Economic updates
Our in-depth, independent reports cover the macroeconomic environment, the Saudi government’s annual budget, and Saudi Arabia’s monetary and financial developments, labor market, and inflation.
The Saudi Economy’s Golden Era: Phase Two
Macroeconomic reportThe growth driver of Saudi Arabias four-year-old boom is shifting from rising oil revenues to private sector activity, marking a new phase in a period of sustained high growth in the Saudi economy. Over the years to 2010, spending will pick up, cutting fiscal and trade surpluses, but inflation will remain relatively low. The positive macroeconomic backdrop should result in steady gains in share prices.
Saudi economy: On the brink of recovery
Macroeconomic reportRecent data suggest that the worst is now over for the Saudi economy and based on our assumption that external conditions will continue to get better, we expect a sustainable recovery to take hold in the fourth quarter.
UAE withdrawal threatens GCC monetary union
The UAE has withdrawn from the proposed Gulf Cooperation Council (GCC) monetary union, heightening doubts about whether the project will advance. As it was a purely political decision, we do not think there are any implications for the currency pegs of the GCC members to the US dollar.
Healthy second quarter economic growth
Macroeconomic reportQuarterly economic growth data has been published for the first time in the Kingdom. It shows that the economy grew by 15.2 percent year-on-year in nominal terms in the second quarter of 2010. Growth in the non-oil private sector was 6.2 percent.
