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Ready to explore ‘Saudi Arabia this week’ by Analytix, with the latest weekly news updates and business insights from Saudi Arabia. Here we go!
From 23rd October to 28th October 2024
IMF forecasts 4.6% growth for Saudi economy, highest among GCC by 2025
RIYADH: Saudi Arabia’s economy is expected to increase by 1.5% in 2024 and 4.6% in 2025, making it the second highest rate of growth in the Gulf Cooperation Council (GCC). This outlook is consistent with a similar World Bank projection that predicted a growth of 4.9% in 2025. This growth is driven by Saudi Arabia’s diversification efforts to broaden the non-oil sector to reduce dependency on crude oil. S&P Global also predicts Saudi’s GDP to rise 1.4% in 2024 and 5.3% in 2025 due to the anticipated U.S. Federal Reserve rate cuts which might help Saudi’s capital inflows.
Growth expectations tend to differ across the GCC, with UAE and Qatar seeing steady expansion and Kuwait facing slower growth or slight economic contractions. The IMF forecasts a global growth of 3.2% in 2024 and 2025, however, cautions of potential economic risks due to the ongoing conflicts such as in Ukraine and the Middle East.
Inflation rates are expected to drop globally which enables advanced countries to achieve the targets faster than the emerging countries. To maintain economic growth, the IMF points out the need to bring targeted policy adjustments, structural reforms and multilateral cooperation. This positive outlook confirms Saudi Arabia’s Vision 2030 plans and its status of being the leading country in economic growth in the GCC.
Madinah attracted over 14.1 million visitors in 2023
RIYADH: Madinah recorded a growth of 124% in visitors from 2014, reaching 14.1 million visitors. Al-Madinah Region Development Authority stated that these visitors spent over SR 43 billion (roughly $ 13 billion) in total, staying an average of 10 days; making it clear that Madinah attracts pilgrims and tourists alike.
The visitors take part in various historical and religious activities such as prayers at the Prophet’s Mosque and Quba Mosque, along with key archaeological sites connected to Prophet Muhammad’s life. Al-Madinah Region Development Authority with its partners is currently developing over 100 sites across the region to enrich visitors’ spiritual and cultural journey. The aim is to offer pilgrims and tourists a deeper connection to the religious and cultural heritage of Madinah.
Saudi Arabia invites Private sector to close the $ 10 bn agriculture investment gap
RIYADH: Saudi Arabia stated that its agriculture sector has an investment gap of $ 10 billion, calling the private sector to fill the gap and increase production and infrastructure. Sulaiman Al-Khateeb, assistant deputy minister for agriculture affairs, while speaking at the 41st Saudi Agricultural Exhibition, stressed the investment needs in areas such as plant, animal production, fisheries and agricultural processing. These initiatives are important to meet the targets of National Agriculture Strategy 2034 and Vision 2030 for food security and economic diversification.
Even though Saudi Arabia is a large desert terrain, the country aims to cut down the food import dependency to become self-sufficient, which it has already achieved in dates, dairy and eggs. Key investment opportunities include SR 4.1 billion in facilities for production of vegetables, SR 2.1 billion for citrus and mango farms and SR 690 million for seeds. Livestock breeding, poultry farming and aquaculture are other areas for potential growth and have projects ranging from SR 5.4 billion in poultry to SR 7 billion in shrimp and algae farming. Notable opportunities are also present in areas like olive oil, coffee, cocoa and sugar production.
The Ministry of Environment, Water, and Agriculture (MEWA) offers incentives like low interest loans, streamlined licensing and modern technology adoption to aid this agricultural expansion. MEWA also guides agricultural firms to enter into financial market to boost their growth and sustainability. To boost efficiency, strategic measures will be taking place such as stopping perennial fodder cultivation, focusing on seasonal crops intensifying breeding of livestock and localisation of crop seed production. The goal of the initiatives is to boost domestic production, bolster food security and increase agricultural exports.
Saudi exports to Austria rose by 146% last year
RIYADH: In 2023, Saudi Arabia’s exports to Austria rose to 146.2%, accounting for € 442.4 million ($ 477.9 million). The Austrian ambassador to Saudi Arabia, Oskar Wustinger mentioned that Austrian exports to the kingdom grew by 11.9%, totaling € 537.8 million. He found this trade growth to be ‘impressive’ as it rose to 57% in exports from Austria in the first half of 2024 compared to same period in 2023.
Last year, approximately 200,000 Saudis visited Austria, setting a new record, with Saudis becoming the largest group of tourists from the Gulf region. Wustinger predicts there will be more growth in tourism due to a new visa system coming into effect.
He noted that Austria and Saudi Arabia have strong ties in areas across infrastructure, tourism, entertainment and renewable energy. He commended on Saudi Arabia’s Vision 2030 as bold and ambitious and the Saudi youth as energetic and creative.
Austrian companies such as Hoerbiger and Andritz have already set up their business in Saudi Arabia and TUV Austria has set its regional headquarters in Riyadh in May. Wustinger stated the embassy has organised various trade missions in green technology and tourism.
He also mentioned the collaborations in sports with Saudi football teams such as Al-Hilal carrying out their summer camps in Austria. The ambassador stated Austria’s National Day is an opportunity to boost ties for both the countries’ colleagues within the field of cultural, economic and political cooperation.
