RIYADH: After Tuesday s Saudi Budget announcement, Asad Khan, head of research, Jadwa Investment, believes the Kingdom will see a broad-based recovery into 2021.
“According to the budget statement, real GDP (gross domestic product) growth is expected to have declined by -3.7 percent year-on-year in 2020 compared with our forecast of -3.6 percent and compared with a 0.3 percent rise year-on-year in 2019.
“GDP in 2020 was affected by a decline in both the oil and non-oil sector. In fact, Saudi crude oil production is expected to average 9.2 million barrels per day (bpd) in 2020, compared with 9.8 million bpd during the same period last year.
“The reduction in output reflects Saudi Arabia’s commitment to the OPEC and non-OPEC (OPEC+) agreement.
DUBAI: Startups have become a critical component of Saudi Arabia’s transformation, Padmini Gupta, co-founder and CEO of Rise, a fintech start-up offering remittances, financial services support to low-income migrants across the GCC, told Arab News.
“As Saudi Arabia continues its reforms, diversifies away from the oil sector and sustains its privatization efforts, startups have become a critical component of that transformation. Sustained support this year from SAMA has led to an explosion of fintechs in the Kingdom helping Saudi companies and residents get faster and fairer access to financial services,” she said.
“We believe fintech will play a key role in Saudi diversification in 2021, enabling faster transmission of credit and capital to fuel GDP growth, especially given ongoing consolidation within the financial services sector.
Nasdaq futures were down 0.2 percent on Monday. S&P 500 futures edged 0.1 percent lower
Updated 13 April 2021
April 13, 2021 00:39
LONDON: Global stock markets fell from record highs on Monday as investors waited to see whether US earnings would justify sky-high valuations, while a rally in bonds could be tested by what should be strong readings for US inflation and retail sales this week.
MSCI’s All Country World Index, which tracks stocks across 49 countries, was down 0.14 percent after the start of European trading, off Friday’s record high. The gauge’s price-to-earnings ratio is at its highest level since early 2010. Stocks hit record highs across the world last week on optimism that vaccination programs and the easing of lockdowns to combat COVID-19 would bode well for an economic rebound. Total market capitalization of global equities hit $90 trillion last week, according to Refinitiv data.
DUBAI: Regional and international investors will be “relieved” after the Saudi budget 2021 announcement, Sachin Kerur, Head of Middle East at international law firm Reed Smith told Arab News.
“The 2021 Saudi budget will be one of the most important budget announcements in the Kingdom for many years. As the country looks forward to a post-COVID-19 world, the consequences of the pandemic will remain a key consideration as to how Saudi Arabia spends its money through next year and beyond. The headlines will focus on Saudi cutting spending by 7.5 percent, maintaining VAT increases and running a current budget deficit at least until 2023,” he said.
RIYADH: The Saudi government’s 2020 fiscal deficit came in at SR298 billion ($79.5 billion) and is forecast to fall to SR141 billion next year. The government expects SR849 billion of revenues in 2021, which is reasonable based on a Brent oil price of $48 a barrel, said Mazen Al-Sudairi, head of research at Riyadh-based financial services company Al-Rajhi Capital.
He added that he expected government oil revenue to range from SR400 billion to SR500 billion next year depending on Aramco’s dividends to the government (i.e., $45 billion to $75 billion in total dividends). And estimated non-oil revenue to be about SR400 billion, based on increased VAT (a contribution of SR88 billion), reforms, higher private-sector growth, and Public Investment Fund (PIF)/Saudi Central Bank (SAMA) investment returns.