عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Annual Saudi Inflation Rate Rises 2.7% in July

Prices of food and beverages rise in Saudi Arabia (Asharq Al-Awsat)
Prices of food and beverages rise in Saudi Arabia (Asharq Al-Awsat)
TT
TT

Annual Saudi Inflation Rate Rises 2.7% in July

Prices of food and beverages rise in Saudi Arabia (Asharq Al-Awsat)
Prices of food and beverages rise in Saudi Arabia (Asharq Al-Awsat)

The General Authority for Statistics (GASTAT) released on Monday the results of the Saudi Consumer Price Index and Wholesale Price Index for July 2022.

On its official website, GASTAT said that the consumer price index rose 2.7% in July from a year earlier, increasing from 2.3% in June.

The main driver of CPI inflation was a 3.9% increase in prices of food and beverages and 3.6% in transport mainly due to a 4.2% increase in the prices of vehicles.

Food and beverage prices increased by 3.9%, mainly due to food prices (4.2%), and meat prices (5.1%).

The prices of personal goods and services increased by 2.1%, mainly impacted by a 22.0% price rise in wedding hall rentals.

Moreover and due to the increase in prices of catering services by 6.3%, the prices in restaurants and hotels increased by 6.3%.

Education increased by 5.7%, and housing, water, electricity, gas, and other fuel prices increased by 2.0%, as a result of the increase in housing rentals by 2.1%.

The general wholesale price index for the month of July 2022 increased by 6.8%, compared to 2021. The increase came mainly due to a 5% increase in the price of metal products, machinery, and equipment.

Most Viewed

 
 
Business

Saudi Arabia Begins Marketing International Bonds Following 2025 Borrowing Plan Announcement

Riyadh (Reuters)
Riyadh (Reuters)
TT
TT

Saudi Arabia Begins Marketing International Bonds Following 2025 Borrowing Plan Announcement

Riyadh (Reuters)
Riyadh (Reuters)

Saudi Arabia has entered global debt markets with a planned sale of bonds in three tranches, aiming to use the proceeds to cover budget deficits and repay outstanding debt, according to IFR (International Financing Review).

The indicative pricing for the three-year bonds is set at 120 basis points above US Treasury bonds, while the six- and ten-year bonds are priced at 130 and 140 basis points above US Treasuries, respectively, as reported by Reuters.

The bonds, expected to be of benchmark size (typically at least $500 million), come a day after Saudi Arabia unveiled its 2025 borrowing plan. The Kingdom’s financing needs for the year are estimated at SAR 139 billion ($37 billion), with SAR 101 billion ($26.8 billion) allocated to cover the budget deficit and the remainder to service existing debt.

The National Debt Management Center (NDMC) announced that Finance Minister Mohammed Al-Jadaan had approved the 2025 borrowing plan following its endorsement by the NDMC Board. The plan highlights public debt developments for 2024, domestic debt market initiatives, and the 2025 financing roadmap, including the Kingdom’s issuance calendar for local sukuk denominated in Saudi Riyals.

The NDMC emphasized that Saudi Arabia aims to enhance sustainable access to debt markets and broaden its investor base. For 2025, the Kingdom will continue diversifying its domestic and international financing channels to meet funding needs efficiently. Plans include issuing sovereign debt instruments at fair prices under risk management frameworks and pursuing specialized financing opportunities to support economic growth, such as export credit agency-backed funding, infrastructure development financing, and exploring new markets and currencies.

Recently, Saudi Arabia secured a $2.5 billion Sharia-compliant revolving credit facility for three years from three regional and international financial institutions to address budgetary needs.

In 2024, Saudi Arabia issued $17 billion in dollar-denominated bonds, including $12 billion in January and $5 billion in sukuk in May. Rating agencies have recognized the Kingdom’s financial stability. In November, Moody’s upgraded Saudi Arabia’s rating to “AA3,” while Fitch assigned an “A+” rating, both with stable outlooks. S&P Global rated the Kingdom at “A/A-1” with a positive outlook, reflecting its low credit risk and strong capacity to meet financial obligations.

The International Monetary Fund (IMF) estimated Saudi Arabia’s public debt-to-GDP ratio at 26.2% for 2024, describing it as low and sustainable. The IMF projects this ratio to reach 35% by 2029, with foreign borrowing playing a significant role in financing fiscal deficits.