Saudi Arabia Economy

Driven in part by state spending on infrastructure, housing and social development projects, Saudi Arabia’s economy is set for a year of solid growth. Longer-term predictions, however, are factoring in the uncertain state of the global economy. According to a report issued in mid-January by Riyadh-based Jadwa Investments, Saudi Arabia’s GDP will rise in 2012, with growth forecast to be around 3%.

As 2012 gets underway, Saudi Arabia can look back on 2011 as a year of solid growth, as well as anticipate a further 12 months of expansion and development, building on an already impressive economic platform as the state seeks to guarantee future growth through investments in infrastructure and human resources.

High domestic spending and sound levels of liquidity are expected to offset any adverse effects of Europe’s debt crisis on the Saudi Arabian economy, and the Kingdom looks set to maintain its solid growth for the remainder of this year and into the next.

Saudi Arabia’s economy looks set for a period of sustained growth, with oil revenues remaining high, non-hydrocarbons exports on the rise and the effects of a massive investment programme by the state starting to kick in.

Public spending is scheduled for a major boost in Saudi Arabia, with education, housing and social measures being specifically targeted by a new economic stimulus and support programme.