The annual inflation rate in the Saudi Arabia reached 1.9 percent in December 2024. Notably, the Kingdom boasts the lowest inflation rates among the G20 countries, according to the General Authority for Statistics (GASTAT).
The Consumer Price Index (CPI) is a crucial indicator that reflects changes in prices paid by consumers for a fixed basket of goods and services, which consists of 490 items. This selection was based on the findings from the household expenditure and income survey conducted in 2018. Prices are gathered through on-site visits to various sales points. Importantly, CPI statistics are published on a monthly basis, providing timely insights into inflation trends.
Annual borrowing plan for fiscal year 2025
In a significant development last week, Saudi Arabia’s Minister of Finance, Mohammed Abdullah Aljadaan, approved the Annual Borrowing Plan for the fiscal year 2025, following its endorsement by the Board of Directors of the National Debt Management Center (NDMC). This plan outlines notable advancements in the public debt landscape for 2024, as well as initiatives aimed at enhancing local debt markets and detailing the funding strategy along with its guiding principles for 2025.
As part of the plan, the estimated funding requirements for 2025 are approximately SAR139 billion ($37 billion). This amount is designed to address the anticipated budget deficit of SAR101 billion for the fiscal year 2025, as detailed in the Ministry of Finance’s Official Budget Statement. Moreover, it takes into account the repayment of principal amounts on debts maturing in the current year, which totals around SAR38 billion.
Read more: Saudi Arabia’s GASTAT launches new micro data center for accurate statistical data access
Expanding access to debt markets
To strengthen the Kingdom’s access to diverse debt markets and broaden the investor base, Saudi Arabia is dedicated to enhancing its efforts in 2025. This includes diversifying both local and international funding sources to effectively meet its financial needs. The strategy involves issuing sovereign debt instruments at competitive rates, supported by robust risk management practices. Additionally, the Kingdom plans to capitalize on market opportunities through private transactions aimed at stimulating economic growth. Potential financing avenues may include collaboration with export credit agencies, funding for infrastructure projects, capital expenditure (CAPEX) financing, and exploring new markets and currencies in alignment with current market conditions.
Growth in public investment fund assets
The value of public investment fund assets—both domestic and international—within the Saudi financial market saw an impressive annual increase of 37 percent, rising by nearly SAR43 billion by the end of the third quarter (Q3) of 2024. This surge brought the total asset value to SAR160.087 billion ($42.6 billion), compared to SAR117.117 billion during the same period in 2023. On a quarterly basis, the asset value experienced a notable rise of 10.4 percent, signifying an estimated increase of SAR15.120 billion compared to SAR144.967 billion at the conclusion of the second quarter (Q2) of this year, as reported by the quarterly statistical bulletin from the Capital Market Authority for 2024.
The subscriber count in the financial market witnessed a remarkable growth of 51 percent, resulting in nearly 528,000 additional subscribers. This surge brought the total to 1,570,452, compared to 1,042,484 at the end of the same period last year.
