Wednesday 29 April 2009

Saudi Arabia to recover faster, says S&P

Saudi Arabia, the Middle East’s largest economy, will recover “more quickly” than other Gulf countries because of “satisfactory” liquidity and business confidence, Standard & Poor’s Ratings Services said.

The initial public offerings on the Saudi bourse this year indicate local investors have “considerable liquid assets with which to support attractive business propositions,” S&P said today in an e-mailed statement. “Deposit rates at local banks remained low, indicating that liquidity has been satisfactory and confidence maintained.”

The kingdom will spend US$400 billion over the next five years to stimulate the economy, while the fiscal stimulus plan next year will consume 3.5% of gross domestic product.

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