Saudi Arabia Macroeconomic Developments
- Saudi Arabia’s Industrial Production Index rose by 3.2 percent YoY in April 2023. The rise was driven by high production in mining and quarrying, manufacturing activity, and electricity and gas supplies.
- The Saudi Cabinet approved the Civil Transactions Law, the third of four laws announced as part of legal reforms in 2021. The Civil Transactions Law includes provisions that define contracts, such as the elements of a contract; its validity; its effects among the contracting parties; the provisions related to its invalidity and termination; and the provisions of harmful acts and rules for compensation.
- Saudi Arabia’s inflation rate edged up to 2.8 percent in May 2023, compared to 2.2 percent in May 2022, primarily driven by higher housing prices, water, electricity, gas, and other fuels. The prices of housing, water, electricity, gas, and other fuels increased by 8.4 percent YoY in May, while food and beverages rose by 0.9 percent.