OVERVIEW

On 6/3/1416 H, corresponding to August 2, 1995, the Custodian of the Two Holy Mosques, King Fahd Bin Abdul Aziz issued a royal decree forming a new Council of Ministers. King Fahd described the new ministers as young, highly educated individuals with a record of achievement, and as such would contribute to the Kingdom’s continued development in various fields. The new ministers are setting their priorities under the sixth development plan (1415-1420 H., corresponding to 1995-1999) in order to achieve the following macroeconomic goals by the end of the current plan period:

• A real annual average growth rate of 3.9 percent in the non-oil sector.
• A real annual average growth rate of 8.5 percent in total investment.
• An annual average growth rate in non-oil merchandise exports of 12 percent in current prices.
• Rationalization of government expenditure in order to achieve a balanced budget by the end of the sixth plan period.
• Elimination of the balance of payments' deficit on current account.
• Increase in the government’s domestic non-oil revenues.
• Continuing the privatization process by providing better opportunities for the private sector investment through the selective use of alternative financing options and privatization initiatives.
• Mobilization of private savings through the broadening of domestic capital market.
• Increase in the productivity of the Saudi labor force through better education, training and the reduction of the number of low-skilled workers.
• Shift the government budget from consumption to investment expenditure.