Saudi Arabia Freight Transport and Shipping Report Q4 2017
BMI View: The Saudi economy will remain under pressure this year but is expected to pick up growth pacefrom 2018 onwards. Real GDP growth for 2017 is estimated at 0.00% as oil production cuts and weakhydrocarbon trade levels both contribute towards a tough climate. Nevertheless, we hold the view that thegovernment's efforts to reduce reliance on hydrocarbons trade will keep construction and infrastructurespending levels elevated, as the Vision 2030 efforts to diversify the economy are well underway. We expectair freight and road freight to be impeded in 2017, but we forecast strong growth in rail freight over thecourse of the year. Out to 2021, we expect to see the return of stable growth in all freight modes, as theeconomy and domestic demand continue to regain momentum.
Key Updates And Forecasts
Total trade in real terms is set to decrease by 1.15% y-o-y in 2017, with imports growing by 0.5% andexports contracting by 2.8%.