A recent detailed expert study revealed that the manufacturing activities in Saudi Arabia were the best stimulator of private sector growth among all other activities that make up the Saudi national economy.
The study, prepared by researchers Mona Al-Muhanna Aba Al-Khail and Ahmed Al-Bakr, from the Economic Research Department of the Saudi Arabian Monetary Agency, concluded that the manufacturing activity was the most stimulating for growth rates in the private sector, in addition to its role in encouraging other economic activities.
This comes amid tangible efforts by the Kingdom to boost the private sector with all its components.
Saudi Arabia is expected to announce an integrated program for the development of the private sector and its involvement in more interactive tasks towards increasing its contribution to the national economy.
The study concluded that there was a positive and statistically significant relationship between the real domestic product of the private sector and economic activities, which include a number of manufacturing sectors, electricity, gas and water services, building and construction, wholesale and retail trade, restaurants and hotels, as well as transport and communications (with varying proportions in terms of impact on private sector growth rates).
Finance Minister Mohamed Al-Jadaan had underlined, ahead of the issuance of the 2020 budget, the remarkable growth in various economic sectors during 2019, stressing the government’s continued implementation of its strategy to diversify the economic base by creating an appropriate environment for investment in promising sectors.
