The Middle East

As both the number of pilgrims and the number of residents in Islam’s holiest city continue to rise, the development and expansion of infrastructure is the main theme in Makkah at present. Investing in the necessary facilities to accommodate visitors, boosting the number of available hotel rooms and building more affordable housing for residents will all be major focuses going forward. This...

One of the largest in the GCC, Saudi Arabia’s insurance industry is expanding at a rate which some believe will soon see it surpass the UAE to claim the title of regional leader. 33 insurers are currently licensed to operate in the Saudi market, while a further three have been approved for establishment. This makes for a crowded sector, with intense competition played out largely in the arena of...

Long a key participant in the global Islamic finance arena, Saudi Arabia secured its position in 2013 by becoming the largest issuer of sukuks (Islamic bonds) in the region for the second year in a row. The outlook for sukuks is positive, as the short-term nature of most bank lending in the Kingdom (with around 60% of all loans having maturities of less than one year) makes them an attractive...

As the largest and most liquid bourse in the MENA region, the Saudi Stock Exchange accounts for around 50% of the GCC equity market. Increasing investor appetite, sustained earnings growth by Saudi companies and the relatively robust nature of the Kingdom’s economy make for a positive outlook for the exchange. Although still at a relatively early stage of development, the bourse has begun to...

The past year has been a positive one for the Kingdom’s banking sector, with asset growth and profitability continuing the upward trend that has buoyed the industry in recent years. Growing cooperation between local and overseas banks has helped the sector, while remittance flows in the Kingdom are second only to those in the US. Government initiatives offer support for SMEs looking to boost...

Fuelled by the ongoing state infrastructure investment drive, non-oil private sector growth was estimated at 9.4% in 2013. The Kingdom posted a budget surplus of $54.9bn in 2013, or 7.4% of GDP, driven largely by oil exports, which averaged 7.54m bpd over the course of 2013. Efforts are under way to boost the employment of nationals and make the most of Saudi Arabia’s young population, and...