Economy

Advancements in wearable technology are enabling longer, healthier, and more meaningful lives, marking the onset of a global "longevity revolution." This shift presents significant economic opportunities and societal transformations, with challenges in making additional years productive. For Saudi Arabia, this offers a chance to build a resilient generation capable of driving economic and social progress. Population aging is an irreversible...

Moody's has upgraded Saudi Arabia's credit rating from "A1" to "Aa3", highlighting the nation's efforts to diversify its economy beyond oil. This strategic move aligns with Saudi Arabia's Vision 2030, which aims to reduce oil dependency by investing in infrastructure and developing sectors like tourism, sports, and manufacturing. Efforts are also underway to attract foreign investments, ensuring the ambitious Vision...

Saudi Arabia's economy is projected to expand by 1.7% this year, with growth accelerating to 4.7% in 2025 and 2026, according to Moody's. This outlook is driven by state-supported projects aimed at diversifying the economy beyond oil. Moody's forecast surpasses previous estimates, including the Saudi government's 2024 GDP projection of 0.8%. The agency's 2025 prediction aligns with Saudi Arabia's planned...

Introduction Achieving a stable economy amidst uncertainty is a critical issue. Effective monitoring of uncertainty factors, especially crude oil price fluctuations, is essential for economic growth. Oil-exporting countries benefit from high prices, boosting revenue and supporting development, while importers face fiscal tightening. Research highlights that oil price volatility significantly impacts economies and markets, causing short-term uncertainty and increased risk in...

Saudi Arabia's finance minister has highlighted national debt as a looming threat to global markets, particularly affecting low-income countries and emerging economies. He emphasized the lack of fiscal buffers in these regions, making them vulnerable to market disruptions. Speaking at the Future Investment Initiative in Riyadh, Mohammed Al-Jadaan stressed the need for solutions from international bodies like the IMF and...

Saudi Crown Prince Mohammed bin Salman has been invited by Russia to the BRICS summit in Kazan, scheduled for October 22-24. This summit marks the first gathering since BRICS expanded to include Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. While Iran has promptly accepted the invitation, Saudi Arabia has yet to officially confirm its participation. It appears that...

Saudi Arabia has revised its economic forecasts, anticipating slower growth and larger budget deficits from 2024 to 2026 due to increased spending and reduced oil revenue expectations. The Ministry of Finance's latest report indicates a significant reduction in GDP growth projections, with 2023 expected to see only a 0.8% rise, down from an earlier 4.4% estimate. Projections for 2025 and...

Saudi Arabia anticipates a fiscal deficit of nearly 3% of GDP in 2024 as it ramps up spending to stimulate growth and achieve Vision 2030 goals. The kingdom projects a deficit of 118 billion riyals ($32 billion) for this year, surpassing the earlier forecast of 79 billion riyals. Despite reduced oil prices and voluntary production cuts, Saudi Arabia continues to...

Saudi Arabia is set to shift its focus from maintaining a $100 per barrel oil price, aiming instead to increase production to regain market share, according to a report. This change is expected despite potentially leading to lower prices. OPEC+, led by Saudi Arabia, has been reducing output to support oil prices. However, with a nearly 5% decline in prices...

Saudi Arabia's move to waive fees for expatriate workers in the industrial sector has driven a significant 14.7% rise in GDP, climbing from SR392 billion ($104.5 billion) in 2019 to SR592 billion in 2023. A report by the Economic Studies Center at the Federation of Saudi Chambers highlights that this policy has not only boosted GDP but also increased non-oil...

Saudi Arabia's crude oil exports dipped in July as domestic power generation needs increased. Despite boosting production, the Kingdom adhered to its commitment to maintain output around 9 million barrels per day (bpd). In July, Saudi Arabia exported 5.74 million bpd of crude oil, marking a 306,000 bpd decrease from June and the lowest level since August 2023. This drop...

Saudi Arabia's oil production saw a rebound in July, though it remained limited by the ongoing OPEC+ production agreement. Quantum Commodity Intelligence offers a premium subscription service for professionals in the oil, biofuels, carbon, and ammonia markets. Subscribers to the Quantum Oil service gain access to: Daily price assessments Market news and price commentary Fundamental trade data Quantum Energy Daily...

Regional inflation increased in August, with Israel's rate rising to 3.6% from 3.2% due to higher food and transport costs. Saudi Arabia's inflation also climbed to 1.6%, driven by food and personal goods prices. Despite pressures from housing rent, Saudi inflation has remained around 1.5% and is expected to stay contained this year. S&P Global Ratings has given Saudi Arabia...

Saudi Arabia has introduced a new initiative to boost its industrial sector by waiving customs duties on raw materials used in experimental production. This move is part of the country's broader efforts to diversify and strengthen its economy. The Ministry of Industry and Mineral Resources has rolled out a customs exemption service for experimental production through the Senaei platform. This...

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...