As Saudi Arabia moves towards an increasingly diversified and less oil-dependent economy, it is set to grow relatively fast in the short and medium terms.  Increased government spending on infrastructure and human capital development, in line with the government’s commitment to improving social standards of its citizens, will support real growth, going forward.  Saudi Arabia has introduced a  very generous social spending plan of USD130 billion in 2011, that is set to generate employment opportunities for Saudi nationals.

High oil prices and increased Saudi oil output continues to strengthen Saudi Arabia’s finances, enabling it to maintain generous fiscal outlays.  In addition, Saudi Arabia is embarking upon significant human rights reforms when it comes to women, allowing them for the first time ever to vote in elections. However, the possibility of an outbreak on the political front should be closely monitored, although it could instigate further economic and political reforms and increase government spending.

 TDWL Index