Saudi Arabia is in the middle of a second year of strong growth
despite the downturn in the global economy, and that growth is no
longer solely based on oil. A more vibrant non-oil sector is
developing, particularly natural gas, exploration for which should
begin next year. Tourism is another area that the government would
like to encourage, with substantial investment being put into the
sector. However the main challenge remains generating enough jobs
for Saudi Arabia's growing population.
Bank economists, who only months ago were forecasting negative
growth and a small budget deficit, are revising their forecasts.
According to Khan Zahid, chief economist at Riyad Bank: "This year
will be another good year for the private sector, as the cumulative
effects of high oil prices flow through and increase economic
activity."
Saudi American Bank (SAMBA) chief economist Brad Bourland is
equally optimistic about an economy that last year produced...
