PKK lay down arms in northern Iraq in symbolic disarmament    At least 67 children dead from hunger in Gaza    U.S. judge blocks immigration arrests in Los Angeles over racial profiling claims    Trump slams protesters as 'slimeballs' after attack on ICE agents in California    Saudi Arabia reaffirms OPEC+ compliance as June crude supply hits 9.35 million bpd    Riyadh begins property acquisition for major road development projects    Saudi minister explores strategic industrial and mining partnerships with top Russian firms    Riyadh's Creative District to welcome Italy's Istituto Marangoni    CMA approves major reforms to ease investment account access for foreign and local investors    France's Lady Liberty artwork goes viral as a new Statue of Liberty could be in the works    Saudi population reaches 35.3 million in 2024, majority under 65    GASTAT: Industrial Production Index rises by 1.5% in May    Theo Hernández: Al Hilal can compete with Europe's best    Abdullah Al-Qaisoom wins silver at Asian Youth and Junior Weightlifting Championship    Aubameyang's future at Al Qadsiah in doubt after cryptic post comparing Saudi League strikers    Makkah Deputy Emir leads washing of Holy Kaaba    SFDA approves 'Winrevair' for rare pulmonary hypertension treatment    HONOR returns to Esports World Cup as Official Smartphone Partner for 2025 The renewed commitment will see HONOR elevate mobile esports competition with cutting-edge AI technologies and industry-leading hardware    Michael Madsen, actor of 'Kill Bill' and 'Reservoir Dogs' fame, dead at 67    BTS are back: K-pop band confirm new album and tour    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Pakistani star's Bollywood return excites fans and riles far right    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Saudi business sentiments defy sluggish global economic growth
Published in The Saudi Gazette on 13 - 02 - 2013

RIYADH – The Business Optimism Index for Saudi Arabia for the first quarter of 2013 prepared by the National Commercial Bank, in association with Dun and Bradstreet South Asia Middle East Ltd (D&B), portrayed a resilient business outlook despite a feeble global economic growth.
Sentiments among Saudi Arabia's business community have improved in the first quarter of 2013. The BOI survey for Q1 2013 reveals higher optimism levels compared to those recorded in the previous quarter, said Prashant Kumar, Associate Director, of Dun and Bradstreet South Asia Middle East Ltd.
Availability of skilled labor is cited as a leading concern by most of the business units in the hydrocarbon as well as the non-hydrocarbon sector. With an improvement in business sentiments, most businesses in both hydrocarbon as well as the non-hydrocarbon segments plan investment in business expansion in Q1 2013.
The latest D&B BOI survey unveiled in Riyadh at a press conference Tuesday showed that the Saudi Arabia's hydrocarbon sector optimism has improved to 33 from 25 as all parameters have gained from the previous quarter's level. The BOI for Level of Selling Prices has gained 8 points to 13 in Q1 2013 compared to 5 in Q4 2012. The BOI for the Net Profits stands at 58, which is 10 points above the score in Q4 2012. The hiring outlook of the sector has also improved; the BOI for the Number of Employees parameter has gained 7 points to 47 in Q1 2013.
The composite BOI for the non-hydrocarbon sector stands at 55 compared to 47 in Q4 2012 and all six parameters have recorded an improvement. The BOI for the Volume of Sales parameter has registered a value of 65 compared to 56 in Q4 2012, while the BOI for the New Orders parameter is recorded at 66 compared to 57 in Q4. The BOI for Level of Selling Prices stands at 34 in Q1 2013, compared to 19 in Q4 2012. Profitability expectations have also improved from the previous quarter. The BOI for the Net Profits parameter is recorded at 55 in Q1 2013, up from 53 in the fourth quarter of 2012. The BOI for Number of Employees has improved by 5 points to 53 from 48 in Q4 2012. The BOI for Level of Stock stands at 33 in Q1 2013, 17 points up from the previous quarter.
Four out of the five business sectors in the non-hydrocarbon sector have registered higher optimism levels while one has revealed mild retraction. The construction sector holds the most optimistic outlook among the various sectors surveyed for the sixth quarter in a row in Q1 2013. The transport & communications sector holds the least optimistic outlook for Q1 2013.
Commenting on the findings of the survey, Dr. Said Al-Shaikh, Senior Vice President and Group Chief Economist of the National Commercial Bank, said “the BOI of 1Q 2013 is indicating that more Saudi companies expect business conditions to improve further in the near term, as all the parameters reflected increases, yet with varying degrees across the different non-hydrocarbon sectors. Respondents to the survey in the non-hydrocarbon sectors expect volume of sales to be strengthening, with a widespread expectation of rising selling prices. Compared to the previous quarter, there is lesser companies anticipating negative factors to affect their businesses in the 1Q 2013. While the survey results broadly reflect the satisfaction of the Saudi business community with kingdom's recently announced expansionary 2013's budget that continued to emphasize spending on social and physical infrastructure, the biggest concern of businesses is the availability of skilled labor, followed by inflationary factors. Moreover, the improved business outlook was feeding more enthusiasm, as the results indicated that companies remained steady for investment in business expansion.”
40 percent of the respondents in the non-hydrocarbon sector have highlighted that they do not expect any negative factors to influence their business operations in Q1 2013 compared to 25 percent in Q4 2012. 22 percent of the respondents are concerned about availability of skilled labor while 10 percent are concerned about inflationary factors. 9 percent of the sector respondents have cited the availability of finance as a concerning factor. 6 percent of the respondents anticipate low demand for products / services to be a key challenge for their business. In terms of investment in business expansion in Q1 2013, 57 percent of the non-hydrocarbon companies have said that they would invest in business expansion in Q1 2013, 21 percent do not plan any investments and 22 percent are unsure. Sector-wise, Manufacturing and Trade & Hospitality sectors are most optimistic on their investment plans.
In the hydrocarbon segment, 48 percent of the business units feel that their businesses are insulated from any negative factors in Q1 2013. 23 percent are concerned about availability of skilled labor and 13 percent have cited government regulations as a key challenge. Inflationary factor is a leading concern for another 5 percent of the sector respondents. In terms of investment in business expansion in Q1 2013, 53 percent of the sector respondents plan investments in business expansion compared to 45 percent in Q4 2012. – SG


Clic here to read the story from its source.