The Saudi economy is set to grow nearly four percent by the end of this year and the kingdom is set to register a budget surplus of SAR40bn ($10.6bn), against a budgeted deficit of SAR70bn ($18.6bn), according to a new report by a Riyadh-based investment bank.
In its September economic report, Al Rajhi Capital said “the Saudi Arabian economy has gained traction.”
The report estimated that the kingdom’s economy should show “healthy growth” this year and register a growth rate of 3.9 percent for the year. This will result in a budget surplus of SAR40bn ($10.6bn), as opposed to a budgeted deficit of SAR70bn ($18.6bn).
Al Rajhi Capital also set average inflation for the year in Saudi at 5.5 percent, down from the current level of six percent.
The turnaround in the Saudi economy is due to robust growth in non-oil exports, which are set to grow by 4.4 percent his year. Oil production is also set to grow 2.5 percent, compared to a 6.7 percent contraction last year.
Headquartered in Riyadh, Al Rajhi Capital Company is the investment subsidiary of Al Rajhi Bank, the world’s largest Islamic bank and the largest commercial bank in the GCC region in terms of market capitalisation.