Saudi’s economy to grow 3.2 percent in 2010
A sustained global recovery and the associated higher oil prices will help the Kingdom grow, says a report by Shuaa Capital.
March 2, 2010 4:33 by kippreport
Saudi’s economy is expected to see a GDP growth rate of 3.2 percent in 2010, as opposed to the 0.2 percent it is estimated to have seen in 2009, according to a report released by financial services firm, Shuaa Capital. The Saudi Vision 2010 attributes the growth to “a sustained global recovery and the associated higher oil prices, continued expansionary fiscal policy and the resumption of local bank lending.” Saudi’s nominal GDP will reach SAR1.5 trillion this year, says the report.
However, Shuaa warned that potential risks such as “steep decline in oil prices and a possible wave of selling in global equity markets,” could hamper growth in Saudi. “Also, the emergence of other conglomerate bankruptcy cases and the negative repercussions stemming from the inability of Dubai World to reach a satisfactory agreement with creditors are likely to take a heavy toll on the markets and investor confidence in the region,” the report said.