Potential transformation of the private and public sectors to enable the development of the Saudi economy

Government officials and entrepreneurs predict that the Saudi public and private sectors will undergo structural transformations aimed at strengthening the Kingdom’s economy in the post-coronavirus period.

Officials and entrepreneurs unanimously agreed that changes in the public sector should enable the private sector to take the initiative in economic development and increase productivity, thus freeing it from dependence on the public sector.

The forecasts were presented at a virtual seminar Monday evening attended by Asharq Al-Awsat, titled “Strengthening Saudi Arabia’s Economy Amid the Pandemic,” organized by a branch of the Saudi Ministry of Finance.

There was great optimism that the economy in the Kingdom would be well on its way to recovery if the current responses to the state’s handling of the economy continued and society took action to raise awareness of preventive measures in the country.

Ayman Afghani, Deputy Minister of Economic Policy and Planning at the Ministry of Economy and Planning, said that optimism about the economic recovery stems from international indicators, especially those relating to the largest economies.

Afghani added that the crisis facing the Saudi economy centers around falling oil prices, weak demand and precautionary measures taken due to COVID-19.

According to the official, both factors have started improving with the lifting of restrictions on the national economy, indicating an increase in sales and high withdrawals of funds from banks.

Dr. Fahad Abdullah Aldossari, Deputy Governor for Research and International Affairs at the Saudi Arabian Monetary Authority (SAMA), revealed that despite the sharp crisis, cash and liquidity indicators are still in good shape. He confirmed that banking safety indicators are also in good shape.

According to Aldossari, bank loans grew by 12.2% through April last year, the highest since 2015 and reflecting the continued provision of credit services by banks, especially mortgages.