Saudi Arabia: A regional dynamo

Saudi Arabia’s prospects are “positive” in the medium term underpinned by strong structural and fiscal dynamics, Standard Chartered said in its report focus on Middle East and North Africa titled “A Region in Flux” released early this week.

The report cited three key themes that are emerging for 2013. First, government spending — supported by very strong oil revenues — shows no signs of slowing; the government is undertaking sufficient infrastructure spending to meet the demographic challenges of the next decade. Second, there is a greater commitment to energy conservation, and efficiency will be a key theme in tackling the country’s growing domestic energy needs. Finally, the mortgage law has taken concrete steps forward in Q1-2013 and is likely to become a fully-fledged law by end-H1-2013. Structurally this is positive for the growing real estate market, though it might add to inflationary pressure, given the lack of supply, it added.

Read more: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20130323158050