Investor Presentation 2020
Investor Presentation 2020 | stc group
Domestic Macroeconomic Indicators
GDP & Government Budget:
Data on Q1 2020, real GDP showed that the economy decreased by 4.5% Q-o-Q. During
Q1 2020, the oil sector declined by 17% Y-o-Y (26% share of GDP), whilst non-oil GDP
rose by 3% Y-o-Y (non-oil private sector GDP was up 2.9% and government sector was
up by 2.9% Y-o-Y).
Saudi Unemployment Rate (15+):
GaStat's latest labor market release for Q1 2020 shows that unemployment
declined to 11.8%, down from 12.0% in Q4 2019. Male unemployment increased
to 5.6%, up from 4.9% in Q4 2019, and female unemployment declined to 28.2%,
down from 30.8% in the past two quarters.
Bn (SAR)
13.2% 32.7%
32.5%
31.0% 30.9% 31.1% 30.9%
31.7% 31.1% 30.8%
30.8%
34%
28.2%
12.8%
12.9%
12.9%
12.8% 12.8%
12.8%
28%
12.7%
15%
12.4%
12.5%
22%
12.3%
12.0%
16%
12.0% 12.0%
5%
11.6% 7.4%
7.5%
7.6%
7.6%
7.5%
11.8%
6.6%
6.6%
10%
6.0%
5.8%
5.6%
4.9%
696
-5%
11.2%
4%
Q3 Q4 Q1 Q2 Q3 Q4
2017 2017 2018 2018 2018 2018
Q1 Q2 Q3 Q4 Q1
2019 2019 2019 2019 2020
Total Unemployment Rate
Male
Female
3,500
2,949
2,974
25%
3,000
2,760 2,800 2,836
2,517
2,582
2,454
2,419
2,500
2,000
1,500
1,000
500
N
0
-15%
2011 2012 2013
2014
2015 2016 2017
2018
2019 Q1 2020
Nominal GDP (SAR)
Nominal GDP % (Change)
Real GDP (% Change)
*Source: GASTAT
According to the announced budget for the year of 2020, total expenditure is budgeted at SAR
1,020 trillion ($272 billion), a slight fall in spending that reversed three years of expenditure
hikes aimed at spurring growth. Yet, the Kingdom continues to implement its Vision Realization
Programs (VRPs) for the Saudi Vision 2030 aiming to achieve higher sustainable economic
growth with a focus on growing non-oil GDP sector.
*Source: GaStat
Consumer Price Index:
The general consumer price index (CPI) registered a Y-o-Y increase of 1.9% in Q2
2020 and a decline of 1.0% compared to the previous quarter of 2020 (with
communication sector registering a Y-o-Y decrease of 0.8% in Q1 2020).
2.5% 2.2%.9%
1.3%
1.0%
2.8%
2.1%2.1%2.2%
0.7% 0.5% 0.8% 1.1%
1.5%
0.2%
0.5%
-0.8%
-1.4%
-21%
30-Jun-18
30-Sep-18
31-Dec-18
31-Mar-19
30-Jun-19
30-Sep-19
31-Dec-19
31-Mar-20
30-Jun-20
31-Dec-17
31-Mar-18
30-Sep-17
30-Jun-17
SAR
Budget
2020
Projections
2021
2022
Total Revenue
833
839
863
Total Expenditure
1,020
990
955
Budget Deficit
(187)
(151)
(92)
754
848
924
Debt
26%
28%
29%
% GDP
Government Reserves
346
280
265
*Source: Bloomberg
*Source: MoF
31-Mar-16
30-Jun-16
30-Sep-16
31-Dec-16
31-Dec-15
31-Mar-17
4
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