Economists see Kingdom playing a pivotal role in global economy

The G20 summit in Hangzhou, China, offers the Kingdom an opportunity to play a crucial role as the most important energy producer and in stabilizing oil supply and prices internationally.

In this context, Basil Al-Ghalayini, CEO of BMG Financial Group, says: “As the largest OPEC producer and a regional political heavy weight, Saudi Arabia plays a critical role within the G20. With its Vision 2030 and its National Transformation Program 2020, there is a race against time to implement such a plan. Hence, the other G19 are monitoring with anticipation how they may participate and benefit from the Saudi vision.”
He said: “Multiple joint ventures and cooperation memoranda have been signed recently in Japan and China in view of the Saudi Aramco’s initial public offering (IPO), the housing boom and other growing sectors.”
James Reeve, deputy chief economist and assistant general manager at Samba Financial Group, says: “Vision 2030 is an important commitment for the Kingdom to reform in a world where significant supply side reforms have largely stalled. If the process is a success, then it would be an important example to other emerging markets.”
In fact, the Kingdom’s role and contributions in the G20 stems from its systemic role in the global economy. No doubt, Saudi Arabia has played a positive and effective role in maintaining the stability of the world energy market through its active role in the global oil market. After all, “the Kingdom’s oil policy is based on balanced foundations, taking into account the interests of both the producing and consuming nations, particularly poor countries,” comments John Sfakianakis, director of economic research at the Gulf Research Center.
Saudi Arabia, through its G20 membership, has played a pivotal role in further boosting the world economy as the economy of the only Arab country in the group is based on a firm economic and industrial pillar, Sfakianakis added.
The Kingdom's presence in the G20 group, which consists of the world's most powerful economies, provides a constant opportunity to keep in touch with the most powerful political and economic decision-makers globally, a matter that enhances its bilateral cooperation with each of them, he said.
The Saudi role is significant. Its weight in the global economy comes above all from energy security, a critical location, and a large pool of capital. What is just as important now is the role the Kingdom has assumed in driving an important paradigm shift in its economy. This will have enormous implications for the region and the world, said a regional analyst who requested anonymity.
Bessma Momani, senior fellow at the Centre for International Governance and Innovation, said: “Saudi Arabia can play a very impressive role in the G20 proceedings, if it chooses to. As the largest oil exporter and holding the largest oil reserve, and having become more recently a very important destination for financial capital to purchase government bonds, Saudi Arabia can contribute to important discussions about recovering the global economy from its current stagnant position.
Moreover, as G20 countries are encouraged to promote fiscal spending as a way of providing stimulus to the global economy, Saudi Arabia's large reserve holdings can be used for these purposes as well.”

Source: Arab News