Economics

Saudi Arabia Sees Non-Oil Economy Rebounding on State Spending

Government plans to increase public spending in 2018
Return to growth would help preparations for post-oil era

Saudi Arabia’s Mohammed Al-Jadaan discusses the budget, the Aramco IPO and the anti-corruption crackdown.(Source: Bloomberg)

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By Vivian Nereim, Yousef Gamal El-Din, and Matthew Martin

December 19, 2017 at 2:54 PM UTC

Updated on

December 19, 2017 at 9:57 PM UTC

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Saudi Arabia expects its economy to rebound in 2018, a crucial year for Prince Mohammed bin Salman’s blueprint for the post-oil era, as authorities ease an austerity drive that hurt growth.

The non-oil economy, the engine of job creation in the kingdom, is expected to grow “north of 3 percent,” Finance Minister Mohammed Al-Jadaan said in an interview with Bloomberg TV in Riyadh on Tuesday. That’s twice the 2017 rate.