Saudi Arabia Macroeconomic Developments
- Saudi Arabia’s inflation rate reached 1.6 percent YoY in August, driven by higher housing costs. Housing rents surged by 10.7 percent, with apartment rents rising by 10.8 percent.
- Standard & Poor’s (S&P) affirmed the Kingdom’s credit rating in local and foreign currency at “A/A-1” with an improvement in outlook from “stable” to “positive.” According to S&P, the Kingdom’s strong credit rating results from the Kingdom’s continued efforts in comprehensive reforms and investments, which will contribute to supporting the development of the non-oil economy and the sustainability of public finances.
- Nestle signed an agreement to establish its first manufacturing plant in Saudi Arabia. The new facility will be located on a 117,000 square meter site in Jeddah’s Third Industrial City. Slated to open in 2025, the plant represents an initial investment of SAR270 million ($72 million). The project is set to enhance local production capabilities, contribute to sustainable food security in the Kingdom, and meet local demand while enabling exports to other Middle Eastern and North African markets.
