Saudi Arabian economy will outperform most other emerging markets and is forecast to grow by nearly 6.6 percent in 2011 in account of high oil prices, the Saudi American Bank Group (Samba) said in its quarterly report on Saudi economy. World oil prices fell Friday as traders weighed uncertainty in the global economy that could shake demand. New York's main contract, West Texas Intermediate for delivery in November fell 66 cents to $79.85 a barrel, one day after losing more than $5. Brent North Sea crude for November dropped $1.52 to $103.97. Growth in 2011, which has sharply been revised up by many local banking institutions, could be nearly double the rate recorded in 2010 and one of the highest levels over the past two decades. The report showed high oil prices, which have remained above $100 over the past few months, would widen Saudi Arabia's current account surplus to 17.4 percent of GDP in 2011 from about 15.6 percent in 2010. The fiscal balance, budgeted at a deficit of SR40 billion, is forecast to turn into a surplus of 10.3 percent of GDP in 2011 compared with 6.7 percent in 2010. Further, it said Saudi Arabia's net foreign assets, which have nearly tripled over the past six years, would soar to a new record high of about $557 billion at the end of 2011 from nearly $466 billion at the end of 2010. It expected them to climb further to an all time high of $632 billion at the end of 2012 and hit another record of $702 billion at the end of 2013. The overall rate of GDP growth is likely to be higher than previously anticipated given stronger-than-predicted crude oil output in the first half of 2011, the report noted, adding that real GDP growth would sharply rebound from 3.8 per cent in 2010 to 6.6 percent in 2011 before sliding to around 3.9 percent in 2012. Nominal GDP is projected to jump by nearly 21.2 percent to $524 billion in 2011 from about $432 billion in 2010. Growth will slow down to around 5.7 percent to nearly $554 billion in 2012, the report showed. Despite higher growth in 2011, inflation is expected to slip to around 5.2 percent in 2011 from 5.4 percent in 2010 before rising to 6.2 percent in 2012. Eisa Al Eisa, CEO of Samba Financial Group, has won many accolades, for his track record of over 30 years of achievements and contribution to the enrichment of the banking sector. He was recently named as the recipient of "2011 Lifetime Achievement Award for Business Sectors in the Middle East" from CEO Middle East Magazine.
