IMF and Saudi Arabia

The Executive Board of the IMF issued the report of the Article IV consultation for 2024 with Saudi Arabia, where the report concluded that the Saudi economy will grow by 4.7% in 2025 with the gradual disruptions of oil production cuts, the peg of the riyal to the dollar remains appropriate for economic conditions.

The IMF expects the Saudi non-oil economy to grow by 4.4% in the medium term after its decline in 2024, noting that the average growth of the Saudi economy will be 3.7% annually after 2025.

The IMF report added that Saudi banks and non-financial companies are able to withstand even highly hostile scenarios.

The IMF's Executive Board supports the recalibration of the investment for spending in Saudi Arabia and recommends further fiscal adjustments.

The report emphasized that the Saudi economy has not witnessed any major repercussions as a result of geopolitical events in the region, showing the importance of continuing efforts to support non-oil revenues in Saudi Arabia.

The Saudi Monetary Fund recommended phasing out the remaining fuel subsidies in Saudi Arabia while implementing programs for eligible groups, also recommended that Saudi Arabia tighten precautionary measures in case credit continues to rise.

The report said that inflation in the Kingdom will remain under control, supported by the credibility of the exchange rate pegging system to the dollar.