Saudi Finance Minister Muhammad Al-Jadaan said Saudi budget achievements in 2022 were the result of continuous work in previous years.
He added: “In general, our expectations for the coming year remain conservative, and active government intervention has allowed us to control inflation.”
Al-Jadaan stressed that the establishment of a ceiling on fuel prices at the local level was the reason for reducing inflation in the Kingdom.
In 2022, Saudi Arabia recorded one of the lowest inflation rates in the world at 2.6%. This happened after the Kingdom took a number of measures to protect the economy from inflation, primarily fixing energy prices.
Al-Jadaan noted that the rate of payment of contributions to the private sector has accelerated, and financial compensation has been paid quarterly instead of annually.
He explained that all this was achieved in 2022, after many years of hard work.
Al-Jadaan expected the Saudi economy to grow 3.1% in 2023 supported by oil activities, with the Saudi economy expected to grow 5.7% in 2024 and 4.5% in 2025.
He said the reforms of recent years have played their part in easing economic volatility, with the government directing spending on projects that provide the greatest return for citizens and opportunities for the private sector, and it is unwise to rush to change financial policies in order to overcome current problems.
He continued: “In the context of global fluctuations, it is not advisable to rush to change financial policy until we are sure that we have a strong economic base and large reserves are provided for revising financial policy, whether it be tax or otherwise.”
Regarding the tax, he said: “It is unwise to rush to change financial policies in light of the current global fluctuations and we are part of the world. Other.”
Al-Jadaan said everyone has witnessed the effects of inflation containment in Saudi Arabia, noting that the government is focused on growing the economy, not just increasing incomes.
During the conference, the Minister of Finance announced that government procurement would be amended to include the local sector.
Helpfully, Saudi Arabia is the only one of the twenty countries whose economic expectations have doubled.
Al-Jadaan said policies and structural reforms have contributed to the fluctuations in government revenues and added: “We need to work to create jobs and business opportunities… We have seen the impact of supporting citizens during the turmoil the world is facing.” .
Finally, the Minister of Finance mentioned the rapid decline in unemployment in the Kingdom.
Saudi Finance Minister Mohammed Al-Jadaan said there are currently no changes to the value-added tax or fees for foreign workers.