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Saudi Arabia: Bucking the global trend?

How resilient is growth in Saudi Arabia to a global downturn? The energy rich kingdom, endowed with one-fifth of the world's proven oil reserves, is in the midst of an investment-led boom that shows little evidence of being derailed by the credit crunch and ensuing slowdown in western (OECD) economies, though a faltering US dollar is adding to inflationary pressures. Economic analyst MOIN SIDDIQI examines the kingdom's unique situation.

THE FOUNDATIONS OF Current expansion in the kingdom are much stronger (unlike previous boombust cycles) reflecting buoyant private sector activity, prudent macro-policies, liberalisation of the financial sector and foreign direct investment (FDI) regime ...

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