The NCB report said the elevated capital expenditure will continue to boost non-oil growth in the near to medium-term. It also sends a positive signal to the private sector, which will improve overall confidence levels in the economy. Moderating global commodity prices and the expected effective nominal appreciation of the Saudi riyal, especially that tapering is dollar positive, imply that growth in the budget can be larger in real terms.
NCB “believes that restraining growth in current expenditure could imply higher government savings, and as more resources are injected through specialized credit institutions, this will enhance and support private sector activities.”"
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