RIYADH: Middle Eastern countries should ensure economic integration to ensure growth, according to Saudi Arabia’s minister of economy and planning.
Speaking at a panel discussion during the World Economic Forum in Davos on Thursday, Faisal Alibrahim said that countries in the region have a legacy of overcoming challenges.
He said: “There is always a bright spot in the Middle East even if there are challenges. So, wherever there is a challenge, there is another opportunity in this region. The more economically integrated it is, the better.”
The Saudi minister stressed the need for greater economic integration, noting, “If you look at this region, it is still not one of the most integrated regions. There is room for more improvement. The region is one of the youngest in the world, and also it sits at the center of the world.”
Alibrahim emphasized the importance of utilizing and investing in the immense natural resources that Middle Eastern countries are blessed with to ensure economic growth.
He further pointed out that countries should continue their economic reformation efforts despite the challenging times.
“In the Middle East, we can see two groups of countries; the first one is nations that are transforming, while the second one is countries facing challenges. Countries that are transforming need to continue with their transformation. The other group also needs to work on how it can kick off like their neighboring countries,” said Alibrahim.
According to the minister, the Middle East is now integrated into the entire global economy, and events in the region have global implications. “The Middle East is more integrated with the global economy than it was ever before. What affects the global economy affects MENA and vice versa,” he said.
Discussing the oil industry, Alibrahim noted that Saudi Arabia is actively working to maintain the stability of the crude market, with recent output cuts being one of the measures taken for this purpose.
“Anyone who understands the true dynamics of energy and oil markets will say that Saudi Arabia and its partners are working to ensure the long-term stability of the market. And that is what we have always done, and sometimes, production cuts are necessary for us to get there,” said the minister.
The Saudi official also highlighted the progress of the Kingdom’s non-oil private sector under Vision 2030.
“Since 2016, the Saudi economy, without oil, has grown 20 percent, and that is faster than the EU and the US which are 10 and 14 percent respectively. In 2024, we will have a total growth of 4.4 percent and non-oil growth between 4.5-5 percent,” he noted.
Nadia Fettah Alaoui, Morocco’s minister of economy and finance, also participated in the discussion and mentioned that emerging economies face challenges in obtaining funding to achieve climate goals.
“What we are facing now is that we are committed to having green sustainable growth, we are facing challenges of climate change, but we are not getting the finance that is needed,” she said.
Alaoui added that Morocco is collaborating with private sector entities to develop its renewable energy sector and aims to have 50 percent of overall energy coming from sources like solar and wind by 2030.
