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Saudi Arabia set to be world’s fastest-growing major economy

Khan2727

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Saudi Arabia’s non-oil economy maintains growth: S&P​



Saudi non-oil private sector keeps up steady growth in September​



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IMF chief: Saudi economy a bright spot amid global crises​


The IMF chief stressed her keenness to discuss prospects of economic cooperation with Saudi Arabia

Staff Writer, Saudi Gazette

October 4, 2022

RIYADH — International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Monday that the performance of the Saudi economy is a bright spot amid global crises. She pointed out that the global economy has become bleak, saying, “we are going through difficult times.”

Georgieva made the remarks during the 117th meeting of the Financial and Economic Cooperation Committee of the Gulf Cooperation Council (GCC) here on Monday. The meeting was chaired by Saudi Minister of Finance Mohammed Al-Jadaan. On the sidelines of the meeting, the Ministry of Finance signed a memorandum of understanding (MoU) with IMF with regard to setting up of IMF’s regional office in the Kingdom.

The IMF chief stressed her keenness to discuss prospects of economic cooperation with Saudi Arabia. The IMF expects that Saudi Arabia would become one of the fastest growing economies in the world, with its gross domestic product (GDP) posting a growth rate of 7.6 percent this year. Georgieva expected that the GCC countries would achieve a growth rate of 6.5 percent this year, and the momentum of economic growth in the Gulf region would continue.

At the end of the two-day visit to Riyadh, the IMF chief said in a statement that her visit has been instrumental in further deepening the cooperation between the IMF and Saudi Arabia as well as other GCC states, especially in responding to the global series of shocks, including food insecurity.

“I congratulated the authorities on Saudi Arabia’s strong economic performance and impressive progress in implementing their Vision 2030 reform agenda, notably the doubling of the share of women in the labor force in just four years. Maintaining the reform momentum to further diversify the economy will be pivotal for longer-term prosperity,” she said while noting that this was an area of strong agreement echoed in her meetings with Minister of Energy Prince Abdulaziz bin Salman, Minister of Finance Mohammed Al-Jadaan, Saudi Central Bank Governor Fahad Al-Mubarak, Minister of Investment Khalid Al-Falih, Minister of Economy and Planning Faisal Al-Ibrahim, and top officials of the Public Investment Fund.

“I also held inspiring discussions with impressive Saudi women who have played a leading role in reducing inequalities and supporting Saudi Arabia’s economic growth. In all our discussions, I welcomed the critical role Saudi Arabia plays on the international level, and in particular its role in supporting countries in the region and vulnerable countries more broadly that have been impacted by multiple shocks from the COVID-19 pandemic and now Russia’s war in Ukraine,” she said, revealing that she had productive discussions with the Saudi side about the existential threat of climate change and the vital importance of an orderly energy transition.

Georgieva thanked Saudi Arabia for inviting her to participate in the annual meeting of GCC finance ministers and central bank governors. “Discussions at today’s meeting were exceptionally constructive. We agreed on the need to continue dialogue on the ongoing economic reforms in the region and to enhance our coordination efforts to support countries in the region and tackle global crises,” she pointed out.

“As part of the GCC meeting, I also participated in a high-level panel on tackling food insecurity together with Saudi Finance Minister Al-Jadaan, Mauritania’s Minister of Economic Affairs and Promotion of Production Sectors Ousmane Kane, Executive Director of the World Food Program David Beasley, and Islamic Development Bank President Muhammad Al-Jasser. The event was co-hosted by Saudi Arabia, reflecting its leadership role in addressing this critical challenge,” she said.

The IMF chief underscored the increasing urgency for an effective and coordinated global response and additional financing to support low‑ and middle‑income countries facing food insecurity. “I am therefore grateful for the Arab Coordination Group’s recent announcement to provide an initial $ 10 billion to alleviate the global food supply crisis and am extremely pleased that several GCC countries are planning to make further pledges soon,” she said.

Georgieva said that her visit marked another important milestone in IMF’s partnership with the region. “We are taking our cooperation to a new level by establishing an IMF regional office in Riyadh. It will spearhead engagement with regional institutions, strengthen relationships with country authorities, and help expand the IMF’s capacity development activities—which will make it one of the largest contributors globally,” she said while extending her thanks to Saudi Arabia for its generous commitment to investing in building capacity in countries across the region.

 

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Interesting, what non oil sectors are fueling this growth ? Can't possibly be just all commercial real estate.
 

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Aerial photography of one of the executing companies in The Line project

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Phases of The Line Project

In the first stage


Population: 450,000
hidden marina
NEOM International Airport
Sandala Island
Shusha Island
Qayal and Al-Farsha Island
Ostomy (first stage)
The island of Umm Shajarat.

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In the second stage

Population: 2,000,000
Cantilever Area
The Line Mirror Model Kits (38-56)
Typical groups of high valleys
Ostomy (second stage)
Umm Ali
Umm Al-Hasani

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The third stage is the last stage, in which all the elements of The Line will be completed and will include 9 million people in 2045..

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Project Engineers
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The SC

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reading | The Saudi gas maneuver is for itself and will not be available to anyone else:

It was previously announced the development of the largest Saudi gas field, Al-Jafoura, but His Highness the Crown Prince clearly stated that the priority is local demand, and that competition from producers is a secondary goal, so the question raised was; What are the major projects that will need all this amount of energy?

The answer is: mining, water desalination, electricity and manufacturing industries..



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The explanations were all in favor of the new cities and the efforts to produce green hydrogen, but it was also not an adequate answer due to the huge production volume of the field - it was announced after five other fields - but it can be said that part of the answer is what His Highness the Minister of Energy presented today about the plan to bring consumers to Inside KSA..


Saudi Energy Minister: Saudi Arabia will soon announce an initiative aimed at attracting global factories and international investors, with several axes, including providing a fixed price for gas at current prices for 3 years..

The fluctuation of energy prices has bankrupted several factories that have been taken out of the market. The presence of stability guarantees is a rare and difficult step to miss.

Instead of exporting gas to industrial countries, these factories can come and settle their factories and supply chains inside Saudi Arabia and receive guaranteed energy supplies, so everyone who uses gas in their industries can easily move to Saudi Arabia and produce what they want with pricing and supply guarantees..

This maneuver will make Saudi Arabia a major industrial incubator.. For every capital that wants production and prosperity away from political tensions, and this is one of the major opportunities lost in the gas markets and not available in the oil markets, due to the sharp fluctuations in gas and the disciplined stability in oil, due to the presence of OPEC as a market maker that helps to stabilize prices unlike the chaotic gas markets..

And if the gas-producing countries want to copy the Saudi model, they will suffer for two reasons: their link to long-term purchase contracts and a high extraction cost compared to the Saudi extraction cost - with the exception of some countries -

Russia could have adopted this model, but it was associated with projects to lay pipelines and ships for industrialized countries,

As for the Saudi model it is completely different, with no pipelines, no competition, no external commitments, and no geopolitical threats. Everyone consumes internally at a competitive price, guaranteed supplies, and a privileged geographical location with consuming markets and promising economies.. An admirable and closely watched maneuver for its potential impact on global supply chains..
 

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His Highness the Crown Prince launches the National Strategy for Industry, which aims to reach an industrial economy that attracts investment, which contributes to achieving economic diversification, developing domestic product and non-oil exports, in line with the objectives of the #Saudi_Vision_2030..


The strategy is based on structural capabilities, natural resources, local capabilities and joint investments.. Its details indicate that it aims to create huge transformations that will change the shape of global supply chains in some industries.

The most important thing you need to know about the national strategy for industry:

- Triple the industrial GDP
- Doubling exports to 557 billion Rials
- Reaching 36,000 factories
- A trillion Rials is the value of investment opportunities that exceed 800 opportunities across 12 sub-sectors
- 6 fold increase in technical exports
- The additional sector investments to reach 1.3 trillion Rials


Prince Abdulaziz bin Salman’s speech about the difference between the concept of local content and the concept of localization; terrible and interesting words..

We will implement projects in the "electricity generation", transmission and distribution sector that may reach one trillion riyals..

 

Khan2727

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His Highness the Crown Prince launches the National Strategy for Industry, which aims to reach an industrial economy that attracts investment, which contributes to achieving economic diversification, developing domestic product and non-oil exports, in line with the objectives of the #Saudi_Vision_2030..


The strategy is based on structural capabilities, natural resources, local capabilities and joint investments.. Its details indicate that it aims to create huge transformations that will change the shape of global supply chains in some industries.

The most important thing you need to know about the national strategy for industry:

- Triple the industrial GDP
- Doubling exports to 557 billion Rials
- Reaching 36,000 factories
- A trillion Rials is the value of investment opportunities that exceed 800 opportunities across 12 sub-sectors
- 6 fold increase in technical exports
- The additional sector investments to reach 1.3 trillion Rials


Prince Abdulaziz bin Salman’s speech about the difference between the concept of local content and the concept of localization; terrible and interesting words..

We will implement projects in the "electricity generation", transmission and distribution sector that may reach one trillion riyals..


KSA is one of the best markets in the world to establish manufacturing in for any major company in the world. Cheap and secure energy supply, ample resources, a large domestic and educated population as well as a large access to cheap qualified labour from abroad, no taxation, key geographic location in the world amidst Asia, Africa and Europe and next to some of the major trade routes on the planet, next to/part of the largest economic bloc in the Muslim world (GCC), young population (2/3 of KSA's population is below 30), emerging economy/market, one of the fastest growing economies in a time of economic crisis in the world etc.

Not to mention the many productive social, economic, legal etc. reforms that KSA has undertaken in recent years to improve (tremendously) its international rankings and in particular ease of doing business for foreign firms.

KSA should do everything in their power to continue the strong industrialization push and to help move KSA towards becoming an genuine industrial hub. All the potential is there. Just waiting for the opportunities to be seized.
 

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Saudi Aramco continues to reap big profits​


The Saudi oil giant has been investing in futuristic technology as it benefits from high oil prices.

Aramco exhibition section at the Misk Global Forum on innovation and technology held in the Saudi capital, Riyadh, on Nov. 13, 2019.


Visitors stop at the Aramco exhibition section at the Misk Global Forum on innovation and technology held in the Saudi capital, Riyadh, on Nov. 13, 2019. - FAYEZ NURELDINE/AFP via Getty Images

Al-Monitor Staff

November 1, 2022

Saudi Arabia’s state-owned oil company took in tens of billions of dollars in profit this quarter.
Aramco said today that its net income for the third quarter of 2022 was $42.4 billion.

This was compared to $39.5 billion in the first quarter and $48.4 billion in the second. In the third quarter of 2021, Aramco’s profits were $30.4 billion, according to a press release.

Why it matters: Oil prices have been relatively high for much of the year. The price of Brent crude oil, considered the global benchmark, began climbing toward $100 a barrel in January as the world recovered from the COVID-19 pandemic. Then prices shot above $100 a barrel in March in response to the Russian invasion of Ukraine.

Brent crude prices have been up and down since then but haven’t gone below $80 a barrel, according to market data.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other oil producers in the so-called OPEC+ alliance agreed to cut their collective oil production in September — the first supply cut in more than a year. Saudi Arabia had expressed concern about market volatility in the lead up to that decision.

In October, OPEC+ announced a major production cut of 2 million barrels per day. Saudi Arabia, the United Arab Emirates and other members of the cartel said the decision was motivated by economic factors. The Biden administration and Democrats in Congress accused Saudi Arabia of seeking to benefit Russia, leading to tensions.

President Joe Biden has been asking Saudi Arabia to boost production for months due to high fuel prices in the United States and visited the kingdom for this purpose in July.

Know more: Saudi Aramco has been investing in some non-oil sectors amid its high profits. In October, the oil giant launched a $1.5 billion venture capital fund focused on sustainability. In April, they announced plans to support an artificial intelligence research center in Saudi Arabia.

Aramco is still committed to the oil sector with its investments, though. They also acquired part of the US lubricant giant Valvoline in August.

Read more: https://www.al-monitor.com/originals/2022/11/saudi-aramco-continues-reap-big-profits#ixzz7jWlJ4h1v
 

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