(MENAFN) The Saudi Press Agency has disclosed that the government has given its approval for an agreement to establish a regional office for the International Monetary Fund (IMF) in Riyadh. This decision, ratified by the Saudi Council of Ministers under the leadership of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, marks a significant milestone in the Kingdom's collaboration with the IMF.
The headquarters agreement, endorsed on Tuesday, formalizes the arrangement between the government of Saudi Arabia and the IMF to establish the regional office in Riyadh. This move builds upon an agreement previously signed by the Saudi Ministry of Finance and the IMF in October 2022, signaling the Kingdom's commitment to bolstering its economic presence on the global stage. Saudi Finance officials underscored that the establishment of the regional office reflects Saudi Arabia's status as the largest economy in the region and a prominent member of the G20.
Kristalina Georgieva, Director of the IMF, has expressed enthusiasm for the establishment of the new office in Riyadh, emphasizing its role in strengthening the IMF's presence and partnerships with Arab institutions. The regional office in Riyadh is poised to facilitate closer collaboration between the IMF and Saudi Arabia, as well as other regional stakeholders, in addressing economic challenges and promoting sustainable development initiatives.
The decision to open an IMF regional office in Riyadh comes at a time when the IMF has adjusted its expectations for Saudi economic growth in 2024. While the IMF anticipates a growth rate of 2.7 percent, it acknowledges the likelihood of a slowdown in economic recovery due to a decline in oil production. Nevertheless, the IMF remains optimistic about the resilience of non-oil sectors, expecting strong growth in non-oil activities to contribute to overall economic stability and diversification efforts in the Kingdom.
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