Saudi Arabia adopts reforms to counter external shocks: Assistant Finance Minister

Assistant Minister of Finance Abdulmohsen Alkhalaf said Saudi Arabia has adopted several structural reforms and developed a strong financial framework to counter external shocks without compromising development plans or the sustainability of public finances.

Addressing a panel discussion held by the International Monetary Fund (IMF) today, May 25, Alkhalaf underscored the importance of adopting structural reforms by GCC countries to improve economic flexibility and support a recovery, according to a statement picked up by Argaam.

He added that the Kingdom has a long-term vision to bolster economic transformation. Accordingly, such reforms helped foster a more flexible Saudi economy and provided a comprehensive range of policy options to deal with possible shocks.

Further, given the tightening of global financial conditions, increasing economic fragmentation, and continued fluctuations in commodity prices, fiscal policy was mainly used to shape the economic response globally and regionally, according to Alkhalaf.

These circumstances require governments to have a mix of fiscal prudence, rapid response, strategic sector investments, and private sector support, the official continued.

The IMF event brought together senior policymakers from the Middle East and North Africa region to discuss economic policies and enablers to ensure sustainable economic growth and stability in resource-rich countries.