Saudi Arabia opens its flagship business conference today at a moment of optimism, even as the kingdom faces major macroeconomic challenges.
As the Future Investment Initiative gets underway, Crown Prince Mohammed bin Salman’s diversification effort is ahead of schedule in many respects: Tourism is growing fast, the non-oil economy now accounts for more than half of GDP, and female participation in the labor force has surged, albeit from a low base.
Still, chronically low oil prices, a widening budget deficit, and huge overspending on so-called gigaprojects have forced the kingdom to change gears on investment plans, a move that “reflects both strength and constraint,” a longtime Saudi watcher wrote in a Semafor column.