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A report by Jadwa Investment forecasts strong economic growth in Saudi Arabia as uncertainties and restrictions surrounding the Covid pandemic ease.
The Saudi Economy in 2022 report forecasts overall GDP growth of 7.7 percent in 2022.
Oil sector GDP is expected to grow 15.5 percent year-on-year given strong demand for oil fueled by an ongoing recovery in the global market.
The report also forecasts the expansion of all sectors of the non-oil economy in 2022.
Lifting social distancing restrictions could boost wholesale, retail, restaurant and hotel sectors.
Additionally, the rise in Umrah and Hajj pilgrims will drive growth in transportation, communications and storage.
Concerns are being raised about the construction sector, which may face some labor and supply chain issues in 2022.
However, the great value of the Public Investment Fund, PIF and Central Government projects currently in the execution phase would boost the growth of this segment.
Manufacturing will also contribute to non-oil growth as improvements in global trade coupled with investment in domestic industrial programs help exports surge above last year’s record levels.
The financial, insurance and business services sectors are expected to continue to see healthy growth in 2022.
According to the report, the community, social and personal services sector will benefit from the implementation of a national sports strategy, while the electricity, gas and water sectors will benefit from an ambitious national renewable energy programme.
Overall, the report forecasts growth of 3.4 percent for the non-oil sector in 2022.
It also forecasts prices to rise 1.7 percent year-on-year as higher inflation rates seen in many developed economies are not fully transmitted to the local economy.