Strong growth in Saudi non-oil sectors in the second quarter

Strong growth in Saudi non-oil sectors in the second quarter

The non-oil private sectors grew by about 3% in the second quarter of this year compared to the same period last year, in line with the International Monetary Fund’s full-year forecasts, official data showed.

On the other hand, the output of the oil sector fell by 3% during the same period, due to the reduction of the Kingdom’s oil production in compliance with the OPEC Plus agreement.

Overall, the Saudi economy grew by half a percentage point.

Saudi Arabia’s non-oil private sector saw strong growth in both output and new orders at the start of the second quarter, according to the latest survey by Emirates NBD released last May.

Monica Malik, chief economist at Abu Dhabi Commercial Bank, said that the slowing growth was expected as the oil sector contracted. However, the encouraging factor is the acceleration of non-oil sectors activity, while the data suggest a further recovery in investment.