CEDA: A train for economic development

Saleh Al-Zahrani JEDDAH — The Council of Economic and Development Affairs (CEDA), under the chairmanship of Deputy Crown Prince Muhammad Bin Salman, second deputy premier and defense minister, is a locomotive for development and a mechanism to achieve economic transformation in the Kingdom and in the region at large. The Kingdom, which depends 85 percent on the oil for its budget of which prices have dropped by about 50 percent, would have faced grave economic consequences had it not been for the council, which took speedy decisions to set the wheel right. These quick decisions included, among others, an intensive campaign to rationalize the consumption of energy, water and electricity. The council also rationalized government spending with a view to correcting faltering projects, which should be implemented on time. The council is currently implementing a plan to promote economy through privatization so as to reduce the financial burdens on the government. Abdullah Dahlan, a renowned Saudi economist, said the council was established during unfavorable conditions to lead the process of economic reforms. He said the unfavorable conditions included the sharp drop in prices of oil on which the Kingdom largely depends. “The council has moved fast to rationalize government spending and reduce the number of faltering projects which are dissipating billions of riyals,” he said. Dahlan said the council has started privatizing a number of government enterprises and services, which will raise the service quality and reduce delay in achievements. He commended the council’s plan to increase the non-oil revenues by about $100 billion by the year 2020 and lauded the establishment of a sovereign fund with a capital of $2 trillion to diversify investments and ensure better income for the future generations. Dahlan said the green card will be granted to a selected number of expatriates who are capable of making investments and added that this will boost the national economy. Abdullah Bin Mahfouz, a member of the board of directors of Jeddah Chamber of Commerce and Industry (JCCI), said the council’s plans to diversify economy depend largely on the executive measures to be taken by the ministries and government departments. “We have to have our own local production so as to liberate the economy from the dependence on oil,” he said. Mahfouz said the objective behind the diversification of the sources of income is to reduce dependence on oil by at least 40 percent. “With the fiery spirit of the youth, Prince Muhammad Bin Salman is handling this file and will end triumphantly,” he said.