Saudi Arabian investment bank, Jadwa Investment has revealed that despite uncertainty in the year ahead due to the COVID-19 pandemic, broad-based recovery is expected.
Its latest forecast reveals that there will be quarter-on-quarter improvement in the Saudi non-oil economy, with recovery being more vigorous in the second half of 2021.
GROWTH IN SAUDI ARABIA'S RETAIL, HOSPITALITY & TOURISM
“More specifically, we see an expansion in the wholesale & retail, restaurants & hotels sector, especially as restrictions around social distancing are gradually relaxed and there is a steady pick-up in entertainment and domestic tourism activities. At the same time, we also see the construction and transport, storage and communication sectors contributing to growth,” the report reads.
Construction is expected to benefit from work on a number of Public Investment Fund’s (PIF) mega projects, while in transport, the economic benefits from the completion of SR87 billion worth of projects during the year will help push sectorial GDP up, according to the report.
According to Jadwa Investment, non-oil revenue to be effectively flat on a year-on-year basis, at around SR360 billion, taking total government revenue to SR851 billion in 2021.
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