Weekly Market Brief – 2/4/2022

Saudi Arabia Macroeconomic Developments

• Saudi Arabian banks reported a 23 percent MoM rise (+131 percent YoY) in aggregate net profits with a value of SAR5.1 billion ($1.4 billion) in December 2021 from SAR4 billion ($1.1 billion) in November 2021 and SAR2.2 billion ($589 million) last year. Total bank assets in the Kingdom grew 1.3 percent MoM (+10 percent YoY) in December from SAR3.24 trillion ($863.5 billion) to SAR3.28 trillion ($874.1 billion).

• Saudi Arabia’s non-oil economy continued to expand in January but new business saw the slowest pace of growth since October 2020. IHS Markit’s Purchasing Managers’ Index (PMI) fell to 53.2 points in January, down from last month’s 53.9 reading. Export sales decreased for the first time since last March as companies identified high costs for global shipping and transportation.

• Consumer spending in Saudi Arabia rose 1 percent in December to reach SAR93.2 billion ($24.9 billion). Consumer spending is up 7 percent from the same period last year. Total sales for restaurants and cafes recorded a strong increase at the end of 2021, reaching a record SAR 62.7 billion ($16.7 billion).