Saudi Arabia Overcomes Pandemic Challenges by Implementing Effective Economic Policies
Kickstarting the year 2021 with momentum
gained from previous successes achieved against the coronavirus pandemic and
during its presidency of 2020 G20 Riyadh Summit, Saudi Arabia is set on track
for economic growth.
Saudi Shura Council member Fadl Bin Saad
Al-Buainain told Asharq Al-Awsat that the Saudi economy is projected to grow
over 3% in 2021, underpinned by recovering oil prices and production and
improving world markets.
Despite the Kingdom working to diversify
its economy, it is still largely dependent on the oil sector, Buainain noted,
adding that any improvement in oil prices and the volume of production will be
significantly reflected in the Saudi economic output.
As for the diversification of the economy,
its results have begun to gradually emerge and will constitute one of the
economic pillars that promote growth, Buainain explained, stressing that the
tourism sector is likely to witness good growth and have a greater contribution
to national GDP.
“The government is betting on the tourism
sector at the present time with the presence of huge strategic projects that
will contribute to transforming the Kingdom's tourism face, making it an
important tourist destination in the region,” he said.
“One of the most important elements for
diversifying the economy is the expansion of the mining sector and
strengthening its contribution to the domestic product,” Buainain added.
The Shura Council member went on to say
that other aspects of diversification, such as establishing military and
defense industries, will have a sizable contribution to the total economic
output of the Kingdom.
He pointed out that renewable energy will
produce a vital sector in the Saudi economy.
Buainain revealed that the Kingdom plans to
export electric power generated from renewable energy.
“The logistical services sector has started
to take shape and it needs time ... but it will be among the important and main
components of the economy,” Buainain added.
