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.
Monetary and Financial Update: A slow recovery in private sector lending
Macroeconomic reportThe US Federal Reserve (Fed) raised the Federal Fund Rate (FFR) in September, and is highly expected to raise it one more time this year, lifting the probability from three to four hikes in 2018, in addition to at least two more hikes expected in H1 2019.
Update on the Saudi Stock Exchange (Tadawul): TASI continues climbing
Special reportThe inclusion of Saudi Stock Exchange (Tadawul) into the MSCI EM as well as improved investor sentiment related to higher oil prices were some of the macro-level factors behind Tadawul All Share Indexs (TASI) 7 percent rise in Q2 2018.
Saudi Economy Adjusting to Structural Change
Macroeconomic reportWe have revised our forecast for the Saudi economy and we now expect to see growth of 2.2 percent in 2018 (compared to -0.9 percent in 2017). The sizable rebound in growth will be partly driven by an improvement in the oil sector. As Saudi Arabia raises oil output, this will positively affect oil sector GDP, lifting it to 3.2 percent in 2018, compared to a decline of 3.0 percent in 2017.
Privatization and Vision 2030 – June 2018
In April 2018, the Council of Economic and Development Affairs (CEDA) approved the Privatization Program Delivery Plan, which aims to privatize five government assets by 2020, with total revenues to reach SR35-40 billion.
The Financial Sector Development Program: Delivery Plan 2020 – July 2018
In April 2018, as part of the ongoing implementation and planning towards the Vision 2030 (Vision), the sixth, and arguably the most important, Vision Realization Program (VRP) was launched. The Financial Sector Development Program (FSDP) is crucial in that the success of the other 11 VRPs are wholly dependent on it.