World Air Conditioner Market – 2021 Update - 2.8 MIDDLE EAST - Saudi Arabia

The impact of the spread of the pandemic on the economy and the impact of the decline in crude oil prices have triggered a further decline in the Saudi economy. In response to this situation, since July 1, Saudi Arabia has increased the value-added tax (VAT) rate from 5 to 15%. Starting from the second quarter (April to June), the intensification of the pandemic and the continued decline in oil prices triggered a further deterioration in the economy. The IMF estimates that Saudi Arabia's GDP in 2020 will register a 6.8% decrease.