Saudi Gazette - Saudi nonoil sector to grow 5.4% in 2014

Saudi Gazette - Saudi nonoil sector to grow 5.4% in 2014:

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Although 2014 will prove to be a challenging time for policy making on relatively volatile international economic environment and a stronger dollar, among others, a number of key points in the Saudi 2014 budget announced Monday showed that “Saudi Arabia will be able to sustain economic growth ahead,” the National Commercial Bank (NCB) said in its comment on the new budget.

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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