Article: SAUDI ARABIA'S IMPROVED CONSUMPTION CLIMATE.(through mid-2003, purchasing power will grow by 1-3%)

Saudi Arabian consumers and businesses are benefiting from improved liquidity and a generally favorable macroeconomic climate. Modest growth in purchasing power in the range of 1 to 3 percent will contribute to corresponding growth in household purchases of non-durable goods through midyear 2003. Expenditure on durable goods will expand at a rate of less than 3 percent year-on-year due to ongoing tensions in the Middle East. Look for sales of durables to show gains approaching 5 percent late in 2003 as increased global demand for oil gives the Saudi economy a boost.

The nation's banks have benefited of late from the tendency of consumer preference for putting ...

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