Economic diversification boosts Saudi resilience to oil shocks, expert says
Saudi Arabia's economic diversification has strengthened its ability to withstand external shocks and oil price volatility, according to economist Bandar Al-Juaid.
Key Takeaways
AIEconomist Dr. Bandar Al-Juaid said Saudi Arabia’s economic diversification has strengthened its ability to withstand external shocks and fluctuations in oil prices.
In an interview with Al Arabiya, he added that Vision 2030 has focused on diversifying economic activities, and that expanding non-oil sectors has helped the Kingdom absorb shocks from disruptions in oil supply chains.
Al-Juaid noted that Saudi Arabia now has projects in mining, industry, transport, technology, and quality of life programs. As a result, all ratings agencies agree on the Saudi economy’s ability to absorb and manage shocks, a strength demonstrated during the COVID-19 pandemic and the Russia-Ukraine war.
The economist also said that credit rating agencies’ views on the Kingdom are a key factor in evaluating debt instruments, as investors always seek countries with high ratings and a strong track record of meeting financial obligations.
View the post on X