Economy

Saudi Arabia's Economic Progress Saudi Arabia is undergoing a significant economic transformation. The nation is experiencing strong non-oil growth driven by robust domestic demand, while unemployment rates have dropped to historic lows. Inflation remains under control, although the current account surplus is decreasing rapidly. Authorities are adjusting investment strategies to mitigate overheating risks and ease fiscal and external pressures. Key...

What's happening? Saudi Arabia's non-oil sector experienced a modest recovery in August, suggesting increased confidence in the private sector. Implications Growth in the non-oil sector slightly improved in August, following a two-year low in July. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) rose to 54.8 from 54.4. Although still below the long-term average of 56.9, the...

The annual inflation rate in Saudi Arabia witnessed a rise to 1.5 percent in July, in comparison to the previous year, with a notable surge in housing-related expenses, as per the latest figures released by the authorities.Insights from the General Authority for Statistics reveal that a 9.3 percent increase in the prices of housing, alongside utilities such as water, electricity,...

In a bold economic transformation, Saudi Arabia is poised to allocate $1 trillion to enhance six key sectors by the end of this decade. The kingdom's focus is shifting towards a diversified portfolio, with the oil industry set to receive a notably reduced slice of the investment pie.According to a prominent financial institution's analysis, approximately 73% of the investment will...

The Ministry of Tourism in Saudi Arabia has disclosed a significant financial influx from inbound tourists for the year 2023, amounting to an impressive SAR141 billion. The annual tourism statistics report for 2023 revealed that the majority of this expenditure, exceeding SAR45 billion, was allocated to lodging facilities. Shopping by these visitors generated over SAR25.5 billion, while about SAR21.5 billion...

The Jazan region, recognized for its verdant landscapes and optimal agricultural conditions, has successfully harnessed these attributes to become a key player in the farming sector. Among the variety of crops produced, figs have notably stood out, becoming a symbol of the region's agricultural prowess. The Ministry of Environment, Water, and Agriculture (MEWA) has highlighted the significance of this fruit,...

Saudi Arabia has set a strategic goal to significantly reduce its financial commitment to the oil sector, planning a $40 billion cut by the year 2028. The nation's focus is shifting towards the expansion of renewable energy and mining sectors.Information from Goldman Sachs Group indicates that Riyadh is gearing up to channel approximately 73% of its investments into non-oil sectors...

A recent analysis from Goldman Sachs reveals that Saudi Arabia is set to channel $1 trillion into strategic sectors by the year 2030, with the aim of diversifying its economy beyond the oil industry. The investment giant anticipates a 'capex super-cycle' with 73% of the funds being allocated to non-oil industries.Priority areas for investment over the next decade include clean...

Saudi Arabia is set to channel a lower amount of capital into its oil industry than what was previously anticipated, as part of its ambitious strategy to allocate $1 trillion across various strategic sectors by 2030.An analysis by Goldman Sachs Group Inc. indicates that approximately 73% of the kingdom's total investments will be injected into non-oil sectors by the end...

In July, the yearly inflation rate in Saudi Arabia remained constant at 1.5 percent, the same as the previous month's record low since December 2023. This stability was reported by the General Authority for Statistics (GASTAT) and occurs in spite of a significant surge in housing rental costs.Housing rentals experienced an 11.1 percent increase over the past year, marking the...

The Kingdom of Saudi Arabia has seen its official reserve assets escalate to SR1.7 trillion (equivalent to $452.8 billion) as of July, marking a 6.06 percent growth compared to the previous year, recent data indicates.According to figures from the Saudi Central Bank, also known as SAMA, the bulk of these assets, 94.53 percent to be precise, was held in international...

The Kingdom of Saudi Arabia is setting a strategic focus on broadening its economic landscape and enhancing the development of its workforce, as articulated by the Minister of Economy and Planning, Faisal bin Fadel Al Ibrahim.These remarks were shared at the World Economic Forum's Annual Meeting of the New Champions in Dalian, China, where the minister took part in a...

During a recent dialogue session in Dalian, China, Saudi Arabia's Minister of Economy and Planning, Faisal Al Ibrahim, provided insights into the progress of the country's ambitious Vision 2030. Halfway through the implementation of this transformative agenda, the kingdom's economy is witnessing significant growth, particularly in non-oil sectors.At the 'What do we expect from future growth?' session, part of the...

While participating in a panel entitled What do we expect from future growth in Dalian, China, the Saudi Minister of Economy and Planning, Faisal Al-Ibrahim, highlighted the kingdom's progress toward its ambitious Vision 2030. The minister's insights were shared at the New Champions Dalian 2024 meeting, part of a World Economic Forum initiative.The minister announced that non-oil activities have grown...

Saudi Arabia is currently rethinking some of its more visionary large-scale developments as part of its Vision 2030 plans. These include the highly anticipated Neom megacity and an expansive entertainment complex near Riyadh.Recent narratives suggest that the nation is facing financial pressures that are affecting its grand ambitions.An advisor connected to the government, preferring to remain anonymous, conveyed to the...

In a significant development for agricultural financing, the heads of two influential financial institutions convened to discuss collaborative strategies. Dr. Mohammed Al-Jasser, leading the Islamic Development Bank, met with Dr. Alvaro Lario, the President of the International Fund for Agricultural Development. Their dialogue took place against the backdrop of the 19th gathering of the Arab Coordination Group's institution leaders, hosted...

On the fringes of the Arab Coordination Group's 19th head meeting in Vienna, Austria, the President of Sierra Leone, Julius Maaden Bio, held a strategic discussion with the Islamic Development Bank Group President, Dr. Muhammed Al-Jasser. This encounter was aimed at fostering a stronger partnership between the two entities.Key topics on the agenda included enhancing developmental and economic collaboration with...

Since taking the helm on June 21, 2017, Crown Prince Mohammed bin Salman has been the architect of an ambitious economic overhaul, catapulting the Saudi Arabian economy to the forefront of the G20's fastest-growing nations.As the chairman of the Council for Economic and Development Affairs, the Crown Prince has been instrumental in pioneering initiatives such as the initial public offering...

Saudi Arabia is exploring new markets and considering stepping away from the longstanding practice of trading oil exclusively in U.S. dollars. This significant shift could undermine the dollar's premier status in the global oil market, according to insights from the Atlantic Council.The stability of the U.S. dollar as the primary currency for international trade and finance could be jeopardized if...

Spanning over 14 centuries, Saudi Arabia's pivotal role in Islamic pilgrimage has drawn countless faithful to its revered cities of Makkah and Medina. The yearly Hajj and the continuous Umrah pilgrimages are not just spiritual journeys but are also instrumental to the nation's economic vitality.The influx of pilgrims translates to an impressive financial boost, with religious tourism injecting approximately $12...

In the month of May, the Kingdom of Saudi Arabia maintained a consistent inflation rate of 1.6%, marking the third consecutive month at this level. This persistency in the inflation figures was primarily due to the rising costs of housing rents.The nation saw a significant 10.5% escalation in housing rents compared to the previous year. This increase was propelled by...

The Kingdom of Saudi Arabia recently contributed to the third Ministerial Meeting of the Trade Negotiations Committee (TNC) of the Trade Preferential System among the Organization of Islamic Cooperation (OIC) member states, which took place in Istanbul, Türkiye.Leading the Saudi delegation was Farid bin Saeed Al-Asali, serving as the Deputy Governor of the General Authority for Foreign Trade (GAFT) for...

Saudi Arabia has announced an ambitious plan to enhance its debt capital markets, which includes potential tax relaxations aimed at making corporate bonds more attractive to international investors.The Capital Market Authority is contemplating the removal of a 5 percent withholding tax on interest payments, which is currently seen as a deterrent to potential investors, as detailed in a report that...

On the 12th of June, 2024, the Group of Twenty (G20) reported a modest rise in collective gross domestic product (GDP), increasing by 0.9% from the previous quarter, marking a slight improvement over the 0.7% growth seen earlier.Leading this economic upswing were China and India, who, along with Türkiye, Saudi Arabia, Korea, and Indonesia, surpassed the overall G20 growth rate....

The longstanding pact that established the U.S. dollar as the global currency for crude oil transactions, known as the petrodollar system, has recently concluded. This system, which has been a cornerstone of international economic relations for half a century, was initiated in the 1970s following the United States' departure from the gold standard. The deal struck between the United States...

Riyadh Witnesses a Rise in Expatriate Remittances by 14 Percent In April, expatriate remittances in Saudi Arabia experienced a notable 14 percent year-on-year surge, with figures reaching SR11.35 billion (approximately $3.03 billion), based on the most recent statistics. Simultaneously, remittance outflows from Saudi citizens, which represent a significant 30 percent of the overall personal transfers, recorded a substantial 30 percent...

Financial commentator Andrei Jikh discusses the impending transformation of the international economy with the upcoming dissolution of the longstanding petrodollar arrangement between Saudi Arabia and the United States, set to expire on June 9, 2024. This agreement, which has been the cornerstone of the global financial system for 75 years, positioned the US dollar as the primary reserve currency, thereby...

The travel and tourism industry in Saudi Arabia has seen a remarkable expansion, growing by over 32 percent in 2023, and injecting a historic SR444.3 billion (approximately $118.4 billion) into the nation's economy according to recent findings.A report from the World Travel and Tourism Council’s 2024 Economic Impact Research showcased the Kingdom’s significant contribution to GDP, job creation, and increased...

The Gulf Cooperation Council (GCC) region is poised for an economic resurgence, with forecasts indicating a growth of 2.8 percent in 2024 and a further acceleration to 4.7 percent in 2025. This optimistic scenario is largely attributed to the expected expansion in the gross domestic product (GDP) of the United Arab Emirates (UAE) and Saudi Arabia. A combination of increased...

The economic landscape of Saudi Arabia experienced a contraction in the first quarter as the real gross domestic product (GDP) witnessed a 1.7% reduction compared to the previous year. This downturn, as reported by preliminary government data on a recent Sunday, was primarily due to persistent challenges in the oil sector.Following a 3.7% GDP contraction in the last quarter of...