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Saudi Arabia’s Transformation Plans Achieve Record Results at Accelerated Pace

The Saudi Center for Economic Business provides facilitated services to the business sector in the country (SPA)
The Saudi Center for Economic Business provides facilitated services to the business sector in the country (SPA)
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Saudi Arabia’s Transformation Plans Achieve Record Results at Accelerated Pace

The Saudi Center for Economic Business provides facilitated services to the business sector in the country (SPA)
The Saudi Center for Economic Business provides facilitated services to the business sector in the country (SPA)

A system that operates under the National Transformation Program, one of the pillars of Saudi Vision 2030, has achieved record results at a fast pace during 2023.
The program seeks to accelerate digital transformation in the Kingdom and focuses on a wide range of priorities, including, empowering the private sector, achieving government excellence, and developing economic partnerships.
A recent report issued by the program, a copy of which was reviewed by Asharq Al-Awsat, showed the extensive progress of the national transformation system over the past year, with services becoming easier and more comprehensive thanks to the many initiatives implemented by the various ministries and concerned bodies.
According to the report, the Ministry of Economy and Planning launched the “Saudi Census,” the most accurate and most comprehensive in the history of the Kingdom, in addition to the Saudi Data Platform, which includes major economic and social indicators.
The report said that the Ministry of Investment was able to issue more than 180 licenses for regional headquarters for international companies, and develop 1,200 investment opportunities on the “Invest in Saudi Arabia” platform, in addition to holding more than 31 global forums.
Moreover, the Ministry of Environment, Water and Agriculture launched a number of initiatives and programs over the past year, including 25 stations to monitor noise pollution, 100 stations to monitor light pollution, the Climate Change Center, and the Regional Center for Warning of Dust and Sand Storms, in addition to other platforms.
For its part, the Ministry of Commerce launched a number of programs, including, the Business Growth Acceleration Program, as well as the Stanford for Entrepreneurs and Leaders program, and the “Slingshot” program.
Last year, the Ministry of Justice unveiled many services that contribute to accelerating the implementation of real estate operations, in addition to the updated version of the Najiz platform, which seeks to improve the quality of services provided and raise the satisfaction rate of beneficiaries.
As for the Ministry of Communications and Information Technology, it has witnessed tangible developments, including the launch of the open data platform, the new version of the Tawakkalna application, the national data government platform, and the national data index “Nadha”, in partnership with the Saudi Data and Artificial Intelligence Authority (SDAIA).
The Ministry of Communications established eight innovation laboratories at the Center for Digital Entrepreneurship (CODE), to empower entrepreneurs and owners of emerging digital projects and to grow digital businesses, as well as the “Tuwaiq” program, which offers a range of training courses in programming, design and modern technologies.
Since the launch of Saudi Vision 2030, the major positive transformations witnessed in the country’s cities and regions have contributed to shaping a new, higher quality of life and providing better livelihoods.

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Business

Saudi Inflation Holds Firm Despite Energy Shock

Riyadh’s commercial Tahlia Street. (AFP)
Riyadh’s commercial Tahlia Street. (AFP)
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Saudi Inflation Holds Firm Despite Energy Shock

Riyadh’s commercial Tahlia Street. (AFP)
Riyadh’s commercial Tahlia Street. (AFP)

Saudi Arabia’s inflation rate held steady at 1.8% in June, underscoring the economy’s price stability as renewed conflict in the Middle East raises fears of higher energy costs and a fresh wave of global inflation.

The reading, released by the General Authority for Statistics on Wednesday, kept the Kingdom among the G20 economies with the lowest inflation rates and broadly aligned with Saudi government and International Monetary Fund forecasts.

The data showed that the Saudi economy entered the latest period of global volatility from a relatively strong position, with inflation remaining subdued despite uncertainty across energy and financial markets.

The June figures preceded renewed turbulence in global oil markets after the war in the Middle East resumed, pushing crude prices higher and raising concerns that energy costs could feed into consumer prices elsewhere.

For Saudi Arabia, stable inflation provides a buffer against any price pressures that may emerge in the coming months.

Housing remained the main driver of inflation. Prices for housing, water, electricity, gas and other fuels rose 3.5% from a year earlier, led by a 4.4% increase in actual housing rents. The rise reflected stronger demand in major cities and rapid urban expansion linked to the Kingdom’s large development projects.

Transport prices increased 1.7%, while food and beverage prices rose 1.4%. Declines in several other categories helped contain the overall rate.

Prices for personal care, social protection and miscellaneous goods and services rose 3.8%, driven by a 14.7% jump in jewelry and watch prices amid record increases in global gold and precious-metal prices.

Recreation, sports and culture prices climbed 2.5%, reflecting a 4.2% increase in the cost of holiday packages and tourist trips.

By contrast, prices for furnishings, household equipment and routine household maintenance fell 0.6%, while clothing and footwear prices declined 0.4% year on year. The falls helped offset inflation in housing and other services and reflected continued competition across consumer markets.

Monthly rise remains modest

On a monthly basis, consumer prices rose 0.2% in June from May 2026.

Food and beverage prices increased 0.7%, driven by a rise of the same rate in food prices.

Housing, electricity and gas prices edged up 0.1%, while transport costs rose 0.4%.

Prices for personal care and social protection fell 1.0% from the previous month. Restaurant and accommodation services declined 0.1%, while communication prices also slipped 0.1%.

Among the G20’s lowest

Saudi Arabia's inflation remained below the levels recorded in several major economies.

Inflation stood at 3.5% in the United States in June, around 3% in Britain and close to 2% in the eurozone. Some emerging economies continued to post much higher rates.

That left Saudi Arabia among the least inflationary economies in the G20, even as it pressed ahead with large-scale investment and development programs.

The Kingdom’s inflation rate also remained below the average for advanced economies and well below that of emerging and developing markets, where food, energy and currency pressures have been more pronounced.

The figures point to Saudi Arabia’s ability to maintain price stability while expanding investment and implementing major development projects.

That contrasts with economies where stronger spending or higher energy costs have translated into faster inflation.

Official forecasts

The June reading was consistent with Saudi Finance Ministry forecasts for average inflation of about 2% in 2026.

It also aligned with IMF estimates issued in May and June, which projected that average inflation in Saudi Arabia would fall below 2% this year.

The IMF attributed the outlook to the strength of the Kingdom’s economic fundamentals and the effectiveness of domestic policies in containing inflationary pressures.

The fund expects global inflation to average 4.7% in 2026, up from 4.1% in 2025, before easing to 3.9% in 2027.

Those projections reflect continued pressure from tensions in the Middle East and higher energy prices. Saudi inflation, by comparison, is expected to remain below half the projected global average.

Why inflation has stayed low

Economists attribute the Kingdom’s low inflation to resilient economic fundamentals, effective monetary and fiscal policies, improved supply-chain efficiency and government measures aimed at maintaining adequate supplies of goods and services.

Rapid growth in non-oil activities and increased investment under Vision 2030 have also strengthened the economy’s ability to absorb external shocks without a significant pass-through to consumer prices.

Stable inflation helps preserve household purchasing power, but its effects extend further. It supports investor confidence, gives businesses greater visibility over future costs and reduces uncertainty around investment and consumption decisions.

Analysts said moderate inflation also gives policymakers more room to support economic growth as global markets brace for the impact of higher energy prices.

They expect the effect of those pressures on Saudi consumer prices to be more limited than in many other economies.

More certainty for businesses

Hisham Abu Jamea, chief adviser at Naif Al Rajhi Company, said stable inflation was a positive sign for prices and purchasing power and reinforced Saudi Arabia’s position among the G20 economies with the lowest inflation rates.

“Stable inflation provides a more predictable environment for individuals and the business sector and gives decision-makers greater room to focus on supporting economic growth,” he told Asharq Al-Awsat.

Abu Jamea said Saudi Arabia had managed to keep inflation below 2% despite global disruptions and economic challenges.

Housing remained the main source of pressure because of its large weighting in the consumer price index, he added.

However, recent government initiatives in the real estate sector were expected to ease price pressures and help bring inflation down, he stressed.

Growth without sharp price increases

Salem Baajajah, a professor of economics at King Abdulaziz University, said the 1.8% reading showed that economic growth in Saudi Arabia was no longer necessarily accompanied by sharp price increases.

He described that as an important shift from the experience of many global economies in recent years.

Maintaining inflation at its current level gives policymakers more room to proceed with major projects and economic diversification programs without allowing higher prices to undermine consumption or investment, he told Asharq Al-Awsat.

“The most important indicator is not merely that inflation remains low, but the quality of that stability,” Baajajah said.

“If it is supported by increased domestic production, broader competition and improved supply-chain efficiency, it becomes sustainable rather than temporary,” he remarked.

“The challenge in the next stage will not be to push inflation even lower, but to keep it within a moderate range that is consistent with an economy growing rapidly and attracting substantial investment,” he added.

Business

Gold Retreats as Oil Rises and Inflation Fears Grow

Gold bangles on display at a jewelry shop in Varanasi, India (AFP)
Gold bangles on display at a jewelry shop in Varanasi, India (AFP)
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Gold Retreats as Oil Rises and Inflation Fears Grow

Gold bangles on display at a jewelry shop in Varanasi, India (AFP)
Gold bangles on display at a jewelry shop in Varanasi, India (AFP)

Gold prices slipped on Wednesday as escalating tensions in the Middle East continued to stoke inflation concerns, reinforcing expectations of higher US interest rates.

Spot gold fell 0.7% to $4,027.49 per ounce by 0843 GMT. Prices rose over 2% to a session high of $4,100.19 per ounce on Tuesday after soft US inflation data, Reuters reported.
US gold futures for August delivery slid 0.9% to $4,034.00.

Iran's Revolutionary Guard Corps threatened ⁠to close all possible ⁠export corridors benefiting Washington, after Tehran shut the Strait of Hormuz and the US reimposed a naval blockade of Iranian ports. Oil edged higher after closing at a one-month high on Tuesday.

"Higher US crude, gasoline and diesel prices will result in high inflation numbers in ⁠the next print in August, that could keep the tone of some Fed officials on the hawkish side, which is not helping gold," said UBS analyst Giovanni Staunovo.

"In the near-term oil and US gasoline prices will continue to influence gold, as it remains a key driver of US inflation," Staunovo added.

Higher interest rates tend to weigh on gold, as they increase the opportunity cost of holding the non-yielding asset.

Fed Chair Kevin Warsh told ⁠lawmakers ⁠on Tuesday the central bank had "no tolerance for persistently elevated inflation," hinting that the CPI data was not all swell.

Traders are pricing in about a 59% chance of a rate hike in September, according to the CME FedWatch Tool.

Investors now await the US Producer Price Index data due at 1230 GMT today for insights into inflation levels and the monetary policy outlook.

Among other metals, spot silver dipped 0.5% to $58.314 per ounce and platinum gained 0.2% to $1,634.36.

Palladium rose 0.8% to $1,315.05, after gaining 5% in the previous session.

Business

Crude Shipments from Saudi Arabia's Yanbu Port Near Maximum Levels

King Fahd Industrial Port in Yanbu, Saudi Arabia (SPA)
King Fahd Industrial Port in Yanbu, Saudi Arabia (SPA)
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Crude Shipments from Saudi Arabia's Yanbu Port Near Maximum Levels

King Fahd Industrial Port in Yanbu, Saudi Arabia (SPA)
King Fahd Industrial Port in Yanbu, Saudi Arabia (SPA)

Daily crude loadings at Saudi Arabia's Red Sea port of Yanbu are close to maximum levels this week, according to data and industry sources.

Shipments from Yanbu reached 4.7 million barrels per day around July 13, up from 3.36 million bpd around July 10 and broadly in line with 4.6 million bpd around July 2, ⁠according to Signal Ocean data.

Loadings have averaged above four million bpd since June, compared with 973,000 bpd around the same period 2025, the data showed.

Kpler data also show daily loadings averaging around four million barrels in recent weeks.

Saudi Arabia has relied increasingly on Yanbu to export crude amid disruptions to shipping through the Strait of Hormuz during the US-Iran conflict.