Saudi Soft Patch - Zawya

After riding on the crest of high oil prices earlier in the years, Saudi economy appears to be cooling off during the hot summer months. The initial euphoria surrounding the domestic stimulus initiated by the government has given way to concerns over global economic growth, and consequently oil prices.

Still, businesses and consumers are comforted that the government will continue to pump tranches of the announced $130-billion stimulus package over time and the trickle-down effect it will have on the rest of the economy will encourage growth.

However, this ebullient mood could be dampened if oil prices fall further and regional turmoil escalates or new flashpoints emerge."

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