Saudi news

Selective purchases of Saudi stocks in the first half of 2023

The Chief Executive Officer of Mekial Financial Technologies, Hisham Abu Jamea, said that what the markets witnessed in the past seven months changed the map of the global economy.

Abu Jameh explained, in an interview with Al-Arabiya, that the successive increase in interest by more than 3% – 3.5% in less than 4 months had a negative impact, more than expected, on the growth of companies in the Saudi market.

Abu Jameh added that the Saudi riyal is pegged to the US dollar, so the Saudi Central Bank is forced to raise interest whenever the US Federal Reserve raises interest rates, despite the fact that inflation levels are low in the Kingdom compared to those in the United States.

He pointed out that inflation in America reaches 7% at best, while it is only 2.5% in Saudi Arabia.

He continued, “With regard to the Saudi economy, there are no problems for companies in light of good economic growth, and the lending market is still deliberately at good levels of growth, but companies may be affected by the high cost of loans.”

He believes that the first 6 months of 2023 will witness selective operations for shares in the Saudi market, with caution regarding one share over another.

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