Saudi Arabia made a notable appearance at the conclusion of the World Economic Forum (WEF/Davos 2024). The Kingdom announced its proud commitment to hosting a prestigious, exclusive event of the WEF on April 28 and 29.
The reveal of the meeting was made by Saudi Minister of Economy and Planning, Faisal Alibrahim, during a panel discussion titled “Saudi Arabia: The Course Ahead” at the Forum. The panel, attended by several Saudi ministers and World Bank Group President Ajay Banga, highlighted the meeting’s primary focus on promoting international cooperation, fostering economic growth, and addressing energy-related matters.
During the meeting, Alibrahim made a projection that the Saudi economy would experience a growth rate of 4.4 percent this year. Additionally, he forecasted a growth range of 4.5 percent to 5 percent for the non-oil GDP.
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Alibrahim emphasized that economic diversification is a central objective of Saudi Vision 2030. He highlighted the Kingdom’s global competitiveness, expressing optimism about the GDP forecast for 2024, stating that it bodes well for the Middle East.
In addition, Saudi Finance Minister Mohammed Al-Jadaan announced that the private sector in Saudi Arabia has recently generated 800,000 jobs. Al-Jadaan emphasized Saudi Arabia’s determination and awareness of the need to double their economic efforts, as a strong Saudi presence is crucial for both the region and the world.
The minister further highlighted that the focus is on non-oil GDP, highlighting its significance in their economic agenda.
Adel Al-Jubeir at Davos 2024
For his part, the Saudi Minister of State for Foreign Affairs and Climate Envoy Adel Al-Jubeir highlighted that Saudi Arabia is making significant investments in renewable energy sources such as solar, wind, and hydrogen. Al-Jubeir stressed the Kingdom’s commitment to these investments, as it believes it to be the future of energy.
However, Al-Jubeir also acknowledged that fossil fuels will continue to play a significant role in the global economy for many decades due to their economic importance. He emphasized that Saudi Arabia seeks cooperation from other countries in reducing carbon emissions. The country aims to set an example to the world in addressing climate challenges while simultaneously prioritizing stability and security, he noted.
Al-Jubeir further underlined the need to approach climate change as a serious and scientific issue, free from emotional biases and political point-scoring. He underscored the importance of addressing the problem in a rational and pragmatic manner.
BRICS
According to Reuters, Saudi Arabia is currently evaluating an invitation to join the BRICS bloc, as reported by two anonymous sources familiar with the matter.
Earlier in August, the bloc extended invitations to Saudi Arabia, the United Arab Emirates (UAE), Egypt, Iran, Argentina, and Ethiopia to join starting from January 1. However, Argentina expressed its unwillingness to accept the invitation in November.
The sources clarified that the January 1 deadline was not a strict requirement for a decision. One of the sources mentioned that there are significant advantages for Saudi Arabia in joining the bloc, especially considering that China and India are the Kingdom’s largest trading partners.
One source stated, “Saudi Arabia is currently assessing the benefits and will make a decision accordingly.”
The inclusion of Saudi Arabia would enhance the economic stature of the BRICS bloc, which currently comprises China, Brazil, Russia, India, and South Africa. This expansion has the potential to bolster the bloc’s aspiration of becoming a prominent advocate for the nations of the global South.
According to Reuters, Saudi Economy Minister Faisal Alibrahim confirmed that the Kingdom is still in the process of considering whether to join the bloc. In an interview, he explained that Saudi Arabia engages in multiple multilateral platforms and institutions, and the decision-making process typically involves multiple steps. Alibrahim added that they are currently undergoing a similar process and mentioned that he will share his comments once it concludes.
Meanwhile, the UAE has accepted the invitation and joined the conglomerate, as announced by the Ministry of Foreign Affairs. The UAE’s Economy Minister, Abdulla bin Touq Al Marri, clarified that the country’s decision was based on economic considerations and not political ones.
“We are not living in a cold war… joining the BRICs is not from a political stance, it’s from an economic stance,” Al Marri said.
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