Saudi Arabia’s economy continued to gather significant momentum as nearly every recent measurement or data point available pointed to an expanding economy.
In Jadwa Investment’s recent Chartbook for Saudi Arabia for the month of November, which uses data largely from September, non-oil PMI rebounded significantly rising to 58.6, the highest reading since 2015, supported by improving business activity.
Consumer spending trended higher in September, with POS transactions rising by 20 percent year-on-year.
Foreign reserves with the Saudi Arabian Monetary Agency (SAMA) rose in September by $10.7 billion month-on-month, to stand at almost $466 billion. A breakdown of FX reserves shows that the monthly rise mostly came from a rise in bank deposits.
The broad measure of money supply (M3) rose by 8.4 percent year-on-year, and by 1 percent month-on-month in September. Total deposits rose by 9.4 percent year-on-year, according to Jadwa. Inflation also ticked up. Prices in September rose by 0.6 percent year-on-year, and by 0.2 percent month-on-month.
For the Saudi government, the Q3 Budget Statement showed that government revenue totaled SR243 billion ($64.78 billion) in Q3 2021, up 13 percent, or SR27.8 billion ($7.41 billion), year-on-year. Meanwhile, government expenses declined by 8 percent year-on-year in Q3 2021 to SR237 billion ($63.18 billion). As a result, Q3 registered a fiscal surplus amounting to SR6.7 billion ($1.79 billion), with the year-to-Q3 2021 deficit at -SR5.4 billion (-$1.44 billion).
Much of the excellent growth follows a strong oil market in recent months. Brent oil prices averaged $84 per barrel (pb) during October, up 13 percent month-on-month, as oil demand trended higher.
[Click here to read the full report from Jadwa Investment] [Arabic]
