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Saudi Gazette
26-06-2025
- Business
- Saudi Gazette
Saudi economy demonstrates strong resilient to global shocks; IMF asserts
WASHINGTON — Saudi Arabia's economy has demonstrated strong resilience to global economic shocks, with non-oil activities expanding, inflation contained, and unemployment reaching record-low levels, according to the International Monetary Fund (IMF). These developments are in line with the targets of Vision 2030, the IMF said in its 2025 Article IV Concluding Statement. This statement was issued by IMF staff following their visit to discuss the Kingdom's 2025 Article IV consultations. The Saudi Ministry of Finance welcomed the IMF statement, which remarked that 'given the current heightened global uncertainty, continued efforts on structural reform are essential to sustain non-oil growth and drive economic diversification.' The IMF staff praised the government's efforts to strengthen the sustainability and resilience of public finances. Inflation remained contained, edging up slightly to 2.3 percent in April 2025, with expectations that it will stay anchored around 2 percent. The statement noted that inflation is contained as rent inflation decelerated. Despite a small pick-up to 2.3 percent in April 2025, headline inflation remains low, helped by high real interest rates. Declining prices for transport and communication helped offset housing rent inflation. The IMF attributed price stability to the credible SR-US dollar peg, continued domestic subsidies, declining transport and communication costs, and a sustained slowdown in housing rent inflation. Imported inflation linked to higher global tariffs is expected to remain under control. Despite elevated global uncertainty, strong domestic demand continues to support economic growth, reflecting ongoing implementation of Vision 2030 projects through public and private investment and buoyed by robust credit growth. 'Robust domestic demand—including from government-led projects—will continue to drive growth despite heightened global uncertainty and a weakened commodity price outlook. Non-oil real GDP growth is projected at 3.4 percent in 2025, about 0.8 percentage points lower than in 2024,' the statement said while noting that this reflects the continued implementation of Vision 2030 projects through public and private investment, as well as strong credit growth, which would help sustain domestic demand and mitigate the impact of lower oil prices. The IMF commended the Saudi Central Bank (SAMA) for enhancing its liquidity management framework and welcomed its ongoing efforts to strengthen regulatory and supervisory frameworks, which are key to preserving financial stability. The statement reviewed structural reforms undertaken since 2016. New legislation that came into effect in 2025, including the updated Investment Law, amendments to the Labor Law, and the new Commercial Registration Law, is expected to boost contractual certainty, improve the business environment, raise investor confidence, and support productivity gains. The IMF emphasized the importance of sustaining reform momentum regardless of oil price trends. Strengthening fiscal institutions and prioritizing the medium-term fiscal framework are seen as essential to achieving Vision 2030 goals. The statement also noted that the banking sector remains resilient, with a capital adequacy ratio of 19.6 percent at the end of 2024. Despite higher funding costs, bank profitability remains strong, with average return on assets at 2.2 percent and non-performing loans at their lowest level since 2016. The statement highlighted that, in 2024, non-oil real GDP grew by 4.2 percent, primarily driven by private consumption and non-oil private investment, with retail, hospitality, and construction leading growth. Repeated extensions of the OPEC+ production cuts have kept oil output at 9 million barrels per day (mb/d)—the lowest level since 2011— resulting in a 4.4 percent decline in oil GDP and an overall real growth rate of 1.8 percent. The composite PMI indicates sustained activity in Q1 2025, with the latest Q1 GDP estimate showing non-oil activities expanding by 4.9 percent year-on-year The IMF observed that the labor market's strong momentum would continue. The unemployment rate for Saudi nationals has declined to a record low of 7 percent in 2024, surpassing the original Vision 2030 target, which has now been revised down to 5 percent. The improvement is broad-based, with both youth and female unemployment halved over a four-year period. Private sector employment surged by 12 percent on average in 2024, while public sector hiring continued to slow, reflecting a redeployment to non-government entities.
Saudi Gazette
17-05-2025
- Business
- Saudi Gazette
Duties revised on certain products as per amended GCC Customs Tariff Schedule
Saudi Gazette report RIYADH — The Saudi Ministry of Finance announced on Friday that Minister of Finance and Chairman of the Board of Directors of the Zakat, Tax and Customs Authority Mohammed Al-Jadaan has approved a number of amendments to the Integrated Customs Tariff Schedule for the Gulf Cooperation Council (GCC) states. Duties will be imposed on certain categories of products as per the amendments which will come into force on October 6 this year. This was revealed in the official gazette Umm Al-Qura. The amended provisions will be applied in accordance with the new tariff schedules. The new amendments include revising the duty category on a number of goods, most notably natural honey products and chemical compounds. The customs duty category has been set at 5 percent on natural honey filtered from the Manuka flower and other types of natural honey, whether filtered or containing wax pieces. The amendments also included a two percent customs duty on several chemicals, such as acetophenone, propiophenone, methylacetophenone, benzophenone, and butyl dimethyl acetophenone. A 52 percent duty was applied to other compounds, such as methyl naphthyl ketone and benzylidene acetone, as part of the alignment of the tariff schedule with the decisions of the GCC countries. The description and labeling of some goods were updated, and formal errors in the tariff schedules were corrected, most notably the inclusion of a 5 percent duty item for fresh fatty livers. The amendments also included the renaming of several types of frozen fish with a unified duty rate of 5 percent. The amendments also included the inclusion of Indian betel leaf in the customs tariff, while explicitly prohibiting the import of khat was included under the "other plants" section, indicating its complete prohibition.
Japan Times
15-04-2025
- Business
- Japan Times
Saudi Arabia to pay off Syria's World Bank debts, paving way for further funding
Saudi Arabia plans to pay off Syria's debts to the World Bank, three people familiar with the matter have said, paving the way for the approval of millions of dollars in grants for reconstruction and to support the country's paralyzed public sector. The plans would be the first known instance of Saudi Arabia providing financing for Syria since Islamist-led rebels toppled former leader Bashar al-Assad last year. It may also be a sign that crucial Gulf Arab support for Syria is beginning to materialize after previous plans, including an initiative by Doha to fund salaries, were held up by uncertainty over U.S. sanctions. Last month, Qatar announced a plan to provide Syria with gas via Jordan to improve the nation's meager electricity supply, a move that sources said had Washington's nod of approval. A spokesperson for the Saudi Ministry of Finance said, "We do not comment on speculation, but make announcements, if and when they become official."
The National
14-04-2025
- Business
- The National
Saudi Arabia considers settling Syria's arrears to World Bank
Saudi Arabia is planning to pay off Syria's debts to the World Bank, paving the way for the approval of millions of dollars in grants for reconstruction and supporting the country's paralysed public sector, Reuters reported on Monday. The plans, which have not been previously reported, would be the first known instance of Saudi Arabia providing financing for Syria since rebels toppled former president Bashar Al Assad last year. It would also be a sign of crucial Gulf Arab support for Syria beginning to materialise, after previous plans, including an initiative by Qatar to fund salaries, were held up by uncertainty over US sanctions. Last month, Qatar announced a plan to provide Syria with gas through Jordan to improve the nation's meagre electricity supply. A representative for the Saudi Ministry of Finance refused to confirm the move, telling Reuters: "We do not comment on speculation, but make announcements, if and when they become official." The Saudi government's media office, a World Bank representative and a Syrian government official did not immediately respond to the agency's requests for comment. Syria has about $15 million in arrears to the World Bank which must be paid off before the international financial institution can approve grants and provide other forms of assistance. But Damascus is short of foreign currency and a previous plan to pay off the debts using assets frozen abroad did not materialise, Reuters said. Sources said World Bank officials have discussed providing financing to help reconstruct the country's power grid, heavily damaged by years of civil war, and also to support public sector pay. Reuters reported on Saturday that Syria would send a high-level delegation to Washington for the annual spring meetings of the World Bank and IMF later this month, marking the first visit by Syrian officials to the US since Mr Al Assad's overthrow. It is unclear whether the Syrian delegation will meet with any US officials. Tough US sanctions imposed during the Assad regime's rule remain in place. In January, the US issued a six-month exemption for some sanctions to encourage humanitarian aid, but this has had limited effect.
Zawya
14-04-2025
- Business
- Zawya
Saudi Arabia plans to pay off Syria's World Bank debts, sources say
Saudi Arabia plans to pay off Syria's debts to the World Bank, three people familiar with the matter said, paving the way for the approval of millions of dollars in grants for reconstruction and to support the country's paralysed public sector. The plans, which have not been previously reported, would be the first known instance of Saudi Arabia providing financing for Syria since Islamist-led rebels toppled former leader Bashar al-Assad last year. It may also be a sign that crucial Gulf Arab support for Syria is beginning to materialize after previous plans, including an initiative by Doha to fund salaries, were held up by uncertainty over U.S. sanctions. Last month, Qatar announced a plan to provide Syria with gas via Jordan to improve the nation's meagre electricity supply, a move that sources told Reuters had Washington's nod of approval. A spokesperson for the Saudi Ministry of Finance told Reuters, "We do not comment on speculation, but make announcements, if and when they become official." The Saudi government's media office, a World Bank spokesperson and a Syrian government official did not immediately respond to requests for comment. Syria has around $15 million in arrears to the World Bank which must be paid off before the international financial institution can approve grants and provide other forms of assistance. But Damascus is short of foreign currency and a previous plan to pay off the debts using assets frozen abroad did not materialize, according to two people familiar with the matter. World Bank officials have discussed providing financing to help reconstruct the country's power grid, heavily damaged by years of war, and also to support public sector pay, two of the sources said. Reuters reported on Saturday that Syria would send a high-level delegation to Washington for the yearly spring meetings of the World Bank and IMF later this month, marking the first visit by Syrian officials to the U.S. since Assad's ouster. It is unclear whether the Syrian delegation will meet with any U.S. officials. Tough U.S. sanctions imposed during Assad's rule remain in place. In January, the U.S. issued a six-month exemption for some sanctions to encourage humanitarian aid, but this has had limited effect. Last month the U.S. gave Syria a list of conditions to fulfil in exchange for partial sanctions relief but the administration of U.S. President Donald Trump has otherwise engaged little with the country's new rulers. That is in part due to differing views in Washington on how to approach Syria. Some White House officials have been keen to take a more hard line stance, pointing to the new Syrian leadership's former ties to Al-Qaeda as reason to keep engagement to a minimum, according to diplomats and U.S. sources. (Reporting by Timour Azhari in Beirut, Suleiman al-Khalidi in Amman and Pesha Magid in Riyadh; Editing by Sharon Singleton)
