The International Monetary Fund on Wednesday urged Saudi Arabia to continue the “impressive strides” the kingdom has made with its structural reforms, regardless of oil-price fluctuations.
At the conclusion of its annual Article IV consultation with Saudi Arabia, the Washington-based multilateral lender noted Riyadh's transformation into a more diversified economy away from such heavy reliance on oil is progressing well.
Vision 2030 is the kingdom's plan to shift from dependence on oil to generating revenue through other sectors. Major projects such as King Salman Park and the futuristic city of Neom are estimated to cost tens, if not hundreds, of billions of dollars.
“It's important to continue that, irrespective of what's happening in fluctuations in oil prices,” Amine Mati, the IMF's mission chief to Saudi Arabia, said at a virtual briefing.
“And this should be done through continued efforts to improve governance, increase investment efficiency, accelerate digitalisation and further reform labour markets.”
Non-oil growth in Saudi Arabia is projected to increase to 4.4 per cent in the medium term after moderating to 3.5 per cent year. This is mostly driven by stronger demand as the kingdom implements its Vision 2030 plan, the International Monetary Fund said.
Saudi Arabia's economy is projected to grow to 4.7 per cent in 2025 before averaging at 3.7 per cent in the following years.
Non-oil gross domestic product grew by 3.8 per cent last year, driven by private consumption and non-oil investment.
The kingdom's real GDP declined 0.4 per cent on an annual basis in the second quarter of this year in what was its best reading since the third quarter of 2023, the General Authority for Statistics shows. Oil growth fell by 8.5 per cent, compared to 11.2 per cent the previous quarter.
Real GDP this year is forecast to grow by 1.7 per cent, before increasing to 4.7 per cent in 2025.
In June, Saudi Minister of Investment Khalid Al Falih said the kingdom was more than halfway through implementing Vision 2030. Finance Minister Mohammed Al Jadaan said this year the timetable and size of some of the projects under Vision 2030 would be adjusted owing to economic and geopolitical challenges.
The IMF previously said recalibrating these projects would help mitigate overheating risks and maintain fiscal sustainability.
It said Riyadh could anchor investors' expectations by boosting public communication over the objectives of the programme. Meanwhile, female labour participation rates are “comfortably above” the 30 per cent target of Vision 2030.
The IMF's executive board said it looked forward to continued efforts to boost female labour participation and reduce potential wage gaps. It also noted Saudi Arabia's efforts to accelerate digitalisation, another reform under the national strategy.
“Directors welcomed the robust non-oil economic activity, stable inflation, record low unemployment and ample fiscal and external buffers,” the fund said.
Annual inflation is projected to fall to 1.9 per cent by the end of the year, compared with 2.3 per cent last year. Despite this trend, rents continue to grow at a rate of about 10 per cent because of inflows of expatriate employees and redevelopment plans in Riyadh and Jeddah.
Meanwhile, risks to Saudi Arabia's economic outlook “remain broadly balanced amid high global uncertainty”.
Downside risks to the economy remain, including straying from its current reform agenda, subdued global activity, financial market activity and non-Opec supply growth. Accelerating shifts in the demand away from fossil fuels could also hamper growth.
Geopolitical events also remain a downside risk, although the IMF noted they have not had an effect on the Saudi economy so far. Upside risks include an accelerated introduction of reforms and investments.
The IMF recommended Saudi Arabia continue to maintain its strong fiscal buffers, ensure its monetary policy rate continues to move in line with the US Federal Reserve's and strengthen banking regulatory and supervisory frameworks.
The fund said “a number of directors” on the board stressed the need for additional efforts to support Saudi Arabia's 2060 net-zero targets.
The IMF also noted Saudi Arabia's debt-to-GDP ratio has increased to roughly 26 per cent of GDP. And while it anticipates the ratio to increase to 36 per cent by 2029, it is “still comfortably below” the 40 per cent GDP threshold Saudi authorities have.
Mr Mati said that number is still relatively low by other measures including net debt.
“So we think that fiscal buffers are still quite comfortable,” he said.
Zayed Sustainability Prize
Killing of Qassem Suleimani
Killing of Qassem Suleimani
The five pillars of Islam
Mohammed bin Zayed Majlis
How England have scored their set-piece goals in Russia
Three Penalties
v Panama, Group Stage (Harry Kane)
v Panama, Group Stage (Kane)
v Colombia, Last 16 (Kane)
Four Corners
v Tunisia, Group Stage (Kane, via John Stones header, from Ashley Young corner)
v Tunisia, Group Stage (Kane, via Harry Maguire header, from Kieran Trippier corner)
v Panama, Group Stage (Stones, header, from Trippier corner)
v Sweden, Quarter-Final (Maguire, header, from Young corner)
One Free-Kick
v Panama, Group Stage (Stones, via Jordan Henderson, Kane header, and Raheem Sterling, from Tripper free-kick)
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The five pillars of Islam
The five pillars of Islam
Sui Dhaaga: Made in India
Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
3.5/5
Dengue%20fever%20symptoms
%3Cp%3EHigh%20fever%20(40%C2%B0C%2F104%C2%B0F)%3Cbr%3ESevere%20headache%3Cbr%3EPain%20behind%20the%20eyes%3Cbr%3EMuscle%20and%20joint%20pains%3Cbr%3ENausea%3Cbr%3EVomiting%3Cbr%3ESwollen%20glands%3Cbr%3ERash%26nbsp%3B%3C%2Fp%3E%0A
Mohammed bin Zayed Majlis
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
The years Ramadan fell in May
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Three ways to boost your credit score
Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:
1. Make sure you make your payments on time;
2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;
3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.
KILLING OF QASSEM SULEIMANI
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
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Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
MATCH INFO
Uefa Champions League, semi-final result:
Liverpool 4-0 Barcelona
Liverpool win 4-3 on aggregate
Champions Legaue final: June 1, Madrid
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The biog
Family: He is the youngest of five brothers, of whom two are dentists.
Celebrities he worked on: Fabio Canavaro, Lojain Omran, RedOne, Saber Al Rabai.
Where he works: Liberty Dental Clinic
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Turning%20waste%20into%20fuel
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MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Zayed Sustainability Prize
If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
Four-day collections of TOH
Day Indian Rs (Dh)
Thursday 500.75 million (25.23m)
Friday 280.25m (14.12m)
Saturday 220.75m (11.21m)
Sunday 170.25m (8.58m)
Total 1.19bn (59.15m)
(Figures in millions, approximate)
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
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Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
Getting there
The flights
Emirates and Etihad fly to Johannesburg or Cape Town daily. Flights cost from about Dh3,325, with a flying time of 8hours and 15 minutes. From there, fly South African Airlines or Air Namibia to Namibia’s Windhoek Hosea Kutako International Airport, for about Dh850. Flying time is 2 hours.
The stay
Wilderness Little Kulala offers stays from £460 (Dh2,135) per person, per night. It is one of seven Wilderness Safari lodges in Namibia; www.wilderness-safaris.com.
Skeleton Coast Safaris’ four-day adventure involves joining a very small group in a private plane, flying to some of the remotest areas in the world, with each night spent at a different camp. It costs from US$8,335.30 (Dh30,611); www.skeletoncoastsafaris.com
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Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
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Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
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Ad Astra
Director: James Gray
Stars: Brad Pitt, Tommy Lee Jones
Five out of five stars
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if you go
The flights
The closest international airport to the TMB trail is Geneva (just over an hour’s drive from the French ski town of Chamonix where most people start and end the walk). Direct flights from the UAE to Geneva are available with Etihad and Emirates from about Dh2,790 including taxes.
The trek
The Tour du Mont Blanc takes about 10 to 14 days to complete if walked in its entirety, but by using the services of a tour operator such as Raw Travel, a shorter “highlights” version allows you to complete the best of the route in a week, from Dh6,750 per person. The trails are blocked by snow from about late October to early May. Most people walk in July and August, but be warned that trails are often uncomfortably busy at this time and it can be very hot. The prime months are June and September.
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
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How to become a Boglehead
Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.
• Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.
• Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.
• Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.
• Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.
• Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.
• Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.
• Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.
• Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.
