syria's Foreign Minister Asaad Al-Shaibani, and were supported by Saudi Finance Minister Mohammed Al-Jadaan, IMF Managing Director Kristalina Georgieva, and World Bank President Ajay Banga.
International Support and Lifting of Sanctions
The IMF's renewed involvement coincides with growing international efforts to reintegrate Syria into the global economic system. In a significant step, the US Treasury Department officially lifted economic sanctions on Syria last Friday.
US Treasury Secretary Scott Bessent said Syria must continue working to become a peaceful and stable country, and expressed hope that the latest decision would help put the country on a path toward prosperity and peace.
US Secretary of State Marco Rubio also announced a 180-day waiver of Caesar Act sanctions to facilitate investment and ensure uninterrupted access to electricity, energy, water, healthcare, and humanitarian aid.
In a further sign of support, Saudi Arabia and Qatar pledged to repay Syria's debt to the World Bank, paving the way for the resumption of its operations in the country after a 14-year hiatus. This move could unlock international funding crucial for Syria's reconstruction and economic recovery.
The IMF's engagement is part of a broader strategy to support conflict-affected countries in rebuilding institutions, restoring economic stability, and fostering inclusive development.
Through this renewed cooperation, the IMF hopes to help lay the groundwork for sustainable growth and improved livelihoods for the Syrian people.