JEDDAH: The Global Competitiveness Report for 2015-2016 issued by the World Economic Forum has noted a number of points of strength enjoyed by the Saudi economy to achieve further growth, enhance the chances of raising its competitiveness globally and maintain its current top positions in the Middle East and North African countries.

Prince Saud bin Khalid Al-Faisal, CEO of Investment Regulations and Procedures at Saudi Arabian General Investment Authority (SAGIA), highlighted the points of strength in the Saudi economy and the areas that concerned bodies should work on to achieve further improvement and development.

He said that Saudi Arabia has retreated one rank despite an improved evaluation of the Kingdom in this year’s report.

Prince Saud bin Khalid Al-Faisal said that the program of improvement of the investment environment in the Kingdom is based on a recent direct directive from Custodian of the Two Holy Mosques King Salman to all governmental bodies. SAGIA is currently working on this plan.

The authority has set up eight working teams with more than 50 concerned bodies to develop an executive action plan with specific objectives and periods of time.

A report will be submitted to the King on the recommendations soon in preparation for launching the implementation of the action plan.

Saudi Arabia’s strong macroeconomic environment remains the country’s most distinctive strength although the recent oil price drop may lead to a less favorable assessment in this respect, according to the WEF report.

Saudi Arabia has dropped one place to 25th in the latest Global Competitiveness Report issued by the Geneva-based World Economic Forum.

Increased spending has already seen the country move from a budgetary surplus in 2013 to a deficit in 2014, and an additional fiscal spending package of about 4 percent of GDP was announced in Feb.30

It is estimated that Saudi Arabia needs the price of oil to be at about $100 per barrel to achieve fiscal neutrality.

The lower oil price will also necessitate further efforts toward diversification and private-sector growth to create employment opportunities.

Entrepreneurship and private-sector growth could be supported by reducing administrative barriers to entry (104th), further developing the financial sector (41st), and improving corporate governance standards (55th on efficacy of corporate boards).

More focus on broad-based access to quality education (54th) and promoting access to and use of ICTs (56th) could also create employment opportunities.

The Global Competitiveness Report 2015-2016 presents the rankings of the Global Competitiveness Index (GCI).

The GCI is based on 12 pillars that provide a comprehensive picture of the competitiveness landscape in countries around the world at different stages of economic development.