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|08 January, 2019

Market Soundbites Part 3: What will be the dominant factor for Saudi Arabia in 2019?

ZAWYA's editor Michael Fahy sat down with Jean-Paul Pigat, head of research at Dubai-based Lighthouse Research, to discuss the big issues impacting global capital markets and the outlook for the year ahead.

Image used for illustrative purpose. Saudi Arabian women, seeking a job, stand in line to talk with recruiters during a job fair in Riyadh January 25, 2012.

Image used for illustrative purpose. Saudi Arabian women, seeking a job, stand in line to talk with recruiters during a job fair in Riyadh January 25, 2012.

REUTERS/ Stringer

In the final part of our series, Pigat talks about the impact of Saudization on the kingdom’s economy: “It has a huge impact. In my view, Saudization is the overarching dominant theme for Saudi Arabia in 2019 and probably 2020. This is almost unprecedented,” he believes.

He also talks about the macro situation in Bahrain and how the fiscal stimulus will be addressed.

Macro in Mena: Have we turned a corner? (Part 3)

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Watch Part 1 here, where Pigat discusses how the trade war between the United States and China will impact Dubai and his opinion of the recent fiscal stimulus package rolled out by the Abu Dhabi government.

Watch Part 2 here, where he looks at why the announcement of several large-scale investment projects in Saudi Arabia hasn’t yet had the impact people expected. He also talks about why foreign direct investment has collapsed in the kingdom.

To watch the full video, entitled “Macro in MENA: Have we Turned a Corner”? click here.

Some of the topics discussed include:

  • The employment outlook for the UAE
  • Why the drop in residential real estate prices in Dubai could be beneficial to the economy
  • The impact of Saudisation on KSA’s investment landscape
  • If pressures on fixed exchange rates in Bahrain and Oman are likely to ease in 2019

(Writing by Shane McGinley; Editing by Michael Fahy)

Our Standards: The Thomson Reuters Trust Principles

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2019

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