Structural reforms in Saudi Arabia’s economy to continue: Finance minister  

Structural reforms in Saudi Arabia’s economy to continue: Finance minister  
Saudi Finance Minister Mohammed Al-Jadaan said that continuous implementation of the ambitious plan is necessary for the Kingdom to catalyze its economic growth and maintain fiscal sustainability.  Photo/Supplied
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Updated 01 October 2023
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Structural reforms in Saudi Arabia’s economy to continue: Finance minister  

Structural reforms in Saudi Arabia’s economy to continue: Finance minister  

RIYADH: Saudi Arabia will continue its fiscal and structural reforms as the Kingdom is steadily embarking on its economic diversification journey in line with the goals outlined in Vision 2030, said a top government official.  

Saudi Finance Minister Mohammed Al-Jadaan said that continuous implementation of the ambitious plan is necessary for the Kingdom to catalyze its economic growth and maintain fiscal sustainability.  

The minister added that the government program will help Saudi Arabia develop promising economic sectors, enhance investment attractions, stimulate industrial growth, raise the percentage of local content and promote non-oil exports, according to the pre-budget statement from the Ministry of Finance.  

“The Kingdom continues to support social protection programs and shows continued progress toward the objectives of the Fiscal Sustainability Program,” said the ministry in the pre-budget statement.  

It added: “These objectives were achieved by directing expansionary spending to accelerate the implementation of major programs, projects and sectoral and regional strategies to contribute toward gross domestic product growth, attract investments, and stimulate the local economy.”  

According to Al-Jadaan, Saudi Arabia remained financially resilient over the past few years when the world faced economic headwinds for various reasons, including the COVID-19 pandemic and geopolitical tensions.  

He further pointed out that the Kingdom is well equipped with strong government reserves and sustainable levels of public debt that can accommodate any crises that may occur in the future.  

The minister noted that Saudi Arabia’s agile nature of additional spending will help the Kingdom to have control in the medium term, allowing an extension of implementation periods for projects and strategies.  

Al-Jadaan added that Saudi Arabia’s sovereign wealth fund is crucial as the Kingdom is pursuing its economic transformation program.  

The Public Investment Fund has spearheaded this economic diversification journey by investing in various strategic sectors.  

According to the fund’s annual report, it currently holds assets worth SR2.23 trillion ($595 billion).  

The fund has established 70 companies, 25 of them, including Saudi Coffee Co. and Halal Products Development Co. were founded in 2022.  

PIF’s annual report added that these companies offered 1,81,000 jobs in 2022. 


Saudi Arabia, Sierra Leone ink aviation regulatory agreement at ICAN 2023 

Saudi Arabia, Sierra Leone ink aviation regulatory agreement at ICAN 2023 
Updated 8 sec ago
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Saudi Arabia, Sierra Leone ink aviation regulatory agreement at ICAN 2023 

Saudi Arabia, Sierra Leone ink aviation regulatory agreement at ICAN 2023 

RIYADH: Air transport services linking Saudi Arabia and Sierra Leone are set to strengthen following the signing of a deal aimed at establishing regulatory frameworks between the two nations. 

The agreement was inked by the Saudi Minister of Transport and Logistics Services Saleh Al-Jasser, and Alhaji Fanday Turay, Sierra Leone’s minister of Transport and Aviation, on the sidelines of the 15th International Conference on Air Services Negotiations in Riyadh.  

This move aligns with the principles of the Chicago Convention on international civil aviation, the Saudi Press Agency reported.  

The bilateral agreement between the two nations complements the International Civil Aviation Agreement, known as the Chicago Convention, signed in 1944. The treaty regulates international civil aviation, ensuring fair and equal opportunities for all parties involved. 


COP28: UN climate event mobilizes over $57bn in first four days

COP28: UN climate event mobilizes over $57bn in first four days
Updated 26 min 20 sec ago
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COP28: UN climate event mobilizes over $57bn in first four days

COP28: UN climate event mobilizes over $57bn in first four days

DUBAI: The UN’s climate action summit has mobilized over $57 billion from various sectors in just four days of the event, with financial pledges and commitments covering finance, health, food, nature and energy.

On climate finance, the UAE announced on opening day a $30 billion catalytic fund, ALTÉRRA, with an emphasis on unlocking private finance across the Global South.

The COP28 host-country also partnered with the Bill & Melinda Gates Foundation to contribute $200 million for ‘Food Systems, Agriculture Innovation and Climate Action,’ focused on agricultural research, scaling agricultural innovations and funding technical assistance.

It also announced a $150 million pledge for water security.

The World Bank meanwhile announced an increase of $9 billion annually to finance climate-related projects.

In a historic move, the Climate Loss and Damage fund was finally operationalized with about $750 million pledged in the first 48 hours of COP28 to help vulnerable nations cope with the impacts of climate change.

In addition, $3.5 billion has been announced to replenish the Green Climate Fund; $2.7 billion was pledged for health; $2.6 billion for food systems transformation; $2.6 billion to protect nature; $467 million for urban climate action and $1.2 billion has been committed for relief, recovery and peace.

On energy, $2.5 billion was mobilized for renewables and $1.2 billion for methane emission reduction. In addition, $568 million was pledged to drive investments in clean energy manufacturing.

Meanwhile, eight new declarations have been announced that will help transform every major system of the global economy including food systems, health and renewable energy.


Saudi Arabia’s real estate supply reservations more than double

Saudi Arabia’s real estate supply reservations more than double
Updated 30 min 46 sec ago
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Saudi Arabia’s real estate supply reservations more than double

Saudi Arabia’s real estate supply reservations more than double

RIYADH: Citizens in Saudi Arabia are gaining greater access to residential units as the real estate supply reservations surged 110 percent year-on-year in November to reach 12,503, according to new figures.  

The Kingdom’s National Housing Co. announced that residential units were sold at competitive prices starting from SR250,000 ($66,649) compared to the previous year’s rates, in which the lowest contract amounted to SR321,000 per residential unit, the Saudi Press Agency reported. 

This falls in line with the Gulf country’s plans and strategies to launch several extensive residential projects in order to achieve a balance between population growth and rapid urban expansion. 

This also comes as the rise in population density has led to increased demand for housing. Thus, the Kingdom is working to boost the real estate supply to meet this need, aligning with a sustainable urban approach.


Riyadh Air partners with Turkish Airlines to offer wide range of benefits for travelers 

Riyadh Air partners with Turkish Airlines to offer wide range of benefits for travelers 
Updated 46 min 27 sec ago
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Riyadh Air partners with Turkish Airlines to offer wide range of benefits for travelers 

Riyadh Air partners with Turkish Airlines to offer wide range of benefits for travelers 

RIYADH: Saudi Arabia’s nascent flag carrier Riyadh Air has signed a strategic memorandum of understanding with Turkish Airlines to offer a wide range benefits for travelers using the carriers.

Under the deal, passengers of both airlines can enjoy the convenience of a comprehensive interline and codeshare agreement, allowing for smooth connections across the networks of both Turkish Airlines and Riyadh Air, according to a press statement.  

Another feature of this cooperation agreement is the offering of a loyalty program, which allows passengers to earn points or credits on codeshare flights operated by either airline. 

The press statement added that these benefits will be offered to travelers after Riyadh Air launches operations in mid-2025 and is subject to regulatory approvals by relevant authorities.  

The signing ceremony took place on the sidelines of the 15th International Conference on Air Services Negotiations, which is affiliated with the International Civil Aviation Organization, being held in Riyadh.  

“This agreement is another very significant step in the evolution of Riyadh Air as we partner with the world’s largest global airline by destinations served,” said Riyadh Air CEO Tony Douglas. 

He added: “Bilateral agreements with established network airlines are extremely important to Riyadh Air and there are significant benefits to this partnership, our passengers can enjoy greater connectivity to the world and deeper access to Turkiye, while an increased flow in volumes of tourism, religious and business travel into the Kingdom of Saudi Arabia is anticipated.”  

Strengthening the aviation sector is very crucial for Saudi Arabia, as the Kingdom is aiming to become a global tourism hub, aligned with the goals outlined in Vision 2030.  

Through its National Tourism Strategy, Saudi Arabia aims to attract 150 million tourists to the Kingdom by 2030.  

“This memorandum of understanding is more than a collaboration; it’s a bridge between Turkiye and Saudi Arabia, further strengthening our ties,” said Levent Konukcu, chief investment and technology officer at Turkish Airlines.  

He added: “It’s also an opportunity to expand our reach and offer our guests more choices and convenience. We believe this partnership will not only benefit our customers but also contribute significantly to the tourism and business sectors of both countries.”  


CEOs discuss key issues at Saudi Insurance Authority’s 1st meeting

CEOs discuss key issues at Saudi Insurance Authority’s 1st meeting
Updated 04 December 2023
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CEOs discuss key issues at Saudi Insurance Authority’s 1st meeting

CEOs discuss key issues at Saudi Insurance Authority’s 1st meeting

RIYADH: Saudi Arabia’s insurance sector is set to see significant cooperation between companies and shareholders after the Kingdom’s Insurance Authority held its first CEO meeting. 

The meeting came within the framework to strengthen relations between insurance companies and industry leaders to advance the sector.  

During the gathering on Dec. 3, Abdulaziz Al-Boug, chairman of the authority’s board, emphasized the IA’s keenness to work with insurance companies as partners in a bid to further develop the sector, according to a report by the Saudi Press Agency.  

He also added that the authority is focused on regulating the sector, stimulating growth and innovation, enhancing competitiveness, and increasing the sector’s efficiency and contribution to the economy.  

Al-Boug highlighted the insurance sector’s significant role in protecting the national economy, properties, and upholding the rights of policyholders including individuals, companies, and government entities.

Effective risk management and creating an attractive investment environment are also key focus areas.  

Naji Al-Tamimi, the IA’s CEO, stressed the importance of united efforts and transparency between the authority and active companies in the sector.   

The authority’s objectives include regulating and supervising the insurance sector in Saudi Arabia, raising public awareness, ensuring the protection of all contractual parties and beneficiaries, and contributing to the sector’s financial stability and development.  

The meeting marks the beginning of a new phase for the Saudi insurance industry, with plans to review and develop all insurance-related systems and regulations.   

This approach is expected to create a competitive and flexible market, ensuring sector stability, increased investments, and a diversity of insurance products that reflect positively on end-users and align with global standards.  

In August, the Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved the establishment of the IA.  

“The Cabinet’s decision to establish the Saudi Insurance Authority underlines the Kingdom’s commitment to building and developing a world class insurance sector — one set apart by established best practices and international standards,” Adel Al-Eisa, media spokesperson for insurance companies in Saudi Arabia told Arab News in September.   

He added: “The launch of the authority marks the latest step taken by the Kingdom to regulate, supervise, control, support and enhance the Saudi insurance sector, and enhancing its effectiveness.”