The Growth of the Saudi Arabian Economy: Opening up New and Exciting Markets for Investors

While it is easy to deride the Great recession and its impact in the world, it is fair to say that some positive portents managed to emerge in its wake. Take the development that has been experienced in emerging and frontier markets throughout the world, for example, which has in turn created a more equal distribution of global financial power and influence. Such a development has reaped considerable rewards for international investors, who have been able to diversify their portfolios in the quest for more reliable financial returns.

Economic Growth in Saudi Arabia: Helping Investors to Diversify their Interests

The Middle East provides a particularly interesting study in modern economics, as it combines a number of developed, emerging and frontier markets within a small geographic space. With many of these economies experienced rapid growth in a short period of time in the wake of the Great recession, the region is also gaining power and global influence on an annual basis. This trend is unlikely to abate for the foreseeable future, as nations’ such as Saudi Arabia continue to invest in diversification and stimulate widespread growth that is not solely reliant on the revenue generated by oil or the potency of the energy sector.

As the leading economy in the whole of the Middle East, Saudi Arabia offers an interesting investment option in 2014. Although it has struggled to realize initial growth forecasts for the current financial year, its first quarter expansion of 5.1% exceeded the performance of the leading developed economies across the globe. Even though the growth rate eased to 3.8% during the second financial quarter, this still represents robust progress while it also suggests that rising oil prices and the government’s aim to diversify the economy are continuing to pay dividends.

The Last Word for Investors: Why Saudi Arabia May Offer a Unique Opportunity in the Years’ to Come

 For a country that is home to more than one fifth of the world’s recoverable oil deposits, it would be all too easy to rely on this resource as the sole engine for economic growth. Its leaders have resisted this temptation, however, and followed the example of established neighbours such as Qatar by developing a diverse array of revenue streams.

Simply by taking the revenue earned through the sale of oil and a widening portfolio of foreign assets, Saudi leaders are striving to invest their capital into a number of alternative industries including telecommunications and manufacturing. Such diversification subsequently offers international investors a unique opportunity to enter new and lucrative markets, while also setting a sound economic example for other developing countries to follow in the future.

 

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