The Success Of The Economy Saves The Drowning Of Politics, 28 NOV

 The Success Of The Economy Saves The Drowning Of Politics

Mahmoud Dagher:   At a time when some governments of the rentier system insist on expanding analyzes and political approaches and various elements of ideology, there is a decline in interest in the economics and management of depleted oil resources towards diversification in other governments, to the point where the interests of the economy and the well-being of the population take precedence over others, and the criterion for success becomes clamor.

Industry, agriculture, technology, and the accompanying development of human resources, versus whispers of politics and ideology.

 Such a conclusion is prompted by what Moody’s credit rating agency published regarding the new credit rating of the Saudi economy, which reached Aa3 with a stable outlook after eight years ago for this agency, it was A1 with a positive outlook for the future.

 It means an improvement in the state’s credit capacity, including its entry into the bond markets and the acceptance of its proposals. Financing and with lower interest.

 Rather, more importantly, Saudi banks and other financial institutions enjoy the advantage of the new classification after they could not market their financing except with the old classification because financial institutions cannot exceed the classification. State.

 Iraq, for example, is classified as B-, and therefore the highest at which its banks can be classified is the same classification or lower.

 It was noted a few months ago that the classification of the largest Iraqi bank, TBI, was downgraded.

 The macroeconomic credit rating and its changes depend on numerous economic and financial criteria reflected in the levels of financial and economic performance, including the

      level of public deb t,

     growth rates, and

     improved private sector performance, as well as

     non-oil revenues and the

     performance of non-oil output.

The sum of these criteria leads to an improvement in the level of economic diversification of the rentier state under the classification.

 Which is the most important conclusion from the new classification of Saudi Arabia compared to other economies.

 The growth rates of non-oil production sectors have increased, expectedly, to 4-5%, in addition to the non-oil revenues reaching about 40% in total public revenues. In fact, Saudi Arabia’s non-oil exports grew by 22% for the month of September 2024, and such results lead to an increase in the share of The output of the private sector in Saudi GDP, which is expected for the latter to grow up to 4.7%.

The high rating of the Saudi economy is attributed to a long-term economic path of diversification transformation that is considered the mainstay of long-term growth, as well as the tangible approach to independence from the oil crises.

Providing economic interests towards higher prosperity is what leads to the easing of political and ideological tension, despite its presence in our region that floats on oil and the problems associated with it. 

 Yes, improving the performance of the economy is a way to save yourself from the drowning of politics.