Posted on: Friday 3 August, 2012 1:52
|Saudi economic landscape to grow by 5.3 percent: study
audi Arabia’s economic landscape is expected to see an average growth of 5.3 percent over the year, which is likely to impact oil and non-oil sector positively, according to a report released by the Riyadh Chamber of Commerce and Industry and published in Arab News on Tuesday.
According to the report, government spending will remain the primary growth driver for the national economy as the private sector depends on the volume of government spending in its activity, the report said.
In light of the report findings on collective data in 2011, imports of capital equipment were valued at SR 209.4 billion ($55.84 billion), non-oil exports stood at SR 175.5 billion ($46.80 billion), the number of productive factory plants was 5,043, total industrial loans cleared by the Saudi Industrial Development Fund (SIDF) at SR 27.4 billion ($7.3 billion), Tadawul index at 6,418 points, value of awarded contracts at SR 156.5 billion ($41.7 billion), and oil production yielded SR 1.19 trillion around $266 milliard, according to Arab News on Tuesday.
However, imports of capital equipment increased by 21 percent compared to last year, whereas non-oil exports rise by 48.7 percent, indicating a growth of private sector firms. Also, the number of productive plants has increased by 6.3 percent compared to last year, Arab news said.
Additionally, overall loans provided by the Saudi Industrial Development Fund have also increased by 10.5 percent compared to last year, which, according to the report, will impact the industrial output in particular, and on economic growth in general.
Tadawul index fell by 3.1 percent compared to last year, where the capital market index normally reflects the investment environment from investors’ point of view, the report said.
Regarding construction contracts, the number of awarded projects increased by 46 percent compared to last year’s figures.
Meanwhile, oil revenues have increased by 37.6 percent compared with last year due to the increase of production and oil prices. The oil sector as a major source of revenue for the state budget is set up to make the major part of the gross domestic product. This is believed to boost confidence in the Saudi economy and drive its growth further, the report added.