Saudi Arabia has reported a substantial year on year rise in import letters of credit (L/Cs), although the value of such credits is lower than earlier this year.

The rise reflects substantial overall improvements in the Kingdom's economy.

Import data

According to official data, the value in April of new L/Cs opened to import goods was 12 per cent up on the same month last year.

However, the value of import L/Cs opened in April was down 11.4 per cent from March levels, substantially due to lower machinery, vehicle and food imports.

Strong economy

Saudi Arabia's money supply grew substantially in April to reach a two-year high while generous government and industry handouts earlier this year have boosted consumer confidence.

Strong oil prices have also helped the Saudi economy, which is increasingly driven by the government as it undertakes massive investments in areas such as education and infrastructure development.

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