Government steps ups its support to revive the economy with monetary policies

Posted on September 10, 2020

• In the past few weeks, the SAMA (Saudi Arabian Monetary Authority) has announced a SAR50bn programme to support the private sector • The financial stimulus worth more than SAR70bn (USD 18 billion), consisting of exemptions and postponement of government dues to provide liquidity to the private sector . • Though the positive impact of these new policy measures will trickle down to the economy and the real estate sector in the long-term, short term economic growth is likely to remain muted • As per Oxford Economics, non-oil growth is forecast to grow at 0.7 % (from 2.8 % previously) in 2020. • A few of the ongoing deals have been finalised in the last few weeks, indicating a long-term optimistic view most companies are adopting while considering their real estate requirement in the kingdom. • Over the last 12-18 months, the kingdom has liberalised investments guidelines and opened up its economy to new business sectors. • This has led to a surge in enquiry levels from regional and global companies keen to set-up / expand their operations in the country. • Strong recovery in demand especially across the office and retail sector is expected during H2 2020