Macroeconomic Update – August 2021: (The Saudi economy: on a very firm footing)
Macroeconomic ReportBoth actual and flash estimates of the Kingdom’s GDP published by the General Authority for Statistics (GaStat) have shown strong non-oil sector growth in H1 2021. This combined with our expectation of continued growth in H2, has led us to upgrade our full year 2021 GDP forecast.
The Saudi Economy in 2021
Macroeconomic ReportLooking out into 2021, while there is still a considerable degree of uncertainty as a result of the prevalence of COVID-19 and its potential impact on the non-oil economy, we nevertheless expect a broad-based recovery. Our forecast assumes between 15-20 percent of the adult population being vaccinated against COVID-19 by mid-2021, and 70 percent by year end. As such, we see a quarter-on-quarter improvement in the Saudi non-oil economy, with this recovery being more vigorous in the second half of 2021.
G20 in Saudi Arabia – January 2020
Macroeconomic ReportThe G20 (or Group of Twenty) is an international forum for the governments of 19 countries and the European Union (EU). Founded in 1999, the G20 was set-up to discuss policy pertaining to the promotion of international financial stability.
Financing trends for listed companies
Macroeconomic ReportAccess to long-term financing for companies listed on the Saudi stock market has been hit by the greater risk aversion of local commercial banks, but companies have utilized other sources of finance to make up for much of the shortfall.
Regional troubles hit Saudi markets
Macroeconomic ReportFinancial markets in Saudi Arabia are expected to remain volatile in the current period of regional political unrest. We think that investors should be cautious given the rapidly evolving events.
