Economic diversification progress impressive: Al-Jadaan

Minister of Finance, Mohammed Al-Jadaan, said that diversification in the economy is currently going through an excellent stage, noting that there is an effective contribution among various sectors to the gross domestic product (GDP).

Al-Jadaan explained in an interview with the Socrates podcast that the government conducted a parallel study of the Kingdom’s economy’s ability to grow, taking into account that spending allocated to support economic activity would not leak abroad through the import process.

The projects of Vision 2030 were financed through estimating the necessary financial space by studying the gap between project financing requests versus the revenues expected to be obtained, in addition to the levels of debt that the government can obtain, while maintaining the level of necessary reserves, the minister explained.

He further stated that the gap between funding requests and project revenues is delt with by studying priorities, determining the possibility of postponing or extending some projects or leaving them until after the vision is achieved.

Vision 2030 projects were financed on estimating the necessary financial space through studying the gap between project financing requests versus the revenues expected to be obtained, in addition to the levels of debt that the government can obtain, while maintaining the level of necessary reserves, the minister explained.

He further stated that the gap between funding requests and project revenues is delt with by studying priorities,determining the possibility of postponing or extending some projects or leaving them until after the vision is achieved.

Regarding the growth in budget spending, Al-Jaddan pointed out that most of the increase is due to the focus on financing projects and strategies for the Kingdom’s goals, in addition to high inflation rates and population growth, which requires an increase in services and their improvement. The increase in spending will be on an annual basis until 2030, the minister added.

The government takes care not to compete with the private sector in the economy to obtain financing, whether internal or external, Al-Jaddan noted, indicating that the current debt ceiling is 40% of the gross domestic product.

On the other hand, Al-Jadaan revealed that the committee in charge of the expansion project of the Holy Mosque in Makkah intensified its work to achieve a balance between providing the contractor with the largest possible space to complete his work and enabling Muslims to perform their rituals. The project is expected to be completed by the end of 2025 and the beginning of 2026.

The minister highlighted that the future of the Saudi economy is very promising, noting that the great engagement of the private sector and government empowerment gives confidence that the future of the economy is promising in terms of solidity to withstandrapid changes, whether in technology, industry, or geopolitical events. Moreover, Al-Jaddan said that the trend is very positive with the availability of many unique opportunities.