Saudi Arabia Macroeconomic Developments
- Saudi Arabia reported a Q3 2024 budget deficit of SAR30.23 billion ($8.06 billion), a 15 percent YoY decrease, according to the Ministry of Finance. Revenues rose 20 percent to SAR309.21 billion ($82.32 billion), while expenditures grew 15 percent to SAR339.44 billion ($90.37 billion). Oil revenues increased 30 percent to SAR190.87 billion ($50.82 billion), and non-oil revenues rose 6 percent to SAR118.34 billion ($31.51 billion).
- Saudi Arabia’s non-oil business activity grew in October, with the Riyad Bank Saudi Arabia PMI hitting a six-month high of 56.9 points, up from 56.3 points in September, per S&P Global. The rise was fueled by stronger sales, driving gains in business activity, employment, purchasing, and inventory.
- According to the Saudi Central Bank (SAMA), the benchmark interest rate was reduced by 25 basis points to 5.25 percent, marking the second rate cut of 2024. This move aligns with the recent U.S. Federal Reserve adjustment. The Repurchase Agreement rate was lowered to 5.25 percent and the Reverse Repurchase Agreement rate to 4.75 percent.
