Saudi Arabia's Economic Development Initiatives Gain Global Recognition

Saudi Arabia's deliberate decision to run a budget deficit in pursuit of its development goals has garnered attention, with a first-quarter deficit of SR12.4 billion. The Kingdom's strategic focus on maintaining a sustainable deficit for economic growth, rather than resorting to borrowing for unproductive expenses, underscores its commitment to prioritizing spending on development projects.

Efforts to reduce dependence on oil revenues have yielded significant results, with non-oil revenues witnessing a substantial increase. From 9% in 2015, non-oil revenues have surged to 38% in 2023, covering a larger portion of expenditure ceilings. This shift in financial policies aims to enhance financial inclusion and access to funding, with total government spending reaching approximately SR1.29 trillion by the end of 2023.

The Kingdom's initiatives encompass regional and sectoral strategies for economic diversification, coupled with active measures to attract both domestic and foreign investments to stimulate economic growth. Strategic spending is meticulously directed towards specific economic goals, including investments in industrial zones, ports, and roads, all contributing to economic expansion and job creation.

Under the visionary Saudi Vision 2030, the Kingdom has solidified its global presence by actively participating in international economic initiatives and fostering strong international cooperation. Foreign direct investment as a percentage of GDP has reached 2.4%, reflecting Saudi Arabia's attractiveness as a leading global destination for investments.

Moreover, the Kingdom's engagement in regional economic integration initiatives and efforts to strengthen economic relations with neighboring countries highlight its commitment to enhancing international cooperation in financial policies and fostering economic partnerships. Notably, Saudi Arabia's leadership in the G20 meetings in 2020, where it spearheaded global consensus on addressing the COVID-19 pandemic, further underscores its pivotal role in international affairs.

As Saudi Arabia continues to make strides in its economic diversification and development endeavors, its recent bid win to host the 2030 International Expo stands as a testament to its growing international standing and influence.