Difficulties facing the Saudi petrochemical sector in 2023

Al-Ahly Capital said in a recent report that although the second half of 2022 was a difficult period for the Saudi petrochemical sector, difficulties and challenges are expected to continue in 2023.

This comes against the backdrop of fears of economic recession, high levels of inflation and increased production capacities globally, which will put pressure on product margins.

Al-Ahly Capital pointed out that the second half of 2023 may bring with it some signs of improvement as a result of China’s exit from the zero Covid policy and the easing of precautionary measures.

In a previous meeting, Iyad Ghulam, head of stock research at Al-Ahly Financial Company, said that liquidity, oil prices, high interest rates, and the dollar index are all factors affecting the movement of Saudi stocks.

In an interview with Al-Arabiya, Ghulam explained that we should focus on the local sectors during the coming period.

He pointed out that the Saudi market index fell from its peak near 14,000 points to 10,000 points, so investors see that the market is valued at less than its fair value by 30% of the total.

He stated that the market is about to pass the difficult period of fluctuation, expecting the market to stabilize during the coming period.