Trump’s Policies May Impact Emerging Markets, But Saudi Arabia Stays Resilient: Citigroup

Citigroup has forecast significant challenges for emerging markets (EMs) as US trade policies under Donald Trump are expected to disrupt global economic growth. Analysts believe that the resulting strength of the US dollar could put further pressure on EM assets. Despite these hurdles, Saudi Arabia is predicted to remain largely insulated from these trade risks. The financial giant upgraded the kingdom’s status to “overweight” from “underweight,” highlighting the country’s robust oil exports and strategic positioning within the global economy.

While many EMs are poised for sluggish growth, Saudi Arabia stands out with a resilient economy and ongoing diversification efforts under its Vision 2030. The country is well-positioned to absorb external shocks, thanks in part to its significant energy exports and increasing investments in sectors beyond oil, such as technology and tourism. This makes the Kingdom less vulnerable to the volatility expected to affect other emerging economies.