Saudi Arabia Macroeconomic Developments
- Saudi Arabia closed its June 2021 sukuk issuance at SAR8.3 billion ($2.2 billion). The debt sale was divided into three tranches: the first tranche sized at SAR2.7 billion ($720 million) maturing in 2028, the second tranche sized at SAR4.7 billion ($1.3 billion) maturing in 2031, and the third tranche sized at SAR860 million ($229 million) maturing in 2035. Through the first six months of 2021, the Kingdom has issued SAR37.3 billion ($9.9 billion) in new debt under the government’s riyal-denominated sukuk program.
- Consumer prices in Saudi Arabia rose 5.7 percent YoY and 0.2 percent MoM in May, according to the General Authority for Statistics (GAStat). Annual inflation figures still reflect the three-fold increase in the value-added tax (VAT) in July 2020. Food prices were the main drivers of inflation (+7.4 percent YoY).
- Wholesale prices in Saudi Arabia rose 17.5 percent YoY and 1.8 percent MoM in May. The fastest rising goods compared to last month were basic chemicals (+11 percent), basic metals (+4 percent), and agricultural products (+2.4 percent). Low base effects related to the pandemic and the impact of the VAT hike are expected to subside following the June inflation report that will be issued next month.
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