Riyadh – Mubasher: The economic conditions of the Saudi non-oil sector are expected to witness a gradual improvement in the second half of 2016, according to Ariyad Capital.
Saudi economy is projected to grow 1.3% in 2016 and the percentage is likely to rise to 1.6% in 2017.
Private non-oil sector is expected to reach 1.5% in 2016 and to level up to 2% in the next year, the report said.
The investment company pointed that its expectations are based on the hypothesis that the Saudi government would reduce the financial spending to SAR 900 billion in 2016 (which exceeds budget provisions by 7%) but it would not reduce more spendings in 2017 on the back of improvement of financial yields.
Lower imports will reduce the deficit in the trade balance and subsequently in the current account balance, Ariyad Capital reported.
