Cover of The Report: Saudi Arabia 2016

The Report: Saudi Arabia 2016

2016 witnessed the launch of the Kingdom’s historic Vision 2030 and the accompanying National Transformation Programme, both of which call for a major overhaul of the state’s economic apparatus and envision a more open market framework and more dynamic, private sector-led growth moving ahead.

While Saudi Arabia’s economy remains dominated by its hydrocarbons sector, several other sectors have emerged in recent years as key propellors of economic growth. The Kingdom’s financial services industries have continued to expand steadily despite the liquidity challenges posed by falling oil prices. Trade and investment are being treated as key priorities as the government looks to negotiate this altered economic landscape, aiming to leverage its large population, high per capita income and many sea and air links. The country’s capital markets sector meanwhile is poised for a period of significant growth on the back of the opening of Tadawul to international investors in 2015 and the raft of regulatory upgrades implemented as result. The domestic insurance industry, which remains dominated by the motor and medical segments, has enjoyed double-digit growth over the past five years in both revenue and net profit. Elsewhere the targets outlined in Vision 2030 indicate that a period of greater opportunity and integration is on the horizon for private players operating in core sectors such as health care, utilities, industry and ICT.

 

OBG & Saudi Arabia