Why is President Biden visiting Saudi Arabia

Abdullah Alami*

12 July 2022

US President Joe Biden's visit to Saudi Arabia on July 15 is an opportunity for international media to have a closer look at the Kingdom.

The Saudi Public Investment Fund (PIF) is ranked sixth among the world's largest sovereign wealth funds with total assets of $620 billion. Saudi sales rose by 28% for the second consecutive month, and (PIF) assets jumped 163%, or 248 billion dollars, during the first five years of implementing the Kingdom's Vision 2030.

The US National Security Council coordinator, Brett McGurk, is obviously interested in the Saudi economy. We seek - with or without US assistance - strengthening the Kingdom's role in the global markets. Riyadh seized good investment opportunities in US stocks in 2020, and we will do the same when and where available.

Protests against the US administration is increasing due to segregation against African Americans, and recent abortion ruling. These issues will not support Biden in the next elections, and he will need all the help he can get.

Meanwhile, Saudi Arabia is moving steadily towards achieving its economic goals, including localizing technologies, and building strategic partnerships with friendly industrial nations.

 

*Saudi Economist

How to Deal with Inflation

Abdullah Al Alami

The World Bank raised its forecast for the growth of the Saudi economy for 2023 at 3.8%, compared to 3.3% in previous forecasts, and reserve assets abroad rose to 1.7 trillion riyals. The Saudi gross domestic product also recorded a rise in constant prices on an annual basis by 9.9 percent, during the first quarter of this year.

These developments, in addition to Saudi companies raising their capital, are positive indicators. This trend supports the strategies of the concerned companies, especially in the areas of expansion and growth. Also, investors will feel reassured when maximizing the total return on their savings, especially in the case of increasing and diversifying corporate investments and seizing the expected growth opportunities.

Saudi Arabia is currently witnessing an acceleration in the growth of the digital economy, and the financial technology sector is also recording remarkable growth. Government agencies have also achieved positive results in financial sustainability, which, we hope, will be directed to priority expenditures.

However, not everything is positive; global markets suffered at the end of last week from a sharp decline, which was also reflected in the Gulf markets. We are not isolated from the rest of the world, and it is normal for our markets in the Gulf to feel the pressure as well. The Saudi stock market fell 2.2%, the lowest closing in 4 months, down by 2.18%, or 268.9 points, to the level of 12,053 points.

Also, higher oil prices may increase economic pressures and thus raise inflation. This means high prices for food and imported goods, which is what preoccupies the world's economists today.

How did the world deal with high inflation? The US Federal Reserve and the Bank of England may raise their rates, while the Swiss Central Bank and the Bank of Japan may stick to their stimulus policies without any significant change.

*Saudi writer 

@AbdullaAlami1

https://www.instagram.com/abdulla.alami/

Billion Dollars a Day

Abdullah Al Alami*

May 31, 2022

 

The future prospects for Saudi Arabia are positive, and the Kingdom continues to diversify its economy to achieve this goal. 

Let me share with you the official and reliable figures. The value of Saudi oil exports reached $30 billion last March, the highest level in six years, driven by high oil prices and increased production. In other words, the value of crude exports, which now stands at around $1 billion a day, has increased by 123%.

Although Saudi Arabia is dealing positively with the increase in energy demand by raising production capacities, it will also continue to advocate for climate change and environmental safety issues.

The stereotype that Saudi Arabia is only an oil exporter is unrealistic. Saudi achievements in many other areas speak for themselves. For example, Riyadh involvement in the Global Alliance Agreement in health care, contributes to promoting community awareness in this field. We want to benefit from the world’s experiences in formulating a prudent healthcare improvement strategy on a global level.

The Saudi Minister of Investment, Khalid Al-Falih, expected the size of the Saudi economy to grow to between 1.7 and 1.8 trillion dollars by 2030, thus achieving the goal of the Kingdom's vision to be among the 15 largest economies in the world. Foreign direct investment flows to Saudi Arabia have multiplied by about 4 times in recent years. At the same time, the Public Investment Fund is investing billions of dollars in tourism, electric cars, and others, to effectively contribute to the Comprehensive Development Transformation Plan.

Finally. Rising revenues in the kingdom helped generate a budget surplus of 57.5 billion riyals ($15 billion) between January and March 2022. Therefore, Saudi Arabia will become one of the world's largest growing economies this year, according to a report by the International Monetary Fund.

 

*Saudi writer

من سرق أموال المواطن اللبناني؟

عبدالله العلمي

6 مارس 2022

تبرع السعودية بـ 36 مليون دولار للبنان جاء محدد التضاريس وفق الاتفاق السعودي الفرنسي لمساعدة لبنان. هذه الإعانة تساهم بتحقيق عدة أهداف نبيلة، تشمل تقديم مساعدة لمراكز الرعاية الصحية الطارئة للشعب اللبناني في مواجهة كورونا، وتمويل المساعدة الغذائية "في كل أنحاء لبنان".

التبرعات السعودية للبنان مبادرة ممتازة، بشرط أن لا تمر المساعدات عبر حزب الله أو الصهر المدلل؛ نريدها أن تصل مباشرة للشعب اللبناني الشقيق. لا أحد – غير حزب الله وإيران – يتمنى أن يتم "تصريف" الأموال في لبنان في ساحات الصراعات وشراء الصواريخ وتجهيز مؤامرات الحروب والقتال.

مازال العالم ينظر ببعض الشك لكيفية صرف الأموال في لبنان، سواءاً الهبات من الدول الصديقة أو أسلوب التعامل الجاد مع الفاسدين الذين يسرقون لقمة العيش من أفواه الشعب اللبناني. أقصد تحديداً حزب الله اللبناني المسنود عسكرياً وعقائدياً من طهران. لن يقوم لبنان من "جورة" الفساد المالي والتدهور الإقتصادي طالما يسيطر حزب الله على موارد الدولة. للأسف نجح حزب حسن بتحقيق أهدافه؛ مؤسسات معطلة، شباب مهاجر، أموال منهوبة، حسابات بنكية "مُغلَقَة"، ودولة عاجزة. 

نأمل أن نشهد قريباً بداية انحسار التأثير الإيراني على الوضع في لبنان، وخاصة بعد فرض مجلس الأمن الدولي الأسبوع الماضي، حظر السلاح على ميليشيات الحوثي المتحالفة مع إيران. هذه الميليشيا تبنت الهجمات الإرهابية بطائرات مسيرة وصواريخ على الإمارات والسعودية، ولم يكن لها أن تنمو بدون الدعم الذي تتلقاه من حزب الله وإيران.

للأسف حزب الله، مدعوماً بالسلاح الإيراني، يشكل "تسونامي" لقمع الأهداف النبيلة التي يطمح إليها المواطن اللبناني. من مصلحة الحزب أن لا يتم التحقيق أو إعلان الحقيقة في تفجير مرفأ بيروت، بل أن تستمر حالة الإنقسام في لبنان. لهذا، يتردد صندوق النقد الدولي بتقديم أي مساعدة للبنان بدون البدء بعملية الإصلاح الشاملة. إلا أن القادم أسوء، وخاصة مع أزمة ارتفاع أسعار المحروقات والمحاذير من عدم القدرة على استيراد الكميات المحتاجة من القمح الأوكراني وجنون الدولار.

Where is Saudi Economy Heading?

Abdullah Al Alami*

3 January 2022

 

In spite of a big jump in cases of the Omicron coronavirus variant, the Saudi economy began 2022 on a positive note but is expected to remain more cautious over related developments.

As 2021 was a crunch year for the world, the Saudi sovereign wealth body, the Public Investment Fund, announced a five-year strategy to push the Kingdom’s diversification drive.

Non-oil PMI for Saudi Arabia declined in November 2021, with new orders gradually slowing down. Consumer spending was up 5.6 percent, but cash withdrawals were down by 11 percent.

Government tourism megaprojects will probably continue to grow. This includes the Soudah Development Co. in the Asir region, with an investment of SR11 billion, and The Rig — a 150,000 square meter offshore oil-themed tourism destination.

The other major projects include the SR75 billion investment in the Central Jeddah Development, featuring thousands of hotel rooms and residential units, surrounded by tourism projects over 5.7 million square meters.  This project aims to add SR47 billion to the Kingdom’s economy by 2030.

SAMA Foreign Reserve Assets rose by $13.6 billion, mainly from a rise in bank deposits, to stand at $464 billion. Money supply rose by 6.3 percent, and total deposits rose by 7 percent.

Inflation rose by 1.1 percent, with ‘food and beverages’ up by 1.6 percent. The unemployment rate for citizens remained unchanged at 11.3 percent, while there was an increase in female participation in the workforce. Several non-oil sectors were identified as priority sectors, such as housing, healthcare, and financial services.

Saudi Stock Market (TASI) finished the year on a positive note, rising 5 percent in December, with little or no concern over the global spread of Omicron. As such, TASI recorded its best performance in a decade, with an annual rise of 30 percent in full-year 2021.

*Saudi economist

Un Écrivain Saoudien

Abdullah Al Alami*

La réunion du vice-gouverneur de la Banque centrale saoudienne, Ayman Al-Siyari, et de la sénatrice française, la représentante Nathalie Collet, au siège de la banque à Riyad au début de ce mois n'était pas un événement passager. 

La réunion a porté sur deux  points importants: Les efforts déployés par la Banque centrale saoudienne pour réguler le secteur des technologies financières modernes et le rôle de premier plan du Royaume dans la région dans la lutte contre le blanchiment d'argent et le financement du terrorisme.

L'Arabie saoudite investit dans l'expertise française dans plusieurs joint-ventures, dont Saudi Aramco et Total Enrique. Ce ne sont pas des contrats ordinaires; Il s'agit ici de créer les plus grandes plateformes de raffinage et de pétrochimie au monde. 

Cela confirme également la mobilité économique et la voie d'une importante coopération commerciale entre les deux pays.    

Le partenariat saoudo-français est clair dans le développement de la région d'Al-Ula. Je veux dire plus précisément plus de 78 projets pour des entreprises techniques françaises à Al-Ula entre 2019 et 2020. 

Il existe également une coopération entre les deux pays pour la réalisation des projets du métro de Riyad et de Diriyah et dans les secteurs de la construction, des transports, de l'aviation, de l'eau et des énergies renouvelables.  

C'est une bonne occasion de présenter à la France et au monde les efforts du Royaume pour effectuer des paiements financiers, et empêcher l'exploitation de ces paiements en commettant des délits financiers pour protéger le système financier mondial, et promouvoir les transactions financières en toute transparence.  Riyad et Paris coopèrent dans plusieurs autres domaines importants. 

Le commerce entre la France et l'Arabie saoudite a augmenté d'environ 14% au premier semestre 2021, soit environ 12,2 milliards de riyals. Ceci est une preuve claire de la reprise économique et de la solidité continue des relations commerciales bilatérales entre les deux pays.  

Il est nécessaire de mentionner ici le développement de l'amitié parlementaire entre le Conseil saoudien de la Choura et le Sénat français, peut-être en accomplissement du proverbe français « Avec du temps et de la patience, nous accomplissons tout ».

* Écrivain Saoudien