Flash floods, landslides kill 8 in northern Vietnam, 3 missing    Saudi Arabia approves new Medical Referral Center with 15 key responsibilities    Saudi Arabia produces over 122,000 tons of high-quality local grapes during peak summer season    Saudi Arabia detains over 22,000 residency, labor, and border violators in one week    Hamas says it will not disarm without fully sovereign Palestinian state    Canada rejects claims of ongoing arms exports to Israel    Israeli strikes kill at least 18 in Gaza as aid seekers face deadly fire    HR ministry proposes strict rules for advertising domestic labor services    Saudi Gazette publishes full text of new foreign property ownership law The law grants non-Saudis broader real estate rights under defined conditions while imposing restrictions in Makkah and Madinah    Saudi anti-graft authority investigates 425 employees, detains 142 in July corruption cases    Saudi Arabia's real GDP grows 3.9% in Q2 2025 on broad-based economic expansion    Sotheby's returns Buddha jewels to India after uproar    Riyadh Film Music Festival returns with live orchestral performances of iconic movie scores    Saudi, Russian energy ministers discuss oil market and joint committee plans    Nissan Formula E Team celebrates a landmark season 11 with proud Saudi sponsor Electromin    Fahad bin Nafel steps down as Al Hilal president after historic six-year run    João Félix unveiled by Al Nassr as €50m move marks bold new chapter in Riyadh    Saudi Arabia approves first Alzheimer's treatment with lecanemab for early-stage patients    Chris Tucker, Pete Davidson and Aziz Ansari among stars set for Riyadh Comedy Festival    Al Nassr beat Benfica to €50m João Félix signing after Ronaldo, Jesus intervene    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Pakistani star's Bollywood return excites fans and riles far right    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Slowdown in oil sector poses no drawback to Saudi economic growth
Published in The Saudi Gazette on 01 - 04 - 2012

The slowdown in oil sector is expected as higher level of production and prices will have impact on the incremental growth in the sector, Al Rajhi Capital said in its March Economic Report.
The Central Department of Statistics and Information data showed that nominal GDP growth slowed down in the last quarter of 2011 mainly on account of slowdown in oil sector and government consumption expenditure. Price is likely to be slower in coming quarters as well, the report stressed.
There was a sharp slowdown in growth in nominal GDP to 15.4 percent year-on-year in Q4-2011 as against an average of 32.6 percent in the previous three quarters.
The oil sector's growth retreated to 17.7 percent year-on-year in the last quarter as compared to an average growth of 50.6 percent in the previous three quarters of the year.
Production in the sector has been estimated to have increased from SR229 billion in Q4-2010 to SR269 billion in Q4-2011 which peaked at SR300 billion in Q3.
Oil export grew just 16 percent year-on-year in Q4-2011 compared to an average of 50 percent growth in the first three quarters.
The impact of oil sector slowdown is visible through sharp deceleration in net export growth. The reduced the growth in net export which is export of goods and services minus import of goods and services. The net export was SR155 billion in Q4 whereas it was an average of SR171 billion during Q1-Q3. The growth in net export was 41 percent year-on-year compared to an average of 139 percent in the first three quarters, Al Rajhi Capital said in the report.
Petroleum refining industry also witnessed slowdown in growth.
However, the non-oil sector growth remained steady with slight acceleration in Q4 compared to Q3 of 2011. The sector grew by 13.5 percent year-on-year in Q4-2011 as against 10.1 percent year-on-year growth in Q3-2011. Non-oil private sector has been showing robust growth as the sector grew by 15.2 percent in Q4-2011, higher than average growth of 13.9 percent in the previous three quarters. Growth in fourth quarter in construction, trade etc, and transport etc, sectors remained close to their first three quarters averages at around 19 percent, 13.5 percent and 13 percent respectively.
Growth in finance, insurance, real estate and business services sector also remained steady at around 7.2 percent through the four quarters of the year.
Non-petroleum manufacturing sector also accelerated sharply to 26.5 percent year-on-year in Q4-2011 compared to an average of 21 percent in the first three quarters.
However, Al Rajhi Capital report said government final consumption expenditure (GFCE) declined 17 percent year-on-year in Q4-2011 as against average growth of 26.4 percent during Q1-Q3.
“This suggests that the government focused on capital expenditure in the last quarter of the year which is corroborated by sharp jump in total fixed capital formation (TFCF),” the report said.
TFCF jumped by 31.7 percent year-on-year in Q4-2011 after a decline of 3.4 percent year-on-year in Q3-2011.
Due to decline in third quarter TFCF grew at an average rate of 18.2 percent for the entire year. Private final consumption expenditure (PFCE) remained on accelerating trend which grew by 11.2 percent year-on-year in the last quarter as compared to an average of 8.2 percent growth in the first three quarters.


Clic here to read the story from its source.