Investor Presentation 2020

Domestic Macroeconomic Indicators Investor Presentation 2020 | stc group GDP & Government Budget: Data on 2019, real GDP showed that the economy expanded by 0.3% (Y-o-Y). During 2019, the oil sector declined by 6% (31% share of GDP), whilst non-oil GDP rose by 4% (non-oil private sector GDP was up 4.1% and government sector was up by 4.4%). Saudi Unemployment Rate (15+): GaStat's latest labor market release for Q3 2019 shows that unemployment declined to 12%, down from 12.3% in Q2 2019. Male unemployment declined to 5.8%, down from 6% in Q2 2019, and female unemployment was also down from 31.1 to 30.8%, the lowest in 3 years. Bn (SAR) 3,500 2,949 2,974 3,000 2,760 2,800 2,836 25% 2,517 2,582 2,454 2,419 2,500 1,981 2,000 1,500 1,000 500 13.2% 33.0% 33.1% 32.7% 31.0% 30.9% 31.1% 30.9% 32.5% 31.7% 31.1% 30.8% 34% 12.8% 12.9% 12.9% 12.8% 12.8% 12.8% 12.8% 28% 12.7% 12.7% 15% 12.4% 12.5% 22% 12.3% 12.0% 16% 12.0% 5% 11.6% 7.2% 7.4% 7.4% 7.5% 7.6% 7.6% 7.5% 6.6% 6.6% 10% 6.0% 5.8% 11.2% 4% -5% Q1 2017 Q2 Q3. Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 Q3 0 -15% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Nominal GDP (SAR) Nominal GDP % (Change) Real GDP (% Change) *Source: GASTAT According to the newly 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 Total Unemployment Rate Consumer Price Index: Male Female The general consumer price index (CPI) registered a Y-o-Y decline of 0.1% in Q4 2019 and an increase of 0.3% compared to the third quarter of 2019 (with communication sector registering a Y-o-Y decrease of 0.2%). 1.481.171.171.26 2.522.221.93 2.76 2.09 2.1 2.21 Budget Projections SAR 2020 2021 2022 Total Revenue 833 839 863 Total Expenditure 1,020 990 955 Budget Deficit (187) (151) (92) Debt 754 848 924 % GDP 26% 28% 29% Government Reserves 346 280 265 *Source: MoF 4 30-Mar-15 30-Jun-15 *Source: Bloomberg 30-Sep-15 31-Dec-15 31-Mar-16 -0.09 -0.75 -1.4 2.1 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 0.96 0. 0.660.47-0.761.14 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 stc

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