Saudi Arabia Macroeconomic Developments
- The value of awarded construction contracts in Saudi Arabia rose 340 percent YoY in Q4 2021 to reach SAR70.2 billion ($18.7 billion), according to USSBC’s Q4 Construction Awards Index Report. The Contract Awards Index (CAI) catapulted to 209.05 points, growing by 94.21 points during the quarter. The CAI reached the 200-point mark for the first time since the onset of the pandemic. The oil & gas sector rebounded to reach the highest value of awarded contracts worth approximately SAR34.9 billion ($9.3 billion) after a dormant first three quarters.
- Saudi Arabia’s industrial production index rose 11.1 percent YoY in January. Strong production gains in manufacturing, oil & gas, and power generation drove the index to its ninth consecutive monthly gain. ‘Mining & quarrying’, which encompasses oil production, accounts for 75 percent of the index and rose 11.4 percent over the same period.
- The Ministry of Finance issued a riyal-denominated sukuk divided into four tranches worth SAR26.2 billion ($7 billion). The two largest tranches were SAR13.2 billion ($3.5 billion) and SAR8.5 billion ($2.3 billion) and mature in 2032 and 2037, respectively. The remaining two tranches were sized at SAR2.6 billion ($693 million) and SAR1.9 billion ($507 million) and mature in 2027 and 2029, respectively.
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