Video|19 September 2024

MENA -Saudi Arabia’s government’s net position is expected to remain strong

Akanksha Samdani

Senior Economist, EMEA Macro Consulting

Regional inflation was generally on the rise in August. Israel inflation rose to 3.6% from 3.2% in July, marking the second consecutive month above the government’s target range of 1% to 3%. This was driven by higher food and transport costs. Saudi Arabia’s inflation also edged up to 1.6%, due to increases in food and personal goods prices. . Saudi inflation has been sticky this year, hovering around 1.5% in recent months despite continued upwards pressures from housing rent and we expect it to remain contained this year.

S&P Global Ratings has revised Saudi Arabia’s outlook to positive, reflecting the Kingdom’s progress under Vision 2030. Despite global oil market volatility and lower oil prices negatively impacting the government deficit, Saudi Arabia’s non-oil sectors continue to thrive, supported by strong investment in tourism, construction, and public projects. We expect non-oil sector to remain robust and grow by 5% this year.

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