Arab News, Wed, Jan 22, 2025 | Rajab 22, 1446
Saudi economy minister speaks on global growth, US economic policies, Vision 2030
Saudi Arabia:
Saudi Arabia’s Minister of Economy and
Planning Faisal Alibrahim on Tuesday said the Kingdom would continue to assess
shifting US economic policies as it eyes more integration to help protect global
trade.
Alibrahim made the comments during a panel
discussion at the World Economic Forum in Davos.
Moderator Steve Sedgwick asked Alibrahim about US
President Donald Trump’s plan, announced during his inauguration on Monday, to
maximize America’s oil and gas production.
“Do these American policies, as spoken about by
the 47th US president, pose a direct threat to Saudi Arabia, which has been a
reliable supplier of oil to the US for decades?” asked Sedgwick.
Alibrahim said: “The Kingdom is more
integrated in the global economy, more of the stuff we do at home impacts not
just the region but the global economy and vice versa.”
However, the minister said it would require time
to understand what the economic policy of the Trump administration would look
like in order to understand its impact.
“We’re always assessing what policies would look
like and how we need to respond, but we’re relying on dialogue and continued
mutual benefit and value,” he said.
“With the US, we’ve had a longstanding, strong
relationship that spanned eight decades, regardless of which administration was
in office, and we look forward to continuing the discussion with this
administration.”
“It’s time for more economic integration
regionally and more clear bilateral arrangements or agreements that help protect
the flow of trade, goods and services.”
Alibrahim said that it would take almost a
year to see the impact of such new US policies.
“Whether it’s deregulation, industrial policy,
trade policy, I think it’ll take us a quarter or two to understand what that
would look like exactly, what the impact would be. Maybe then in a year to
understand exactly what that would mean for the global economy.”
“Regardless, I think whatever the US economic
policy would look like would not just be something that would impact the global
economy today (or) in the near future. It’ll probably be the seeds towards a
long-term restructure in the global economy.”
The panelists at Tuesday’s session discussed the
global growth rate noting that it is projected at 3.3 percent in 2025, compared
to around 4 percent over the past 30 years.
The minister said global growth would be boosted
by building the right social capabilities and investing in human capital.
“I think we’re shifting to a new form of
globalization ... the sooner we know what that looks like, the more clear it’ll
be what the pathways for growth are going to be,” he said.
Alibrahim said universities in the Kingdom are
gathering data on Saudi Arabia’s economy to help “fire up new engines of growth
or reinvigorate all sectors.”
He added: “Vision 2030 is an example of leveraging
on all of these opportunities, (and) also trying to be a voice for shaping a
more prosperous future.”
He also highlighted the transformative initiatives
of the Kingdom’s Vision 2030 to diversify the economy, foster global
partnerships, and strengthen the private sector.
Alibrahim said Vision 2030 “is a long-term
restructuring of our economy so that we’re more resilient and more ready for
future growth.”