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Home - January 2020

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ECONOMIC TRENDS

The 2020 budget will finance social infrastructure projects and stimulate further economic activities in line with Vision 2030.


OIL ANDGAS

The world’s major producers are determined to prevent a flood of oil in the global market, especially after prices posted a double-digit growth in 2019.


RENEWABLE ENERGY

The creation of a dedicated office and a financing programme specifically for renewable energy projects highlight the kingdom’s goal to transition to a low-carbon future.


MANUFACTURING

Several partnerships with investors in the private sector are helping the kingdom secure its position as an industrial hub in the region.



SME

Latest survey indicates the kingdom is the fastest growing country in MENA in terms of deals made and funds raised for emerging companies.



COMMODITY

Price outlook for assets such as gold, copper and aluminium are expected to be strong on the back of improving market conditions after a US-China trade deal.


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 IN THIS EDITION

The kingdom believes information and communications technology can play a vital role in promoting socio-economic development.

Saudi Arabia’s economic transformation is heavily focused in ensuring that its key burgeoning cities are among the most modern, network-ready metropolises in the world.

Indeed, the capital city of Riyadh is not only keen to lead the nation, but also the region, in becoming digitally savvy and technologically advanced to stay ahead of rapid changes.

The 23rd session of the Council of Arab Ministers of Communications and Information Technology designated Riyadh as the Arab Digital Capital, acknowledging its prominent role in adopting and promoting the use of digital technologies.

The city aims to enhance socio-economic development, advance healthcare, improve education, and to ultimately increase community welfare, which has helped the ICT sector contribute as much as 4% to Saudi Arabia’s GDP.

“Saudi Arabia is the region’s largest ICT market and ranks 13th globally, with a value of USD 28.7 billion in 2019 and strong growth in both the consumer and enterprise segments,” according to the Ministry of Communications and Information Technology.

“Supported by a young and tech-savvy population, Saudi Arabia is a market of early technology adopters, with one of the highest social media penetrations in the world. Mobile subscribers stood at 43.8 million in 2019, representing a 129% penetration of the total population.”

In addition, the communications ministry launched in December a five-year strategy to boost the ICT sector’s growth by 50% and elevate its contribution to GDP by USD 13.3 billion in a few years.

New projects to increase renewable energy, a new competition to allow new mobile virtual network operators (MVNOs) to provide services in the kingdom, and focus on fourth-generation industrial projects are all helping improve the country’s digital economy.

Meanwhile, in January, the Saudi Cabinet approved a memorandum of understanding for co-operation in the field of space science and technology between the Saudi and Japanese governments, as part of the kingdom’s efforts to join the space race.

The Saudi government’s early focus and investment in the digital economy is going to be a key strength going forward as data and new technologies alter all sectors of thedomestic and global economy.

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