The Saudi economy begins the new year amid a state of realistic optimism based on the “language of numbers” about the recovery of the national economy despite the repercussions of the Corona pandemic on the global economy. From oil production starting in May 2022 according to the OPEC + agreement, as well as the recovery of global demand, and the improvement of global supply chains.
It is also expected that the positive growth of the domestic product will continue in the medium term, driven by the growth of the non-oil sector, in light of many factors that would support the growth rates of non-oil GDP, including the continued progress in implementing programs and projects to achieve Vision 2030, and the gradual implementation of structural reforms in the long term. The average is within the framework of the vision, in addition to the gradual return of some major activities to their pre-pandemic rates.
The second highest growth rate in 18 years
The expected growth in 2022 is the second highest growth for the Saudi economy in 18 years, that is, since the growth of 8% in 2004, and it is estimated that surpluses will be achieved in the budget in 2022, at about 90 billion riyals (2.5% of GDP). These surpluses in the budget will be directed to strengthening government reserves and supporting development funds and the Public Investment Fund, and the possibility of accelerating the implementation of some strategic programs and projects with an economic and social dimension will be considered.
955 billion riyals “expenses” 2022
The Saudi Ministry of Finance estimates, according to an official statement, that the gradual return to the Kingdom’s economic recovery will lead to positive developments on the revenue side, and it is expected that total expenditures will reach about 955 billion riyals during 2022, with continued work to enhance spending efficiency, maintain financial sustainability, and implement economic reforms. finance, and attract more investment opportunities.
The Minister of Finance, Muhammad bin Abdullah Al-Jadaan expects that the government’s continuous efforts will be reflected in the diversification of the economy, through the implementation of many programs and initiatives that are directly related to achieving the goals of Vision 2030, leading to continued revenue growth, reaching about 992 billion riyals in 2024, also driven by expectations. Local and global economic recovery in the medium term after the effects of the Corona pandemic recede.
Al-Jadaan: The deficit is under control despite the pandemic
Al-Jadaan believes that – despite the continuation of the Corona pandemic and the new developments it witnesses that affect the movement of the economy, growth rates and the volume of global demand – controlling the deficit rates in the general budget for 2022 is proceeding according to plan, as this deficit is expected to reach about 1.6 percent of GDP. The gross domestic product, estimated at 52 billion riyals, indicating that initiatives to stimulate the economy and support the private sector contributed to the rapid response of the economy. In the first half of 2021, the non-oil GDP recorded a growth of 5.4%, supported by the growth of the private sector GDP, which recorded A growth of 7.5%, while the privatization program during 2022 will support partnership projects between the public and private sectors at the local and international levels in many sectors, most notably water, health, housing and media. The program aims to increase the contribution of the private sector to the GDP from 40% to 65% by In 2030, the Minister of Finance stressed the government’s continuation during 2022 in implementing the financial initiatives and reforms announced during the past years and supporting the continued implementation of the Kingdom’s economic transformation plans. and financing expenditures with a social dimension.
2022 is a critical year for “diversification of the economy”
A recent report by Jadwa Investment expected that the economy will move forward in 2022, as it represents a critical stage in the Kingdom’s efforts towards diversifying the base of its non-oil economy, which will be guided by a set of commitments for a period of 5 years until 2025, which were recently revealed within the framework of various programs to achieve visions. The expected growth is driven by the growth of the oil sector as a result of the Kingdom’s increase in crude oil production, in line with year-on-year increases in global oil demand, at a time when the Kingdom’s average production of crude oil is expected to reach 10.3 million barrels per day, an increase of 14% in the new year .
Providing 300,000 new housing units
Saudi ministers were keen to spread the spirit of optimism among citizens in the new year, as the Minister of Municipal and Rural Affairs and Housing, Majed bin Abdullah Al-Hogail, revealed an increase in the number of beneficiaries of municipal services during the new year, and the allocation of 4 new services during 2022 to provide 157 investment opportunities, in addition to 18 A thousand investment opportunities are available in the municipal investment platform “Foras”, noting that the effective partnership with 70 real estate developers in the private sector has resulted in the pumping of 150,000 housing units at an average price of 700,000 riyals within 112 projects, to be followed by the provision of 300,000 new housing units in the coming years, Of which 147 thousand are in the city of Riyadh.
During his participation in a recent dialogue session entitled “Transformation and Development in Services”, he said that the year 2021 witnessed the establishment of more than 460 new gardens, and the cultivation of 21,000, bringing the per capita share of squares and green spaces to 5.24 square meters, as part of the ministry’s efforts to improve the quality of life in cities. Saudi Arabia and improving the urban landscape within cities, to achieve advanced ranks in the global liveability rating index.
Enhancing global competitiveness in the field of “education” during 2022
The Saudi Minister of Education, Dr. Hamad bin Muhammad Al-Sheikh, believes that one of the most important priorities of the Ministry of Education, which it will work on during 2022, is; Continuing to enhance global competitiveness and support research and innovation, as the Kingdom maintained its first position as the largest contributor with 27% of the share of scientific research among Arab countries, and the percentage of publication in scientific research in universities increased to 120%, and the number of published research increased by 200% after the funding initiative He indicated that 6 Saudi universities achieved advanced positions in the Shanghai classification for the year 2021, 2 of which are among the top 150 universities in the world, and 15 Saudi universities attended the Times classification for the year 2022, including one university among the top 200 international universities, while 14 Saudi universities achieved classification Advance in the QS rankings for 2022, 2 of which are among the top 200 universities in the world.
During a recent dialogue session entitled “Transformation and Development in Services” within the activities of the 2022 Budget Forum, the Minister of Education touched on the achievements made in the education sector during 2021, most notably the selection of “My School” in the UNESCO study among the best four global models in education about dimension, developing the “Rawdaty” platform as a platform dedicated to kindergartens, implementing 37,000 training programs to develop the capabilities of more than 420,000 teachers during 2021 AD, achieving global leadership in providing 24 educational channels, and developing curricula with global chains by adding 34 new books during the year 2021 AD, developing 89 books in 2021 AD, in addition to implementing new study plans through 3 semesters, adopting high school tracks, and starting the implementation of the common year for the first grade of secondary school.
The Kingdom is “the first twenty” in the rates of Corona examinations
Saudi Health Minister Fahd bin Abdulrahman Al-Jalajel points out his country’s achievements during 2021 in the face of the coronavirus pandemic (COVID -19), which qualified it to be at the first level in the Covid examination rates among the G20 countries, and the second globally in the Nikkei index for recovery from the Corona pandemic, indicating that the rate of vaccination with two doses in society from the total target group over 12 years reached 94%, and the immunization rate of the existing population reached 74%, and with the start of vaccination for the segment from five to 11, a higher percentage reaches, and he indicated that the health system – despite the pandemic – continued and continued its path to achieve the goals of developing health services, and achieving the Kingdom’s vision 2030 in the process of health transformation.
He said that the year 2021 witnessed the opening of King Salman Medical City in Madinah with a capacity of more than 1,200 beds, and it includes 3 specialized hospitals, as well as 12 specialized centers, and 10 hospitals were opened in various regions in the Kingdom with a bed capacity of 1,500 beds, as well as 18 specialized centers in Kidney diseases, oncology, growth, behaviour, ophthalmology and cochlear implants, and the capacity of mental health services has been raised to 300 beds, and the first group of developed model primary care centers has been inaugurated with 43 centers in all regions of the Kingdom, benefiting that the program of a doctor for each family benefits about one million beneficiaries.
Al-Jalajil stated that the Ministry of Health activated the remote clinics and medical consultations service, benefiting more than 11 million beneficiaries, and was equipped with the latest digital health practices, which made it save citizens the trouble of transportation, and the number of appointments booked electronically without the need to review health facilities reached 100 million appointments. There were only 25 million appointments in 2021.
2021.. Vital decisions and projects that boost optimism for the New Year
The positive expectations of the Saudi economy during the new year come as an extension of the good leaps during 2021, which witnessed important decisions on the economic level in the Kingdom; It began with the adoption of the executive regulations of the mining investment system, the approval of the Real Estate Development Fund system, the adoption of the Board of Directors of the Public Investment Fund for its new strategy for the next 5 years, and the establishment of a unified national platform called (the Unified National Employment Platform), in addition to activating the program to attract the regional headquarters of international companies, The following are the most prominent 20 economic decisions and projects in Saudi Arabia during 2021, and their positive extensions for the new year:
1- Launching the National Investment Strategy, which aims to raise net foreign direct investment flows to 388 billion riyals annually, and increase domestic investment, to reach about 1.7 trillion riyals annually by 2030.
2- Riyadh submits an official request to host the World Expo 2030
3- Establishment of the Neom Industrial City “Oxagon”, as the largest floating industrial cluster in the world
4- Launching the transportation strategy
5- Launching a human capacity development program
6- Establishing a national employment platform and a new strategy for the sovereign fund
7- Establishment of the Small and Medium Enterprises Bank; As an important step to enable the small and medium enterprises sector to access financial financing.
8- Launching the “Made in Saudi Arabia” program to support national products and services at the local and global levels.
9- Implementation of the decision to raise the minimum wage for Saudi employees in the private sector to 4,000 riyals to be counted as a worker in “Nataqat” Saudization in establishments.
10- Manufacture of the first smart chips in the Kingdom with Saudi hands.
11- Establishing the largest floating industrial cluster in the world in Saudi Arabia.
12- Issuing 6 new Emiratisation decisions aimed at providing more than 40,000 jobs.
13- Allocating 12 million square meters of land in the two industrial cities in Jeddah and Rabigh for renewable energy projects
14- Approval of the new contractor classification system
15- Launching the human capacity development programs and “Developer ranges”
16- Launching a strategy to develop the Asir region with the aim of turning it into a global tourist destination
17- Launching the “Partnership” Program for Enhancing Partnership with the Private Sector
18- “Tadawul” turns into a holding company under the name “Tadawul Group” in preparation for offering it for subscription this year
19- Launching the “Sudair Solar Energy” project with an investment value of 3.4 billion riyals
20- Increasing the assets of the Public Investment Fund to 10 trillion riyals in 2030
The most prominent figures in the Saudi budget 2022:
1045 billion riyals in revenues, compared to 930 billion riyals in 2021
955 billion riyals for expenditures, compared to 1015 billion riyals in 2021
A surplus of 90 billion riyals, compared to a deficit of 85 billion riyals by 2021
185 billion riyals for the education sector
182 billion riyals for the public services sector
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