RIYADH: Economists predicted on Tuesday that Saudi Arabia’s economy would grow by 6.3 percent in 2022, an increase on their 5.7 percent forecast three months ago and the fastest growth since 2011.
Economic growth in the six Gulf states will average 5.9 percent this year, the fastest since 2012, according to economic analysts polled by the Reuters news agency.
The expected growth in Kuwait at 6.4 percent, and in the UAE at 5.6 percent, would be the fastest in about a decade.
Qatar, Oman, and Bahrain are expected to grow around 4 percent, also the fastest in several years.
“GCC economies have seen a relatively strong start to 2022. The hydrocarbons sectors have benefited from increased oil production so far this year, with crude oil production up 12 percent for the UAE and 19 percent for Saudi Arabia,” said Khatija Haque, chief economist at Emirates NBD.
“Survey data for the first quarter of the year point to a solid expansion in non-oil sectors as well, with strong growth in business activity and new work in the UAE, Saudi Arabia, and Qatar.”
However, the economists sounded a note of caution on the threat of inflation.
Although modest in comparison to many other countries, GCC inflation is expected to rise above 2 percent this year, with the highest median forecast for Qatar at 3.5 percent, and the lowest for Saudi Arabia at 2.5 percent.
“In the face of higher commodity and global food prices, we have revised our 2022 inflation forecast for the GCC region to be about 3.5 percent from around 2.5 percent,” said Ilker Domac, regional head of economics at Citi.
“Since GCC countries import 85 percent of their food, a sustained upward pressure on international food prices could pose a challenge for policymakers.”
Economic growth in Saudi Arabia ‘fastest since 2011’
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Economic growth in Saudi Arabia ‘fastest since 2011’
Closing Bell: Saudi main market sheds 85 points to finish at 11,098
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower in the latest session, falling 85.79 points, or 0.77 percent, to finish at 11,098.06.
The MSCI Tadawul 30 Index declined 0.63 percent to close at 1,495.23, while the parallel market index Nomu dropped 0.91 percent to 23,548.56.
Market breadth was firmly negative, with 42 gainers against 218 decliners on the main market. Trading activity saw 226 million shares exchanged, with total turnover reaching SR4.5 billion ($1.19 billion).
Among the session’s gainers, Tourism Enterprise Co. rose 9.40 percent to SR15.02. SHL Finance Co. advanced 4.51 percent to SR16.00, while Almasar Alshamil for Education Co. gained 3.56 percent to SR23.88.
Dar Alarkan Real Estate Development Co. added 3.03 percent to SR19.70, and Banque Saudi Fransi climbed 2.61 percent to SR19.30.
On the losing side, Almasane Alkobra Mining Co. recorded the steepest decline, falling 6.61 percent to SR96.
Al Moammar Information Systems Co. dropped 5.14 percent to SR164.20, while National Company for Learning and Education declined 4.60 percent to SR124.30. Saudi Ceramic Co. slipped 4.14 percent to SR27.30, and Arabian Contracting Services Co. fell 4.12 percent to SR116.50.
On the announcement front, Saudi Telecom Co. announced the distribution of interim cash dividends for the fourth quarter of 2025 in line with its approved dividend policy.
The company will distribute SR2.74 billion, equivalent to SR0.55 per share, to shareholders for the quarter.
The number of shares eligible for dividends stands at approximately 4.99 billion shares. The eligibility date has been set for Feb. 23, with distribution scheduled for March 12.
The company noted that treasury shares are not entitled to dividends and that payments will be made through Riyad Bank via direct transfer to shareholders’ bank accounts. stc shares last traded at SR44.80, unchanged on the session.
Separately, National Environmental Recycling Co., known as Tadweer, reported its annual financial results for the year ended Dec. 31, 2025, posting significant growth in revenue and profit.
Revenue rose 53.5 percent year on year to SR1.24 billion, compared with SR806 million in the previous year. Net profit attributable to shareholders increased 68.4 percent to SR60.9 million, up from SR36.2 million a year earlier, driven by higher sales volumes and operational expansion.
Tadweer shares last traded at SR3.80, up 2.70 percent.
