RIYADH: Saudi inflation accelerated to 6.2 percent in June, the highest this year, driven by the cost of fuel and food.
It compares to 5.7 percent in May, according to data from the General Authority for Statistics (GSTAT) published on Thursday.
Transport prices gained 22.6 percent and food and beverages prices rose by 8.1 percent, the national statistics body said.
Consumer prices still reflect an increase of the value added tax (VAT) from 5 percent to 15 percent in July 2020.
“Looking ahead, the headline inflation rate is likely to peak in June at around 6.3 percent year-on-year,” James Swanston, Middle East and North Africa economist at London-based Capital Economics, said in a research note, last month.
Saudi Arabia announced a price cap on fuel on Saturday, to support local consumption and economy growth, as oil prices hit multi-year highs this year.
The Kingdom issued a royal directive to keep fuel prices at SR2.18 ($0.58) for octane 91 and SR2.33 for octane 95, SPA reported, citing the Energy and Water Price Reforms Executive Committee.
Fuel and food prices push June Saudi inflation to highest this year
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Fuel and food prices push June Saudi inflation to highest this year
- Consumer prices still reflect an increase of the value added tax (VAT) from 5 percent to 15 percent in July 2020
Saudi stock market opens its doors to foreign investors
RIYADH: Foreigners will be able to invest directly in Saudi Arabia’s stock market from Feb. 1, the Kingdom’s Capital Market Authority has announced.
The CMA’s board has approved a regulatory change which will mean the capital market, across all its segments, will be accessible to investors from around the world for direct participation.
According to a statement, the approved amendments aim to expand and diversify the base of those permitted to invest in the Main Market, thereby supporting investment inflows and enhancing market liquidity.
International investors' ownership in the capital market exceeded SR590 billion ($157.32 billion) by the end of the third quarter of 2025, while international investments in the main market reached approximately SR519 billion during the same period — an annual rise of 4 percent.
“The approved amendments eliminated the concept of the Qualified Foreign Investor in the Main Market, thereby allowing all categories of foreign investors to access the market without the need to meet qualification requirements,” said the CMA, adding: “It also eliminated the regulatory framework governing swap agreements, which were used as an option to enable non-resident foreign investors to obtain economic benefits only from listed securities, and the allowance of direct investment in shares listed on the Main Market.”
In July, the CMA approved measures to simplify the procedures for opening and operating investment accounts for certain categories of investors. These included natural foreign investors residing in one of the Gulf Cooperation Council countries, as well as those who had previously resided in the Kingdom or in any GCC country.
This step represented an interim phase leading up to the decision announced today, with the aim of increasing confidence among participants in the Main Market and supporting the local economy.
Saudi Arabia, which is more than halfway through an economic plan to reduce its dependence on oil, has been trying to attract foreign investors, including by establishing exchange-traded funds with Asian partners in Japan and Hong Kong.
