Economy

Saudi Arabia's crude oil exports dropped to their lowest in nearly a year in July, according to the Joint Organizations Data Initiative (JODI). The nation, the world's largest crude exporter, shipped 5.741 million barrels per day (bpd) in July, the lowest since August 2023. Earlier this month, OPEC+ decided to delay planned production increases for October and November, with the...

Saudi Arabia’s central bank has reduced its benchmark interest rate from 6% to 5.5%, following a similar 50-basis-point cut by the US Federal Reserve. This adjustment aligns with changes in US monetary policy aimed at addressing inflation. Central banks in the Gulf, including Saudi Arabia, have matched the Fed’s move due to their currencies being pegged to the US dollar....

The Agricultural Development Fund (ADF) has announced the allocation of over SAR2 billion in loans and credit facilities across Saudi Arabia. These funds will support various sectors, including red meat production, poultry, greenhouse vegetable production, fish farming, and cold storage facilities. During the third meeting of the fiscal year, chaired by Minister of Environment, Water, and Agriculture, Eng. Abdulrahman bin...

Transport and Furniture Lead Spending Increases in Saudi Arabia Furniture and transport sectors in Saudi Arabia saw the highest weekly increase in point-of-sales (POS) transactions from Sept. 8 to 14, according to data from the central bank, SAMA. Furniture spending rose to SR314.3 million ($83.74 million), a 1.6% increase, while transport expenditure hit SR767.6 million, up 1.3%. Food and beverages...

Saudi Arabia's ports experienced a notable 14.6% rise in container traffic in 2023, with both inbound and outbound movements increasing significantly, according to the General Authority for Statistics (GASTAT). Inbound container traffic reached 3.4 million twenty-foot equivalent units (TEUs), while outbound traffic hit 2.2 million TEUs. Outbound cargo totaled 203.5 million tonnes, indicating a surge in exports, with King Fahad...

Gross domestic product (GDP) growth in the G20 region maintained a steady pace in the second quarter of 2024, with a 0.7% increase, slightly down from the previous quarter's 0.8%, according to provisional estimates. Major contributors to this growth were China, India, and the United States, while Brazil and Saudi Arabia posted the highest individual growth rates at 1.4% each....

Saudi Arabia is accelerating its metals and mining industry with three major deals in recent days. The Saudi Arabian Mining Co. (Maaden) announced the purchase of a 21% stake in Aluminium Bahrain B.S.C. from Saudi Basic Industries Corp. for over $1 billion. This move consolidates aluminum operations between Bahrain and Saudi Arabia, positioning Maaden as a significant shareholder. Crown Prince...

S&P Global has upgraded Saudi Arabia's economic outlook to “positive” from “stable,” reflecting strong non-oil growth and resilience against oil sector volatility. Saudi Arabia plans to boost investments in emerging industries like tourism, aiming to diversify its economy beyond the hydrocarbon sector. The kingdom's long- and short-term foreign and local currency ratings remain at “A/A-1.” Under the Vision 2030 initiative,...

Saudi Arabia's inflation rate edged up to 1.6% in August from 1.5% in July, driven by rising housing rents and food prices, according to government data. Housing rents surged by 10.7% in August, contributing to an overall 8.9% increase in the prices of housing, water, electricity, gas, and other fuels, reported the General Authority for Statistics. Previously, the inflation rate...

S&P Global Ratings has upgraded Saudi Arabia's outlook from stable to positive, affirming its ‘A/A-1’ long- and short-term credit ratings. The positive outlook stems from Saudi Arabia's commitment to Vision 2030, which aims to diversify the economy through substantial investments in various sectors, notably tourism. Efforts to attract international visitors and enhance the Kingdom’s tourism appeal are expected to drive...

In August, the prices of 114 goods and services in Saudi Arabia rose year-on-year, while 51 saw a decrease, and four remained unchanged, according to the Saudi General Authority for Statistics (GASTAT). Among food products, local medium potatoes had the highest increase at 44.41%, followed by local round onions at 42.02%. Indian pomegranates experienced the largest decline, dropping 11.56%, with...

Saudi Arabia's annual inflation rate held steady at 1.6% in August, as reported by the General Authority for Statistics (GASTAT). This consistency suggests ongoing economic stability in the Kingdom. The Consumer Price Index (CPI) report highlights that Saudi Arabia continues to maintain one of the most stable inflation rates worldwide. This is attributed to effective economic strategies and timely policy...

The General Authority for Statistics (GASTAT) has released the Consumer Price Index (CPI) for August 2024. This index reveals that Saudi Arabia's annual inflation rate remained steady at 1.6%, demonstrating the country's economic stability. The CPI tracks the cost of a fixed basket of 490 goods and services commonly purchased by consumers. This basket was determined by a 2018 survey...

The Saudi General Authority for Statistics reported that the annual inflation rate in the kingdom reached 1.6% in August. This increase is largely due to an 8.9% rise in prices for housing, water, electricity, gas, and other fuels, along with a 0.9% increase in food and beverage prices. Housing rents saw a significant jump of 10.7%, driven by a 10.8%...

S&P Global Ratings has upgraded its outlook for Saudi Arabia from stable to positive, highlighting the country's robust non-oil growth and economic resilience. The agency noted that this positive outlook is due to the Saudi government's potential for further reforms and investments aimed at boosting the non-oil economy. The upgrade is also a testament to the country's ability to withstand...

S&P Global Ratings has upgraded Saudi Arabia's outlook from stable to positive, highlighting the potential for future ratings increases. This change comes as the kingdom advances its extensive economic reforms aimed at diversifying revenue sources and boosting the non-oil sector. The positive outlook is based on the expectation that Saudi Arabia's broad reforms and investments will support the development of...

The annual inflation rate in Saudi Arabia has held steady at 1.6 percent over the past three months, indicating relative stability on a yearly basis. This stability underscores the strength and resilience of the Saudi economy. It also highlights the effectiveness of the proactive economic measures the Kingdom implemented to counter global inflation and rising prices. The Consumer Price Index...

Saudi Arabia's annual inflation rate reached 1.6% in August year-over-year, driven primarily by increased housing costs, according to official data. The General Authority for Statistics reported a 10.7% rise in actual housing rents, with apartment rents specifically increasing by 10.8%. Despite these increases, Saudi Arabia's inflation remains one of the lowest in the Middle East and North Africa, a testament...

S&P Global Ratings has upgraded Saudi Arabia's outlook from stable to positive, citing strong growth in non-oil sectors and the country's economic resilience. The positive outlook reflects the Saudi government's potential to introduce further reforms and investments, enhancing the development of its non-oil economy. The country's economic stability amid hydrocarbon sector volatility was also noted. S&P expects increased investments in...

Standard & Poor’s Affirms Kingdom’s Credit Rating, Upgrades Outlook to Positive Standard & Poor’s (S&P) has confirmed the Kingdom’s credit rating at “A/A-1” for both local and foreign currencies, while upgrading its outlook from “stable” to “positive.” S&P attributes this strong rating to the Kingdom’s ongoing comprehensive reforms and investments, which are set to boost the non-oil economy and ensure...

S&P Global Ratings has upgraded its outlook on Saudi Arabia from “Stable” to “Positive” while maintaining an 'A/A-1' credit rating for both long- and short-term foreign and local currency. The agency attributes this positive outlook to Saudi Arabia's extensive reforms and investments, which are expected to foster the growth of the non-oil sector and ensure sustainable public finances. Vision 2030...

Standard & Poor's (S&P) has affirmed Saudi Arabia's credit rating at "A/A-1" for both local and foreign currency, while upgrading the outlook from "stable" to "positive." This decision stems from the Kingdom's ongoing reforms and investments aimed at bolstering the non-oil economy and ensuring fiscal sustainability. S&P's report highlights the anticipated growth in Saudi Arabia's non-oil sector, driven by the...

S&P Global Ratings has revised Saudi Arabia's forecast from stable to positive, highlighting the nation's strong non-oil growth prospects and economic resilience. The agency noted that the Saudi government's potential for further reforms and investments is expected to boost the non-oil economy. This revised outlook also reflects Saudi Arabia's ability to withstand volatility in the hydrocarbon sector. We expect to...

Saudi Arabia's economy shrank by 0.3% in 2023 compared to the previous year, primarily due to an 8.9% year-on-year decline in oil activities. According to the General Authority for Statistics, the kingdom's seasonally adjusted real GDP grew by 1.4% from Q1 2024, driven by a 4.9% increase in non-oil activities year-on-year and a 2.1% rise quarter-on-quarter. In Q2 2024, Saudi...

Saudi Arabia's non-oil sector grew by 4.9% year-on-year in Q2 2024, driven by significant gains in the financial and insurance sectors, as reported by the General Authority for Statistics (GASTAT). The financial, insurance, and business services sectors saw a notable increase of 7.1% compared to the same period last year. This growth is part of the Kingdom's broader efforts to...

Saudi Arabia is set to eliminate fees for customs services related to exports and reduce import service fees to 0.15% of the goods’ value. This change, effective from October 6, aims to streamline trade processes and bolster business activities. The Zakat, Tax, and Customs Authority (ZATCA) introduced a new fee structure, including an SR15 ($4) charge for customs declaration on...

Saudi Arabia's non-oil sector expanded by 4.9% in the second quarter of 2024, spurred by growth in financial and insurance sectors, according to the General Authority for Statistics. Financial, insurance, and business services saw a 7.1% increase compared to the previous year. The non-oil sector also grew by 2.1% from the previous quarter, showcasing the Kingdom's push to diversify its...

Experts emphasize that improving education quality in the Gulf is essential for realizing the region's economic potential. Reports from the World Bank and regional consultancies highlight that merely increasing access to schools is insufficient; the focus must also be on enhancing education standards. The World Bank's Human Capital Index indicates that a child born today in the Gulf Cooperation Council...

The International Monetary Fund (IMF) has published a favorable report on Saudi Arabia after concluding Article IV consultations. The report highlights that Saudi Arabia’s financial and regulatory reforms have spurred economic growth, curbed inflation, and reduced unemployment to record lows. It commends the Kingdom's ongoing economic transformation and diversification efforts under Vision 2030. The IMF praised Saudi Arabia’s macroeconomic policies...

Saudi Arabia Lowers Oil Prices Amid Demand Concerns Saudi Aramco has reduced the price of its Arab Light crude for Asian markets by 70 cents per barrel, setting the new price at $1.30 above the regional benchmark. This adjustment, slightly less than the anticipated 85-cent reduction, reflects growing worries about declining demand. This week, oil prices dropped significantly due to...