Saudi first budget surplus in eight years presents an opportunity for stock market growth

Saudi first budget surplus in eight years presents an opportunity for stock market growth

RIYADH: After eight years of budget deficits, Saudi Arabia reported a SR90 billion ($24 billion) projected surplus for 2022, estimating a 7.4 percent gross domestic product growth according to a Cabinet statement — an opportunity that sets the stage for stock market improvement. “The current budget shows strong macro indicators that will enhance the confidence in economic growth and continuous reforms that are necessary to make the stock market more attractive to all investors to maintain positions,” Mazen Alsudairi, head of research at Al Rajhi Capital told Arab News. "The economy growth next year is supported with 4 percent growth in non-oil activities and that's also another driver for strong stock market performance, in addition to an expected increase in liquidity," he added. The Kingdom’s budget picture for next year could have a big impact on investor sentiment amid uncertainty, potentially leading to a rally momentum for the Saudi bourse. Tadawul’s main and parallel indexes, TASI and Nomu, extended their gains in the post-budget trading session, up 0.74 percent and 1.08 percent respectively in midday trading. Elevated investor appetite led to stronger bourse performance in the Kingdom, outperforming other Mideast stocks. The UAE’s main index DFM was up slightly by