22 Dec 2011
(MENAFN) The International Monetary Fund (IMF) said that as a result of higher oil output and a surge in oil prices, Saudi’s fiscal surplus this year would be expected to reach of 9.4 percent of gross domestic product (GDP) and 8.0 percent next year, reported Arab News.
The IMF added that the Saudi government would also boost spending in 2012, which would be forecasted to reach USD155 billion, on the other hand, it said that the Kingdom’s GDP in 2011 would grow 6.5 percent, while it would decline to 3.6 percent in 2012.
It also said that although the euro-zone’s debt crisis raised the threats to the global economy, which might have negative consequences for the Arab oil exporters, the Gulf Cooperation Council (GCC) countries were in a strong position to undertake countercyclical policies and financial sector support measures to lessen the impact of the crisis.
It is worth noting that for several years, Saudi has been considering a wider opening of the market to foreign investors; however, foreigners only have very limited opportunities to invest through indirect ownership and exchange-traded funds that track indexes.
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