Saudi Arabia » Outlook

International Property Brokers forecast that Saudi Arabia is likely to reduce average oil output again in 2007, as it seeks to defend an oil price floor of US$50.1/barrel. Economic growth will remain robust in 2007-08, driven by strong government spending, rising foreign investment, high oil prices and an expected pick-up in oil output in 2008. The kingdom will also generate large current-account and fiscal surpluses. Inflation will remain low and there will be no pressure on the Saudi riyal's peg to the US dollar.