Oil output to drive Saudi GDP
Saudi economy should rise above the 10-year average of 2.6% next year as the kingdom will lift its roughly 10% unilateral crude production cut at the end of 2023, boosting the performance of the oil sector in 2024. The GDP is expected to grow at the rate of 3.4% next year and will further expand to 4% in 2025, according to FocusEconomics.
Saudi Arabia maintains an exchange rate system with full convertibility and no restrictions on capital flows. The riyal has had a de facto peg to the US dollar since 1986 and been officially pegged to the greenback at a rate of SAR 3.75 per USD since January 2003 and it is likely to continue until 2028.
2024 OUTLOOK
3.4% GDP growth
2.2% Average inflation
4.44% Repo rate
LONG-TERM TRENDS
(3-year average) Year
GDP Growth (In%)
Inflation (In%)
2020-22
2.8
3.0
2023-25
2.6
2.3
2026-28
3.1
2.3
Sectors to Watch
Oil
Tourism
Real Estate
Infrastructure
Govt spending
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INVEST GCC: DAVOS 2024
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