Saudi industrial exports reached SR162bn in 2012

Updated 03 May 2014
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Saudi industrial exports reached SR162bn in 2012

The value of Saudi industrial exports reached SR162 billion by the end of 2012 compared to SR110 million in 1974, Director General of Saudi Industrial Development Fund (SIDF) Ali Al-Ayed said.
Addressing a GCC industrial event in Oman, Al-Ayed said Saudi industrial exports have achieved high growth rates averaging 20 percent per year in the period 1974-2012.
The 14th GCC Industrial conference convened in Muscat, Oman, on March 30-31 was themed “Industrial exports: prospects and challenges.”
It was organized by the Omani Ministry of Commerce and Industry and the Gulf Organization for Industrial Consulting (GOIC) in coordination with the Riyadh-based GCC general secretariat.
The SIDF chief attributed the robust growth of the industrial exports to the availability of hydrocarbons at preferential prices in addition to the conclusion of international and regional trade agreements to this end.
Plastic and chemical products accounted for 77 percent of the total industrial exports in that year, followed by food products at 8 percent, base metals (6 percent), and electric devices and equipment (2 percent), he told the conference.
He said the SIDF used to adopt a series of measures to boost industrial exports, including attraction of foreign investments which had an effective role in transferring experience and technical know-how.
SIDF has approved SR42.2 billion, or 38 percent of total loans, for the industrial projects, he said.
He also enumerated a series of challenges facing local industries, notably how to diversify production and export base for local industries, upgrade technical knowledge, minimize global competition on local products, and how to boost efficiency of export logistics services.
The SIDF chief explored a number of recommendations for the development of national exports, including creation of a national strategy to develop industrial exports, expansion of regional and international trade cooperation and spread of awareness among investors and officials on the importance of exports.


Moody’s raises GDP growth forecasts for Saudi Arabian economy

Updated 18 October 2018
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Moody’s raises GDP growth forecasts for Saudi Arabian economy

  • The Moody’s report released on Wednesday maintained the Kingdom’s A1 rating
  • he agency expects higher oil production to boost the Saudi economy

LONDON: Moody’s has raised Saudi Arabia’s GDP growth forecast for 2018 to 2.5 percent from 1.3 percent as it maintains a “stable outlook” for the Saudi economy.
The ratings agency also increased its 2019 GDP forecast to 2.7 percent, well above the 1.5 percent previously predicted, the Kingdom’s Ministry of Finance said.
Moody’s numbers exceed the forecasts of the Saudi Arabian government for the 2019 budget announced in September.
The Moody’s report released on Wednesday maintained the Kingdom’s A1 rating.
The agency expects higher oil production to boost the economy, but also said developments in the non-oil sector will contribute to stronger GDP growth in the medium and long-term.
Moody’s said the Saudi government deficit for the 2018 and 2019 will hover between 3.5 percent and 3.6 percent, a far cry from its previous expectations of 5.8 percent and 5.2 percent.
Moody’s commended Saudi Arabia’s reasonable control of expenditure, even in the face of higher oil revenues.
“In addition to the moderate funding requirements, the government is able to access ample sources of liquidity, from both domestic or international capital markets and financial reserves. It is unlikely to face problems in financing the fiscal deficit,” the report said.
Last week, the IMF lifted its projections for economic growth in Saudi Arabia saying the Kingdom’s economy is expected to grow by 2.2 percent in 2018 and 2.4 percent next year, raising previous projections by 0.5 percent.