According to a report by HSBC and the World Bank, Saudi Arabia was one of the world’s fastest-growing economies in 2016.
The Kingdom has been on an upward trajectory since it began its reform process in 2005. The country has made significant progress in diversifying its economy away from oil, which accounts for more than 90 percent of government revenues. It also has increased spending on education and health care while cutting subsidies that have long benefited only the wealthy.
The report estimates that the Saudi economy will grow at 5.5% this year, compared with 4.4% last year. That would make it the second-fastest growing among G20 countries after China. Growth could reach 6.2% next year, according to the report.
The Kingdom is expected to continue its economic reforms, including privatizing state assets and opening the banking sector. In addition, the government plans to increase public investment in infrastructure projects such as roads, airports, and power plants.
##Saudi Arabia shakes the Arab Emirates and improves relations with the USA.
Saudi Arabia shook off the UAE to become the region’s largest economy in 2015, overtaking Qatar.
According to the latest data from the International Monetary Fund (IMF), Saudi Arabia grew by 3.9 percent last year. In comparison, the UAE grew by 2.6 percent.
Qatar was ranked third, followed by Kuwait and Bahrain. The IMF said growth in the Gulf Cooperation Council (GCC) region slowed to 1.8 percent in 2015, down from 3.1 percent in 2014.
It attributed the slowdown to lower oil prices. Still, it added that GCC countries are “well positioned to benefit from rising global demand for commodities and energy products.” In contrast, the United States grew by 2.3 percent last year, the highest rate in five years.
The IMF forecast US growth of 2.7 percent this year, slightly slower than its previous estimate of 2.8 percent.
But unlike the UAE, Saudi Arabia is still heavily dependent on oil exports.
As a result, the IMF expects Saudi Arabia to maintain its position as the top exporter in the region. Yet, it forecasts a slight decline in crude oil production over the coming decade.
This improves Saudi Arabia’s diplomatic and negotiating relations with the United States. Saudi Arabia is a gem of the Middle East, which continues to advance despite adversities and economic recessions.
##What makes Saudi Arabia unique?
Saudi Arabia is a wealthy nation in terms of natural resources. Its oil reserves are among the largest in the world.
Its population is young, educated, and well-paid. And it has a strong military. However, there is no doubt that the Kingdom needs to modernize its economy.
The IMF says that Saudi Arabia must reduce its dependence on oil and diversify its economy. It also wants to open up its markets and allow foreign investors to invest more freely.
The country strives to accomplish all these tasks but faces many challenges.
One of them is that most Saudis live in rural areas and depend on agriculture for their livelihood.
##Vision 2030 Saudi Arabia
To achieve Vision 2030, the government plans to create jobs for its citizens and attract foreign investment.
It aims to build an advanced knowledge-based society where technology plays a central role.
To achieve this goal, the government plans to develop new industries, especially renewable energy, biotechnology, and information technology.
Another challenge is that Saudi Arabia does not have enough skilled labor. So, the government is encouraging women to participate in the workforce. However, the country is facing another problem: unemployment.
The IMF estimates that about 6 million people were unemployed in 2020. And the youth unemployment rate is estimated at 20 percent.
The government is aware of these problems and is working hard to solve them. For example, the Ministry of Labor is developing programs to help job seekers find work. The government is also investing in education. Moreover, the government offers scholarships to students who want to study abroad.
If you like all these economic and social development topics, you should go to this country and see with your own eyes the fast development that Saudi Arabia has had in the last decade. For this, you must get the [Tourist e-Visa for Saudi Arabia].