Evidence of economic strength
Despite the rapid geopolitical changes around us, and all the economic repercussions that may ensue, the Saudi policy has proved every day the ability to manage the local files skillfully, especially after the success of the Saudi Energy Minister to stabilize the price of oil after the two oil poles in the world (KSA and Russia) had agreed to cut quotas.
The 54th annual report of the Saudi Arabian Monetary Agency (SAMA), which was presented to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, God bless him, last week, summarizes the strength of the financial and banking sector in the figures indicated in Riyadh Economic.
The national economy has become stronger and more confident than before. The International Monetary Fund (IMF)'s forecasts have exceeded the real GDP growth to 1.9% in 2018, and the deficit continued to decline from 9.3% of GDP in 2017 to 4.6% of GDP in 2018.
Moreover, the non-oil sector achieved impressive results at the end of the first half of this year, topped by the return of growth of the private sector led by the mining sector, which doubled its performance. The profits of Ma'aden amounted to 1.1 billion riyals compared to 632 million riyals in 2017, as well as noticeable improvement in the job resettlement, particularly that of Saudi women in a myriad of areas in a number of private sector establishments.
Finally, the oil prices that touch USD 80 today are deemed solid indicators that enhance confidence in the reflection of all this on the general local economic situation and confidence that must be recognized by the private sector. It should realize that the next stage is important, with all the variables it holds. Yet, there is a new scene whose focus is the private sector, its umbrella is organized governmental legislations and its goal is liberalizing the entire service sector from the government support in order to create a new state of competition for quality which is reflected on the end consumer. Most importantly, the sector should be the biggest environment validating the job resettlement and reduction of unemployment rates, especially for women.