Sunday, 27 May 2018 05:53 GMT
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Saudi finance minister: Govt spending driving robust nonoil growth



(MENAFN - Arab News) Nance minister ibrahim al-assaf said the global economic recovery had embraced a number of developed countries but there are challenges that remain to be solved.al-assaf was making the opening remarks at the inauguration of the saudi euromoney conference.the event organized by ministry of finance was attended by more than 1000 delegates.it was tilted “innovation competition and the changing dynamics of globalization.”housing minister shwaish al-dowaihy economy and planning minister muhammed al-jasser and supreme economic council secretary general dr. majid al-moneef also addressed the event.al-assaf said there remain a series of challenges especially the shift of monetary policy in the developed countries notably the us from quantitative easing (qe) to stimulate economy to conventional policy poses challenges especially for emerging markets and developing economies.he said negotiations at the meetings of the g20 the international monetary fund (imf) and the word bank (wb) have stressed the need to adopt economic policies supportive to sustained and balanced economic recovery with the intent of raising global growth rate by 2 percent in the next five years.as a member of g20 he said saudi arabia has proposed a strategy for growth at the meetings of the working group team concerned with global economic growth.“this strategy rests on plans to continue investments in infrastructure projects education and health activation the role of private sector public and private partnership (ppp) to bring about more diversification of economy to create more jobs enhance productivity and competitiveness in the presence of a stabilized financial and monetary environment” he said.at the national level the minister said the saudi economy has realized positive results during the last few years thanks to economic reforms launched by the custodian of the two holy mosques king abdullah.during his glorious rule he recalled that the period witnessed initiatives focusing on the development and welfare of the country centered on reforms fighting corruption upgrading government performance women empowerment and adoption of programs and policies which have immensely contributed to unprecedented economic growth rates.last year he said the kingdom’s economy realized a real growth rate of 3.8 percent despite a decline of growth in the oil sector.the minister however said the government spending had boosted growth in the nonoil sector associated with good performance in the private sector which grew by 5.5 percent.these policies were positively reflected on the kingdom’s economic growth and financial adequacy which led fitch ratings to raise the kingdom sovereign rating from –aa to aa with stable outlook he said.“meanwhile the imf has appreciated steps taken by the saudi government to boost management of public funds and huge spending on education and training. the imf has predicted the saudi economy will grow by 4.1 percent in 2014 and 4.2 percent by 2015” he noted .other major developments in the saudi economy during last year were approval and awarding of the public transport project in riyadh wadi al-shamal mining project commission for evaluation of general education licenses for practicing real estate funding activities issued by sama closure of sukuk issuance by the civil aviation authority (caa) at funds exceeding sr15 billion to finance projects at king abdulaziz airport in jeddah and king khalid airport in riyadh he said .“on the other hand the budget of the current year (2014) has focused on developmental projects education health roads social security water and electronic services. the number of projects awarded during last year stood at 2330 whose value touched sr 157 billion” he said.the minister said the sector of small and medium enterprises (smes) has been given a big boost and support notably by the saudi credit and savings bank (scsb) and the kafala program which are providing required funds to this sector in cooperation with saudi commercial banks.


Saudi finance minister: Govt spending driving robust nonoil growth

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