Minister of Economy: Saudi Arabia to use windfall to accelerate non-oil economy

Minister of Economy and Planning, Faisal Al-Ibrahim, that the Kingdom plans to use this year’s oil windfall to accelerate diversifying the non-oil economy.

Al-Ibrahim added in an interview to Al-Arabiya on the sidelines of the World Economic Forum, Davos Switzerland: “The Saudi government will focus on growing non-oil economy in 2023, but it will not enhance fiscal spending.”

He Noted: “The windfall from oil surge will be invested in flexibility.. either in renewing reserves, paying debts or investing in transforming unique projects through the Public Investment Fund, so this will help accelerating diversification plans.”

According to estimates, Saudi Arabia and India will be the fastest growing economy among G20 this year, based on Bloomberg survey, as oil process jumped 50% since the end of 2021 to $110 a barrel. The IMF expects the Kingdom economy will exceed $1 trillion for the first time.

The Saudi budget recorded a surplus of $15.3 billion in the first quarter, while it is expected to record $24 billion surplus during 2022 as a whole.

The PIF invests billions of dollars in different sectors such as tourism and electric vehicles to achieve the targeted economic transformation.

The Saudi government hopes the private sector’s contribution to grow to 65% of the GDP by 2030 in line with Vision 2030 from currently 51%.