JEDDAH: A major economic boost in the form of 10 major projects and investments exceeding SR685 billion ($183 billion) were unveiled as celebrations of the 88th Saudi National Day got under way.
The Council of Saudi Chambers released a report focusing on great economic achievements in 2017.
These projects reflect the Kingdom’s vision under the wise leadership of King Salman and that of Crown Prince Mohammed bin Salman to provide a brighter future through diversifying sources of national income, tackling environmental challenges and increasing investment and prosperity.
The report summarized the most important events and economic developments in the Kingdom over the past year. These include the lifting of the ban on women driving in June, and the establishment of the General Authority for Cyber Security, in addition to the numerous royal decrees providing financial support to Saudis.
It also noted the important decisions related to the Saudi business sector. These include the launch of a private sector incentive program with a value of SR72 billion, the privatization of 10 government sectors and the establishment of the General Authority for Real Estate. The private sector is still showing a strong performance as an efficient partner in the inclusive development process and in the achievement of the Kingdom’s 2030 Vision, the report noted, as it contributes 39 percent to the Saudi gross domestic product (GDP).
The private sector’s contribution to the GDP at constant prices doubled to around SR1236.6 million in 2017. There has been increased contribution to GDP from non-oil private sector streams.
The private sector also witnessed an increase in the number of workers, in its capital, in the number of shares on the Saudi market, in the cumulative number of establishments operating in the Kingdom, and in non-oil exports.
Continued growth of the private sector was attributed by the report to the Saudi government’s support. This support comes through initiatives such as the removal of obstacles to financial development, improvements to the working environment and policies adopted to boost investment.
It also reviewed the private sector’s efforts to support diversification of the economy and lower unemployment rates.
The importance of the measures taken to prioritize the employment of qualified Saudi workers over the employment of expatriates in the private sector were stressed, as well as the sector’s role in providing education and health services.
Major projects, investments worth over SR685 billion unveiled on Saudi National Day
Major projects, investments worth over SR685 billion unveiled on Saudi National Day
- The private sector’s contribution to the GDP at constant prices doubled to around SR1236.6 million in 2017
Saudi Arabia launches initiative to reroute Gulf cargo to Red Sea ports
- The initiative comes as shipping through the Strait of Hormuz has been severely disrupted by the widening conflict in the region
- Since the US and Israel struck Iran last month, Tehran has moved to restrict passage through the waterway
RIYADH: Saudi Arabia has launched an initiative to redirect shipping from ports in the Arabian Gulf to its Red Sea ports amid the ongoing US-Israel-Iran war.
Transport Minister Saleh Al-Jasser, who also chairs the Saudi Ports Authority (Mawani), launched the Logistics Corridors Initiative alongside Zakat, Tax and Customs Authority Governor Suhail Abanmi, Mawani President Suliman Al-Mazroua, and other officials, the Saudi Press Agency reported.
The initiative will establish dedicated operational corridors to receive containers and cargo redirected from ports in the Kingdom's Eastern Region and other Gulf Cooperation Council states to Jeddah Islamic Port and other Red Sea coast ports.
Al-Jasser said the Kingdom was committed to ensuring supply-chain stability and the smooth flow of goods through global trade routes. Jeddah Islamic Port and other west coast ports, he added, were already playing a key role in accommodating shipments redirected from the east, while also linking Gulf cargo to regional and international markets.
The initiative comes as shipping through the Strait of Hormuz has been severely disrupted by the widening conflict in the region. Iran has long threatened to close the strait — the world's most critical oil and gas chokepoint, through which roughly a fifth of global oil supplies pass — in the event of a war.
Since the US and Israel struck Iran last month, Tehran has moved to restrict passage through the waterway, sending freight rates soaring and forcing shipping companies to seek alternative routes.
Saudi Arabia's Red Sea ports offer a viable bypass, connecting Gulf cargo to global markets without passing through the strait.
