Saudi Arabia’s GDP to grow 3% in 2018: Minister

Saudi Arabia’s gross domestic product (GDP) is expected to grow between 2.5 percent and 3 percent this year, Minister of Economy and Planning Mohammed Al Tuwaijri told France 24.

The Kingdom is very comfortable with oil prices which currently stand at $70 per barrel, Al Tuwaijiri said, describing these prices as very reasonable as they will contribute to boosting the Saudi GDP.

The expected growth will be driven by the private sector’s SAR 72 billion stimulation plan, launch of the fund of funds and the Kingdom’s support for the growth of small and medium-sized enterprises (SMEs).

He added that the International Monetary Fund (IMF) had earlier revised up Saudi Arabia’s economic growth forecasts to 1.6 percent, however it lacks full details about the local economy.

Though foreign investors have many options amid high competition, the Kingdom is well positioned to attract more investments, thanks to its geographical location, population and the government drive to implement various economic programs, automation.

The Saudi labor force and efficient laws to protect foreign investors also play a role in luring investors.

Meanwhile, seven countries have entered into strategic partnerships with the Kingdom, including France, Al Tuwaijri said, adding that the justice ministry is aiming to ensure high transparency in the process of project awards for all investors.