Saudi stocks closed slightly higher on Saturday after the government announced a 2013 state budget which analysts said was likely to support continued strong economic growth next year.
The market declined early on in response to a drop in global oil prices on Friday, but rebounded after the budget details were released. The government plans to spend 820 billion riyals ($219 billion) in 2013, 19 percent higher than the 690 billion riyals earmarked for 2012.
Analysts said actual spending in 2013 would probably exceed the 853 billion riyals that the government actually spent this year. The budget announcement was not a surprise, but it was seen as mildly positive for domestic demand-related stocks. Budget spending will focus on education, health and transport and communications.
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