WEF26: Saudi Arabia Becoming ‘A Connector Economy’ as World Trade Evolves

His Excellency Majid A. Alkassabi, Saudi Arabia’s Minister of Commerce, delivered a powerful message at the World Economic Forum Annual Meeting in Davos today. In a session titled ‘Many Shapes of Trade’, HE Alkassabi highlighted the Kingdom’s potential to benefit from the ongoing shifts in global supply chains.

The Minister began by acknowledging the challenges faced by the global economy in recent years, including the rise of protectionism and trade tensions between major economies. However, he also emphasized that these challenges have created opportunities for countries like Saudi Arabia to diversify their economies and become more competitive in the global market.

HE Alkassabi pointed out that Saudi Arabia has already taken significant steps towards economic diversification through its Vision 2030 plan. This ambitious plan aims to reduce the Kingdom’s reliance on oil and develop new industries, such as tourism, renewable energy, and technology. These efforts have already started to bear fruit, with the non-oil sector accounting for more than half of the country’s GDP in 2019.

The Minister also highlighted the Kingdom’s strategic location, which makes it an ideal hub for global trade. With its well-developed infrastructure and modern ports, Saudi Arabia is well-positioned to become a key player in the global supply chain. This is further supported by the country’s young and skilled workforce, which is continuously being trained and upskilled to meet the demands of the evolving market.

HE Alkassabi also emphasized the Kingdom’s commitment to creating a business-friendly environment. The government has implemented several reforms to improve the ease of doing business in the country, including streamlining procedures, reducing bureaucracy, and enhancing transparency. These efforts have been recognized by international organizations, with Saudi Arabia jumping 30 places in the World Bank’s Ease of Doing Business Index in 2020.

The Minister also highlighted the Kingdom’s efforts to attract foreign investment. In 2019, Saudi Arabia saw a 54% increase in foreign direct investment, and this trend is expected to continue in the coming years. The country’s strong economic fundamentals, stable political environment, and attractive incentives for investors make it an ideal destination for businesses looking to expand their operations.

HE Alkassabi also spoke about the Kingdom’s commitment to free trade and its role in promoting global economic growth. Saudi Arabia is a member of the World Trade Organization and has signed several free trade agreements with countries around the world. These agreements not only benefit the Kingdom but also contribute to the growth and development of its trading partners.

In conclusion, HE Alkassabi reiterated the Kingdom’s determination to continue its economic diversification efforts and become a major player in the global market. He also emphasized the importance of collaboration and cooperation between countries to overcome the challenges facing the global economy. The Minister’s positive outlook and confidence in the Kingdom’s potential to benefit from the ongoing shifts in global supply chains left the audience at the World Economic Forum inspired and optimistic about the future.