Saudi Arabia to boost domestic investments domestic investment to diversify economy
Date
5/23/2024 4:57:31 AM
(MENAFN) Goldman Sachs has highlighted Saudi Arabia's ongoing efforts to boost domestic investments, aiming to increase the proportion of non-oil GDP from the current 45 percent to 65 percent within the next six years. In a recent note, Goldman Sachs detailed that the Kingdom is ramping up its spending to diversify its Economy as part of its ambitious Vision 2030 plan. This strategic initiative includes a massive investment of approximately USD3.3 trillion over the next decade.
Additionally, Goldman Sachs noted that the Saudi Public Investment Fund (PIF) holds assets valued at around USD925 billion. The bank also projected that Saudi Arabia would likely increase its issuance of foreign bonds in the near future to address its growing financing needs, emphasizing the Kingdom's robust capability to tap into international capital markets.
In terms of economic performance, Saudi Arabia's non-oil commercial activity continued its strong growth trajectory in April, driven by robust demand, particularly in local markets. The Riyad Saudi Bank Purchasing Managers' Index (PMI), seasonally adjusted, remained steady at 57 points in April, unchanged from March, and well above the 50-point mark that signifies growth in economic activity. While the production sub-index saw a slight decrease to 61.9 points from its six-month high of 62.2 points in March, it still indicated strong demand. The wholesale and retail sectors, in particular, experienced the most significant growth in production.
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