Finance ministers, central bankers to attend G20 talks in Riyadh

Officials from the nineteen largest national economies and the EU will gather in Riyadh today for the G20 Finance Ministers and Central Bank Governors Meeting.

According to the OECD Secretary General’s report, the meeting will focus on creating and strengthening rules around the taxation of digital transactions, debt transparency and corporate base erosion to the mutual benefit all countries. US Treasury Secretary Steve Mnuchin also hinted at discussions on combating financiers of international terrorism.

The meeting serves as an opportunity for the Saudi government to showcase its Vision 2030 plan to international dignitaries and encourage foreign investment. The plan seeks to modernise the Saudi economy through privatisation of state-run firms, a strategy for renewables, chemicals, defence and manufacturing equipment and industrial diversification to decrease dependence on oil exports.

However, it is unlikely that Riyadh can attain these ambitious goals within the next decade. Foreign investors want clear regulations and accountable government, attributes the notoriously opaque and authoritarian Saudi government lacks. Furthermore, the government cannot simply build a flourishing private sector overnight when the state employs two-thirds of workers. Do not expect the G20 meeting to significantly allay these concerns.

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