Weekly Market Brief – 3/24/2023

Saudi Arabia Macroeconomic Developments

• The Saudi Central Bank (SAMA) increased interest rates by 25 basis points to 5.5 percent following the U.S. Federal Reserve’s rate increase last week.

• S&P Global raised its sovereign rating on Saudi Arabia to “A/A-1”, citing expected reform and diversification plans to boost development of the Kingdom’s non-oil sector and shift dependence away from oil. The ratings agency, which previously had an “A-/A-2” rating on Saudi Arabia, forecast a slow rise in the Kingdom’s oil production through 2026.

• The National Debt Management Center (NDMC) announced the closure of its March issuance under the Saudi government’s Saudi Riyal-denominated sukuk program. The total amount of all bids received for the sukuk hit SAR8.342 billion ($2.2 billion) and the total amount allocated was set at SAR3.374 billion ($898 million).