Riyadh – Mubasher: Al Rajhi Capital on Monday said that four factors, including the rise of spending, putting the value added tax (VAT) into effect, the increase of electricity and fuel prices, would impact on the Saudi Stock Exchange’s (Tadawul) performance in 2018.
The other factor is adding Tadawul to the international indices as Morgan Stanley and the Financial Times Stock Exchange Index (FTSE), Al Rajhi’s report added.
The rise of oil prices and generating new non-oil revenues will enable the Saudi government to continue raising spending on the medium-term.
The kingdom started applying the VAT, in addition to increasing electricity and fuel prices in the beginning of 2018 which has weighed on the consumption sector on the short-term.
