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Saudi’s efforts to diversify economy showing best results in 2 years

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Wednesday, August 06 – 2014 @ 14:56

 Saudi’s non-oil industries have achieved their highest result since 2012, a survey showed on Tuesday.

On Monday, AMEInfo reported that Saudi’s decision to open up its stock market to foreign investors has been met with enthusiasm from investment managers, whereby two thirds of market leaders expressed their interest to increase their shares on the $550 billion valued Tadawul.

Such a decision is part of a $130 billion spending plan to revamp the non-oil industries, which have had a minimal impact on the Kingdom’s four-year consecutive annual growth of 6.4 per cent.

And on Tuesday, these efforts showed their first signs of paying-off as the non-oil sectors grew the most since 2012. The SABB HSBC Saudi Arabia Purchasing Managers Index grew to 60.1 points in July, a 0.9-point increase on the previous month indicating that, across industries, production levels were at a higher rate. The scale separates expansion of activity from contraction at the 50-point level

The sub-index for output reached 65.3 points, which was the highest since early 2012, with the new orders sub-index achieving the highest growth since September 2013.

Also on Tuesday, in a further boost to the private sector, the Kingdom’s Labour Ministry requested $4 billion from the government to spend on labour reforms. This will include taking steps to encourage more Saudi citizens into the private sector.

Source: http://ameinfo.com/blog/energy-oil-and-gas/saudis-efforts-diversify-economy-clearly-paying/

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