Saudi Economic Council Reviews Progress in Vision 2030 Implementation
The meeting began with a presentation of the July 2025 Economic Report, submitted by the Ministry of Economy and Planning. The report provided a detailed overview of global economic developments, including key risks and challenges, as well as forecasts for Saudi Arabia's domestic economy through the second half of 2025 and into 2026.
It highlighted continued growth in the Kingdom's economy for the fourth consecutive quarter, largely driven by robust performance in non-oil sectors. Notably, the Purchasing Managers' Index (PMI) rose to its highest level in three months, signaling strong business confidence and expansion.
The council also reviewed the quarterly performance report on Vision 2030 realization programs and national strategies, presented by the Strategic Management Office. This assessment detailed the progress of implementation efforts, the degree to which strategic goals are being met, and the level of execution across various initiatives.
It also evaluated the impact of national and sectoral strategies, spotlighted key achievements, and outlined ongoing efforts and future expectations. These findings underscore the Kingdom's continued progress toward the Vision's three core pillars: building a vibrant society, fostering a thriving economy, and nurturing an ambitious nation.
In its broader oversight role, the council examined the first-quarter performance of public sector institutions, based on a report from the National Center for Performance Measurement (Adaa).
The report highlighted improvements across key performance indicators, the result of concerted efforts to support and empower government entities in meeting their objectives.
Additionally, the council reviewed a separate update from its Project Management Office, which tracked the implementation of decisions and recommendations issued during the second quarter. This included a detailed breakdown of outcomes, implementation statuses across relevant government agencies, and updated statistics on progress levels.
The council also considered a wide range of additional topic, namely proposed organizational arrangements for the National Events Committee, the structural and operational framework of the Ministry of Economy and Planning, and a development strategy for the Asir region.
Furthermore, members reviewed a report focused on streamlining and accelerating the process for launching capital projects, along with the executive summary of the quarterly GDP bulletin and national accounts. The meeting also included briefings on the monthly consumer and wholesale price indices.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ArabGT
8 hours ago
- ArabGT
Saudi Arabia's Electric Vehicle Market: What's Next?
What was once seen as a foreign trend has now become a tangible reality in Saudi Arabia—electric vehicles (EVs) are no longer on the sidelines. Over the past few years, government-backed initiatives and strategic investments have laid the groundwork for a more sustainable and fuel-independent transportation system. Market indicators show a notable surge in EV adoption, fueled by concrete infrastructure plans and a growing range of vehicle choices tailored to local needs. Among the more ambitious milestones is Riyadh's target: converting 30% of its vehicle fleet to electric by 2030. While this target comes with its fair share of hurdles, execution is already underway. With market projections estimating a value of $1.86 billion by 2030, the Kingdom is positioning itself to make electric mobility a mainstream mode of transport in the years ahead. What's Powering the Momentum? Much of the sector's growth can be traced to the top: Vision 2030. This national strategy isn't just about setting environmental benchmarks—it's backing them up with serious capital. Approximately $39 billion has been committed to developing the electric mobility ecosystem, with $18 billion earmarked for domestic manufacturing. Notable projects include Lucid Motors' facility in King Abdullah Economic City and Hyundai's joint venture with the Public Investment Fund—both pivotal in establishing a local EV production base. Infrastructure development is also in full swing. The government aims to roll out more than 5,000 fast-charging stations across the country by 2030. While urban centers like Riyadh and Jeddah are nearing saturation, the focus is shifting toward secondary cities to widen accessibility. Battery innovation is accelerating this transition. Facilities such as EV Metals Arabia in Jubail and the Hithium plant are not only cutting costs but also boosting self-reliance. In parallel, regulatory mandates are pushing logistics and delivery companies toward electrified fleets, further driving market uptake. Roadblocks to Overcome Despite the momentum, challenges remain. One key issue is the lack of sufficient charging infrastructure outside major metropolitan areas, making EV ownership less practical in remote regions. Saudi Arabia's extreme heat is another concern. Summer temperatures regularly exceed 50°C, impacting battery performance and longevity. Although manufacturers are introducing advanced thermal management systems, these often increase vehicle costs. Additionally, subsidized fuel prices diminish the cost advantage of EVs for individual buyers. A shortage of skilled EV technicians further complicates maintenance and support, particularly in less urbanized areas. Who's Leading the Charge? Private vehicles dominate the market with a 77.5% share, but commercial EVs are catching up fast, driven by lower operating costs and regulatory support for fleet electrification. High-performance and luxury SUVs in the 100–200 kW category are especially popular among wealthier consumers. Battery electric vehicles (BEVs) hold a 53% market share, owing to better infrastructure support and incentives. Fuel cell electric vehicles (FCEVs), however, are gaining momentum, projected to grow by 37.8%—thanks in part to large-scale hydrogen projects like NEOM's initiative. When it comes to driving range, vehicles offering between 200–400 km are currently the most preferred. Yet, demand for models exceeding 400 km is growing rapidly, reflecting the needs of users who travel longer distances across the Kingdom's expansive terrain. Regionally, Riyadh is the frontrunner with 35.9% of all EV sales, bolstered by policy support and infrastructure density. The Eastern Province is emerging as a manufacturing and export hub, while Mecca is uniquely suited for pilot projects in clean urban transport, especially during high-demand seasons like Hajj and Umrah. An Intensifying Competitive Field Saudi Arabia's EV market is heating up. Nissan's early market entry gave it a strong foothold, while Tesla is preparing to enter aggressively with its own charging network. Lucid benefits from both government support and local manufacturing, providing a logistical and financial edge. Meanwhile, Hyundai and SIR Motors are expanding their presence, with SIR producing locally using BMW-licensed technology. Recent developments include Hyundai breaking ground on a major production facility, Aramco forging tech partnerships with global players like BYD, and Tesla officially announcing its upcoming launch in the Kingdom. The message is clear: Saudi Arabia is not just following the global EV wave—it's preparing to lead it in the region.
Arab News
14 hours ago
- Arab News
26 workshops to boost nonprofit efficiency in KSA
RIYADH: The Ministry of Environment, Water and Agriculture has launched an empowerment program for nonprofit organizations, offering 26 specialized workshops across 11 regions of the Kingdom. The program aims to enhance civil associations' operational efficiency and strengthen their developmental role in line with Vision 2030, according to a Saudi Press Agency report. The ministry said that eight workshops will be held in Riyadh, eight in the Eastern Province and Makkah region, and four in Madinah and Asir. Additionally, six workshops will take place in Tabuk, Qassim, Jazan, Hail, Jouf, and Northern Borders, ensuring broad access for nonprofit organizations. The workshops will cover key topics such as establishing foundations and civil associations, partnership building, marketing, strategic planning, governance, financial sustainability, and promoting professional volunteering. Through these sessions, the ministry aims to boost the skills of nonprofit sector workers, contributing to greater social impact and sustainability. For inquiries, contact via email at or call the unified number 939.
Arab News
18 hours ago
- Arab News
IMF praises Saudi Arabia's economic resilience
RIYADH: The International Monetary Fund has commended Saudi Arabia for its resilience to global shocks, citing its expanding non-oil sector, contained inflation, and record-low unemployment. In its 2025 Article IV Consultation, the IMF recognized the Kingdom's robust non-oil growth and strong reform momentum, crediting ongoing efforts under Vision 2030 for diversifying the economy amid heightened international uncertainty and declining oil revenues. Saudi Arabia's appraisal comes as neighboring Gulf economies face mixed outlooks amid global tensions. The IMF highlighted the UAE's robust non-oil growth, while Kuwait grapples with fiscal pressures from OPEC+ production cuts and a call for gradual consolidation. Qatar and Oman continue to advance diversification under their respective national visions, focusing on private sector growth and fiscal reforms. Despite external shocks, the region's ample reserves, structural reforms, and strong financial systems are seen as key stabilizing factors. IMF executive directors highlighted the Kingdom's economic progress, noting that 'robust non-oil growth, low inflation, and record-low unemployment' have been achieved through 'appropriate macroeconomic policies, strong buffers, and impressive reform momentum.' The IMF cautioned that fiscal and current account deficits persist, emphasizing the need for continued structural adjustments to ensure long-term sustainability. In 2024, Saudi Arabia's non-oil real gross domestic product expanded by 4.5 percent, driven by growth in the retail, hospitality, and construction sectors. This was offset by a 4.4 percent contraction in oil GDP, as OPEC+ production cuts held crude output at 9 million barrels per day, moderating overall GDP growth to 2 percent. Inflation remained under control, averaging 1.7 percent, while unemployment among Saudi nationals fell to its lowest level on record, with youth and female unemployment rates halving over the past four years. The IMF noted that despite a shift in the current account to a deficit of 0.5 percent of GDP, the Kingdom's fiscal and external buffers remain substantial. The Saudi Central Bank's foreign assets stabilized at $415 billion, covering 187 percent of the IMF's reserve adequacy metric. 'The banking sector remained strong, marked by high capitalization, profitability, and nonperforming loans at their lowest since 2016,' the IMF stated. Looking ahead, the IMF projects the Kingdom's real GDP growth to accelerate to 3.9 percent by 2026, with non-oil growth expected to exceed 3.5 percent. The continued implementation of Vision 2030 projects, combined with government-led infrastructure initiatives, is expected to sustain domestic demand and mitigate external pressures. The IMF stressed that 'pursuing a countercyclical fiscal policy in the near term' is essential to maintain economic stability, given ample fiscal buffers and persistent global uncertainties. Directors of the organization recommended a gradual fiscal consolidation strategy to achieve intergenerational equity, urging Saudi Arabia to advance 'broader tax policy reforms to increase non-oil revenue, wage bill containment, energy subsidy reform, and streamlining of non-essential expenditures.' Directors also encouraged the operationalization of an expenditure-based fiscal rule, enhanced budgetary transparency, and strengthened sovereign asset-liability management frameworks. The IMF welcomed the Kingdom's progress in strengthening its banking sector resilience. Executives commended reforms in banking regulation and supervision, the swift adoption of the Banking Law, and the establishment of a crisis management framework. They also recognized the Saudi Arabian Monetary Authority's vigilance in monitoring financial risks and its introduction of a 100 basis points countercyclical capital buffer to support stability. Additionally, directors noted continued progress in developing domestic capital markets to diversify funding sources. Directors emphasized the importance of maintaining reform momentum irrespective of oil price developments. They highlighted improvements in the regulatory and business environment, female labor participation, and governance. Sustained enhancements in small and medium-sized enterprises' access to finance, regional trade integration, and climate resilience were also recognized as key pillars for advancing economic diversification. The IMF affirmed that Saudi Arabia's currency peg to the US dollar remains appropriate, commending improvements in the Kingdom's liquidity management framework. Directors stressed that monetary operations should continue to focus on smoothing short-term liquidity without fueling asset and credit bubbles. IMF directors acknowledged Saudi Arabia's leadership role in regional stability and its contributions in multilateral forums, including the G20 and the IMF's International Monetary and Financial Committee. They expressed confidence that the Kingdom's ongoing reforms will further strengthen its economic resilience and global standing.
