Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

Saudi economy 'recovering' after coronavirus, oil price double shock

Saudi economy 'recovering' after coronavirus, oil price double shock

Finance chief Mohammed Al-Jadaan says 'exceptional talents' have helped 'prepare the national economy for recovery'
Saudi Arabia's economy is in recovery mode after facing one of its most challenging years for a century, according to Mohammed Al-Jadaan, the country's Minister of Finance and Acting Minister of Economy and Planning.

At the 15th virtual edition of the Euromoney Saudi Arabia Conference, Al-Jadaan said Saudi Arabia ended 2019 with positive momentum as Vision 2030 started yielding results.

Saudi Arabia assumed the G20 presidency in 2020, working with G20 leaders and other partners to support sustainable and inclusive growth.

But then in the first quarter of 2020, Covid-19 hit the world like a speed train, with significant impact, particularly on the most vulnerable. Various countries saw GDP fall by up to 20 percent, effectively losing 10 years of growth.

Al-Jadaan said: "The Saudi people were able to adopt and lead the charge, with exceptional talents that worked hard 24 hours a day to control Covid-19 and prepare the national economy for recovery."

Al-Jadaan said Vision 2030 reforms provided a strong platform for Saudi Arabia to have a "quick and positive response" to the pandemic.

Significant resources were redirected to the healthcare system, and King Salman decided to provide healthcare services free of charge not only to the Saudi nationals but also to residents and illegal residents.

The government delivered a SR218 billion package of support to businesses and the private sector while SAMA, the central bank, provided significant liquidity into the banking sector of approximately SR70 billion.

SAMA also injected another SR50 billion of liquidity into the banking system to enable banks and financial institutions to provide credit to the private sector.

Initial signs were positive as the economy re-opened. In 11 tourist destinations, room occupancy rates jumped to 85-90 percent while the success of the kingdom's privatisation program also saved SR15.7 billion of the government's expenditure, he said.

Saudi Arabia suffered from a simultaneous decline in oil and non-oil revenue this year as the global pandemic combined with lower energy prices to jolt the kingdom’s public finances. Officials have taken unprecedented measures in response, including tripling value-added tax.

The government could still face a budget deficit of over 13 percent of gross domestic product in 2020, according to the median of forecasts compiled by Bloomberg.

Al-Jadaan in May warned of "painful" and "drastic" steps to deal with the double shock of the coronavirus and record low oil prices.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×