Saudi Arabia should have large budget surplus
Saudi Arabia should have a large budget surplus, according to a leading economist
Click here to add David Bloom as an alert
Disable alert for David Bloom,
Click here to add HSBC Middle East as an alert
Disable alert for HSBC Middle East,
Click here to add Saudi Government as an alert
Disable alert for Saudi Government,
Click here to add Simon Williams as an alert
Disable alert for Simon Williams
The recent pick-up in oil prices should leave the Saudi government with double-digit budget surplus over the 2012-2013 despite marked gains in expenditure, Simon Williams, Chief Economist for HSBC Middle East, said recently at the SABB-hosted "Annual Economist Roadshow" held at the Four Seasons Hotel in Riyadh
He noted that even though political turbulences are not over, signs of normalization are visible in North Africa couples with strong economic growth indicators in theGulf.
During his speech, Williams noted that political stabilisation steps in the region and high oil prices have both contributed to speeding the pace of progress for the short term.
Stimulus policies complemented by higher oil output volumes, large surpluses and reserve accumulation offers all parties - including investors - a strong dose of confidence.
In the long-term, Williams stressed the need to increase productivity levels by elevating support for education and enhancing public support for private sector innovation and overall participation level in the national economy.
David Bloom, Global Head of Foreign Exchange Strategy at HSBC, said in the same event that managing currency exchange risk and investment approaches to widely-traded currencies have been radically altered due to recent economic slowdown among industrialised nations.
He stressed that the greater levels of ambiguity and lack of clarity should not be ignored as new linkage and relationships are formed rapidly with a real impact on global rate fluctuations.
- Will terror attacks damper Arabs' appetite for European holidays?
- So cool it's hot: Saudi Arabia's $3.2B HVACR market driven by construction boom
- US, EU protectionist policies may be a blessing in disguise for GCC suppliers
- Dubai to Doha: How far can you stretch your dirham?
- OPEC's poor history of compliance will make production cut deal a challenge