RIYADH: Further easing of liquidity, inflow of foreign capital through direct investment and QFI route building up reserves will raise local employment levels leading to increased local market consumption, and steady decline in current account deficit due to elevated oil prices, among others, Al Rajhi Capital said in its Outlook report titled “Saudi Arabia Yearbook – Outlook 2017: Year of implementation with clearer skies”.
The report also said 2017 will be an important year for the Saudi capital markets as there are a number of market reforms in pipeline which could improve Tadawul’s chances to be included in the MSCI EM Index, Al Rajhi Capital said in its Outlook report titled “Saudi Arabia Yearbook – Outlook 2017: Year of implementation with clearer skies”. “It will be an important year for oil as well as investors are likely to observe OPEC and non-OPEC compliance to the agreed limits and the potential reaction of other producers such as shale. Overall, reduced downside risks to oil prices will enhance Government’s ability to pursue NTP 2020 plans while providing more room for fiscal measures and reducing short term impacts on economy,” the report said. After a 30% rally in TASI since mid-October, the report said “we believe there is limited further upside potential in the near-term. Al Rajhi Capital continues to believe that the large cap companies with stable business models and diversified revenue streams in core sectors will fare better and show resilience in times of uncertainty.”
