https://arab.news/bpegr
RIYADH: Saudi Investment Minister Khalid Al-Falih has reiterated the Kingdom’s dedication to multilateralism, emphasizing its commitment to fostering an open and competitive environment.
In an interview with CNBC, Al-Falih underscored the importance of globalization and noted Saudi Arabia’s active involvement in global forums and discussions in the face of rising uncertainties.
He said the Kingdom recognizes the risks and advocates for “multilateralism, trade, and investment.”
Al-Falih highlighted Kingdom’s participation in global forums and bilateral discussions saying it reflects the country’s commitment to fostering an open and competitive environment.
“We believe that globalization will survive—it has to,” Al-Falih said.
Commenting on the declining interest rates worldwide, the minister said that “the risk barometer is slowly coming down.”
He said: “We are very vigilant in Saudi Arabia. We’re managing our risks. We’re concerned about rising debt in both developed and developing countries.”
The minister also reflected on the positive shifts in the global economic landscape over the past two years. He pointed out that in 2022, the world grappled with significant challenges, including high energy prices, food insecurity, elevated inflation, rising interest rates, and stressed employment conditions.
Today, significant improvements have been seen in addressing past economic challenges. Inflation has been controlled, interest rates are declining, and overall economic risks are diminishing.
“In Saudi Arabia, we have maintained our debt-to-gross domestic product (ratio) below 30 percent … as our economy went up, our debt was going up slower,” Al-Falih said.
The minister said the Kingdom’s corporate sector remains robust with low leverage and the Kingdom’s trade environment is open.
“We’re not taking the severe measures of protectionism. This is the spirit of Saudi Arabia,” he added.
Al-Falih emphasized that achieving strategic goals requires more than just setting a vision and targets. It involves sustained effort and meticulous planning. Strategies need to be divided into sector-specific plans and actionable initiatives, with active participation from all stakeholders, particularly the private sector in Saudi Arabia.
The private sector “has been a key contributor, and global investors, technology owners, brands, and intellectual property stakeholders” must also be engaged.
He said it is crucial for the government “to be led by a leader who has the trust and confidence of the people.”
Al-Falih continued: “The people of Saudi Arabia have been steadfast, and their commitment to Vision (2030) and the leadership of the country and the nation and the government is unequivocal while many other countries and governments were challenged, Saudi Arabia was leapfrogging ahead.”
Regarding the shift in perception from a capital-surplus economy to an attractive investment destination, Al-Falih noted that Saudi Arabia has been known as a capital-surplus economy for decades, but changing perceptions has not been overly difficult. Global investors are seeking destinations with key parameters such as stability and long-term vision, he added.
He highlighted that Saudi Arabia now meets these criteria, making it an appealing location for international investment.
“They (investors) want a country that is young. They want talent. They want access to local talent in the market ... Saudi Arabia ticks all of the boxes,” Al-Falih said.
The minister also discussed Saudi Arabia’s strategy to attract international investment, focusing on becoming a prime destination for near-shoring and green energy.
Green shoring combines several advantages in one location: access to materials and energy, robust logistics and infrastructure, skilled workforce, and financial resources.
He added: “Come to Saudi Arabia, you will access the three continents that we are the intersection of as part of Vision 2030, we will address global supply chain, and resilience issues as we build a new global economy that is certainly moving.”
Al-Falih emphasized that Saudi Arabia has a strong track record of executing large projects efficiently and on time, with significant investor interest and upcoming project announcements as part of Vision 2030. He also outlined the Kingdom’s role in promoting regional and global stability, highlighting efforts in various conflict zones.
The minister said Saudi Arabia’s efforts extend beyond political and security issues to include economic stability.
Vision 2030 engages the population, especially the youth and entrepreneurs, and serves as a positive example for neighboring countries facing conflicts, he added.