Aramco Equity Transfer Helps the Public Investment Fund, Hurts Saudi Government Budget
The transfer of Saudi Aramco equity helps grow the PIF but could leave a hole in the 2024 government budget.
The transfer of Saudi Aramco equity helps grow the PIF but could leave a hole in the 2024 government budget.
Given the volatility of hydrocarbon prices and other external shocks, Gulf Arab states can benefit from adopting countercyclical fiscal policies – a bold, but necessary, shift that will limit fallback during economic downturns.
As Central Asian states seek to diversify their economic partnerships, the UAE and Saudi Arabia double down on green investments in the region to bolster their energy transitions.
Positive developments in four indicators during 2024 – the female labor force participation rate, tourist arrivals, foreign direct investment inflows, and student educational attainment – will give confidence that the bold diversification plans underway in Saudi Arabia are on track.
While Singapore has traditionally been seen as a model for the United Arab Emirates, Norway, with its unique approach to economic management and environmental sustainability, is increasingly cited as an inspiration.
The longer-term desirability of Neom’s destinations depends largely on the fast-changing domestic environment within Saudi Arabia, yet a tough regional neighborhood will keep Saudi planners on their toes.
The Saudi economy is likely to grow by around 1.5% in 2024 with the non-oil sector expanding by 3% to 4%. However, uncertainties are high, centering around the oil market, conflict in Gaza, path of U.S. monetary policy, and effects of domestic reforms.
Through government support, the UAE looks to spark its nongovernmental sector, encouraging the growth of a new social entrepreneurship ecosystem.
Saudi Arabia’s innovative strides in health care aim to ensure that the kingdom has the tools and infrastructure to meet rising health-care challenges.
Oil flows are redirected as war and Houthi attacks on shipping in the Red Sea disrupt traffic.
Learn MoreThrough its careful examination of the forces shaping the evolution of Gulf societies and the new generation of emerging leaders, AGSIW facilitates a richer understanding of the role the countries in this key geostrategic region can be expected to play in the 21st century.
Learn More