Saudi Arabia takes bold decision to unlock full economic potential, diversify away from oil: Alibrahim
Saudi Arabia, under the leadership of the Crown Prince, made a bold decision to unlock the full potential of its economy by planning long-term and looking at the big picture to move away from oil dependence, Minister of Economy and Planning Faisal Alibrahim said.
The country adopted a constructive approach based on innovative radical change, the minister said during a panel discussion at AlUla Emerging Markets Conference.
This approach stimulated innovation from top to bottom in the public sector and opened markets to innovators from within the Kingdom and globally.
There is progress and momentum and the Kingdom is on the right track, but the task is not yet complete, he noted.
"We will not accept the current situation, in which we see that we are working below our potential, which means that we are losing, and that this loss will accumulate over the years until it affects, in the future, the fundamentals, including family income,' Alibrahim added.
The minister also stated that the Kingdom has a high competitiveness that makes it a key part of global value chains. It also has a long-term strategy for artificial intelligence that has been updated to keep pace with recent developments and new challenges.
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Arab News
30-05-2025
- Arab News
UAE, China, India among top destinations for Saudi Arabia's non-oil goods: GASTAT
RIYADH: The UAE emerged as the leading destination for Saudi Arabia's non-oil exports during the first quarter of 2025, with shipments valued at SR21.32 billion ($5.68 billion), marking a 33.91 percent increase compared to the same period last year, according to the latest data from the General Authority for Statistics. Machinery and mechanical appliances were the most exported items to the UAE, amounting to SR10.19 billion. This was followed by transport equipment worth SR5.16 billion and chemical products totaling SR1.11 billion. Plastic goods were also significant, with exports to the UAE reaching SR942 million, while precious stones and base metals recorded SR860.8 million and SR848.4 million, respectively. The increase in non-oil exports aligns with the objectives of the Kingdom's Vision 2030, which seeks to diversify the economy and reduce dependency on oil revenues. Saudi Minister of Economy and Planning Faisal Alibrahim recently noted that non-oil activities now contribute 53.2 percent to the Kingdom's gross domestic product. GASTAT also reported a 9.27 percent rise in Saudi Arabia's non-oil exports to the UAE compared to the previous quarter, further emphasizing the Kingdom's economic diversification momentum. China ranked second among Saudi Arabia's non-oil export destinations in the first quarter, receiving goods valued at SR6.51 billion — an annual increase of 17.93 percent. Major exports to the Asian country included plastic products worth SR2.58 billion, chemical products totaling SR2.32 billion, and minerals valued at SR533.4 million. India was another prominent trade partner, with non-oil exports reaching SR5.75 billion in the first quarter, up 14.08 percent from the same period in 2024. Other key export destinations included Turkiye, which received goods worth SR2.96 billion; Egypt at SR2.56 billion; and the US at SR2.48 billion. Singapore imported SR2.28 billion worth of goods from Saudi Arabia, while Bahrain received SR2.21 billion, Belgium SR2.11 billion, and Kuwait SR1.97 billion. Overall, Saudi Arabia's non-oil exports rose by 13.4 percent year on year in the first quarter, totaling SR80.72 billion. Key ports played a vital role in this trade activity. King Fahad Industrial Sea Port in Jubail handled the highest volume of outbound non-oil goods, valued at SR9.93 billion. Jeddah Islamic Sea Port followed closely with SR9.76 billion, while Jubail Sea Port and King Abdulaziz Sea Port in Dammam facilitated exports worth SR7.17 billion and SR6.69 billion, respectively. On land, Al-Batha Port processed SR5.53 billion in exports. Al-Hadithah and Al-Wadiah ports recorded export values of SR2.10 billion and SR1.43 billion, respectively. Among airports, King Khalid International Airport in Riyadh led with SR8.52 billion worth of non-oil goods exported in the first quarter, an increase of 12.84 percent compared to the previous year. King Abdulaziz International Airport followed with SR6.16 billion, while King Fahad International Airport in Dammam and Prince Mohammad bin Abdulaziz International Airport in Madinah recorded SR741.8 million and SR4.2 million, respectively. Merchandise exports Despite growth in the non-oil sector, overall merchandise exports declined by 3.2 percent year on year in the first quarter, falling to SR285.78 billion. GASTAT attributed this drop to an 8.4 percent decline in oil exports, which caused the share of oil in total exports to decrease from 75.9 percent in the first quarter of 2024 to 71.8 percent in the same period this year. Asia remained the largest market for Saudi exports, accounting for SR213.14 billion. Europe followed at SR34.51 billion, with Africa and the Americas receiving SR23.19 billion and SR13.80 billion, respectively. China was the top destination for overall merchandise exports, receiving SR44.91 billion worth of goods — an increase of 3.26 percent compared to the first quarter of 2024. India received SR28.04 billion in goods, followed by Japan with SR26.48 billion, South Korea at SR25.03 billion, and the UAE at SR24.85 billion. Imports in Q1 Saudi Arabia's imports also grew during the first quarter, rising by 7.3 percent year on year to SR222.73 billion. Machinery, mechanical and electrical equipment led imports, totaling SR57.40 billion, followed by transport parts at SR32.56 billion and base metals at SR21.30 billion. Chemical imports stood at SR19.60 billion, while minerals accounted for SR12.12 billion. Goods imported from Asia were valued at SR128.50 billion, while imports from Europe and the Americas reached SR52.94 billion and SR27.01 billion, respectively. African nations contributed SR12.53 billion in imports, and goods from Oceania were valued at SR1.73 billion. China remained Saudi Arabia's largest source of imports, sending goods worth SR59.33 billion. These included mechanical appliances and electrical equipment valued at SR23.93 billion, transport parts worth SR9.50 billion, base metals at SR6.43 billion, and even works of art and antiques amounting to SR3.19 billion. The US followed with SR17.58 billion in exports to the Kingdom, while India's exports totaled SR12.27 billion. Sea routes were the dominant entry channels for imports, accounting for SR113.11 billion. Air and land ports handled SR61.63 billion and SR25.99 billion, respectively. King Abdulaziz Sea Port in Dammam was the leading sea entry point with SR59.97 billion in imports. Jeddah Islamic Sea Port and Ras Tanura port followed with SR47.78 billion and SR8.73 billion. Over land, Al-Batha Port and Riyadh Dry Port managed goods worth SR10.78 billion and SR8.29 billion, respectively. By air, King Khalid International Airport in Riyadh received imports valued at SR29.96 billion in the first quarter. King Abdulaziz International Airport and King Fahad International Airport handled SR18.60 billion and SR12.39 billion, respectively. Reflecting continued expansion of the non-oil economy, Saudi Arabia recorded a Purchasing Managers' Index of 55.6 in April, according to S&P Global and Riyad Bank. This score surpassed those of the UAE at 54 and Kuwait at 54.2, indicating robust growth in non-oil business activity. A PMI reading above 50 signals economic expansion, while a figure below 50 suggests contraction.
Asharq Al-Awsat
26-05-2025
- Asharq Al-Awsat
Azour: Saudi Arabia Adapts to Global Challenges Thanks to Reforms, Strong Reserves
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.
Asharq Al-Awsat
24-05-2025
- Asharq Al-Awsat
Saudi Non-Oil Sector Hits Record 54.8% of GDP
Saudi Minister of Economy and Planning Faisal Alibrahim delivered the opening remarks at the Saudi-Spanish Business Forum, affirming that Saudi Arabia is undergoing a historic economic transformation driven by Saudi Vision 2030. He noted that non-oil activities have reached record levels, accounting for 54.8% of Saudi Arabia's gross domestic product (GDP) in 2024, the Saudi Press Agency reported on Friday. Alibrahim highlighted that Spanish investments in the Kingdom have exceeded $3 billion over the past decade, with more than 200 Spanish companies active across infrastructure, healthcare, agriculture, real estate, and technology. He also commended the pivotal role of the Saudi-Spanish Business Council in strengthening bilateral trade, underscoring both countries' commitment to fostering a stable, transparent, and opportunity-rich investment environment. The minister further emphasized that Saudi-Spanish relations extend beyond the economic domain to include cultural and sports collaboration such as the Spanish Super Cup, contributing to deeper ties between the two nations and reinforcing mutual respect. Alibrahim concluded with an open invitation to Spanish companies, innovators, and entrepreneurs to take part in shaping a shared and prosperous future between the two countries.
