Saudi inflation holds at 2.3% in March amid rising housing and food prices

Saudi inflation holds at 2.3% in March amid rising housing and food prices
The increase was notably influenced by the housing segment’s 25.5 percent weight in the Consumer Price Index. Shutterstock
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Updated 15 April 2025
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Saudi inflation holds at 2.3% in March amid rising housing and food prices

Saudi inflation holds at 2.3% in March amid rising housing and food prices

RIYADH: Saudi Arabia’s inflation rate accelerated to 2.3 percent in March, driven by higher costs for housing rents, food, and personal goods, official data showed.

The increase was notably influenced by the housing segment’s 25.5 percent weight in the Consumer Price Index.

According to the General Authority for Statistics, the rise was mainly due to a 6.9 percent increase in the housing, water, electricity, gas, and other fuels category. This was largely fueled by an 8.2 percent jump in actual housing rents, with apartment rents surging 11.9 percent.

Food and beverage prices also contributed to the annual uptick, climbing 2 percent, primarily due to a 3.8 percent increase in meat and poultry costs. Meanwhile, the personal goods and services category rose 3.9 percent, driven by a sharp 26.2 percent spike in the prices of jewelry, watches, and precious antiques.

Other contributing factors included the restaurants and hotels segment, which rose 1.3 percent, largely due to a 3.3 percent increase in hotel and furnished apartment service prices. Education costs went up by 1.1 percent, with tertiary education fees rising 4.3 percent.

In contrast, transport prices fell 0.8 percent, driven by a 1.5 percent decline in vehicle purchase costs. The furnishings and household equipment category dropped 2.6 percent, while clothing and footwear prices declined 0.8 percent, impacted by a 1.9 percent drop in ready-made clothing.

On a monthly basis, the CPI increased by 0.3 percent in March compared to February. This was attributed to a 0.5 percent rise in the housing, water, electricity, gas, and other fuels segment, driven by a 0.6 percent increase in housing rents.

The food and beverage group also edged up by 0.3 percent month on month, as vegetable prices rose 2 percent. Other notable monthly increases included personal goods and services at 0.4 percent, restaurants and hotels at 0.5 percent, and recreation and culture at 0.6 percent, as well as education at 0.7 percent, clothing and footwear at 0.3 percent, and communication at 0.1 percent. 

The report also noted a 0.9 percent monthly decline in furnishings and household equipment, while prices in the transport, health, and tobacco categories showed no significant change.

Wholesale price index

In a separate report, GASTAT noted that Saudi Arabia’s Wholesale Price Index increased 1.5 percent year on year in March, driven by a 3.2 percent rise in the prices of other transportable goods and a 3.6 percent increase in agriculture and fishery products.

Food products, beverages, tobacco, and textiles edged up 0.1 percent annually, supported by a 2.1 percent rise in grain mills, starch, and other food items, as well as a 1.2 percent increase in leather and leather product prices, including footwear.

By contrast, prices for metal products, machinery, and equipment fell 0.2 percent, driven by a 3.5 percent drop in general-purpose machinery and a 5.5 percent decline in radio, television, and communication equipment costs.

Ores and minerals recorded a 1.9 percent year-on-year decrease due to falling prices for stone and sand.

On a monthly basis, the WPI rose 0.4 percent in March compared to February, led by a 0.4 percent increase in the prices of metal products, machinery, and equipment.

This was primarily driven by a 2.9 percent rise in fabricated metal products and a 0.6 percent increase in electrical machinery and apparatus.  

The same rate of increase was recorded in other transportable goods, while food-related categories edged up 0.2 percent, driven mainly by a 0.5 percent rise in the prices of grain mills, starch, and other food products, along with a 0.1 percent increase in prices of meat, fish, fruits, vegetables, oils, and fats. 

Agriculture and fishery product prices inched up 0.1 percent, while the ores and minerals segment remained stable with no significant change.


JS Investments launches Pakistan’s ‘first’ Shariah-compliant real estate investment trust

JS Investments launches Pakistan’s ‘first’ Shariah-compliant real estate investment trust
Updated 22 May 2025
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JS Investments launches Pakistan’s ‘first’ Shariah-compliant real estate investment trust

JS Investments launches Pakistan’s ‘first’ Shariah-compliant real estate investment trust
  • JS Investments partners with real estate developer Gohar Group of Companies to establish JS Hotel REIT in Hyderabad
  • REIT is a regulated investment vehicle that pools capital from investors to finance income-generating real estate

KARACHI: A Pakistani investment firm on Wednesday announced the launch of what it described as the country’s first Shariah-compliant real estate investment trust (REIT) focused on the hospitality sector.

A REIT is a regulated investment vehicle that pools capital from investors to finance income-generating real estate, offering returns through rent or capital gains. It provides exposure to the property market without direct ownership of assets.

JS Investments Limited, one of Pakistan’s oldest private-sector asset and REIT managers, has partnered with real estate developer Gohar Group of Companies to establish the JS Hotel REIT in Hyderabad district, located in the southeastern Sindh province.

“As the manager of Pakistan’s first hotel REIT, we are pleased to offer investors a professionally managed and regulated investment vehicle backed by international hospitality standards,” the statement quoted Iffat Zehra Mankani, CEO of JS Investments Limited, as saying.

The REIT will finance the development of a 139-room hotel in Hyderabad under a franchise agreement with an international hospitality brand. The fund is currently open to accredited local and foreign investors through private placement.

The statement added the Securities and Exchange Commission of Pakistan (SECP) had granted regulatory approval for the fund, which is not being offered to the general public at this stage.

Pakistan’s REIT market remains small, though regulatory reforms in recent years have aimed to draw institutional investment into real estate through both conventional and Islamic finance structures.

The project will also feature environmentally responsible construction, according to the statement.


Closing Bell: Saudi main index ends lower at 11,303 

Closing Bell: Saudi main index ends lower at 11,303 
Updated 21 May 2025
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Closing Bell: Saudi main index ends lower at 11,303 

Closing Bell: Saudi main index ends lower at 11,303 
  • MSCI Tadawul 30 Index lost 19.78 points to close at 1,441.01
  • Parallel market Nomu declined 110.94 points to end at 27,417.62

RIYADH: Saudi Arabia’s Tadawul All Share Index closed in the red on Wednesday, falling 134.5 points, or 1.18 percent, to settle at 11,303.68. 

The total trading turnover reached SR4.37 billion ($1.16 billion), with 37 stocks advancing and 206 declining. 

The MSCI Tadawul 30 Index also dropped, losing 19.78 points, or 1.35 percent, to close at 1,441.01. 

The Kingdom’s parallel market Nomu declined by 110.94 points, or 0.40 percent, to close at 27,417.62, with 26 stocks gaining and 49 retreating. 

The best-performing stock of the day was Saudi Arabia Refineries Co., rising 4.38 percent to SR69.10. 

Other top gainers included Perfect Presentation for Commercial Services Co., whose share price rose 3.37 percent to SR11.66, and SHL Finance Co., which gained 2.22 percent to SR20.30. 

The day’s largest decline was seen in National Gypsum Co., with its share price dipping 4.76 percent to SR20.4. 

ACWA Power Co. saw its shares drop 4.40 percent to SR274, while Al-Rajhi Co. for Cooperative Insurance declined 4.17 percent to SR115. 

On the announcements front, ACWA Power said it has received approval from the Capital Market Authority to proceed with a SR7.12 billion capital increase through a rights issue. 

The CMA’s decision, issued on May 20, allows the company to offer, register, and list rights issue shares — pending shareholder approval at an upcoming extraordinary general assembly. 

The rights issue was first disclosed on Dec. 19, when ACWA Power submitted its application to the CMA. 

Alinma Bank has successfully completed a $500 million issuance of dollar-denominated sustainable Additional Tier 1 capital certificates under its Tier 1 Capital Certificate Issuance Programme. 

The offering targets eligible investors in Saudi Arabia and internationally, with settlement expected on May 28. 

The issuance comprises 2,500 certificates, each with a par value of $200,000, offering an annual return of 6.5 percent. These perpetual instruments are callable after 5.5 years. 

The certificates will be listed on the International Securities Market of the London Stock Exchange and were offered exclusively under Regulation S of the US Securities Act of 1933. 

During Wednesday’s session, Alinma Bank shares rose 0.18 percent to close at SR27.50 on the main market. 

Flynas has set the final offer price for its initial public offering at SR80 per share following the successful completion of the institutional book-building process, which was oversubscribed by 99.8 times, according to a statement.

BSF Capital, Morgan Stanley Saudi Arabia, and Goldman Sachs Saudi Arabia, acting as joint financial advisors, co-underwriters, and joint bookrunners for the IPO, confirmed that institutional investors subscribed in full to the 51,255,568 ordinary shares allocated in the first phase, representing 100 percent of the total offered.

Following this, up to 20 percent of the total offering will be allocated to retail investors in the second phase of the IPO.

Saudi Fransi Capital, serving as lead manager, announced that all necessary arrangements have been completed with receiving agents to facilitate the individual subscription process, which will run for three days from May 28 until June 1 at 12:00 p.m.


Saudi Arabia’s PIF halts Swiss financial market investments over Credit Suisse fallout

Saudi Arabia’s PIF halts Swiss financial market investments over Credit Suisse fallout
Updated 21 May 2025
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Saudi Arabia’s PIF halts Swiss financial market investments over Credit Suisse fallout

Saudi Arabia’s PIF halts Swiss financial market investments over Credit Suisse fallout
  • Decision driven by how Swiss regulators handled 2023 government-backed rescue of Credit Suisse by UBS Group
  • PIF continues to expand footprint across Europe, signaling redirection of capital

RIYADH: Saudi Arabia’s Public Investment Fund will no longer allocate capital to Switzerland’s financial markets, two years after suffering losses from the collapse of Credit Suisse.

During the FII PRIORITY Europe Summit in Albania, PIF Gov. Yasir Al-Rumayyan said that the decision was driven by the manner in which Swiss regulators handled the 2023 government-backed rescue of Credit Suisse by UBS Group, reported Bloomberg.

The abrupt deal was executed without shareholders’ approval, impacting investors across the Middle East.

PIF, one of the world’s largest sovereign wealth funds, is reassessing its investment strategy amid growing concerns over regulatory stability and investor protection.

The fund’s decision to halt investments in Switzerland’s financial markets marks a significant shift in its approach, underscoring the long-term impact of the 2023 Credit Suisse collapse on regional and institutional investor confidence.

PIF also continues to expand its footprint across Europe, signaling a redirection of capital.

“We’re not going to invest in the financial markets in Switzerland. If you change something overnight and wipe out all of your investors, this is a big red flag,” Al-Rumayyan said, as reported by Bloomberg.

The remarks were made during an on-stage discussion with Noel Quinn, newly appointed chairman of Zurich-based Julius Baer Group Ltd.

Quinn responded: “As the chairman of a Swiss bank as of 10 days ago, that concerns me.”

The 2023 acquisition of Credit Suisse was finalized rapidly following a sharp decline in its stock price.

The plunge became worse after the former chairman of the Saudi National Bank, Ammar Al-Khudairy, said the bank would “absolutely not” be open to further investments in Credit Suisse.

“The deal didn’t receive approval from either Credit Suisse or UBS shareholders as regulators and lawmakers rushed to contain a crisis of confidence that was spreading across global markets,” according to Bloomberg.

The 2023 acquisition of Credit Suisse was finalized rapidly following a sharp decline in its stock price. Shutterstock

At the time, shareholders from the Middle East, including SNB and the Qatar Investment Authority, collectively held around 20 percent of Credit Suisse.

SNB, which was the largest shareholder in the Swiss lender, had called on Credit Suisse to reject the offer from UBS, Bloomberg reported.

Other investors had cautioned that the Swiss government’s decision to override standard merger procedures and sideline shareholder votes could deter institutional investors.

Legal analysts also warned that the rushed nature of the transaction had undermined Switzerland’s standing as a reliable investment destination where the rule of law is safeguarded.

Al-Rumayyan’s remarks came as PIF announced plans to open a subsidiary office in Paris and committed to doubling its investments in Europe to $170 billion by the beginning of the next decade.

The fund has already deployed approximately $85 billion across the region between 2017 and 2024, making strategic investments in key European economies, including the UK, France, and Italy.


Saudi Arabia and Kyrgyzstan announce establishment of a joint business council 

Saudi Arabia and Kyrgyzstan announce establishment of a joint business council 
Updated 21 May 2025
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Saudi Arabia and Kyrgyzstan announce establishment of a joint business council 

Saudi Arabia and Kyrgyzstan announce establishment of a joint business council 
  • Forum reviewed investment opportunities, advantages, and incentives in Saudi Arabia and Kyrgyzstan
  • Bilateral meetings were held between company representatives from both countries

BISHKEK: Saudi Arabia and Kyrgyzstan, represented by the Saudi Chambers Federation and the Kyrgyz Chamber of Commerce and Industry, announced the signing of an agreement to establish a Saudi-Kyrgyz Joint Business Council — a significant step to advance economic cooperation between the two countries. 

The signing ceremony took place on the sidelines of the Saudi-Kyrgyz Business Forum held on May 21 in Bishkek, the Kyrgyz capital, in the presence of Kyrgyz Minister of Economy and Commerce Bakyt Sydykov, Saudi Chambers Federation Chairman Hassan bin Muajab Al-Huwaizi, and several ministers and officials from both nations, the Saudi Press Agency reported. 

The forum was also attended by Saudi-Kyrgyz Business Council Chairman Ahmed Al-Dakhil, Saudi Arabia’s Ambassador to Kyrgyzstan Ibrahim bin Radi Al-Radi, Kyrgyzstan’s Ambassador to Saudi Arabia Ulukbek Maripov, along with more than 100 investors. 

The chairman of the Saudi Chambers Federation emphasized that the establishment of the joint business council is the result of sustained efforts and mutual desire, providing an effective platform for Saudi and Kyrgyz businessmen to showcase and promote their activities and build commercial partnerships, amid vast opportunities for cooperation between the two countries. 

The joint business forum reviewed investment opportunities, advantages, and incentives in Saudi Arabia and Kyrgyzstan across sectors including exports, healthcare, pharmaceuticals, banking, hydropower, agriculture, and technology. 

Bilateral meetings were also held between company representatives from both countries. 

Notably, the federation’s delegation visits to Kyrgyzstan included a series of meetings with government and private sector officials to discuss prospects for economic cooperation and explore investment opportunities. 


Saudi crude output hits 8.96m bpd in March: JODI data

Saudi crude output hits 8.96m bpd in March: JODI data
Updated 21 May 2025
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Saudi crude output hits 8.96m bpd in March: JODI data

Saudi crude output hits 8.96m bpd in March: JODI data
  • Crude exports fell by 12.11% month on month to 5.75 million bpd
  • Kingdom’s slight increase in crude production came amid a broader strategic pivot within OPEC+

RIYADH: Saudi Arabia’s crude oil production rose to 8.96 million barrels per day in March, reflecting a 0.11 percent monthly increase, according to the latest Joint Organizations Data Initiative data.

According to the database, crude exports fell by 12.11 percent month on month to 5.75 million bpd.

Refinery crude exports rose 10.3 percent during this period to 1.55 million bpd. The uptick was driven primarily by diesel shipments, which jumped 20.66 percent from the previous month to 806,000 bpd.

It also accounted for the largest share of refined product exports in March at 52 percent, followed by motor and aviation gasoline at 17 percent, and fuel oil at 12 percent.

Total refinery output reached 2.94 million bpd in March, a 12.32 percent monthly increase, with diesel comprising 42 percent of refined products, motor and aviation gasoline 24 percent, and fuel oil 15 percent.

Domestic demand for refined petroleum products increased by 223,000 bpd in March compared to the previous month, reaching 2.22 million bpd.

On an annual basis, demand rose by 5.07 percent, equivalent to 107,000 bpd.

The Kingdom’s slight increase in crude production across the month came amid a broader strategic pivot within OPEC+, which has agreed to significantly boost oil output starting in June. The alliance announced an additional 411,000 bpd increase for June, following a similar adjustment made for May.

This marks a continuation of the group’s recent efforts to accelerate the return of previously curtailed supply to the global market. The upcoming increase is expected to add further downward pressure on prices, which have already been trending lower due to ample inventories, modest international demand growth, and increasing non-OPEC output.

Total refinery output reached 2.94 million bpd in March, a 12.32 percent monthly increase. Shutterstock

Direct crude usage

Saudi Arabia’s direct crude oil burn rose to 383,000 bpd in March, reflecting a 35.3 percent increase from the previous month.

Direct crude burn refers to the use of unrefined crude oil for electricity generation, rather than for export or refining.

The increase came amid the seasonal ramp-up in cooling needs as temperatures begin to rise heading into the warmer months.

Although the Kingdom has made substantial progress in expanding its natural gas infrastructure to reduce reliance on direct crude burn, fluctuations still occur, particularly in transitional months like March, when energy demand begins to shift but supply systems have not fully ramped up.