Saudi Finance Minister Mohammed Al-Jadaan affirmed that macroeconomic stability is the cornerstone of achieving sustainable growth, denying that it is an obstacle to it. He emphasized that it is, in fact, the primary enabler that allows countries to move forward with their development plans. This came during his address at the Al-Ula Emerging Markets Economies Conference, where he highlighted the importance of reliable financial frameworks in strengthening the investment environment.
Al-Jadaan explained that providing a reliable financial framework, establishing clear medium-term foundations, and prudently managing public debt are all factors that combine to create a vital space for investment and reform. This vision is doubly important given the volatile international conditions the world is witnessing today, including fluctuating energy prices, global inflation rates, and geopolitical tensions that pose significant challenges to both emerging and developed economies.
The importance of institutions in implementing structural reforms
In discussing reforms, the Minister of Finance emphasized that structural reforms, however ambitious and carefully planned, cannot bear fruit or deliver the desired results without strong institutions capable of implementing them efficiently. This statement aligns with the Kingdom of Saudi Arabia's Vision 2030, which places significant emphasis on restructuring government institutions and enhancing overall performance to ensure the achievement of economic objectives.
From planning to execution: The credibility standard
Al-Jadaan highlighted a crucial point regarding the credibility of economic policies, emphasizing that this credibility does not stem merely from putting plans and strategies on paper, but rather from actual implementation, good governance, and high transparency. He added that the ability to translate strategies and plans into tangible results and positive impacts on the ground is the true measure of the success of any economic policy.
The economic context and the impact of the statements
These statements come at a time when the Kingdom is striving to bolster its position as a global economic hub, where financial and economic stability is the primary attraction for foreign investors. Emphasizing macroeconomic stability sends reassuring messages to international and domestic markets that the Kingdom's fiscal policies are proceeding according to a well-considered approach that balances development spending with fiscal sustainability. Furthermore, the selection of Al-Ula to host this significant economic event reflects the Kingdom's historical and cultural symbolism and its openness to the world, reinforcing its leading role in shaping the future of emerging economies in the region.
