Saudi Arabia wants economic output to reach $1.7tr, says Al-Falih

Saudi Arabia wants economic output to reach $1.7tr, says Al-Falih
Short Url
Updated 13 October 2021

Saudi Arabia wants economic output to reach $1.7tr, says Al-Falih

Saudi Arabia wants economic output to reach $1.7tr, says Al-Falih
  • World Bank raises Kingdom’s 2022 growth forecast to 4.9 percent

RIYADH: Saudi Arabia wants its economic output to reach 6.4 trillion riyals ($1.71 trillion), Saudi state TV cited Investment Minister Khalid Al-Falih as saying on Wednesday.

The minister was speaking about the Kingdom’s economic development strategy to year 2030, the channel said.

He said the Kingdom aims to boost annual total investments to over SR2 trillion by 2030, compared to the current SR650 billion.

Al-Falih said Saudi Arabia plans to boost the investment rate to 30 percent as compared to the current 22 percent and seeks to achieve GDP target of 10 percent.

The minister said this leap requires efforts to empower the private sector by providing an integrated investment environment in the Kingdom.

He said five economic zones will be established in the Kingdom, including fencing a part of King Abdullah Economic City in Rabigh, and offering special incentives, including an exception to some legislation that is compatible with international agreements.

The statement comes on the heels of the launch of the National Investment Strategy, which aims to increase net foreign direct investment flows to the Kingdom to SR388 billion ($103.5 billion) annually by 2030.

The strategy will contribute to the growth and diversification of the Kingdom’s economy, which, in turn, will achieve many of Vision 2030’s goals, including raising the private sector’s contribution to GDP to 65 percent while increasing the contribution of foreign investments to GDP to 5.7 percent.

World Bank forecast

On Tuesday, the World Bank revised Saudi Arabia’s 2022 growth forecast from 3.3 percent to 4.9 percent. Its October’s economic update for the Middle East and North Africa region said the Kingdom’s growth will partly be driven by a significant rebound in the oil sector in 2022 following OPEC+ production cuts that are in place until December 2021.

The World Bank report upgraded Saudi Arabia’s exports growth by more than double from 4.7 percent to 9.6 percent.

The Kingdom’s industrial output is now expected to grow by 5.4 percent, up from April’s forecast of 2.4 percent.

Improving vaccination rates, elimination of pandemic-related restrictions and resumption of religious tourism will likely boost Saudi non-oil output, which is expected to grow by 4 percent in 2021 and 3.3 percent in 2022.


UAE-based Al Dahra to open 3 plants in Eastern Europe


UAE-based Al Dahra to open 3 plants in Eastern Europe

Updated 9 sec ago

UAE-based Al Dahra to open 3 plants in Eastern Europe


UAE-based Al Dahra to open 3 plants in Eastern Europe


RIYADH: Al Dhara Holding, an Abu Dhabi-based agricultural company, will establish five new animal feed plants in Eastern Europe.

The new plants will be established in Serbia, Romania and Bulgaria. The new facilities are part of the company’s efforts to expand its horizons and diversify its sources of production.

The company has opened its first plant for compressing and drying animal feed in Serbia with a production capacity of 120,000 tons and storage capacity of 20,000 tons.

 


Foreign investments in Egypt’s oil sector see 26.02% decline, says minister

Foreign investments in Egypt’s oil sector see 26.02% decline, says minister
Updated 52 min 29 sec ago

Foreign investments in Egypt’s oil sector see 26.02% decline, says minister

Foreign investments in Egypt’s oil sector see 26.02% decline, says minister

CAIRO: Egypt's oil minister said on Sunday that foreign investments in the sector fell 26.02% to $5.4 billion in the financial year 2020-21, versus $7.3 billion a year earlier.

“The coronavirus crisis led to a slowdown in investments from international oil companies worldwide,” Tarek El Molla said in a speech to the Egyptian Petroleum Association. 


Over 86,000 Saudi families benefit from Sakani subsidized loans

Over 86,000 Saudi families benefit from Sakani subsidized loans
Updated 17 October 2021

Over 86,000 Saudi families benefit from Sakani subsidized loans

Over 86,000 Saudi families benefit from Sakani subsidized loans

RIYADH: More than 86,000 Saudi families benefited from the Housing Ministry’s Sakani program subsidized real estate loans since the beginning of the year till September, the Saudi Press Agency reported on Sunday.

The program offers two types of subsidized loans, one for ready-made housing units and the other meant for under-construction buildings.

Of the total, 69,497 families benefited from the loan offered for ready-made housing units.

The Ministry of Housing and the Real Estate Development Fund formed Sakani in 2017 to facilitate homeownership in the Kingdom through the creation of new housing stock, allocating plots and homes to nationals, and financing their purchase. It has a goal of reaching 70 percent homeownership by 2030.

The program also launched new e-services to serve people effectively.


Uber, Careem may pay a tax bill of $100m to Saudi government: Bloomberg

Uber, Careem may pay a tax bill of $100m to Saudi government: Bloomberg
Updated 17 October 2021

Uber, Careem may pay a tax bill of $100m to Saudi government: Bloomberg

Uber, Careem may pay a tax bill of $100m to Saudi government: Bloomberg

RIYADH: Saudi Arabia is charging several technology firms, including Uber Technologies Inc. and its Dubai-based subsidiary Careem, with tax bills worth tens of millions of dollars, Bloomberg reported, citing people with knowledge the matter.

Uber and Careem face a combined bill worth around $100 million, it said. The claims are related to a dispute over how to calculate the value-added tax owed over the past few years and include hefty penalties for late payment, Bloomberg reported. 


No fear of inflation ‘runaway train,’ says IMF chief

No fear of inflation ‘runaway train,’ says IMF chief
Updated 17 October 2021

No fear of inflation ‘runaway train,’ says IMF chief

No fear of inflation ‘runaway train,’ says IMF chief
  • Growing supply chain bottlenecks source of concern for policymakers

WASHINGTON: Global finance officials are worried about rising inflation pressures but there it is little fear that it will become a “runaway train,” IMF chief Kristalina Georgieva said on Sunday.

With supply chain bottlenecks growing in the face of surging demand, policymakers have focused attention on rising prices and whether they will linger or fade away in coming months.

“We are in a more somewhat more uncertain space now,” Georgieva said at the G30 central banking conference.

However, in advanced economies “policymakers have the tools” to deal with inflation, she said, so “there is no significant concern that this would be a runaway train.”

Even so, finance ministers and central bankers gathered last week in Washington for the annual meetings of the IMF and World Bank were more concerned than previously that the prices increases could be more than transitory, she said.

And major emerging markets like Russia and Mexico already have raised interest rates showing that “in these places their policymakers are sufficiently concerned already to take action.”

In the world’s largest economy, US Federal Reserve officials have signaled they will begin to pull back on stimulus by tapering its bond purchases in the last few weeks of the year, but the benchmark interest rate is expected to remain at zero with no increase until late 2022 at the earliest.

The Bank of England so far has left its stimulus unchanged, but there were signs of dissent at its most recent policy meeting, when two of its rate-setting panel voted to stop the bond-buying stimulus as soon as possible to help quell inflation.

BoE Gov. Andrew Bailey said central bankers face a “very difficult balancing act” because they cannot address the underlying supply shocks with monetary policy, but have to respond to what is happening in the economy.

Failure to act to contain inflation risks undermining central banks' inflation-fighting credibility, he said.

“We have ... to preserve the huge progress we’ve made in terms of the credibility of monetary policy regimes. I mean that is absolutely critically important,” Bailey said at the conference.