Saudi Arabia’s economic reforms have started to "pay off" amidst a recovery in the non-oil sector, the Ministry of Finance said, citing an International Monetary Fund (IMF) statement.
An improvement in the transparency of government spending and public finance was also cited, along with the importance of continuing reforms aimed at strengthening the country's development of general budgeting and a mid-term public finance framework.
“The non-oil sector growth is expected to accelerate to 2.9 percent this year, as the increasing government spending and reforms implementation will likely drive economic growth,” the statement added.
The statement referred to the Expenses Management System (Etimad), which contributed to improving and realizing expenditure efficiency and public financial transparency.
In addition, the IMF welcomed the Saudi Stock Exchange reforms, which led to the inclusion of Saudi Arabia in global stock and bonds markets indices. The Fund also commended the expansion of government bonds yield curve towards longer-term maturities.
Read: MSCI announces inclusion of Saudi Arabia in Emerging Market index
“The statement stresses the Saudi government’s strong progress in implementing the economic and structural reforms, especially evidenced by the positive outcomes of the Q1 Budget Report 2019,” Finance Minister Mohammed Al-Jadaan said.
It reflects the key efforts made in developing the Saudi financial sector to ensure a robust industry, which realizes the strategic objectives of Vision 2030, he added.
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