The Ministry of Investment issued the Saudi Investment and Economic Monitor Report, which covers the results of economic activities in the Kingdom during the first quarter of 2024. According to the report, the Saudi economy has witnessed positive developments during the past years, as a result of the ongoing economic reforms that began since the launch of the Kingdom's Vision 2030, which in turn contributed to improving the performance of many economic, financial and investment indicators, which supports the Kingdom's future to become among the 15 largest economies in the world by 2030.

The report said that the Saudi economy is expected to become one of the largest economies in the world by 2030. <The report said that despite the geopolitical tensions in the Middle East, the International Monetary Fund (IMF) forecast issued in April 2024 indicates that the Kingdom's GDP will grow by 2.6 % in 2024, down 0.1 percentage points from the previous forecast issued in January 2024, while the IMF raised its GDP growth forecast for the Kingdom in 2025 from 5.5 % to 6.0 %. This reflects the strength and robustness of the Saudi economy. <According to Saudi Investment and Economic Monitor, the Organization for Economic Cooperation and Development (OECD) forecast issued in May 2024 indicated that the Kingdom's real GDP declined by 0.2 % in 2024, while real GDP growth was expected to grow by 4.1 1 % in 2025. While the World Bank, in its April 2024 bulletin, expected the Kingdom's real GDP to grow by 2.5 % in 2024 and by 5.9% in 2025.

The estimates of the state's general budget statement for the fiscal year 2024, issued by the Ministry of Finance, showed real GDP growth in the Kingdom by 4.4% in 2024 and 5.7TP3T in 2025, driven by the expected growth in non-oil GDP, in light of efforts to enhance the role of the private sector and increase its contribution to the Kingdom's economic growth.

Driven by the expected growth in GDP of non-oil activities.

International credit agencies rating

Fitch affirmed the Kingdom's credit rating at A+ with a stable outlook, according to its report issued in February 2024, and the agency expected the non-oil private sector to grow at a rate of up to 4.5 % between 2024 and 2025, as the Kingdom continues with fiscal reforms.

Fitch affirmed the Kingdom's credit rating at A+ with a stable outlook, according to its report issued in February 2024. <In its report issued in March 2024, S&P affirmed the Kingdom's credit rating at A/A-1 with a stable outlook. The agency emphasized that this rating came against the backdrop of the Kingdom's continued efforts in the reforms welded in recent years and their impact on the resilience of its economy, contributing to supporting the development of non-oil sector growth and raising public financial revenues, and expected the Kingdom's GDP growth to increase at an average rate of 3.3% during the years 2024 to 2027.

<According to quick estimates released by the General Authority for Statistics (GAS), real GDP in the first quarter of 2024 recorded a decrease of 1.8% compared to the same period of the previous year, due to the decline in oil activities by 10.6TP3T as a result of voluntary oil production cuts in the Kingdom. Non-oil and government activities grew by 2.8 % and 2.0 %, respectively, compared to the same period of the previous year.

Foreign Direct Investment Flows

The report showed that FDI inflows in the fourth quarter of 2023 increased by 32.2 % year-on-year to reach 19 billion riyals, reflecting the recovery of investment in the Kingdom.

The report showed that FDI inflows in the fourth quarter of 2023 increased by 32.2 % year-on-year to reach 19 billion riyals, reflecting the recovery of investment in the Kingdom. FDI inflows for the full year 2023 amounted to about 72 billion riyals, registering a growth of 12.1 % compared to 2022 after excluding Saudi Aramco's deal with a consortium led by BlackRock Fixed Assets and Hassana Investment Company worth 58.1 billion riyals that was announced in February 2022.

FDI inflows for the full year 2023 amounted to about 72 billion riyals, registering a growth of 12.1 % compared to 2022. <The foreign investment balance recorded the equivalent of 808 billion riyals in the fourth quarter of 2023, witnessing a growth of 1.7TP3T compared to the previous quarter of the same year. The FDI balance for the full year 2023 will grow by 6.1 % compared to 2022. This reflects the fruits of the reforms made during the past period to strengthen the investment system.

Investment deals in Q1 2024

Investment data released by the Ministry of Investment indicates that 64 investment deals were completed in the first quarter of 2024, compared to 104 deals during the same period of the previous year. Looking at the distribution of deals by economic activities for the first quarter of 2024, the innovation and entrepreneurship activity acquired the largest share in terms of the number of deals due to investors" interest in this activity, as 34 deals were closed in it, followed by the sports activity with 12 deals for the same period. In terms of investor countries, the United States of America ranked first with 11 deals in terms of the number of deals closed during the first quarter of 2024, followed by the United Kingdom with 5 deals, then the United Arab Emirates, Egypt and Singapore with 3 deals each, while the rest of the deals were distributed among 6 other countries.

Investment Licenses

The report showed that the Ministry of Investment issued 3,157 licenses in the first quarter of 2024, up by 93% compared to 1,637 licenses in the same period of the previous year after excluding the licenses issued under the campaign to correct the status of violators of the anti-cover-up system, while the total investment licenses issued amounted to 3,197 in the first quarter of 2024.

The report showed that the Ministry of Investment issued 3,157 licenses in the first quarter of the year 2024, up by % compared to 1,637 in the same period of the previous year. In general, most of the issued investment licenses were concentrated in construction activity, manufacturing activity, professional, educational and technical activities, information and communication activity, accommodation and food services, wholesale and retail trade and vehicle repair activities, and the number of investment licenses issued in these activities constitutes about 81.8 % of the total number of investment licenses issued during the first quarter of 2024.

The Saudi Investment and Economic Monitor report indicated that the number of investment licenses issued in these activities constitutes about 81.8 % of the total number of investment licenses issued during the first quarter of 2024.

Real estate activity has the highest growth in investment licenses

The Ministry of Investment report confirmed that the real estate activity is the highest growth in investment licenses issued during the first quarter of 2024 compared to the same period of the previous year, with a growth rate of 253.3 %, followed by professional, educational and technical activities, and agriculture and fishing with growth rates of 141.5 % and 129.4 %, respectively.

Looking at the legal status of companies that issued investment licenses during the first quarter of 2024, the number of licenses issued to sole proprietorships and limited liability companies reached 2,112 licenses, limited liability companies recorded about 754 licenses, while the rest of the licenses were distributed among other types of companies with about 331 licenses.

With regard to the distribution of investment licenses, the number of licenses issued to sole proprietorships and limited liability companies grew by 1.5 % and 1.4 %, respectively.

Egypt was the highest country in terms of the number of investment licenses issued during the first quarter of 2024 with 950 licenses, followed by Yemen with 346 licenses, India in third place with 321 licenses, Syria in fourth place with 180 licenses, and Pakistan in fifth place with 159 licenses.

In terms of the distribution of investment licenses by country, Egypt was the highest country in terms of the number of investment licenses issued during the first quarter of the year 2024 with 950 licenses, followed by Yemen with 346 licenses, and in third place India with 321 licenses, while Syria ranked fourth with 180 licenses, and Pakistan ranked fifth with 159 licenses.

Gross Fixed Capital Formation

<Nominal gross fixed capital formation in the fourth quarter of 2023 amounted to SAR 283 billion, up by 6.4 TP3T compared to the same quarter of the previous year, as a result of the growth of government fixed capital formation by 5.7 TP3T, which constitutes 80.3 TP3T of the total fixed capital formation during the same period. Government fixed capital formation increased by 9.5 % over the same period.

On the other hand, total fixed capital formation grew by 1.5 %. <On the other hand, gross fixed capital formation as a percentage of nominal GDP increased to 27.8 % in Q4 2023 compared to 26.0 % in the same period of the previous year. <Looking at the performance of nominal gross fixed capital formation in the full year 2023, it grew by 9.0 % y-o-y to reach about 1,117 billion riyals, achieving the National Investment Strategy target for 2023. It is worth mentioning that this growth is mainly driven by the growth of non-governmental fixed capital formation by 10.0%.

Private Investment Indicators

Looking at the private investment indicators during the first quarter of 2024, the average PMI decreased by 4.0 % to 56.5 points compared to 58.9 points in the first quarter of the previous year, but it is well above the neutral level (50 points), due to the improved performance of the non-oil private sector.

The private investment indicators during the first quarter of 2024 saw an increase in the Purchasing Managers" Index (PMI) by 4.0 % to reach 56.5 points compared to 58.9 points in the first quarter of the previous year.

Industrial Production Index saw a decrease of 8.4 % in the first quarter of 2024 compared to the corresponding period of the previous year.

The Industrial Production Index saw a decrease of 8.4 % in the first quarter of 2024 compared to the corresponding period of the previous year. Cement sales declined by 4.7 % in the first quarter of 2024 compared to the same period of the previous year, reaching 12.6 million tons due to higher interest rates and its impact on demand.

The general real estate price index data in the first quarter of 2024 indicates that the index increased by 0.6 % compared to the same period of the previous year as a result of residential real estate prices increasing by 1.2 %, while commercial real estate and agricultural real estate prices decreased by 0.5 % and 0.1 1 %, respectively.

Data on the general real estate price index in the first quarter of 2024 indicates that the index increased by 0.6 % compared to the same period of the previous year, due to the increase in interest levels and the impact of demand.

Money Supply

<According to data from the Saudi Central Bank (SAMA), the money supply increased by 8.3 % in the first quarter of 2024 compared to the same period of the previous year, driven by the growth of time and savings deposits by 20.7 %, growth of government time and savings deposits by 13.Reserve assets in the first quarter of 2024 increased by 3.8% compared to the same period in 2023 as a result of the increase in foreign exchange and foreign deposits by 14.6TP3T during the same period

Interest Rates

Average interbank interest rates (SIBOR) averaged 6.2 % during Q1 2024, up 0.75 bps from Q1 2023, while repurchase agreement (repo) rates increased to 6.0 % and reverse repo to 5.5 % during the same period as the US interest rate increased.

Repurchase agreement (repo) and reverse repurchase agreement (reverse repo) rates increased to 5.5 % during the same period. Bank credit to the public sector in the first quarter of 2024 increased by 21.2 % compared to the same period of the previous year, bank credit to the private sector increased by 10.1 1 % year-on-year, and real estate loans financed by commercial sources grew by 11.5 % in the fourth quarter of 2023 year-on-year.

The volume of lending remains high in the Kingdom.

Inflation

<According to data from the General Authority for Statistics, the average inflation (Consumer Price Index) in the Kingdom reached 1.7 % during the first quarter of 2024 compared to 3.0 % in the same period of the previous year due to the increase in prices of housing, water, electricity, gas and other fuels by 8.4 %, followed by restaurant and hotel prices by 2.4 %. Looking at the inflation rate (Consumer Price Index) in March 2024, it reached 1.6 % compared to the same period of the previous year, due to the rise in housing, water, electricity, gas and other fuels prices by 8.8 % and restaurant and hotel prices by 2.4 %.

The Consumer Price Index (CPI) in March 2024, compared to the same period of the previous year, due to the rise in housing, water, electricity, gas and other fuels prices by 8.8 % and restaurant and hotel prices by 2.4 %.

The wholesale price index during the first quarter of 2023 witnessed an increase of 3.7 % compared to the same period of the previous year due to the increase in the prices of other transportable goods except metal products, machinery and equipment by 9.1 1 %, which constitutes 33.7 % of the index weight, followed by the prices of food and beverages, tobacco and textiles by 2.3 %, which constitutes 17.3 % of the index weight.

Wholesale Price Index for the first quarter of 2023 witnessed an increase of 3.7 %. The wholesale price index in March 2024 increased by 3.8 % compared to the same month of the previous year, due to the increase in the prices of other transportable goods except metal products, machinery and equipment, in addition to the prices of food, beverages, tobacco and textiles, by 9.2 % and 2.4 %, respectively.

In general, inflation rates are directly affected by geopolitical repercussions and disruptions in supply chains on the supply side, while on the demand side, an increase in domestic demand driven by private consumption has affected inflation rates in the Kingdom.

Financial Market

The index of the main financial market "TASI" closed at 12,401 points in the first quarter of 2024 AD, up by about 17.1 1 % compared to the same period of the previous year, and the market value of shares issued in the main market "TASI" in the first quarter of 2024 AD reached about 10.9 trillion riyals, a growth of 9.6 % compared to the same period of the previous year.

<The parallel market index "Nomu" in the first quarter of 2024 recorded a growth of 30.9 % compared to the same period of the previous year, as the index closed at 26030 points. The market value of shares issued in the parallel market “Nomu” in the first quarter of 2024 amounted to about 50.8 billion riyals, up by 31.2 % compared to the same period of the previous year.

The number of companies whose shares were listed on the financial market reached 9 companies during the first quarter of 2024 AD, where 3 companies were listed on the main market and 6 companies on the parallel market “Nomu”.

The value of investors“ ownership in the first quarter of 2024 AD amounted to about 50.8 billion riyals, an increase of 31.2 % compared to the same period last year. The ownership value of GCC and foreign investors also recorded a growth of 36.2 % and 20.7 % respectively in the first quarter of 2024 compared to the same period of the previous year.

The value of ownership of GCC and foreign investors grew by 36.2 % and 20.7 % respectively in the first quarter of 2024 compared to the same period of the previous year.

Foreign trade performance

As for the performance of foreign trade issued by the General Authority for Statistics in the first quarter of 2024 AD, the trade balance witnessed a surplus of about 90.6 billion riyals, compared to a surplus of about 120.5 billion riyals in the same period of the previous year, thus recording a decrease of 24.8 %, as commodity exports witnessed a decrease of 5.7 % compared to the same quarter of 2023 AD, to reach about 291.7 billion riyals, compared to 309.4 billion riyals in the same period of the previous year, driven by a decrease in oil exports to 221.8 billion riyals in the first quarter of 2024 compared to 241.8 billion riyals in the same quarter of the previous year, while non-oil exports increased to 69.8 billion riyals compared to 67.6 billion riyals during the same period of 2023. Imports also recorded an increase in

The first quarter of 2024 AD by 6.4 %, amounting to 201.0 billion riyals compared to 188.9 billion riyals in the same period of 2023 AD. The ratio of non-oil exports to total imports amounted to approximately 34.7 % during the same period.

The ratio of non-oil exports to total imports amounted to 34.7 % during the same period.