Politics
As confirmed by the Crown Prince, Saudi Arabia's economy is the largest and fastest growing globally
Saudi Arabia consistently proves itself to be a major player on the global stage, thanks to its influence, standing, and strategic plans, and its resources
Saudi Arabia consistently proves itself to be the most formidable player on the global stage, with its weight, status, and strategic plans, thanks to its powerful capabilities, as confirmed and demonstrated by the estimates of Crown Prince Mohammed bin Salman, which he announced last March, that Saudi Arabia would be the fastest growing country in the world.
The latest confirmed evidence of the Saudi economy's global leadership is the annual report issued by the International Monetary Fund, "World Economic Outlook 2022," which predicts that Saudi Arabia will achieve economic growth of up to 7.6% during the current year 2022, the highest growth rate among advanced economies, emerging market economies, and developing economies. This growth is the second highest growth for the Saudi economy in 18 years, driven by disciplined fiscal policies, efficient spending, and further strengthening of fiscal and external sustainability to avoid cyclical fluctuations, as the planned and ongoing structural reforms help achieve a strong and comprehensive recovery.
The IMF’s estimates of Saudi Arabia’s economic growth as the highest in the world reflect the great effort made in economic reforms, improving the business environment, simplifying regulations, and digitizing government processes, in addition to its work on a wide range of projects in a number of sectors, including infrastructure, logistics, entertainment, tourism, mining, and the financial sector. The report also demonstrates the strength of the Saudi economy and its ability to withstand the challenges it has faced in recent years, thanks to the financial and economic reforms that have contributed to improving the business environment, diversifying the economy and sources of income, and enhancing competitiveness.
The IMF statement also predicted that the receding effects of the pandemic, rising oil prices, and increased economic strength would lead to an improvement in the performance of public finances for 2022 that exceeds budget expectations. IMF experts expect to achieve a budget surplus of 5.6% of GDP this year, even after taking into account expert recommendations regarding additional resources to support food and allocate more funds to social security beneficiaries and the Citizen Account Program. IMF experts also predicted a decline in the debt-to-GDP ratio to 24.2%.
The economic reforms implemented by the Kingdom within the framework of Vision 2030 played a prominent role in the efforts to diversify the economy by enhancing the growth of non-oil revenues, launching major strategic projects and activating investment in promising sectors. This had a significant impact on absorbing and containing successive crises and increasing the growth rate of the Saudi economy. The Fund’s estimates of the growth rates of the Saudi economy contradict the gloomy view that the International Monetary Fund drew about the performance of the global economy. This different view comes in light of the strong improvement in Saudi economic activity supported by the strategy of diversifying sources of income and containing inflation at 2.8%, in addition to the strength of Saudi Arabia’s external economic position.
The IMF’s positive projections for Saudi Arabia’s economic growth support what the IMF stated in its concluding statement for the 2022 Article IV consultation mission, issued last June, which confirmed Saudi Arabia’s success in dealing with the COVID-19 pandemic and its position to overcome the risks arising from the war in Ukraine and the tightening of monetary policy in advanced economies.
The report also explained that economic activities in Saudi Arabia are witnessing a strong recovery supported by rising oil prices and the reforms launched under Vision 2030. Real GDP achieved strong growth of 3.2% in 2021, while the unemployment rate among Saudis decreased to 11%, a decline of 1.6 percentage points from 2020, as a result of increased employment rates for Saudi citizens, especially women, in the private sector.
Despite the emergence of some inflationary pressures, inflation rates in Saudi Arabia are contained. The average inflation rate reached 3.1% in 2021, and the inflation rate remained at 2.3% “on an annual basis” in June 2022. This is due to the limited impact of food and commodity prices in global markets on local prices, given the setting of some price ceilings and price support, in addition to the decline in residential rents.
With growth rates continuing to recover, inflation contained, and the external position strengthened, Saudi Arabia’s economic outlook remains positive in the near and medium term, as oil production increases in accordance with the timetable set by OPEC+ to restore production levels and the commitment to continue with the ambitious structural reform agenda under Saudi Vision 2030, leading to an expectation that GDP will grow by 7.6% in 2022.
Politics
An armed man in military uniform was arrested near the Capitol before the State of the Union address
Capitol Police arrested a young man armed with a rifle and military gear who attempted to approach the Capitol building, a week before President Trump's State of the Union address. Details of the incident are available here.
In a security incident that triggered a state of alert in the US capital, Washington, the Capitol Police announced the thwarting of a possible attempt to threaten security near the Congress building, where security personnel were able to arrest an armed young man who was carrying a rifle and military equipment, at a very sensitive time in the American political arena.
In details of the incident revealed by Capitol Police Chief Michael Sullivan, authorities arrested an 18-year-old man after he suddenly ran toward the Capitol building carrying a loaded rifle. Sullivan explained that the suspect arrived at the scene in a white Mercedes, which he parked near the Capitol complex before getting out and rushing toward the building. Fortunately, the incident resulted in no injuries, as the young man immediately complied with police orders to drop the weapon and surrender.
Initial investigations revealed disturbing details regarding the suspect's equipment; he was wearing a military jacket and gloves at the time of his arrest. A search of his vehicle uncovered additional gear, including a helmet and a gas mask, suggesting a possible premeditated plan or intent to escalate the situation. The ongoing investigation will determine the true motives behind this act.
This incident is particularly significant given its timing, coming just one week before President Donald Trump is scheduled to deliver his annual State of the Union address to Congress. This address is one of the most important political events in the United States, bringing together members of the House of Representatives and the Senate, Supreme Court justices, and other high-ranking officials, which typically places the area around the Capitol under heightened security measures and exceptional protection protocols to ensure the safety of the nation's leaders.
This incident underscores the ongoing security challenges faced by law enforcement agencies in Washington, D.C., particularly around key federal buildings. For years, the Capitol Police have intensified their presence and defensive strategies to counter individual and organized threats, ensuring that security breaches that could jeopardize American democracy or the safety of lawmakers are not repeated. The swift response of security personnel in this incident highlights their high level of preparedness to address sudden threats.
Politics
The Crown Prince receives a message from the President of Kazakhstan to enhance bilateral cooperation
Crown Prince Mohammed bin Salman received a written message from the President of Kazakhstan concerning bilateral relations, which was received by Foreign Minister Prince Faisal bin Farhan in Riyadh.
His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, received an important written message from His Excellency President Kassym-Jomart Tokayev of the Republic of Kazakhstan. The message focused on ways to strengthen and develop the close bilateral relations between the two brotherly countries and to propel them towards broader horizons in various fields.
His Highness Prince Faisal bin Farhan bin Abdullah, Minister of Foreign Affairs, received the message during his official meeting today at the Ministry's headquarters in Riyadh with His Excellency Yermek Kosherbayev, Minister of Foreign Affairs of the Republic of Kazakhstan. During the meeting, they reviewed aspects of joint cooperation and ways to enhance them in a manner that serves the interests of both countries and their friendly peoples.
The depth of Saudi-Kazakh relations
This message comes amidst the active diplomatic efforts underway in relations between the Kingdom of Saudi Arabia and the Republic of Kazakhstan, two countries bound by deep-rooted historical ties based on shared values and mutual respect. These relations are gaining increasing importance in light of global geopolitical and economic shifts, as Kazakhstan is the largest country in Central Asia and a key strategic partner for the Kingdom in this vital region.
Prospects for economic and investment cooperation
Economically, the two countries possess tremendous potential for cooperation, particularly in the energy sector. Both Saudi Arabia and Kazakhstan are major global oil producers and active members of the OPEC+ alliance, which strengthens their joint coordination to ensure the stability of global energy markets. Furthermore, Saudi Arabia's Vision 2030 opens up vast opportunities for mutual investments in mining, infrastructure, food security, and renewable energy, aligning with Kazakhstan's development goals.
The importance of political coordination
On the political front, the exchange of messages between the two leaderships reflects a mutual commitment to continued consultation and coordination on regional and international issues of common interest. The Kingdom plays a pivotal role in promoting stability in the Middle East, while Kazakhstan serves as a vital bridge between Asia and Europe, making the strengthening of their partnership a cornerstone of security and stability in both regions.
The reception was attended on the Saudi side by the Undersecretary of the Ministry of Foreign Affairs for Political Affairs, Dr. Saud Al-Sati, and the Ambassador of the Custodian of the Two Holy Mosques to the Republic of Kazakhstan, Faisal Al-Qahtani, reflecting the high-level diplomatic interest in the outcomes of this meeting and the future steps that will result from it to strengthen the strategic partnership.
Politics
New Mexico investigation into Epstein's ranch: details of the historic decision
New Mexico opens a formal investigation into Jeffrey Epstein's Zorro Ranch. Learn about the legislative committee's efforts to uncover human trafficking networks.
In a decisive legal and legislative move, lawmakers in the US state of New Mexico passed new legislation aimed at launching a comprehensive and extensive investigation into the events that transpired behind the walls of Zorro Ranch, the sprawling estate associated with the late disgraced sex offender Jeffrey Epstein. This step comes in response to growing demands from human rights groups and the public for transparency regarding the network Epstein operated in secrecy.
Bipartisan fact-finding committee
Under the new legislation, a special bipartisan commission will be formed in the state legislature. This commission will have broad powers to gather evidence, subpoena witnesses, and, most importantly, provide a secure platform for survivors to testify about the egregious abuse they suffered at the ranch. The ranch is located in a remote area about 48 kilometers south of Santa Fe, which for many years kept it largely out of scrutiny.
"Zorro Ranch": The Mysterious Castle
This ranch holds particular significance in the context of federal and local investigations, as it spans thousands of acres and includes a sprawling mansion and a private airstrip. The property has long been suspected of being a major hub for the human trafficking operations with which Epstein was accused. This move is the first of its kind at the state level to directly target activities that took place on the property, aiming to determine whether local individuals or others facilitated or covered up these crimes.
A complex historical and legal context
This investigation comes at a time when the Jeffrey Epstein case continues to generate widespread international controversy, particularly following his death in his Manhattan jail cell in 2019, officially ruled a suicide. This effectively prevented a trial that would have revealed many secrets. However, the recent release of court documents related to Virginia Giuffre's lawsuit against Epstein's associate, Ghislaine Maxwell, has brought the case back into sharp focus, revealing a vast network of connections involving politicians, financiers, and celebrities.
The importance of the investigation and its expected impact
Observers believe the New Mexico investigation holds immense symbolic and legal significance. It not only seeks to hold accountable potential perpetrators who may have escaped federal scrutiny, but also aims to close the legal loopholes that allowed these abuses to continue for years. Furthermore, the investigation sends a powerful message of support to the victims, affirming that justice does not expire and that the death of the main suspect does not mean the case is closed as long as there are survivors demanding their rights.
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