Output in Saudi Arabia is expected to slip in the coming period as omicron worries mount among firms, a Saudi investment bank said in a report.

Jadwa Investment expects the Kingdom’s economy to expand by 7 percent in 2022 and by 3.1 percent in the following year. In addition, Saudi Arabia’s real gross domestic product is projected to have grown by 2.7 percent in 2021, it said in the report.

This was in line with IHS Markit’s – a London-based analytics and solutions firm – newly released report on Monday. The company’s data showed that the growth of the Saudi private non-oil sector experienced a nine-month low as demand and confidence weakened in December.

Regarding global oil prices, the Riyadh-based firm said that higher demand in 2022 is set to drive oil prices upwards despite some reported concerns over near-term volatility. Jadwa expects Brent oil prices to average around $71 per barrel in 2022.

Following October’s 17-month high of oil exports, the investment bank forecasts the Kingdom’s oil shipments to continue strengthening in the short term, with oil exports revenues set to reach $230 billion in 2022, up from $200 billion in the previous year.

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