Saudi Finance Minister Mohammed Al-Jadaan has reiterated that Saudi Arabia will continue to strategically spend on Vision 2030 programs, infrastructure, public utility services, and major projects with sustainable economic returns. In an interview with Al-Eqtisadiah, Al-Jadaan highlighted the importance of stimulating economic growth, increasing productivity, creating job opportunities, and attracting private investments through strategic spending. He mentioned that total spending reached SR1,293 billion by the end of last year, with capital expenditures at SR186 billion. Despite the increase in spending, Al-Jadaan emphasized that managing the deficit is a top priority and is intentional for economic development purposes.
Al-Jadaan noted that the budget deficit recorded its sixth consecutive deficit of SR 12.4 billion in the first quarter of 2024, with investment spending increasing by 33 percent year-on-year, reaching SR 34.5 billion. He clarified that the government’s intentional deficit is for productive expenses that will lead to economic returns that exceed the cost of the debt. Al-Jadaan mentioned the importance of maintaining fiscal space to counter financial and economic shocks through safe levels of government reserves and sustainable levels of public debt. The government is focused on developing fiscal policies to efficiently allocate and manage resources to deal with global economic fluctuations.
The minister highlighted the government’s comprehensive review to enhance strategies by diversifying and improving economic activity. He stressed the role of fiscal policies in promoting financial inclusion and access to finance to support entrepreneurship, SMEs, and innovation in alignment with the goals of Saudi Vision 2030. Saudi Arabia has implemented policies to develop the financial sector and attract foreign investment, resulting in a significant influx of foreign investment in key sectors such as energy, infrastructure, and technology, with foreign direct investment percentage to GDP reaching 2.4 percent.
Saudi Arabia’s strategic spending aims to accelerate the implementation of development initiatives that contribute to long-term sustainable value creation. The government continues to prioritize infrastructure, education, health, and innovation projects to support economic growth and attract investments. Al-Jadaan emphasized the importance of fiscal policies in facilitating economic development and managing resources efficiently to address global economic fluctuations. The government’s efforts in diversifying and improving economic activity align with the goals of Saudi Vision 2030 to create a sustainable and diversified economy.
Overall, Saudi Arabia’s continued strategic spending on Vision 2030 programs, infrastructure, and major projects with sustainable economic returns reflects the government’s commitment to stimulating economic growth, increasing productivity, creating job opportunities, and attracting private investments. Al-Jadaan reiterated the importance of managing the deficit intentionally for economic development purposes and highlighted the government’s focus on maintaining fiscal space to counter financial and economic shocks. The development of fiscal policies to promote financial inclusion, access to finance, and attract foreign investment in key sectors demonstrates Saudi Arabia’s commitment to economic diversification and growth in line with the goals of Saudi Vision 2030.
