Numerous indexes and reports released in the recent past give high marks to Saudi economy in recognition of its exceptional performance — and for good reasons. This is true of the recently released Global Competitiveness Index (GCI) and a forecast by the International Monetary Fund.

For instance, Saudi Arabia was ranked number 17 on 2011-2012 version of GCI, in turn published by the World Economic Forum. Only Qatar outperformed Saudi Arabia on GCI within the Gulf Cooperation Council (GCC). The ranking places Saudi Arabia ahead of France, Australia and Malaysia, to name a few countries.

In addition, Saudi Arabia achieved ranking number 33 on 2010-2011 of Network Readiness Index (NRI), in turn a cornerstone of the Global Information Technology Report. The World Economic Forum together with INSEAD, the international graduate business school and research institution, produce the annual report.

The NRI index relies on some 68 variables, of which 27 items are hard data such as number of personal computers and internet penetration rate. The UAE leads the Arab countries on the back of achieving ranking number 24 amongst 138 countries ranked in the report. The achievement is testimony of steady appreciation of information and communication technologies (ICT) in GCC states at large.

Still, chances are Saudi Arabia would be able to improve its ranking on ICT thanks to steady investment on higher and technical education. The kingdom's 9th development plan covering the period 2010 to 2014 stipulates developing 25 technical colleges and fitting many other institutes with latest technological means. The plan fits the goal of ensuring that Saudi nationals are equipped with the latest technological means, and thus ready to confront job market challenges.

Of $385 billion comprising the 9th development plan, some 50.6 per cent is allocated for human resources development, 19 per cent for social development and health, 15.7 per cent on economic resources, 7.7 per cent for transportation and telecommunications and 7 per cent on municipality services and housing projects.

Furthermore, Saudi Arabia is second to none amongst GCC, Arab and all countries located in West Asia when it comes to attracting foreign direct investments. More specifically, the kingdom enticed some $28.1 billion worth of inward FDI in 2010, a whopping 48 per cent of total inflows in the West Asia region.

At $8.1 billion, Qatar achieved the second best FDI inflows amongst Arab countries, but certainly with a distant figure compared to that of Saudi Arabia.

With regards to economic growth, the IMF projects a gross domestic product (GDP) growing by 6.5 per cent in 2011. Undoubtedly, the figure compares favourably with those of 4.1 per cent in 2010 and merely 0.1 per cent in 2009. The statistics are in real terms, adjusted for inflationary pressures. Like elsewhere within the GCC, inflation is under control in Saudi Arabia, at least in the current circumstances.

The steady GDP growth partly reflects positive spill-over effects of special appropriation of $130 billion announced in the first quarter of 2011. Of this, some $47 billion and $35 billion are reportedly allocated for 2011 and 2012, respectively. Certainly, this amount is in addition to budgetary spending of $155 billion for fiscal year 2011.

King Abdullah revealed the special spending following his return home from medical treatment abroad, which coincided with the Arab Spring. The spending package is designed to address challenges such notably unemployment, which stands around 9 per cent amongst the nationals.

Clearly, the results suggest that the Saudis are reaping the fruits of smart planning and hard economic work of the last few years.

 

The writer is a Member of Parliament in Bahrain