Saudi Arabia’s Vision 2030 faces its biggest test
The Gulf’s largest economy is facing unprecedented challenges from the coronavirus Covid-19 and oil at $30 a barrel. Has diversification under Vision 2030 done enough to help Saudi Arabia weather the storm or will it be forced to abandon its dreams of diversification?
Saudi Arabia has announced SAR120 billion ($32 billion) of stimulus to support its economy as it looks to fight Covid-19, but the impact of lower oil prices means it is also having to announce emergency spending cuts and increase its deficits to pay for them.
Minister of finance Mohammed Al-Jadaan unveiled on Friday SAR70 billion of new initiatives to help the private sector, in particularly SMEs, taking the official response stimulus up to SAR120 billion.