28/03/2010
Expectations of shares dividends growth in Saudi Arabia over the medium- term
Report: Emphasis on investment spending leads to economic growth in the medium -term
A recent economic report was likely that the heavy emphasis on investment spending in the Kingdom will lead to the economic growth over the medium term, and that, accordingly, will increase the returns on stocks listed.
Saudi Arabia is heading the GCC in terms of volume of listed shares, which had the largest representation of companies producing petrochemicals, which makes the Kingdom a unique element in the perception of a positive public about the performance of the sector in 2010.
The report, issued by the Gulf Investment Fund referring that «Enhancing the Saudi banks profit, where in 2009 an action were taken in order to prevent much of the credit exposure to unstable. The banking sector about 33 per cent of the total volume of the GCC market, and remains an engine and a major determinant of the market direction.
The report is likely stating that 2010 relatively will be more flexible, but it also goes that the first half of this year, it could be challenges from the slowing growth in assets and low incomes and pressure on the reserve funds and emergency conditions and the possibility of developing additional controls.
Below are more details:
A recent economic report was likely that the heavy emphasis on investment spending in the Kingdom will lead to the economic growth over the medium term, and that, accordingly, will increase the returns on stocks listed.
The report, issued by the Gulf Investment Fund referring that «Enhancing the Saudi banks profit, where in 2009 an action were taken in order to prevent much of the credit exposure to unstable. The banking sector about 33 per cent of the total volume of the GCC market, and remains an engine and a major determinant of the market direction.
The banking sector includes about 33 per cent of the total volume of the GCC market, and remains an engine and a major determinant of the market direction.
The report is likely stating that 2010 relatively will be more flexible, but it also goes that the first half of this year, it could be challenges from the slowing growth in assets and low incomes and pressure on the reserve funds and emergency conditions and the possibility of developing additional controls.
The report confirms that the Gulf Cooperation Council except Dubai was still proceeding «inside the moderate circle » for real estate projects and infrastructure.
The report indicates that the petrochemical sector kept the «momentum of recovery» Over the last few months, but the report does not rule out a process of «correcting prices», before realizing correction assume «It will not last long, but probably will be followed by another upward trend could lay the basis For more structural recovery in the medium term ».
It is noteworthy that the IMF forecast that the rate of economic growth for the GCC region in 2010, about 5.2 per cent against 4.5 per cent for the Middle East, despite the low expected growth rate of the economy of the Gulf Cooperation Council on the overall growth rate is expected to emerging economies and developing countries and $ 6 per cent, it far exceeds the expected growth rate of the global economy, which is 3.9 per cent and the expected growth rate for developed economies of 2.1 per cent
