MENA Weekly: Q1 data wrap up for Saudi Arabia and Egypt

The recent deterioration in Saudi Arabia’s current account deficit is likely to continue on the back of lower oil receipts. While large FX buffers will prevent major macro strains for now, the Kingdom’s efforts to attract foreign investment will need to be intensified. FDI inflows are far below Vision 2030 goals. On a more positive note, the labour market figures show that Vision 2030 reforms to increase female employment continue to have a positive impact. Elsewhere, the Q1 GDP figures out of Egypt, which showed that the economy grew at its fastest pace in three years, support our upbeat view on the growth outlook.