Weekly Market Brief – 9/17/2021

Saudi Arabia Macroeconomic Developments

• Saudi Arabia’s inflation rate rose 0.3 percent YoY in August, primarily from higher transportation (+6.5 percent) and food & beverages (+1.9 percent) prices. Consumer prices remained stable MoM and rose 0.1 percent. Wholesale prices grew 0.7 percent MoM as supply chain delays drove higher prices for machinery, metals, and chemicals.

• The number of new foreign investments in Saudi Arabia rose 108 percent YoY to reach 1,054 during H1 2021, according to the Ministry of Investment. Approximately 55 percent of the total were foreign entities while 45 percent were joint ventures with Saudi partners. New foreign investments in-Kingdom also rose 21 percent QoQ in the second quarter.

• Saudi Arabia closed its September 2021 riyal-denominated sukuk program at SAR6.7 billion ($1.7 billion). The issuance was divided into three tranches: a SAR3.2 billion ($853 million) tranche maturing in 2029, a SAR2.9 billion ($773 million) tranche maturing in 2033, and a SAR650 million ($173 million) tranche maturing in 2036.