RIYADH: Saudi economy will grow next year by a staggering 7.4 percent on the back of improved oil prices, the minister of finance told reporters in Riyadh.
The Kingdom could even see its gross domestic product reach SR3.62 trillion riyals — almost $1 trillion — up from the SR3.2 trillion it is expected to record this year, Mohammed Al-Jadaan said.
Talking to journalists, Al-Jadaan said “We’ll still tap the market, mainly for refinancing what is maturing next year.”
The minister said the Kingdom aims to diversify its income, empower the private sector, and implement wide structural changes through various Vision 2030 programs.
In order for the Kingdom to achieve this goal, Al-Jadaan said, SR27 trillion will be spent until 2030.
Al-Jadaan said the government aims to support the ongoing gradual recovery in economic activity. The public debt indicators are also expected to improve in 2022, he added.
He indicated that the budget comes as part of the reform process to develop the management of public finances. Maintaining the previously-announced spending ceilings ensures fiscal sustainability in the medium term.
A strong financial position enables the state to respond to any emergency changes and absorb unexpected economic shocks, he added.
Al-Jadaan said the Kingdom’s real GDP is expected to grow 7.4 percent in 2022 driven by the increase in oil GDP as per the OPEC+ agreement. An improvement in non-oil GDP is expected with the continued recovery of the economy, while measures to improve economic growth and diversification continue.
Al-Jadaan said spending will reach SR12 trillion until 2030, including what was announced by the Crown Prince: SR5 trillion under the Shareek program, SR3 trillion under the Public Investment Fund program, and SR4 trillion under the local and international private sector investments.
In addition, government spending for the next 10 years of up to SR10 trillion and private consumption exceeding SR5 trillion means that will be spent in the Kingdom in the coming 10 years will be approximately SR27 trillion.
He said the public and private sectors have worked jointly to achieve a reduction in the rate of unemployment to the current 11.3 percent, adding that the government aims to achieve the goal that had been declared to reduce unemployment to 7 percent and even less by 2030.
— وزارة المالية السعودية (@MOFKSA) December 12, 2021