The Managing Director of the International Monetary Fund, Kristalina Georgieva, praised the strong performance of the Saudi economy in recent years, stressing that the Kingdom is continuing its successful path of economic diversification away from total dependence on oil.
In an exclusive interview with Al Arabiya Business on the sidelines of the Al-Ula Emerging Economies Conference, Georgieva explained that Saudi Arabia adopts a highly flexible approach to adjusting its investment plans, which aligns with global and local economic changes. She noted that this adaptability reflects a mature economic management strategy, where major projects are reviewed and rescheduled according to priorities and the economy's absorptive capacity.
Vision 2030 and Economic Transformation
These statements come in the context of the radical transformations taking place in the Kingdom under the umbrella of "Saudi Vision 2030." Since the launch of the Vision, the Saudi government has been working to restructure the economy to be more sustainable and diversified. The flexibility that Georgieva referred to is a key part of the Public Investment Fund's and government entities' strategy to ensure that the public budget is not overburdened, while continuing to invest in promising sectors such as tourism, technology, and renewable energy.
The wisdom of fiscal policy
The IMF Managing Director specifically commended the role of Saudi Finance Minister Mohammed Al-Jadaan, noting that his leadership ensures the continuation of prudent public finance management. She predicted that the Kingdom would maintain its financial stability in the coming years thanks to policies that balance investment spending with the preservation of financial reserves, thus bolstering the confidence of foreign investors and credit rating agencies in the strength of the Saudi economy.
Global economic landscape
Speaking about the global economy, Georgieva described the prevailing uncertainty as the "new normal," driven by geopolitical tensions and market volatility. This situation is prompting investors to seek safe havens such as gold. She added that the world is moving toward a multipolar system, which will gradually reshape the global monetary system. However, she emphasized that the US dollar retains its pivotal role thanks to the depth of US financial markets and the strength of the US economy.
International assessment indicators
This positive assessment from the top international financial institution carries significant implications, confirming that Saudi Arabia has successfully insulated its economy from global shocks through proactive policies. It also reassures global markets that the Kingdom's mega-projects are progressing according to well-defined plans that can be adjusted to ensure long-term economic viability and financial sustainability.
