Saudi Arabia’s non-oil sector remains resilient
As 2016 and beyond present challenges for Saudi Arabia in order to maintain growth, non-oil sectors are proving to be resilient
Careful management and prudent preparation are required to weather the storm facing markets in Saudi Arabia, Alkhabeer Capital revealed in a recent report.
The Jeddah-based asset management and investment firm, said: "the past 12 months have presented the Kingdom of Saudi Arabia with an opportunity to reinforce its economic fundamentals while spurring a move towards greater diversification."
According to the report, lower oil prices have taken a toll on GCC countries forcing a scaling down on non-essential spending,but continuing commitment to social infrastructure projects.
It also revealed Saudi's white land tax would add up to $13bn in government revenues.
Growth performance in non-oil sectors has been impacted but remains resilient due to ongoing diversification initiatives.
Investor focus on companies that are not overly reliant on hydrocarbons is recommended, the report added.