RIYADH: Saudi Arabia’s gross domestic product (GDP) fell by 3 percent in the first quarter compared to a year earlier, according to official data.
The main reason for the drop was the 11.7 percent contraction in the oil sector, the General Authority for Statistics, said in a report on Monday.
However the non-oil sector recorded a positive growth rate of 2.9 percent while the private sector expanded by 4.4 percent.
A weak oil output had hurt Gulf economies even before the arrival of the pandemic a year ago as reduced hydrocarbon revenues made it more difficult for governments to balance their budgets and fund major infrastructure projects.
The new data reveals that Saudi GDP per capita stood at SR19,895 in the first quarter, down by 0.43 percent from the same quarter of the previous year, but up 0.44 percent on the previous quarter.
Despite the contraction of the economy, international trade continued its strong recovery in the first quarter with imports of goods and services growing by 9.1 percent compared to 11.3 percent growth in the previous quarter. Exports increased by 1.9 percent compared to 3.6 percent growth in the previous quarter.
Private final consumption expenditure grew 6.6 percent compared to growth of 1.5 percent in the previous quarter.
Saudi GDP shrinks by 3 percent in Q1 as oil sector contracts
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Saudi GDP shrinks by 3 percent in Q1 as oil sector contracts
- The main reason for the drop was the 11.7 percent contraction in the oil sector, the General Authority for Statistics
Closing Bell: Saudi main market edges up to 10,745 points
RIYADH: Saudi equities closed higher on Monday, with the Tadawul All Share Index finishing up 135.69 points, or 1.28 percent, at 10,745.45.
The MSCI Tadawul 30 Index also advanced, rising 22.21 points, or 1.57 percent, to close at 1,436.31, while the Nomu Parallel Market Index slipped 31.80 points, or 0.13 percent, to 23,586.94.
Market breadth was positive on the main market, with 216 gainers against 42 decliners, while Nomu saw 42 stocks advancing and 36 declining.
Trading activity picked up, with 261.7 million shares changing hands, while total turnover reached SR5.10 billion ($1.3 billion).
Among the top performers, Saudi Fisheries Co. led the gains, closing at SR63.90, up SR5.80, or 9.98 percent. Naseej International Trading Co. rose to SR34.94, gaining SR3.16, or 9.94 percent, while Dar Al Arkan Real Estate Development Co. ended at SR16.74, up SR1.16, or 7.45 percent.
Zahrat Al Waha for Trading Co. added 6.84 percent to close at SR2.50, and Alamar Foods Co. climbed 5.75 percent to SR42.70.
On the losing side, Al Masar Al Shamil Education Co. fell 4.36 percent to SR23.90, while Saudi Paper Manufacturing Co. declined 2.82 percent to SR62.05.
United International Holding Co. slipped 2.36 percent to SR153.40, Saudi Aramco Base Oil Co. dropped 2.09 percent to SR98.60, and United Electronics Co. eased 1.90 percent to SR85.00.
On the announcement front, Mouwasat Medical Services Co. announced that its board has approved the establishment of a new hospital in Riyadh’s Al-Narjis District, with a planned capacity of 280 beds and a total investment cost of SR900 million.
The project will be financed through a mix of self-funding and long-term Shariah-compliant bank facilities, with further details on timelines and financial impact to be disclosed at a later stage.
Shares of Mouwasat Medical Services Co. closed at SR67.95, gaining SR1.40, or 2.10 percent.
Saudi Arabian Mining Co. reported a net addition of 7.8 million ounces of new gold resources following extensive exploration and drilling activities across multiple sites, alongside the identification of new mineralization opportunities in gold and base metals.
The company noted that the financial impact of these discoveries has yet to be determined and will be assessed in due course.
Shares of Saudi Arabian Mining Co. closed at SR67.50, up SR3.05, or 4.73 percent.
