Saudi Arabia’s economy grew an annual 1.5 per cent in the second quarter of 2021, the first expansion since the onset of the Covid-19 pandemic last year, with a sharp rise in the kingdom’s non-oil economy underpinning the rebound.
Growth for the three months to the end of June was driven by a 10.1 per cent expansion in the country's non-oil gross domestic product, according to the latest flash data released by the government on Monday.
Saudi Arabia’s non-oil economy contracted 10.3 per cent in the second quarter of 2020, at the peak of the economic disruption caused by the pandemic, according to the kingdom's General Authority for Statistics.
The oil sector shrunk 7 per cent in the three months through to the end of June. Oil GDP contracted 5.3 per cent in the same period of last year amid lower crude prices.
Seasonally adjusted real GDP grew 1.1 per cent in the second quarter, compared with a 0.5 per cent contraction in the first quarter of 2021, according to government data.
The increase in GDP was a result of oil and non-oil activity growth of 2.5 per cent and 1.3 per cent, respectively, while government activities contracted 2.6 per cent.
The expansion in Saudi Arabia’s GDP in the second quarter "was driven by the unwinding of the voluntary oil output cuts and the easing of virus-related restrictions supported domestic activity”, Capital Economics said in a research note on Monday.
“With the Opec+ impasse now resolved, oil production will be raised further and remaining virus restrictions are being relaxed. The economic recovery looks set gather pace over the second half of the year.”
Saudi Arabia's swift response to curb the spread of Covid-19 has helped it to recover from the pandemic-induced slowdown. The Arab world’s largest economy is now expected to grow 2.4 per cent this year and 4.8 per cent in 2022, according to the International Monetary Fund.
The kingdom's non-oil economy is projected to grow 4.3 per cent this year, according to the fund. Capital Economics is more bullish and has forecast an expansion of 4.8 per cent this year and 6.3 per cent in 2022.
“This is much stronger than the consensus forecasts,” it said on Monday.
Support from Saudi Arabia’s sovereign fund, the Public Investment Fund, and strong domestic demand are helping to propel economic growth.
The PIF is a central plank of the Vision 2030 initiative, which seeks to diversify the economy, nurture local industry, create jobs and reduce the kingdom's reliance on oil revenue.
In January, the PIF unveiled a five-year strategy under which it intends to double its assets to $1.07 trillion and invest a minimum of $40bn a year into the kingdom's economy until 2025.
The investment is expected to create 1.8 million jobs and contribute $320bn to Saudi Arabia's non-oil economy.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
How tumultuous protests grew
- A fuel tax protest by French drivers appealed to wider anti-government sentiment
- Unlike previous French demonstrations there was no trade union or organised movement involved
- Demonstrators responded to online petitions and flooded squares to block traffic
- At its height there were almost 300,000 on the streets in support
- Named after the high visibility jackets that drivers must keep in cars
- Clashes soon turned violent as thousands fought with police at cordons
- An estimated two dozen people lost eyes and many others were admitted to hospital
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- Specialist robotics and science laboratories
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The specs
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- On sale: 2026
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KILLING OF QASSEM SULEIMANI
Tips for entertaining with ease
· Set the table the night before. It’s a small job but it will make you feel more organised once done.
· As the host, your mood sets the tone. If people arrive to find you red-faced and harried, they’re not going to relax until you do. Take a deep breath and try to exude calm energy.
· Guests tend to turn up thirsty. Fill a big jug with iced water and lemon or lime slices and encourage people to help themselves.
· Have some background music on to help create a bit of ambience and fill any initial lulls in conversations.
· The meal certainly doesn’t need to be ready the moment your guests step through the door, but if there’s a nibble or two that can be passed around it will ward off hunger pangs and buy you a bit more time in the kitchen.
· You absolutely don’t have to make every element of the brunch from scratch. Take inspiration from our ideas for ready-made extras and by all means pick up a store-bought dessert.
