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Saudi Arabia's new investment programme could be a big leap for the economy


Dubai: Saudi Arabia’s newly announced investment programme will help the country achieve a big leap in economic diversification, according to Bank of America Merrill Lynch (BoAML).
“We estimate the overall investment programme announced by the authorities aims to increase domestic non-central government investments from the SAR4 trillion ($1.1 trillion) level realized over 2009-2018 to SAR10 trillion over the next decade, an ambitious 150 per cent increase. This confirms the focus on economic diversification and a shift in the growth model towards capital accumulation,” said Jean-Michel Saliba, Mena economist/strategist at BoAML.
Public sector to lead
Saudi public sector giants such as the Public Investment Fund (PIF), Saudi Aramco and Sabic are mandated to lead the investment programme.  ....

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Spending increases in the UAE, giving the economy a growth boost


Dubai: After COVID-19 tightened income during most of 2020, UAE expatriates expectedly took on more loans – but how did this help bolster the economy and what did this mean for your personal finances?
Economists view the uptick in loans as a much-needed buoy for the economy and stability for residents’ finances. UAE banks availed expats loans worth Dh149 billion from January to November last year – a figure that rose by Dh19.7 billion amid the pandemic, recent UAE Central Bank data showed.
Steady growth in loans
UAE’s loan growth has been picking up pace and economists have been widely weighing that this is indicative of the country s healthy financial profile despite the global economic slowdown triggered by the COVID-19 pandemic. ....

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Why Saudi banks are better positioned in 2021 compared to GCC peers


Non performing loans and margin pressures to persist
Saudi banks are entering 2021 from a position of advantage with higher loan growth and relatively low impairments.
Image Credit: Bloomberg
Dubai: Saudi banks are entering the New Year from a position of advantage with higher loan growth and relatively low impairments reported in in the first three quarters of 2020.
Despite the challenging operating environment posed by COVID-19 and drastic fall in oil prices, 2020 was not such a bad year for the Saudi Banks, according to Bank of America Merrill Lynch (BoAML) analysts.
The Saudi banks, like others in the Middle East North Africa region, have faced the perfect storm of falling interest rates and a weak and increasingly uncertain economic outlook, with the Saudi economy forecast to shrink 5.6 per cent by the IMF in 2020. ....

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