Saudi Arabia: a Key Regional and Global Player

IMF Blog, February 8, 2012

Source details

Author: Christine Lagarde
Date: February 8, 2012
Note: (Version in عربي)
First visit as the Managing Director of the IMF; received "exceptional warmth and hospitality."
Met H.M. King Abdullah, senior government officials, and representatives of the private sector; discussions described as "productive and constructive."

Saudi Arabia shares strengths with other Middle East and North Africa countries: "vast natural resources, an advantageous geographic position, access to key markets, and a dynamic and young labor force."
Engagement with Saudi academics and business leaders, including women, noted; discussions focused on "the global economy and their interest in advancing the country’s economy."
Human development progress: "The process of human development has advanced considerably as measured by different education and health indicators."
Emphasis on continuing "the process of inclusion that the Kingdom has already embarked upon" to broaden the base of economic development and ensure "nobody is left out."
Generating employment for young nationals in the private sector was highlighted as a recurring topic in meetings.

Regional leadership:
- "As the largest country in the Gulf Cooperation Council (GCC), Saudi Arabia helps shape the GCC integration process."
- Provides support to many other countries in the region and is "a key source of investments and remittance inflows for many South Asian and neighboring Arab countries."
Global energy markets:
- Identified as "one of the world’s largest oil producers and the only country that has consistently maintained significant spare production capacity."
- Saudi Arabia and other GCC producers "sharply increased oil production to limit volatility in the oil markets despite the disruptions in Libya."
- Observations on oil market dynamics: "Further increases in oil prices would slowdown the global economy and eventually lead to lower demand for oil; and thus lower prices and higher volatility."
- Conclusion: "a reasonable degree of stability is mutually beneficial for oil-exporting and oil-importing countries."
Global economic engagement:
- Plays "an important role in supporting the global economy through active participation in both international financial institutions, such as the IMF, and in global economic policy discussions in the context of the G-20."
- Noted "tremendous interest, both within government and the private sector, in better understanding the current difficulties in the global economy and their solution."

Tone of optimism and commitment: departure from the region "with a sense of hope and resolve to return to the region again soon."
Reform agenda:
- "I believe that with determination, the goals of the Arab reform agenda are within reach."
- Putting reforms in place is framed as a way to "help countries in the region both meet people’s aspirations and help them contribute even more to the rest of the world."

Source: Saudi Arabia: a Key Regional and Global Player — Christine Lagarde, February 8, 2012.