Saudi Gazette report

RIYADH — Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva expressed her gratitude to the Saudi leadership for its continued and strong support for the Fund. "The Kingdom, under the leadership of Custodian of the Two Holy Mosques King Salman and Crown Prince and Prime Minister Mohammed bin Salman, is leading the International Monetary and Financial Committee (IMFC), under IMF, with prudence that has resulted in further strengthening global financial and economic stability," she said.

Georgieva noted that Saudi Arabia's chairing of the IMFC is a confirmation of the Kingdom's international and regional standing and its continued role in promoting stability and supporting global growth.

It is noteworthy that Saudi Arabia has been a member of the IMF since 1957 and has been serving as chair of IMFC since December 2023. The IMFC is responsible for advising and reporting to the IMF Board of Governors as it manages and shapes the international monetary and financial system. The Committee discusses matters affecting the global economy and advises the IMF on the direction of its work.

The two-day meeting of the IMFC deputies concluded in Diriyah on Monday. The meeting was held under Saudi Arabia's presidency and that was in partnership between the Saudi Ministry of Finance and the IMF.

Addressing the meeting, Minister of Finance Mohammed Al-Jadaan praised the IMF leadership and the IMFC members in guiding the Fund through challenging times. He emphasized the importance of cooperation to ensure global financial stability and strong and inclusive economic growth.

Al-Jadaan noted that the IMF has demonstrated resolve in adapting to ongoing global changes. The IMF Executive Board stated in 2024 that the Kingdom had achieved tremendous progress in its unprecedented economic transformation, successfully advancing modernization and diversification efforts within the framework of Vision 2030, initiated and overseen by Crown Prince Mohammed bin Salman.

During the high-level panel discussions, the IMFC deputies discussed topics related to ways to enhance global financial stability and inclusive development, the challenges facing the global economy due to uncertain trade flows and their impact on capital flows in advanced and developing economies, the impact of rising debt on infrastructure investment and jobs, and the opportunities and risks arising from technological and demographic transformations.

They highlighted the IMF's role in supporting countries through financial stability programs and coordinating regional financial arrangements. The committee discussed issues related to promoting global economic growth, ways to ensure global financial stability, the challenges it faces, and the policies recommended to address them.

The committee is a key platform for discussing the strategic directions of the IMF's work and policies. IMFC comprises 25 members, including finance ministers and central bank governors from developed, developing, and low-income countries.

In a related development, a recent analytical study on Saudi fiscal space (flexibility of government in its spending choices) facilitated the recalibration of investment spending planned under Vision 2030 by re-prioritizing projects and sector strategies. The IMF stated that the Saudi economy has not yet experienced any significant repercussions as a result of the ongoing geopolitical events.

The reduction in oil production led to an overall contraction in growth of 0.8 percent in 2023, while non-oil GDP recorded a significant growth of 3.8 percent, supported mostly by private consumption and non-oil investment. The Fund noted that the unemployment rate reached an all-time low, while female labor force participation rates remained well above the 30 percent target under Vision 2030.