| The global economy started strong in 2018, but a series of events has left it limping and in need of a boost as the year comes to a close.
Events such as a trade dispute between China and the United States, uncertainty over Brexit, and political deadlock in Europe have remained on the geopolitical front, and will continue to play a role in 2019.
Meanwhile, a strong dollar, falling oil prices and emerging market slowdown have hobbled growth and will continue to impact the global economy in the New Year.
Amid this backdrop, the Saudi economy has remained steadfast, with an expansionary 2019 budget. While oil prices will remain volatile in the foreseeable future, the kingdom’s authorities are looking at ways to grow the domestic economy and reduce dependence on export markets.
A strong focus on stimulating domestic economic activity within is evident with the series of new projects being launched, such as the announcement of a number of high-profile tourism projects on the northwest region of the country. Equally crucial, the focus on fiscal discipline, and the nuts and bolts of legislation and business reforms are vital elements that will encourage international investors to consider Saudi Arabia as an investment destination.
The next few years will likely to see more volatility. Oil is in the midst of structural changes and it will take a while for prices to settle in a range, as the commodity faces multiple challenges. Meanwhile, the geopolitical landscape is also expected to change rapidly as new forces across Europe and North America alter the course of the global economy..
But Saudi Arabia can focus on its own milestone: the National Transformation Plan 2020 – part of the overarching Vision 2030 programme – that has a number of policies and targets that have become even more important to pursue in these changing times.
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