Saudi Arabia to pursue “outperforming” efforts in 2020: MUFG

Saudi Arabia is expected to continue last year’s trend of being the regional outperformer in the MENA region in 2020, driven by the ongoing reforms, privatization drives and foreign investments, a report by the Japanese bank MUFG said in a new report.

“Investors are taking increasing comfort with the lengths that the Saudi authorities are demonstrating in enhancing the operating environment, enticing foreign investment and implementing structural reforms in accordance with Vision 2030 targets,” the report noted.

MUFG added that privatization, in particular, has received a boost in Saudi Arabia and will have further momentum in 2020.

“We believe that the Kingdom as well as the rest of the region will accelerate privatization plans this year, in line with the economic transformation strategy,” the report noted.

Overall, MUFG expects a pick-up in MENA regional growth in 2020 despite heightened geopolitical tensions and weaker energy earnings.

It forecasts MENA real GDP growth of 2.7% in 2020, from a near flat 0.1% in 2019.