Riyadh – Mubasher: Saudi Arabia’s non-oil sector GDP increased by 2.9% year-on-year during the second quarter of 2019, its fastest pace in 15 quarters, according to a report released by Al-Rajhi Capital.
The growth in the kingdom’s non-oil GDP was supported by services sectors including finance, insurance, real estate, and business services; wholesale and retail trade; restaurants and hotels; and transport, storage and communication.
Boosted by the Saudi government spending, the construction sector has shown a sharp recovery, the report said.
On the other hand, the oil sector GDP declined by 3% year-on-year in Q2-19, which is its lowest level in six quarters due to lower oil production resulted by the output cut agreement with the OPEC and allies, while the overall GDP rose by 0.5%, Al-Rajhi said.
“Going forward, we continue to believe that the government’s persistent efforts to support the non-oil sector will provide a stimulus to the overall Saudi Arabian economy,” the Saudi company added.
The oil-rich kingdom’s foreign reserves decreased by 0.3% year-on-year in August, rising 0.9% month-on-month. Saudi unemployment recorded a 10-quarter low rate of 12.3% during the second quarter of 2019.
Last month, Saudi Arabia’s General Investment Authority (SAGIA) and the Saudi Commission for Tourism and National Heritage (SCTH) have witnessed the signing of memoranda of understanding and agreements with regional and international investors with a total value of SAR 100 billion ($27 billion).
