Social support, benefits programs periodically reviewed: Al-Jadaan

Mohammed Al-Jadaan, Minister of Finance 

Mohammed Al-Jadaan, Minister of Finance, said government efforts are ongoing to periodically review and improve programs related to social protection and benefits, in order to ensure access to target groups.

The government is also continuing its efforts to raise the quality of services and government facilities and develop infrastructure Kingdom-wide, which contributes to raising the quality of life, Al-Jadaan pointed out in the official statement on the final state 2024 budget.

This is in addition to the pivotal role of the Saudi citizen in comprehensive and sustainable economic development, stressing that he is the pillar and most valuable to his country, as he plays a direct and tangible role in achievements and moving forward in various promising fields and sectors, the minister highlighted.

He stressed that the economic transformation undertaken by the Kingdom’s government is still ongoing. The positive results achieved so far uphold the success of the economic and financial reforms aimed at strengthening comprehensive economic growth and developing public fiscal management, with a focus on improving the quality of services provided to citizens, residents and visitors.

The minister noted that the government aims to expand strategic spending on capital projects through the 2024 budget, in line with approved national strategies and priorities as well as the Saudi Vision 2030 goals. He added that the government affirmed its commitment to delivering programs and projects with economic and social returns, which in turn support economic diversification.

This is bound to further encourage private-sector participation by easing doing business and creating a more attractive investment environment with steady economic growth, according to Al-Jadaan To meet financing needs, the government will continue domestic and international fiscal operations to bridge the expected 2024 deficit and repay debt due during 2024 and in the medium-term. The government also aims to take advantage of available market opportunities to provide additional financing to repay debt obligations in the coming years.

Additionally, the government will leverage market opportunities to implement alternative government fiscal operations that enhance economic growth, such as financing development and infrastructure projects. It is expected that the public debt balance will reach SAR 1.103 billion (25.9% of GDP) by the end of 2024, compared to SAR 1.024 billion (24.8% of the GDP) in 2023, a 1.1% year-on-year (YoY) increase, said Al-Jadaan.

He reiterated that the results of the economic and structural reforms that the Kingdom is witnessing have improved fiscal and economic indicators, driving economic diversification and fiscal stability. He also noted that preliminary forecasts for 2023 clearly indicate the growth of non-oil activities, which are expected to expand by 4.9%.

Al-Jadaan also highlighted that the Kingdom's continuous efforts to improve the labor market have contributed to localizing quality jobs and providing sustainable employment. This has led to the addition of approximately 1.122 million new jobs by the private sector to the Saudi economy by the end of the third quarter of 2023, driving a pullback in unemployment rates among Saudis to 8.3%.

This decrease reflected the continuous and accelerated growth in the private sector since the launch of Saudi Vision 2030, which has provided an improved environment for the sector through the successful introduction of various strategic plans and supportive initiatives targeting small- and medium-sized enterprises (SMEs), according to the minister.

He highlighted that more than 2.3 million citizens are employed in the sector, which is a record high. Meanwhile, female labor participation reached 35.3%, exceeding the Saudi Vision 2030 target.

Al-Jadaan highlighted the government's swift and positive handling of geopolitical challenges, thus mitigating economic and societal repercussions. This stands as a testament to the resilience and adaptability of the Saudi economy, he elaborated.

Additionally, emphasis was placed on the Kingdom's central role in stabilizing energy markets and its proactive stance in bolstering both local and global economic growth and stability.​

On the global economic challenges, Al-Jadaan noted that despite the ongoing state of uncertainty, global inflation rates are declining at a faster-than-expected pace. This will in turn improve global economic performance, stimulate investments and maintain low unemployment rates, resulting in a positive impact on the Kingdom's economy.