RIYADH: Shedding light on the Kingdom’s economic performance, Saudi finance minister said the country’s gross domestic product has increased by more than 15 percent since the launch of Vision 2030.

Speaking at a panel “Reshaping Middle East Economies,” on the opening day of the Qatar Economic Forum in Doha on Tuesday, Mohammed Al-Jadaan urged economic planners to optimize their strategies to curb “economic leakage” and prevent resources or fund from being wasted.

Calling for the adoption of prudent fiscal policies, the minister said spending at a time of global inflation results in increased costs of projects, which according to him, further fuels inflation and “overheat” economy.

Based on the Kingdom’s economic performance, the minister said that Saudi Arabia is in a position to “reshape the Gulf region’s” overall economy.

“Up to 72 percent of our gross domestic product comes from non-oil investments, so we’ve reduced oil production by 7 percent,” Al-Jadaan added.

He noted that Vision 2030 launched in 2016, well before the COVID-19 pandemic, wars in Ukraine and Gaza and problems like inflation and supply chain disruptions.

“All of these collective shocks that are facing the world calls us also to reprioritize, to look at what we are doing, and how can we actually optimize what we are doing, optimize our plans,” Jadaan said.

Giving the reforms “more time” could ultimately be better for the Saudi economy, allowing the private sector to grow alongside the giga-projects, he said.

“If you don’t allow your economy to catch up with your projects, basically what will happen is you will import a lot more,” Al-Jadaan said.

“And you will not allow your economy, your private sector to catch up and build their factories, manufacturing facilities, service providers to actually support the projects that we are building.”

During the same panel, Muhammad Sulaiman Al-Jasser, chairman of the Islamic Development Bank Group, shed light on how the oil boom affected the Gulf Cooperation Counil region.

“When the oil boom came, the government sent us overseas all over the world to go and study and come back and participate in the development of our (respective) countries,” Al-Jasser said.

The IsDB chairman also added: “Resilience, I think is very very important, and the GCC countries seem to be together moving in that direction and now they are much greater believers in their own abilities. Resilience is probably now what distinguishes the GCC economies.”

The 4th Qatar Economic Forum aims to explore the issues driving global boardroom conversations and spotlight the Gulf’s rising prominence.

RIYADH: Initial public offerings in the Middle East are poised for continued positive aftermarket performance this year, following significant post-IPO gains in the first quarter, a new report stated. 

PwC’s latest IPO+ Watch report highlighted the Saudi Stock Exchange’s emergence as a dominant force in Gulf Cooperation Council equity market launches activity, hosting the majority during the quarter, underscoring the region’s attractiveness to investors seeking dynamic opportunities. 

“Tadawul is reported to remain the most active exchange in the GCC with all but one IPOs taking place on either Tadawul main market or the Nomu parallel market,” the report stated. 

On the primary market, three IPOs garnered a combined total of $667 million, while on the secondary market, six offerings raised $57 million in total. 

Notable among the recent successes are MBC Group Co. and Avalon Pharma, both witnessing substantial market gains. 

However, the report noted that the market’s attention has been captured by the demand for Dubai Parking, which set a new record for subscription levels at the Dubai Financial Market, being oversubscribed by 165 times. 

The offerings landscape in the Middle East during the first three months of this year was characterized by activity across various sectors, showcasing a diverse range of investment opportunities.  

From consumer markets with companies like Parkin Co. and Modern Mills for Food Products Co., to health industries represented by Avalon Pharma, and technology, media, and telecommunications with MBC Group Co., the IPO wave has touched multiple sectors. 

Additionally, smaller-scale market debuts were observed in the financial services, industrials, manufacturing, and automobile sectors. 

Muhammad Hassan, capital markets leader at PwC Middle East, expressed optimism, citing Parkin’s oversubscription and double-digit post-IPO gains as indicators of sustained positive momentum. 

“We expect the privatization agenda across the GCC, combined with the ambition of private family businesses to go public, will continue to drive issuance supporting positive momentum in GCC IPO activity in 2024,” he added. 

Looking ahead, the report anticipated continued strength in the public flotation landscape for the remainder of 2024, buoyed by a robust pipeline.  

Private sector companies seeking liquidity and access to capital are expected to drive much of this activity, with Saudi Arabia and the UAE leading the charge. Nevertheless, there’s growing momentum in markets like Oman and Qatar, signaling a broader regional expansion of IPO activity.