Saudi Arabia has come up with a new economic strategy of injecting SR 5 trillion into the Kingdom over a decade to help Saudi businesses. The launch coincides with a 2.8% rise in the Tadawul stock market to 9,9907.82 points on Wednesday, a five-year high.
The launch of the program is to bolster the partnership with the private sector names partner or “Shareek” by Crown Prince Muhammad Bin Salman. Additionally, the program would increase private sector investment and further investment by the Kingdom’s sovereign wealth fund.
The program was welcomed by business tycoons and economists alike to strengthen the Saudi economy that was hit by the coronavirus pandemic.
In a statement, Chief Executive of Saudi Aramco, Amin Nasser stated that he supports the initiative, which is aligned with Vision 2030. The program supports GDP growth through new investment and will have a multiplier effect on the Kingdom’s economy, he added.
Notably, the plan involves incentives to channel dividend payments by public quoted companies into a long-term investment in the Kingdom.
Further, this would mark the biggest economic boost—the SR27 trillion stimulus backed by the government and consumer spending.