RIYADH — Saudi Arabia has gone through a decade of momentous change, with the Kingdom's entry into the World Trade Organization in 2005 helping to kick-start a period of rapid economic growth. With a number of major initiatives set to take place in 2015 – including the proposed opening of the Tadawul stock exchange to foreign investors for the first time – this year is likely to mark a key milestone in the transformation of the economy. As the Euromoney Saudi Arabia Conference celebrates its tenth anniversary this year, regional and international senior banking executives will gather to examine an economy that has boomed in the past decade and is set for further changes, with a host of fiscal reforms planned. Since joining the World Trade Organization in 2005, Saudi Arabia has stepped up efforts to diversify its economy away from oil, with the government increasing budgeted expenditure for 2015 to a record SR860 billion. Gross domestic product has soared from $328.5 billion in 2005 to $748.4 billion in 2013, while debt-to-GDP went from 37 percent to 2.6 percent last year. This year has seen a change in leadership, with the Custodian of the Two Holy Mosques King Salman replacing his brother King Abdullah in January 2015. Under King Abdullah's leadership, Saudi Arabia underwent wide-ranging reforms and increased social funding, helping to head off unrest that afflicted other Arab nations. “We've certainly seen huge change happen here in the Kingdom in our 10 years of hosting the Euromoney conference, and 2015 is shaping up to be another significant year for investors, with the opening of the stock market to foreign investment likely to be a game changer,” said Richard Banks, Euromoney Conferences Regional Director. “The Euromoney Saudi Arabia Conference has been here every step of the way, bringing together the best and brightest of Saudi decision makers and international investors, providing guidance, and exploring the challenges and opportunities that are shaping the Kingdom's development.” King Abdullah allocated record amounts of money on infrastructure and major projects such as the $86 billion King Abdullah Economic City announced in 2005, to reduce the country's oil dependency, stimulate economic growth and fight high levels of unemployment. Recent years have also been marked by significant investment in social funding, including on education and housing, and by reforms such as wider rights for women, who can now hold government advisory jobs and work in retail. Still, challenges remain for Saudi Arabia. The economy is still heavily dependent on oil, which accounts for 90 percent of fiscal revenues. However, while global oil prices plunged last year – significantly hitting revenue – the International Monetary Fund estimates Saudi Arabia has built up foreign exchange reserves of $750 billion, which will provide a buffer for the Kingdom. The Euromoney Saudi Arabia Conference 2015, which will take place on May 5-6 at the Al Faisaliah Hotel in Riyadh, is the longest-running, largest and most influential financial event in the Kingdom, bringing together Saudi policy makers, financiers, corporate CEOs, and international investors and banking executives. The event, which since its inception has been held in collaboration with the Ministry of Finance of Saudi Arabia, provides a platform to explore opportunities within the Kingdom and helps to connect Saudi Arabia with the global investment community. — SG
