Prince Muhammad bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Chairman of the Council of Economic and Development Affairs, confirmed that spending in the Kingdom’s economy will reach 27 trillion riyals until 2030.
In a press statement today, Sunday, after approving the Kingdom’s budget for the year 2022, the Crown Prince said that the journey of economic transformation adopted by the Kingdom’s government continues to achieve achievements and targets in accordance with the directives of the Custodian of the Two Holy Mosques. Together towards a vibrant society, a thriving economy and an ambitious nation.
The prince pointed out that the Public Investment Fund invested 84 billion riyals internally in 2021.
Prince Mohammed bin Salman added that the 2022 budget supports the post-pandemic financial and economic goals, expecting financial surpluses in the 2022 budget to exceed 2.5% of the Kingdom’s GDP, and the deficit in 2021 amounted to about 2.7% of GDP compared to 11.2% in 2020.
He explained that the government is committed in the 2022 budget to the planned spending in the medium term, which was previously announced during the past year, and we also expect to achieve budget surpluses for the fiscal year 2022, by completing work on developing the financial planning process and raising spending efficiency, in addition to developing various and more stable sources. of government revenues, which supports the objectives of the Financial Sustainability Program, which seeks to complete the march towards enhancing economic stability and sustainability in the medium and long term.
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Prince Mohammed bin Salman said that the financial and economic results and indicators confirm that we are progressing positively, as next year’s budget comes amid a global climate characterized by great challenges in light of the repercussions of the (Covid 19) pandemic, and great ambitions locally, but within a financially disciplined framework that focuses on the efficiency and effectiveness of directing Government spending and the use of available resources to achieve the best return from them, while maintaining financial stability as an essential pillar for sustainable growth.
The Crown Prince affirmed that the economic recovery, initiatives and policies of financial control, and the development of public financial management and its efficiency contributed to continuing to reduce the budget deficit, while maintaining the achievement of the main objectives of the vision. 11.2% in 2020, affected by the pandemic. While we expect to achieve financial surpluses that may exceed 2.5% of GDP in 2022, as these surpluses will be used to increase government reserves to meet the needs of the Corona pandemic, strengthen the Kingdom’s financial position, and raise its capabilities to confront global shocks and crises.
He explained that the economic and structural reforms that have been implemented since the launch of the Kingdom’s Vision 2030 have contributed to reducing the negative effects associated with the pandemic. Until the end of the third quarter of 2021, the Kingdom achieved high real GDP growth rates for the non-oil sector, which amounted to about 5.4%, driven by the growth of the private sector by about 7%. Before the pandemic, this growth was also accompanied by a decrease in unemployment rates among citizens from 12.6% at the end of last year to 11.3% in the middle of the year as a result of the increase in job opportunities available to citizens.
He also stressed that the citizen’s role today has become pivotal in economic development, as he directly contributes to achieving achievements in various promising fields and sectors, in addition to increasing the participation of women, whose participation represents a positive force for society.
Prince Mohammed bin Salman indicated that the Kingdom’s Vision 2030 focuses on the stage of achieving and deepening the impact and involving the private sector in the transformation journey to bring about a qualitative shift in various sectors. The level of quality of life, and the development of sectors contributing to the economy, explaining that the review and update of strategies, programs, initiatives and procedures is carried out on a regular basis to ensure their effectiveness and correct their course whenever the need arises, in order to achieve the objectives of the Kingdom’s Vision 2030.
He stressed the importance of the role of the private sector as a major and vital partner in development, and that the government, in addition to the areas of spending in general, is implementing a number of major initiatives that will contribute to strengthening the role of the private sector, as the National Investment Strategy and the Partner Program in addition to the Public Investment Fund program will contribute to providing great opportunities In front of the participation of investors in many sectors and in different regions within the Kingdom, it is planned that the total spending in the Kingdom will reach 27 trillion riyals until 2030 AD, including investments of the Public Investment Fund, the private sector, government spending and private consumption, and this also supports the ongoing reforms undertaken by the government in the field of Developing the business climate and creating an attractive environment for investors to contribute to promoting economic growth.
He addressed the role of the second phase of the vision realization programs in the qualitative shift of the Saudi economy and achieving what citizens aspire to improve and raise the quality of services, investment opportunities and increase employment opportunities, including the National Industrial Development Program and Logistics Services, the National Transformation Program, the Financial Sector Development Program, the Human Capacity Development Program and the National Transformation Program. The quality of life and the housing program and its contribution to raising the levels of citizens’ ownership of housing.
The Crown Prince also praised the objectives of the Public Investment Fund program in achieving the goals of the Kingdom’s Vision 2030, as it is the local and foreign investment arm that contributes to diversifying the economy and sources of income, and which supports and complements the government’s efforts to diversify the economy, and has contributed to achieving clear impact and achievements at the local and global levels in pursuit of To achieve its medium-term ambitions, including; The contribution of the fund and its subsidiaries to the non-oil domestic product, and raising the percentage of local content in its investments and its subsidiaries by up to 60%. It should be noted that the Fund invested locally during the current year in excess of 84 billion riyals and plans additional local investments of more than 150 billion riyals for the year 2022 AD. The total local investments of the Fund will reach three trillion riyals until 2030 AD, compared to a local investment in 2016 of 11.2 billion riyals .
The capital, Riyadh
The Crown Prince highlighted the important role played by the National Development Fund and its affiliated development funds and banks through programs and initiatives that support various economic activities and sectors and increase their competitiveness by providing the necessary funding for national institutions and companies, including small and medium enterprises, and enhancing the role they play to support output growth Non-oil domestic economy and create more jobs.
At the conclusion of his statement, the Crown Prince indicated that the government’s success in confronting the pandemic and limiting its economic and social effects proves the strength of the Kingdom’s economy in facing urgent challenges, and that it is working to support brotherly countries and international organizations in their efforts to confront the crisis.
He stressed the leading role played by the Kingdom in stabilizing energy markets, while at the same time leading the next green era, noting that the “Green Saudi Initiative” and the “Green Middle East Initiative” chart the direction of the Kingdom and the region in protecting the land and nature and placing it in a relevant road map. Clear and ambitious milestones that will contribute strongly to achieving global goals. The Kingdom will also continue during the coming year and in the medium and long term to increase the attractiveness of the Kingdom’s economy as a base for local and foreign investments, and diversify the economy by developing promising sectors such as tourism, technology, industry and mining.