Construction, VAT lift Saudi Arabia economy in September 2019
'Steep recovery' noted in kingdom’s construction sector as economy grows on the back of value-added tax returns
Saudi Arabia’s construction sector witnessed “steep recovery” following an increase in capital expenditures by the government, according to USSABC Economic Brief: IMF-Saudi Arabia Consultation Review published by US-Saudi Arabian Business Council (USSABC) for September 2019.
The report’s findings are supported by the USSABC Contract Awards Index report, published in September 2019, which showed Q2 2019 contract awards growing by 32% quarter-on-quarter, and by 92% compared to the same period last year.
According USSABC Economic Brief, Saudi Arabia’s revenues from value-added tax (VAT) increased by 48% in H1 2019 compared to the same period last year, making it one of the key components lifting the kingdom’s non-oil economy.
VATs also accounted for 48% of all non-oil revenues, and 15% of total revenues in H1 2019.