Saudi Economy Grows by 8.8% in Third Quarter

Saudi Minister of Finance speaks during the Budget 2023 Forum on Sunday in Riyadh (Photo: Saleh Al-Ghannam)
Saudi Minister of Finance speaks during the Budget 2023 Forum on Sunday in Riyadh (Photo: Saleh Al-Ghannam)
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Saudi Economy Grows by 8.8% in Third Quarter

Saudi Minister of Finance speaks during the Budget 2023 Forum on Sunday in Riyadh (Photo: Saleh Al-Ghannam)
Saudi Minister of Finance speaks during the Budget 2023 Forum on Sunday in Riyadh (Photo: Saleh Al-Ghannam)

The General Authority for Statistics announced on Sunday that Saudi Arabia’s economy grew by 8.8 percent in the third quarter of 2022.

This growth was driven by the rise of oil-related activity by 14.2 percent, and non-oil activities by 6 percent, while government activities recorded a growth of 2.5 percent on an annual basis.

In the quarterly comparison, the seasonally adjusted real GDP grew by 2.1 percent on a quarterly basis, as oil activities grew by 4.5 percent, government activities by 1.5 percent, while non-oil activities decreased by 0.5 percent, on a quarterly basis.

The General Authority for Statistics noted that GDP at current prices amounted to 1.036 trillion riyals ($275.53 billion) in the third quarter, with crude petroleum and natural gas activities contributing 35.2 percent, followed by government service activities, at a rate of 14.1 percent, then manufacturing activities, with the exception of oil refining, with a contribution of 7.8 percent.

In this context, Saudi Finance Minister Mohammad Al-Jadaan said that non-oil revenues contributed to covering 40 percent of the volume of government expenditures until the end of 2021, thanks to the new fiscal policy that seeks to curb dependence on volatile oil revenues.

Speaking during the Budget 2023 Forum, which kicked off on Sunday in Riyadh, the minister said: “There were great challenges, as the deficit 5 years ago amounted to 15 percent of the budget’s financial domestic product.”

“We had to withdraw SR1 trillion from reserves, and borrow an additional SR1 trillion from the markets, to cover the deficit,” he noted

He added that Saudi Arabia has achieved the goal of the Fiscal Balance Program, which is considered one of the most important economic reform programs within Vision 2030.

“Let us now move to the Financial Sustainability Program, which is based on financial planning, whether in terms of revenues or expenditures, for a period of three years, and in some sectors for ten years,” he said.

According to the minister, work achieved during the past years helped improve services and raise their efficiency.

He stressed that Saudi Arabia took proactive steps to set a ceiling on energy prices, while Saudi Aramco was supported with tens of billions to avoid exporting inflation to the Saudi economy.

According to Al-Jadaan, the government has pumped 20 billion riyals ($5.3 billion) to provide support for beneficiaries of social security, the Citizen Account, and livestock breeders, stressing that abundance was more important than rising prices during the inflation stage.

The Saudi minister underlined the need to empower the private sector, by promoting structural reforms and changing regulations, as well as providing a legislative environment that contributes to the development of the sector.

For his part, Faisal Al-Ibrahim, Minister of Economy and Planning, explained that the Saudi budget supported the implementation and achievement of Vision 2030. He stressed that one of the factors of success was long-term economic planning, coupled with the adequate financial strategies.

Al-Ibrahim touched on the role of development funds, which he said contributed to economic mobility and diversification and empowered the private sector.

The Minister of Economy and Planning added that the private sector was the government’s first strategic partner, and the most important axis in diversifying the sources of growth.

He explained that the private sector’s contribution to the Kingdom has now reached 43 percent, with the target of 65 percent by the end of 2030.

In a dialogue session entitled, “The Impact of Enabling Investment on Economic Growth,” Eng. Khaled Al-Falih, Minister of Investment, stated that the Saudi economy, despite the various world challenges, has achieved the highest growth among the Group of Twenty, reaching 10.3 percent in the first three quarters of the year.

He noted that the global economic total debt rate was increasing and exceeded 100 percent in many leading economies, while the Kingdom’s debt rate registered a decline of 25 percent.



PIF Anchors State Street’s Newly Launched Saudi Equity ETF

Officials from PIF and State Street IM (Saudi PIF)
Officials from PIF and State Street IM (Saudi PIF)
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PIF Anchors State Street’s Newly Launched Saudi Equity ETF

Officials from PIF and State Street IM (Saudi PIF)
Officials from PIF and State Street IM (Saudi PIF)

The Saudi Public Investment Fund (PIF) and State Street Investment Management (State Street IM), one of the world’s largest asset managers, launched on Thursday the State Street Saudi Arabia Enhanced Active Equity (SAQL) with PIF as anchor investor.

The fund actively invests in equities of companies in Saudi Arabia using a quantitative multi-factor stock selection model, PIF said in a statement.

SAQL has its primary listing on the Xetra exchange in Germany and is cross listed on the LSE in the United Kingdom, where a bell ringing ceremony was held. The fund will be available to investors in both markets as well as investors across other key markets in Europe, the statement said.

The investment marks another step in PIF’s strategy to further deepen and diversify the Saudi capital market by attracting international capital flows, empowering financial institutions, broadening financing options for the private sector and introducing new products.

The newly launched fund is the second State Street IM ETF in which PIF has made an anchor investment, and the fifth ETF investment for PIF across nine global markets with leading international asset managers. New and innovative Saudi-focused products were listed in Hong Kong, London, Shanghai, Shenzhen, Tokyo, Frankfurt, Italy and Singapore.

“PIF is further strengthening Saudi Arabia’s capital market ecosystem, working with our partners to open gateways for international investors, enable access and drive global capital inflow into the country,” said Deputy Governor and Head of MENA Investments at PIF Yazeed Al-Humied.

“Our continued partnership with State Street IM reinforces a shared commitment to enhance and diversify the product range, to present new opportunities for international investors into the Saudi market and unlock capital pools,” he said.

“The launch of this ETF further deepens the Saudi market and builds on a series of PIF-anchored ETF listings across international markets, cementing PIF’s role in driving increased product diversification to enhance liquidity and fulfill market needs,” Al-Humied added.

Chief Executive Officer of State Street Investment Management Yie-Hsin Hung praised Saudi Arabia’s success story. Saying: “At State Street, as with PIF, innovation is in our DNA and we’re pleased to offer a new product in this same vein, drawing on our decades of experience and commitment to quality to underpin an exciting new offering, anchored by PIF.”

Quantitative funds, such as SAQL, use mathematical modeling, algorithmic, and data-driven methods to manage portfolios. The Saudi capital market has evolved beyond legacy sectors, with maturation of market structure and data quality – enabling SAQL to use a systematic active approach when investing in Saudi equity securities.

SAQL provides an opportunity for international investors to obtain investment exposure to this rapidly evolving economy.

The fund is registered for sale in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden and the UK.


Morocco’s Inflation Rises to 0.9% in March

 People stand looking across the river at the skyline in the coastal city of Rabat on April 20, 2026. (AFP)
People stand looking across the river at the skyline in the coastal city of Rabat on April 20, 2026. (AFP)
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Morocco’s Inflation Rises to 0.9% in March

 People stand looking across the river at the skyline in the coastal city of Rabat on April 20, 2026. (AFP)
People stand looking across the river at the skyline in the coastal city of Rabat on April 20, 2026. (AFP)

Morocco's annual inflation, measured by the consumer price index, rose to 0.9% in March from -0.6% a month earlier, the statistics agency said on Wednesday.

Food prices, ‌the main ‌driver of ‌inflation, ⁠rose 0.6% from a year ⁠earlier, while non-food inflation increased 1.1%.

Core inflation, which excludes more volatile goods, rose 0.6% year-on-year ⁠and 0.1% month-on-month.

The ‌rise ‌in fuel prices following ‌the Iran conflict ‌led the Moroccan government to reintroduce subsidies for professional transporters, including taxis, buses ‌and trucks, to keep prices stable.

Fuel subsidies, ⁠along ⁠with aid to keep electricity and cooking gas prices stable, would cost the government 1.6 billion dirhams ($170 million) monthly, the minister in charge of the budget, Fouzi Lekjaa, said.


Strait of Hormuz Blockade Drives up Costs at Panama Canal

Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)
Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)
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Strait of Hormuz Blockade Drives up Costs at Panama Canal

Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)
Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)

The war in the Middle East has boosted demand to move vital cargo through the Panama Canal to such an extent that one vessel carrying liquefied natural gas (LNG) paid $4 million to skip the line and avoid a wait that can take up to five days, according to an official report.

A surge in such payments has been recorded since the US-Israeli attacks on Iran began February 28, which led to the blockade of the Strait of Hormuz, a critical waterway for one-fifth of the world's oil and natural gas exports from Gulf countries.

To meet fuel demand, Asia's refineries are choosing to buy oil or gas from the United States and ship it through the transoceanic waterway instead of purchasing from Gulf countries who rely on the Strait of Hormuz, according to reports from the Panama Canal Authority.

The average number of ships passing through the canal on a daily basis has "remained strong," the authority told AFP in a statement Tuesday, with 34 ships in January and 37 ships in March. Some days exceeded 40 transits.

"The increase reflects changes in global trade patterns and market conditions, including geopolitical factors affecting key routes," the authority said.

Ships transiting the canal book their passage well in advance, and ships without bookings wait an average of five days to get through, but there is an auction where last-minute transits can be purchased.

The most recent auction included a $4 million bid for an LNG vessel, and in recent weeks two oil tankers exceeded bids of $3 million, the authority said.

Past average auction prices between October and February stood at around $130,000, and rose to $385,000 in March and April.

Five percent of global maritime trade passes through the Panama Canal, and its main users are the US and China. The route primarily connects the US East Coast with China, South Korea and Japan.

In the first half of the 2026 fiscal year, which runs October to September, the Panamanian waterway recorded passage of 6,288 ships, a year-on-year increase of 3.7 percent, according to official figures.