The Kingdom’s critics can’t have it both ways
https://arab.news/6u5pj
Much attention has been devoted to recent international media reports that some of the projects planned as part of the Kingdom’s ambitious Vision 2030 program of social and economic reforms are being reassessed, and budgets reallocated accordingly. What I find surprising is that some “analysts” seem to find this surprising.
One of the key advantages of the way in which the Saudi government now operates is that, from the moment these projects were launched, there have been targets, key performance indicators and regular “pulse checks” to determine progress, with revisions and adjustments where and when required.
And by no means all such revisions are negative. For example, in 2022, when Saudi Arabia had the G20’s fastest growing economy after the coronavirus pandemic, the Kingdom recorded a budget surplus of SR104 billion ($28 billion): this enabled some projects to be fast tracked and new ones to be created, including a $1.5 billion fund for start-ups, with a particular focus on high tech areas. This year, although the Kingdom’s economy continues to grow, there is a projected budget deficit of SR79 billion, and cloth must be cut accordingly: it’s called fiscal responsibility.
All these events, drawing millions more visitors to the Kingdom, require phenomenal investment in infrastructure development, and it is inevitable that the government will reallocate some resources to ensure that every single one of those visitors leaves with a positive experience
Faisal J Abbas
Moreover, let us not forget that there are key areas where the Kingdom’s targets have not only been met, but surpassed. One was the aim to welcome 100 million tourists by 2030, which was actually achieved last year and has now been increased to 150 million. Another was the target of 30 percent female participation in the workforce by 2030: in fact it reached 37 percent by the end of 2022, and is still growing.
Nor let us forget that at the launch of projects such as NEOM, staggering in the scope of its ambition, the Kingdom was criticized for hubris and ridiculed for aiming to venture where nobody had gone before. Now that some projects are to be completed in different phases, with adjusted deadlines to allow more time, the same naysayers are still carping on the sidelines. Well, excuse me, but which is it? Is the Kingdom too ambitious, or too conservative? The critics can’t have it both ways.
Financial considerations are inevitable, and to ignore them would be irresponsible. In many Western countries, the advertisers of financial products are required by law to warn prospective purchasers: “The value of your investment can go down as well as up.” The same applies to national finances, and it would be insane to assume otherwise.
But do the revisions and reassessments of government spending and projects sap my confidence that the Kingdom is heading in the right direction? On the contrary — they enhance it.
Faisal J Abbas
Moreover, the Kingdom is achieving global prominence in areas that could not have been foreseen when Vision 2030 was launched eight years ago. For example, when the world’s top boxing promoters seek a venue for the next world title fight, they do not think first of London, New York or Las Vegas, as they once did — they think of Riyadh. Saudi Arabia is now an annual fixture on the Formula One grand prix circuit, with a purpose-built track under construction at Qiddiya. The Saudi capital, currently hosting the Esports World Cup, will be the venue for the inaugural Esports Olympics in 2025. The Asian Cup football tournament will take place in Saudi Arabia in 2027, Expo 2030 will be held in Riyadh, and Saudi Arabia will host the football World Cup in 2034.
All these events, drawing millions more visitors to the Kingdom, require phenomenal investment in infrastructure development, and it is inevitable that the government will reallocate some resources to ensure that every single one of those visitors leaves with a positive experience. But none of that features in the analysis and speculation by some of our colleagues in international media, who seem to think it all happens by magic.
Of course, international credit ratings rise and fall, government spending rises and falls, all influenced by a variety of factors. But do the revisions and reassessments of government spending and projects sap my confidence that the Kingdom is heading in the right direction? On the contrary — they enhance it.
• Faisal J. Abbas is the editor in chief of Arab News
X: @FaisalJAbbas.
