Saudi economy grows 5% despite oil price fall

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Wednesday 27 Jan 2016 - 14:18 Makkah mean time-17-4-1437 Riyadh, (IINA) - The Saudi Arabia's drive to diversify its economy would offset the fall in oil prices, said Saudi Aramco’s Chairman Khalid Al-Falih, Arab News reported Tuesday. Addressing a panel discussion at the 9th Global Competitiveness Forum, which started in Riyadh on Sunday, Al-Falih said: “Despite the fall in oil prices, the Kingdom’s economy has reported 5 percent growth and will continue to grow over the next 50 years”. Al-Falih said that the government has been working on diversifying its sources of income, and the current trend is on innovation and creativity, and creating a knowledge-based economy. He said the country has great investment opportunities in information technology, health care, tourism, financial services and telecommunications. In addition, the Kingdom plans to introduce new technology into its manufacturing sector, including training Saudis for highly specialized positions. Al-Falih said that Aramco has reduced expenses, as was the case with other companies, because of the fall in crude prices. However, the company is to offer a basket of petroleum products to the market, and allow investors to take part ownership of Aramco. This would provide further income and boost business confidence, he said. Saudi Aramco, which supplies all of Saudi Arabia’s crude oil, pumped more than 10 million barrels a day in each of the last 10 months as it sought to assert its role as the world’s lowest-cost producer. With regard to the provision of health care services, Al-Falih said the ministry is working to increase private sector participation, with plans to double this over the next five years. Saudi Arabia’s Commerce and Industry Minister Tawfiq Al-Rabiah said that the government is working to streamline and facilitate private sector services and make use of modern technology in electronic trading. It is also encouraging corporate mergers and acquisitions to make the Kingdom more competitive. He noted that some companies, which do not have operations here, have misconceptions about investing in the Kingdom. The ministry was working to clarify the situation. He pointed out that the promising sectors in the country included telecommunications, information technology and financial services. AG/IINA