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.
Royal decrees, regional unrest and the Saudi economy
Macroeconomic reportThe Middle East is going through a period of turmoil that is affecting the economies of all countries in the region, regardless of whether they have touched by unrest. In response, oil prices have shot up and foreign investors have become more cautious. At the same time, two royal decrees have been issued in the Kingdom that entail large new spending commitments.
The Saudi economy in 2011
Macroeconomic reportThe Saudi economy is expected to strengthen in 2011. Economic growth will rise, financial conditions will get better, inflation will be contained and the budget will remain in surplus.
Feature: Is the Saudi economy growing?
After examining the available evidence, we therefore think that the non-oil sector has been stagnant so far this year. We expect an improvement over the rest of the year as the effects of strong government spending flow through the economy. Nonetheless, we have cut our projection for non-oil growth and expect the economy as a whole to contract this year in real terms.
Feature: Impact of the weak global economy
Global economic conditions have deteriorated significantly and the outlook is uncertain. However, the internal momentum within the Saudi economy is sufficient that global economic conditions may affect the pace of growth, but will certainly not derail it.