Saudi Arabia

September 2008 | BMI View

The outlook remains significantly gloomier as we move into 2009 than it was this time last year, with lower oil prices, a crashing stock market, slowing global economy and concerns over a possible housing market correction led by Dubai all feeding through into higher levels of risk aversion. Of course there is an associated political risk with this scenario: any deterioration in living standards both among Saudis and expatriate labourers could lead to unrest. We think the Saudi government will do as their western governments have done; throw money at the problem and boost liquidity aggressively to keep the economy

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