Saudi Arabia to Update Its 2030 Economic Plan

Summary

Saudi Finance Minister Mohammed Al-Jadaan told Bloomberg's Joumanna Bercetche that Saudi Arabia's economic outlook is strong and that Vision 2030 is being updated with a next five-year plan focused on high-impact execution. He said the government will prioritize tourism, manufacturing, logistics, technology, energy, and water while enabling the private sector. On fiscal policy, he expects the deficit to narrow and said public-market issuance is unlikely to exceed the announced debt plan. He also downplayed investor concerns about Saudi-UAE relations and called for dialogue in regional geopolitics.

• Saudi Arabia sees strong GDP growth, low inflation, record-low unemployment, high female labor participation, and rising SME activity.
• Vision 2030 is being adjusted; the next five-year plan prioritizes tourism, manufacturing, logistics, technology, energy, and water.
• The government aims to avoid overheating and let the private sector lead economic activity.
• The budget deficit target falls to 3.3% from 5.3%, with scenario planning and non-public financing channels covering gaps.
• Public debt issuance is unlikely to exceed the announced plan, and the sovereign investor base has expanded.
• Al-Jadaan calls for dialogue and de-escalation amid regional geopolitical risks.
• He says investors should not be alarmed by Saudi-UAE/GCC tensions.