The non-oil sector grew 3.3 per cent from a year earlier, according to preliminary estimates released on Monday by the kingdom’s General Authority for Statistics. Final figures are scheduled to be released in June.document.write("");googletag.cmd.push(function(){googletag.defineOutOfPageSlot('/6516239/outofpage_1x1_desktop','div-gpt-ad-1490771277198-0').addService(googletag.pubads());googletag.pubads().enableSyncRendering();googletag.enableServices();}); Business in the world’s largest crude exporter is gradually returning to normal after the twin crisis caused by oil market turmoil and coronavirus-related lockdowns. Aside from e-commerce, the Covid-19 pandemic has had significant impacts on other parts of the Saudi economy. At a time when oil and gas investors have been celebrating the latest oil rally after OPEC+ pledged to maintain strict production discipline, not everybody is pleased with the direction things have been taking. Daily Newspaper published by GPPC Doha, Qatar. Kindly visit the Manage my subscription page to discover the benefits of this programme. Support quality journalism and subscribe to Business Standard. — Reuters pic. The oil sector shrank 12%, the most in at least a decade, according to data compiled by Bloomberg, leading the broader economy to shrink 3.3%. Moreover, limited information on the extent and duration of the outbreak makes it difficult to evaluate the indirect … This paper is a diagnostic paper on the socio-economic impact of COVID-19 on the Kingdom of Saudi Arabia (KSA, Kingdom or Saudi Arabia). The non-oil sector grew 3.3 per cent from a year earlier, according to preliminary estimates released on Monday by the kingdom’s General Authority for Statistics. Impact of COVID-19 on economy in the Arab region. Economic recovery from COVID-19 in Saudi depends on SMEs and entrepreneurs. To tame deficit, Saudi Arabia plans 7% spending cut in 2021. Saudi Arabia’s economy shrinks for a fifth straight quarter. Over the last two decades, Saudi Arabia has invested heavily in digital infrastructure and digital government platforms, accelerating this agenda since the publication in 2016 of its Vision 2030 strategy. The world's largest oil exporter is facing its worst ever economic decline after the COVID-19 pandemic curbed global crude demand and measures to contain the coronavirus hurt domestic demand. DUBAI, March 16 (Reuters) - Saudi Arabia's economy shrank 3.9% year on year in the fourth quarter but rose 2.5% from the previous three months, according to data on … The Kingdom of Saudi Arabia (KSA) will reconsider value-added tax (VAT) after it has achieved certain objectives related to its economy and economic growth, a senior official has said. Saudi Arabia has announced its plan to hold this year's Haj pilgrimage under Covod safety measures that will ensure preserving the health and safety of the worshippers, state media reported. Saudi commuters drive down a main street in the capital Riyadh (file). Saudi Arabia’s non-oil economy – the engine of job creation – rebounded in the first quarter to pre-pandemic levels, even Covid recovery, oil curbs create a split-screen Saudi economy - … We believe in free, fair and credible journalism. Saudis have praised the government’s response to Covid-19, particularly a pledge to pay for the treatment of those suffering from it. SMEs will need continued governmental support in the form of stimulus packages and funding initiatives. The world’s biggest oil exporter is facing a huge deficit caused by lower oil revenues and the ongoing coronavirus crisis. Saudi economy shrank by 7pc in Q2 as Covid-19 hit. The COVID-19 pandemic in Saudi Arabia is part of the worldwide pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).The first case in the kingdom was confirmed by the Ministry of Health on 2 March 2020 and in the following months, the kingdom held the highest number of confirmed cases in the Arab states of the Persian Gulf. Saudi Arabia | Coronavirus | Saudi Aramco, Vivian Nereim | Bloomberg  The oil sector shrank 12 per cent, the most in at least a decade according to data compiled by Bloomberg, leading the overall economy to contract 3.3 per cent. 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Saudi Arabia’s non-oil economy — the engine of job creation — grew in the first quarter for the first time since the pandemic hit, even as the overall economy was dragged into contraction by oil production cuts.. Business activity in neighbouring Dubai is also rebounding strongly, recent data show. The travel ban will be lifted for immunised citizens who received two full doses of the Covid-19 vaccine, as well as those who received one dose, provided that 14 days have passed since they were vaccinated with the first dose, and as confirmed by the data displayed on the Tawakkalna app. Vaccination will become a … As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Preliminary estimates of ESCWA suggest that the region could lose US$42 billion of gross domestic product. “We are confident that businesses will keep coming to Saudi Arabia as investors gauge momentum and activity recovers and adapts to the post-COVID-19 era,” he added. However, the pandemic has created a prudent spending culture in Saudi society in which the national economy is the long-term beneficiary, according to one expert. The non-oil sector grew 3.3% from a year earlier, the strongest since 2019, according to preliminary estimates released on Monday by the kingdom’s General Authority for Statistics. The strategy aims to diversify Saudi’s economy, reducing its dependence on oil, and develop public sectors including health and education. Saudi Finance Minister Mohammed al-Jadaan said in a press conference that most economic sectors had started to recover from the pandemic's impact in the second half of this year. Digital Editor. Saudi Arabia is facing a deep recession after the Covid-19 pandemic curbed global crude demand and measures to contain the coronavirus hurt domestic activity. Saudi Arabia will push ahead with economic diversification despite COVID-19 Victor Tricaud, Analyst On 23 August, Minister of Energy Abd al-Aziz bin Salman Al Saud and Nadhmi al-Nasr – the CEO of NEOM, a megacity being built by a government-owned company – signed a cooperation agreement to develop the project’s energy infrastructure. Brent averaged $61.30 a barrel in the first quarter of 2021, compared with $50.57 a year earlier. QSE witnesses strong buying interests from local, foreign retail investors, Ambassador of Qatar inaugurates QBA session on SPIEF, 500 building permits issued in April: PSA, Qatar capital market seen set for advent of REITs to enhance investment portfolio, Qatar Chamber official highlights private sector resiliency against Covid-19 impact, Amazon.com borrows $18.5bn it doesn’t need in new debt sale, Indian oil refiners cut output and imports as pandemic hits demand, Saudi seen supplying full June crude volumes to most of its buyers in Asia, IBM launches new cloud and AI services in bid to modernise business, Covid recovery, oil curbs create a split-screen Saudi economy. Coronavirus: Saudi Arabia forced to boost borrowing as oil glut slams virus-hit economy . 5-min read. Wednesday, 30 Sep 2020 03:48 PM MYT. The coronavirus has infected 24,079 people and killed 169. This year, lower oil prices and Covid-19 prompted Saudi Arabia to borrow $26.6bn after it burned through foreign reserves and announced a stimulus package of $32bn. Saudi Arabia’s non-oil economy — the engine of job creation — grew in the first quarter for the first time since the pandemic hit, even as the overall economy was dragged into contraction by oil production cuts. Required fields are marked. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance. Your support through more subscriptions can help us practise the journalism to which we are committed. Last Updated at May 11, 2021 01:10 IST. Consumer spending is rebounding and officials plan to partially reopen the kingdom’s borders on May 17. Business in the world’s largest crude exporter is gradually returning to normal after the twin crisis caused by oil-market turmoil and coronavirus-related lockdowns. In this January 12, 2020 photo, a … Saudi Arabia is participating in efforts to stabilize prices, through existing production coordination mechanisms (OPEC+) and the G20. Enjoy Reading! More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. The COVID-19 pandemic has dealt the global economy a harsh blow and the Saudi Arabian economy has been no exception, despite its strength. Cars drive past the King Abdullah Financial District in Riyadh, Saudi Arabia December 18, 2018. We, however, have a request. Your email address will not be published. Image used for illustrative purpose. Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Business Standard is happy to inform you of the launch of "Business Standard Premium Services". The allowance of … The International Monetary Fund expects the economy to grow 2.1% this year after shrinking 4.1% in 2020. “Saudi Arabia faces an enormous challenge in transforming its domestic economy and after COVID-19 the path is much more perilous. Final figures are scheduled to be released in June. Explainer: Will Colonial fuel pipeline shutdown mean US pump prices rise? Economy; For UAE, Saudi Arabia & Egypt, recovery from Covid is taking the ‘W’ shape Between aftershocks of the oil-market rout and the pandemic, the path to recovery has further stumbled over region specific issues such as austerity measures in Saudi Arabia. It assesses the socio-economic impact of the COVID-19 pandemic on the Kingdom through the analysis of the situation before and after the pandemic. Brent averaged $61.30 in the first quarter of 2021, compared with $50.57 a year earlier. Saudi Arabia's state news agency said VAT will increase from 5% to 15% as of 1 July, while the cost of living allowance will be suspended from 1 June. Second, the continually downgraded global growth outlook due to COVID-19 and its impact on energy demand and hydrocarbon earnings. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Saudi inflation soars as higher VAT grips economy after coronavirus . Saudi Arabia is to lift the suspension of citizens’ travel outside the kingdom from 1 a.m. on Monday, May 17. Team Business Standard, The oil sector shrank 12%, the most in at least a decade on production cuts, leading the overall economy to contract. The announcement comes after the crown prince said in January that the PIF would invest $40 billion annually in the domestic economy over the next five years. The large contraction in oil GDP came after OPEC and its allies embarked on deep production cuts in May 2020 to steady crude prices. Avoid overeating for a healthy Eid: HMC dietitian, Airbus revives plan for new single-aisle jet plant in Toulouse, Two Palestinians killed by Israeli army in West Bank: ministry. Unemployment rate in the region could increase by 1.2 percentage points because of the COVI-19 outbreak. The price of Brent crude has gradually risen to nearly $70 a barrel after hitting a low of less than $20 a barrel last year. Consumer spending is rebounding and officials plan to partially reopen the kingdom’s borders on May 17. Saudi Arabia expects the economy to shrink by 3.7% this year but to swing back to a 3.2% growth next year. Topics As a premium subscriber you get an across device unfettered access to a range of services which include: Welcome to the premium services of Business Standard brought to you courtesy FIS. Saudi Arabia’s non-oil economy – the engine of job creation – rebounded in the first quarter to pre-pandemic levels, even as the overall economy was dragged into contraction by oil-production cuts. “The numbers suggest that the non-oil economy has already fully recovered from the adverse impact of the pandemic in Q2 2020, despite lingering Covid-related restrictions on internal mobility and international travel,” Farouk Soussa, Middle East and North Africa economist at Goldman Sachs Group Inc, said in a research note. This implies that the region could lose at least 1.7 million jobs in 2020. The International Monetary Fund expects the economy to grow 2.1 per cent this year after shrinking 4.1 per cent in 2020. and non-oil sectors, official data showed on Wednesday. Copyrights © 2021 Business Standard Private Ltd. All rights reserved. The large contraction in Saudi Arabia’s oil GDP came after Opec and its allies embarked on deep production cuts in May 2020 to steady crude prices. Above all, the outbreak of the virus has led to a significant drop in global demand for oil, which has contributed to the price falling from yearly highs of just under $69 per barrel on January 6, to $26.82 by the end of March. Prices rise by an average of 6% during Q3 compared to just 0.9% in Q2, following the tripling of VAT in the summer Inflation soared in Saudi Arabia during the third quarter of 2020, reflecting the impact of higher VAT since July. RIYADH (AFP) - Saudi Arabia said Friday (May 7) that employees will only be allowed to return to their workplace in person once vaccinated against Covid-19. Saudi oil output fell to 8.15mn barrels a day in the first quarter, from an average of almost 10mn barrels a day a year earlier. Saudi Arabia’s non-oil economy – the engine of job creation – rebounded in the first quarter to pre-pandemic levels, even as the overall economy was dragged into contraction by oil-production cuts. Finance minister says kingdom will also draw down up to … The price of Brent crude has gradually risen to nearly $70 a barrel after hitting a low of less than $20 last year. Saudi oil production fell to 8.15 million barrels a day in the first quarter, from an average of almost 10 million barrels a day a year earlier. They need … It also has a far reaching and negative impact on the economy and the well-being of the population. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. Saudi King Salman bin Abdulaziz speaks via video link during a virtual G20 summit on coronavirus disease (COVID-19), in Riyadh, Saudi Arabia March 26, 2020. 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