December 18, 2023

Saudi Arabia 2023... Look at the Positive Side

Abdullah Al Alami*

December 18, 2023

As we bid farewell to 2023, I summarize the important achievements in Saudi Arabia and upcoming projects.

Let me start with the five official mega-construction contracts, the value of which is expected to exceed $50 billion. The projects are Diriyah, NEOM, Qiddiya, the Red Sea destination, and Roshn.

As for training, employment, and education, the Human Resources Development Fund has concluded agreements with 5 governmental and private agencies. The objective is to train 50,000 male and female citizens in various developmental sectors in the labor market.

Three Saudi e-schools were established for Saudi students abroad, creating 172,000 jobs, and targeting 6 sectors to contribute to Vision 2030 objectives. In addition, artificial intelligence studies are being developed, and 433 male and female students have graduated from King Abdullah University of Science and Technology (KAUST), the highest in its history.

Globally, Saudi Oil Company (Aramco) signed agreements to acquire a 40% stake in Pakistan Gas and Oil Company. More than 60 agreements were also signed with China, with a total value exceeding $26.5 billion, and a memorandum of understanding was signed with Korea to invest in machinery and equipment in Saudi Arabia.

Saudi Arabia attracted the attention of visitors to the Kingdom’s pavilion “Artigiano in Fiera” exhibition in Milan, Italy. Also, The Saudi Music Authority celebrated International Arabic Language Day, at the headquarters of the United Nations in New York, USA.

Lots were allocated for the Jubail and Yanbu Royal Commission at about 29.6 billion riyals ($7.89 billion). In addition, Saudi Arabia plans to host the International Mining Conference on January 9, as the mining sector revenues rise to one billion and 800 million Saudi Riyals.

Health services also have a share. Saudi Arabia established several hospitals in different regions with a total capacity of 1,100 beds. Three new health centers were also approved for critical radiation and nuclear accident injuries.

To achieve Riyadh’s goal of becoming a global center of financial technology, the number of companies operating in the Kingdom is expected to rise to 230 by 2025, and the percentage of digital transactions will increase to 70%. It is unsurprising that 10 Saudi banks are now ranked at the top of the 100 most powerful Arab banks.

Riyadh plans to raise its tourism share in the Gross Domestic Product to 289 billion riyals ($77 billion). The country established initiatives to attract 88 million tourists and provide 250,000 new jobs during the Riyadh exhibition “Expo 2030.”

Among the recent developments, the NEOM Board of Directors announced the development of packages in “Otamo”, “Leyja” and "Sirana" sites. In addition, “Qiddiya” will attract millions of visitors annually and provide 325,000 new job opportunities.

We seek to increase the number of Co-operative Societies to 467, raising their economic contribution to roughly 2.3 billion riyals, and adding 16 thousand jobs and 300 new services. In addition, credit facilities worth 8.8 billion riyals ($2.34 billion) and insurance coverage worth 6.8 billion riyals ($623.8 million) are currently being invested in the business sector.

Last words... Saudi Arabia was selected to chair the Financial Affairs Committee to provide support to the Board of Governors of the International Monetary Fund (IMF). Saudi Finance Minister Mohammed Al-Jadaan was selected as Chairman of the Committee.

Yes, the last couple of years may not have been too exciting...but let's look at the positive side of a promising future.

*Saudi Economist

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