A new report from Jadwa Investment has estimated Saudi Arabia’s economic growth this year to reach 1.5% “supported by both the oil and non-oil sector”. Jadwa believes the oil sector’s GDP is set to improve as the cartel of OPEC and non-OPEC countries gradually exit their current production cuts.
The report states, “The oil sector will see the largest improvement in the year ahead, rising to 1.5% in 2018, compared to a decline of 3% in 2017. The recovery in oil sector will be driven by a modest rise in Saudi oil production and the start-up of the Jizan refinery during the year.”
Saudi Arabia experienced negative growth in 2017 of around 0.7% according to Jadwa’s data.
The report pinpoints transport and communications as standout growth areas away from the dominant hydrocarbon sector due to multi-billion dollar investments courtesy of the Public Investment Fund.
