Saudi Arabia’s Economic Growth in 2019 May Be Slightly Higher than its Earlier 1.8 Percent Forecast

The plan to transform the economy of Saudi Arabia “Vision 2030” was introduced by the kingdom three years ago.

This plan was the topic of many media outlets.

According to the Financial Times, there are indicators that Saudi Arabia is a good place to make money, as some of the most prominent asset managers BlackRock and HSBC have launched dedicated Saudi investment funds.

Further proof for the optimistic business situation is the claim in Reuters made from the Middle East director of the International Monetary Fund, saying that Saudi Arabia was expecting a slightly higher growth rate in 2019 because the Saudi non-oil sector is expanding faster than the wider economy. Given that Brent crude, the benchmark for prices, recently surpassed a healthy $70 per barrel, there should be additional satisfaction,

The whole plan “Vision 2030’’ is mainly made for the long term economic structure and the reducing of the role of oil in the Saudi economy. Recent analysis shows that Saudi Arabia will take longer to make the desired changes but they are also hoping that the oil will remain the focus of its prosperity for decades.

According to The Hill, for the moment, oil’s position is being confirmed in the Saudi economy. Indeed, it is increasing. The state oil company Saudi Aramco has just bought the state petrochemicals company Sabic for $69 billion and raised $12 billion on the bond market to help pay for it. All of this indicates that Saudi Arabia considers the increase in oil demand in the following years.

Vision 2030 is one of the plans which were introduced by 34-year-old Saudi Crown Prince Mohammad bin Salman that are supposed to transform the kingdom.

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