4Q 2021 Investor Presentation slide image

4Q 2021 Investor Presentation

Economic Outlook Improving economic outlook supportive for the banking sector, though Covid risks remain Real GDP Growth (%) 10.0% 5.0% 0.0% -4.1% -5.0% 2020 Composite* Oil Price Avg / Barrel (USD) 100.0 50.0 41.3 Inflation (%) 65.7 2.8% 2021 3M Average SAIBOR (%) 2.0% 64.5 0.8% 0.9% 1.0% 0.0% 2020 2021 2022E 2020 2021 4.8% 2022E Government Expenditures % of GDP (%) 6.0% 60.0% 3.2% 41.0% 3.4% 2.2% 3.0% 30.0% 32.1% مصرف الإنماء alinma bank 1.5% 2022E 30.8% Further rebound in real GDP growth The KSA economy is expected to see a solid rebound of 4.8% in 2022 following the 2020 contraction as a result of COVID-19; this projection is however heavily reliant on the ability of the country to contain further outbreaks caused by variants in 2022. Vision 2030 expansion plans back on track Alongside an economic recovery, Vision 2030 plans are expected to accelerate. Stabilization of oil prices Following a year of strong recovery of oil prices, the average price for the composite index is expected to stabilize at ~$65/ barrel in 2022 that will serve to support economic growth. Rise in SAIBOR rates 3M average SAIBOR rates are expected to see a rise to 1.5% in 2022 from 0.8% average in 2021. Declining inflation and government expenditures Inflation is expected to decline to 2.2% in 2022 from the 3.2% level in 2021; government expenditures are expected to remain above 30% of GDP in 2022. 0.0% 0.0% 2020 2021 2022E 2020 2021 2022E 4Q 2021 INVESTOR PRESENTATION SOURCE: IMF October 2021 | *Simple average of three spot prices: Dated Brent, West Texas Intermediate, and the Dubai Fateh 44/48
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