Saudi Arabia

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Never far from the headlines, the region faces a number of significant political and economic challenges. Amidst this, however, the economies of the Middle East offer numerous opportunities for investors, across all sectors. 

The crowded insurance sector in Saudi Arabia has come under pressure with low penetration rates and rising costs, highlighting the difficulties for smaller firms in the industry to maintain market share or grow their business.
High levels of client confidence and strong economic growth are expected to drive banking sector expansion in Saudi Arabia this year and beyond, with lending activity projected to rise to match increasing demand from both consumers and businesses.
A new phosphate mining and processing mega-project is set to improve Saudi Arabia’s access to the global fertiliser market, but a potential excess of international supply may extend the period before the multi-billion scheme turns a profit.
The Saudi Arabian retail sector is expected to continue to post solid returns, with strong prospects for expansion in the medium-to-longer term, although this year retailers will likely have to factor in the higher costs as they hire more local staff.
Strong fundamentals underpinned by the hydrocarbons industry and increasing private sector activity point to sustained expansion for Saudi Arabia in 2014, but the economy is showing signs of slowing as the impact of the government’s stimulus package tapers off.

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