| 25 Jan 2009 |
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Inflation expectations reduced by 7%
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Al Shakrah: "Announcement of 2009 budget confirms solidity of the economy"
Sharjah: GCC countries are constantly striving to gain positive results from the negative effects of the global financial crisis, and Saudi budget reports indicate that the Saudi industrial sector's Gross Domestic Product (GDP) has risen to SR 1753 billion, with a growth rate of 22% in 2008, compared to SR 1430 billion in 2007. In addition, Saudi Arabia has successfully reduced its general debt index to GDP rate to SR 237 billion in 2008, despite the damaging effects of the global financial crisis.
Saudi financial experts anticipate a reduction of 7% in the inflation of the public sector due to the variance in dollar exchange with other currencies, the decline of some local product prices, especially construction materials, and the decline of oil prices, which in turn leads to reduced transportation and shipping costs, and ultimately the restoration of reasonable pricing standards.
Sheikh Abdullah Fahid Al Shakrah, Al Hanoo HoldingAl Hanoo Holding
Chairman, said: "The new budget confirms the solidity of the Saudi economy, the sound judgment of the Saudi decision-makers, and their ability to fulfill sustainable growth requirements. It proves that the Kingdom of Saudi Arabia will remain in competition as one of the biggest investment destinations in the region. The economy has become solid due to the important role played by the different sectors in the KSA, led by the energy sector. High oil prices have made returns of SR 1100 billion against costs of SR 510 billion, reaping net returns of SR 590 billion.
Al Shakrah, whose company is developing Al Nujoom Islands and Emirates Industrial City in the emirate of Sharjah, UAE, added: "The announcement of the new budget serves as a strong statement that funds were not affected by the global financial crisis, and that it has the ability to develop new projects, raise growth rates in the property sector, fulfill property sector requirements in order to complete current projects, and to create new projects and opportunities that will contribute to the KSA's vision in the short and long terms."
The Saudi Ministry of Finance has announced the overall budget of 2008, noting that a surplus of SR 590 billion was achieved. Many professionals are expecting a budget insufficiency of SR 65 billion in 2009 due to the high expenditure rate of the last five years, while others believe that this high rate of expenditure will be reduced, with plans aimed at lowering the expenditure leading to the restoration of the economy from recession.
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About Al Hanoo
Right from the days of its inception in 1972, Al Hanoo HoldingAl Hanoo Holding Company has been committed towards the development of the property sector in KSA and many other neighbouring countries.
Besides properties, Al Hanoo HoldingAl Hanoo Holding Company has also founded subsidiary companies that have a strong presence in Contracting, Gas and Electricity networks installation, Agriculture, Trading, and many other developing sectors. This diversified approach is what makes Al HanooAl Hanoo a pioneer and an integral facet in the economic hub of various countries in the world.
For further information, please contact:
Mustafa Al Khafaf
SAHARA Communications
Tel: +971 4 3298996
Fax: +971 4 3298995
E-mail: mustafa@saharagcc.com
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