RIYADH, 16 November 2002 — Minister of Finance and National Economy Dr. Ibrahim Al-Assaf has refuted reports that the Kingdom was facing economic stagnation.
In a statement to Kuwait’s Al-Siyasah newspaper, due to be published today, Al-Assaf said recent decisions taken by Riyadh provided a clear evidence of the country’s economic policy.
The decisions included establishment of the Supreme Economic Council, privatization of a number of government sectors and reduction of customs tariffs.
“These decisions will go a long way in laying a proper foundation for the Saudi economy”, he said.
Al-Assaf noted that any oil-dependent economy is affected by the developments in the international market. “In the last two decades the private sector attained remarkable growth. More over, efforts are being exerted to broaden the economic base and to enable the private sector to play an important role in the process of the economic development”, he elaborated .
He pointed out that private sector revenue constituted 70 percent of the gross national product (GNP) of the country, which amounts to SR700 billion. The visits of Crown Prince Abdullah, deputy premier and commander of the National Guard, had yielded positive results, and reiterated the Kingdom’s openness to the world and its keenness to attract investors.
Al-Assaf said efforts to diversify the economic base do not necessarily mean minimizing the importance of petroleum.
He said the Kingdom’s budget for the current fiscal year will have a deficit, “but this deficit will be less than the deficit of SR 46 billion we had earlier estimated.”
He noted that Saudi officials attach great importance to international relations and are keen to enhance the Kingdom’s ties with other Arab countries.
As regards the rate of unemployment in the Kingdom, Al-Assaf said it is less than 10 percent.
The finance minister reiterated that the government was keen to provide training to the citizens, thus enabling them to find suitable employment. (SPA)
