Analysis | Saudi Economy: May 2013 Jadwa Chartbook

Published: May 1, 2013

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Editor’s Note:

The Jadwa Investment firm in Riyadh introduced the “Saudi Chartbook” to provide a quick, chart-based briefing on the key developments and trends in the Saudi economy and stock market. SUSRIS is pleased to provide the Summary from the May 2013 Saudi Chartbook and links to the complete reports in English and Arabic, rich with illuminating charts and graphs. SUSRIS thanks Jadwa Investment for providing this insightful report for your consideration.

[Complete report at these links. [English][Arabic]]

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May 2013
Saudi Chartbook
Summary

Summary

Real Economy: Economic data for March stayed healthy. Indicators of domestic demand picked up, while cement sales also jumped to their highest level in March.

Bank Lending: Annual growth of bank lending to the private sector remained on a downward trend owing to a large base effect while the monthly growth improved in March.

Bank Liquidity Indicators: Bank deposits rose owing to a significant increase in demand deposits while saving deposits contracted. Bank excess deposits at SAMA remained very high while the loan-to-deposit ratio eased in March.

Bank profits: Higher lending and deposits and lower funding cost have supported bank profits, which registered a new high in March compared with same period in the last five years.

Inflation: Inflation rate in March remained flat at 3.9 percent for the third consecutive month, though Jadwa Investment measure of core inflation in the Kingdom eased.

Balance of payments: Full balance of payments data for 2012 show that the current account surplus was $172 billion (23.7 percent of GDP), $6.3 billion lower than the preliminary estimate in the budget.

Trade: Both imports and non-oil exports fell in February. Letters of credit opened for new imports jumped to a record high in March, reflecting expectations of strong domestic consumption demand.

Oil: Brent has been sliding since hitting it 2013 high so far in early February. Disappointing economic figures for China, Germany and the US have contributed to this downward trend.

Exchange Rates: Weaker-than-expected economic growth in the US pushed the dollar down against both the euro and the GBP.

Stock Market: TASI maintained a flat trend in April as concerns about the global economy put downward pressure on commodity prices including oil.

Sectoral Performance: Nine of the 15 sectors rose during April. Sectors with the highest exposure to the regional and global uncertainty were among the laggards.

First quarter results: Net income of listed companies totaled SR23 billion in the first quarter. This was 10.7 percent lower than in the first quarter of last year, but 16 percent above the previous quarter.

[Complete report at these links. [English][Arabic]]

For additional questions and comments please contact the author, Jadwa Senior Economist Fahad Alturki at falturki@jadwa.com

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