Performance of Key Economic and Investment Indicators in the Kingdom
Economic indicators released by Ministry of Investment showed remarkable growth during the third and fourth quarters, as the real estate price index rose by 1.5% in the third quarter of 2022 on a year-over-year basis, driven by a 2.5% increase in residential real estate prices, while real GDP grew by 8.8% year-over-year, driven by notable growth in oil-related activities of 14.2% and a 6.0% increase in non-oil activities, while government activities recorded a 2.5% increase.
Rise in Foreign Investment Flows
Foreign direct investment flows rose by 10.7% in the third quarter of 2022 compared to the same period of the previous year, and the foreign direct investment stock grew by 0.7% in the third quarter of 2022 compared to the previous quarter, indicating foreign investors" confidence in the Kingdom’s investment environment.
Investment Licenses
The Ministry of Investment issued approximately 928 investment licenses in the third quarter of 2022, representing an 8.8% year-over-year increase, excluding licenses issued under the campaign to combat violators of the commercial fronting system (”Tastur"), reflecting the Kingdom’s status as an attractive investment destination with strong competitive advantages, including a stable and business-friendly investment environment.
Inflation Rate Growth
The inflation rate in the third quarter of 2022 recorded a 2.9% increase compared to the same period of the previous year; this rise is attributed to a 4.1% increase in food and beverage prices, followed by a 3.8% increase in transportation prices.
Gross fixed capital formation grew by 19.0% in the third quarter of 2022 on a year-over-year basis, with fixed capital formation in the government sector rising by 64.4%, while third-sector capital formation in the non-government sector grew by 46.7% during the same period.
Trade Balance Growth
Trade volume grew by 38.8% in the third quarter of 2022 on a year-over-year basis, and the trade balance grew by 69.6% during the same period, as a result of increases in both total exports and imports by 46.1% and 25.1%, respectively, during the same period.
The number of tourists visiting the Kingdom rose by 575.4% in the third quarter of last year on a year-over-year basis, leading to a 570% increase in tourist spending, The number of domestic tourists also grew by 42.3% during the same period, leading to a 31.5% increase in domestic tourism spending.
Rise in Industrial Licenses
The number of domestic industrial licenses rose by 3.7% in the third quarter of 2022 on a year-over-year basis, attributed to efforts to enhance the competitiveness of the industrial environment, increase the value of local content, and support locally manufactured products.
The TASI General Index
The TASI General Index recorded a 0.8% decline in the third quarter of 2022 on a year-over-year basis, while the Parallel Market Index (Highest Growth) fell by 16.0% during the same period.
The labor force participation rate for Saudis rose to 52.5% in the third quarter of 2022, compared to approximately 51.8% in the previous quarter
Revenues for the Fourth Quarter of 2022
Government revenues reached approximately 283.7 billion riyals in the fourth quarter of 2022, up 5.4% year-over-year. Government revenue is expected to reach approximately 1.234 billion riyals for the year 2022, up 27.8% year-over-year.
Government Spending
Government expenditures amounted to approximately 331.3 billion riyals in the fourth quarter of 2022, down 1.8% year-over-year. Government spending is expected to reach approximately 1.132 billion riyals for the year 2022, up 9.0% year-over-year.
