Saudi Arabia

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.

Saudi Arabia’s telecommunications sector is to get a major shake up this year, with up to three new operators entering the mobile phone segment, though the route they will be taking will be very different from that followed by the three existing service providers.

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 is stepping up its commitment to education and providing increasing opportunities for private investors in an effort to reduce the Kingdom’s unemployment rates and its reliance on imported workers.

Saudi Arabia has boosted oil production to near record highs, reaching levels of output and exports not seen since before the global economic crisis. According to official data issued in mid-August by the Joint Organisation Data Initiative (JODI), Saudi Arabia increased its crude oil production from 8.89m barrels per day (bpd) in May to 9.76m bpd in June, with overseas shipments averaging 7.38m bpd, the highest since October 2008.

Saudi Arabia’s insurance industry is making impressive strides, with policy take-up growing, premiums increasing, and the sector’s regulatory body strengthening. However, penetration rates still have a considerable way to go if they are to reach those of developed markets.