The Saudi Finance Minister, Muhammad Al-Jadaan, said that there are no plans yet to amend the value-added tax, after increasing it last year to 10%, to mitigate the impact of the decline in oil revenues on state finances.
Speaking from Rome, where he attended the G20 summit, Al-Jadaan said that the kingdom, the world’s largest oil exporter, is working towards achieving a sustainable economy through sustainable energy revenues and resources.
As part of efforts to diversify the country’s economy, the Crown Prince announced in March a program called “Partner” under which the local private sector will invest five trillion riyals ($1.3 trillion) by 2030.
The Minister of Finance said that this is a medium to long-term program, but to date it has achieved between 470 and 500 billion riyals of investments from listed private and public companies.
The Public Investment Fund, the sovereign wealth fund and the engine of the Kingdom’s endeavors for economic transformation, also plans to pump about 150 billion riyals into the national economy annually until 2025.
Al-Jadaan said that the fund has “abundant liquidity” and that “no additional transfers are currently being considered” after $40 billion of foreign reserves were transferred to the Central Bank last year to help the Public Investment Fund finance its investments.