JEDDAH: Saudi Arabia has further growth potential, underpinned by the prospects of increasing oil production combined with the positive outlook for oil prices over 2011, Business Monitor International said in its "Saudi Arabia Business Forecast Report Q2 2011". On top of that, the Kingdom's spending drive aimed at strengthening non-oil sector growth will also contribute to overall economic progress. "This strong growth story will boost the country's investment climate and help attract further foreign investment." Moreover, a scenario in which social unrest degenerates to a similar extent as that seen in Egypt or Tunisia remains unlikely, the report said, owing to the Kingdom's "higher living standards." The report maintained its positive economic growth outlook for Saudi Arabia and project real GDP to expand 3.9 percent in 2011, up from an estimated 3.0 percent in 2010. Saudi Arabia's non-oil sector will play an increasingly vital role for the economy, as the government's initiative to diversify the economy away from the hydrocarbon sector will bolster private consumption and gross fixed capital formation (GFCF ). "As a result, we forecast GFCF growth to outperform all other expenditure components of GDP from 2011 onwards. Indeed, as part of a longer-term spending plan, the government plans to spend $155 billion in 2011 alone, investing in education and infrastructure," the report noted. However, until the mortgage law is passed, the report said "persisting weak credit growth will pose risks to the country's growth potential." Over the longer term, the Saudi GDP growth is forecast at 3.5 percent in real terms between 2012 and 2015. "Saudi Arabia's investment climate remains one of our favorites in the Middle East and North Africa. Relative political stability, great scope for growth in capital extensive sectors like infrastructure, impressive oil reserves and production capacity are the key factors underpinning our favorable outlook," the report pointed out. Moreover, the report predicted that over the next five years, investors will be particularly attracted by the government's impressive spending plan, which aims to invest $1.3 trillion primarily in the non-oil sector. The move will not only create employment opportunities, but it will also attract both local and foreign investors interested in tapping into the country's growth story, the report added.