Crown Prince: Saudi economic diversification, plan to curb oil reliance on track

Crown Prince Mohammed bin Salman

Crown Prince Mohammed bin Salman said Saudi Arabia was founded three centuries ago on solid principles rooted in upholding Islamic Shariah, while establishing justice and consultation.

This came as he delivered today, Sept. 10, the annual royal speech on behalf of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud during the opening of the second year of the Shura Council’s ninth term.

“We take pride in this blessed approach, and that God has honored us with the service of the Two Holy Mosques—a responsibility to which we devote the utmost care and attention, harnessing all our capabilities,” he added.

The Crown Prince also stated that the Saudi economic diversification drive is progressing on track, affirming the Kingdom’s aptitude to reduce dependence on oil.

The Saudi leader said, “For the first time in our history, non-oil activities have accounted for 56% of gross domestic product, which has exceeded SAR 4.5 trillion. All this and other achievements have made the Kingdom a global hub attracting diverse activities.”

“The decision of 660 international companies to choose the Kingdom as their regional headquarters—exceeding the 2030 target—embodies what has been achieved in infrastructure and the level of technical services, thus confirming the strength of the Saudi economy and its broad future horizons.”

“As part of our future directions, agreements being signed in the field of artificial intelligence complete aspects of the Vision’s framework, making the Kingdom in the coming years a global hub in this field,” he added.

The Crown Prince also highlighted that, in military programs, Saudi Arabia is working to raise defense capabilities to the most advanced global levels. In addition, cooperation with strategic partners contributes to achieving common targets of localizing and accelerating the military industry, which has now reached more than 19%, up from no more than 2%.

“The state realizes that having strong public finances not dependent on a single volatile source of revenue is a necessity and a fundamental requirement for development and sustainable economic diversification. Through this, diverse job opportunities grow,” he added.

“Since the launch of Saudi Vision 2030, our country has worked to build this foundation, which has given it a solid economy that made it an investment destination. Many of our goals have been achieved, such as reducing unemployment to its lowest levels, raising female participation in the labor market to its highest, and lowering the proportion of low-income households.”

“In this context, we continue to assess the economic and social impact of public spending to ensure resources are directed toward national priorities, as part of our ongoing pursuit of serving citizens, increasing their income, raising the level of services provided, and improving the quality of life for citizens, residents, and visitors,” according to the Crown Prince.

“The strong economic growth currently witnessed by the Kingdom has been accompanied by a rise in residential real estate prices in some areas to unacceptable levels, causing distortions in the sector and raising the average housing cost relative to citizens’ income. This has necessitated policies to rebalance the sector, reduce real estate costs, encourage investment in real estate development, and provide suitable and diverse options for citizens and investors.”

He continued, “The past stage has shown the public and private sectors’ ability to overcome challenges and quickly adapt to changing circumstances. The quality of government performance played a prominent role in absorbing economic shocks and in adjusting programs and their components to be more resilient to fluctuations, without disrupting development requirements.”

“The public interest is the supreme goal we seek from these programs and targets, and we are determined to achieve and complete them. We also emphasize that we will not hesitate to cancel or make fundamental changes to any program or target if we find that the public interest requires it.”

The Crown Prince also underlined, “Our domestic achievements go hand in hand with our efforts to achieve security and stability in the region. We reject and condemn the Israeli aggressions in the region, the latest being the brutal aggression against our sister state of Qatar.”

He stressed that the Shura Council has had a clear imprint and a key role in these achievements, through its contribution to developing laws, completing the legislative framework, and updating it to place the Kingdom among the world’s most advanced legislatively.