Bloomberg commends the improvement of Saudi non-oil sectors and talks about an expected growth, praising the remarkable growth witnessed by the Saudi economy during the second quarter of this year and pointing out that non-oil sectors achieved the best performance in four years.
According to the agency for economy and global financial markets, Bloomberg Economics map showed that the performance of non-oil sectors in Saudi Arabia improved in the second quarter and reached levels not seen in Saudi Arabia four years ago, ahead of the sharp drop in world oil prices, which negatively impacted the performance of the Saudi Economy.
In its report, the agency forecasted growth in non-oil sectors to be 2.6% this year, up from 2.1% in 2018.
The agency’s analysis attributed the growth to the Kingdom’s economic stimulus measures, which are beginning to bear fruit and appear in the data on economic growth, as well as the adjustment of monetary policy and the improvement of private consumption.
Saudi economic activity significantly rose in most of the year 2018 as consumer spending improved, according to a previous Bloomberg report.
While oil is Saudi Arabia’s first source of foreign revenues, non-oil sectors are the main driver of job creation in Saudi Arabia, at a time when Mohammad bin Salman, the Crown Prince and Deputy Prime Minister and Minister of Defense, seeks to fully restructure the economy.
Three years after the launch of Vision 2030, Mohammad bin Salman stresses Saudi Arabia has moved from planning and design to execution at all levels.
“We are beginning to see results on the ground. For example, in terms of financial sector development, the financial market has witnessed a remarkable development as the market, three years after the launch of Vision 2030, joined three global indices: FTSE 100 Index, Morgan Stanley for emerging markets, and Standard & Poor’s (S&P Dow Jones),” the Crown Prince said in a recent press statement.
“This will result in a capital inflow of billions of Saudi Riyals to the Saudi market and a forty-percent increase in investors in mutual funds, the first increase since 2006,” the crown prince stated.
The Crown Prince also added, “The Kingdom has recently achieved its greatest progress among the most competitive countries in the World Competitiveness Yearbook Report, issued by the IMD World Competitiveness Center and was ranked 26th with 13 positions ahead from last year, ranking seventh among the G20 countries”.