Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in the Saudi Arabia from February. Let’s get started.
Saudi Arabia economy update
- Saudi Arabia has raised €2.25 billion ($2.36 billion) through a euro-denominated bond sale, including its first green tranche, as part of its Global Medium-Term Note Issuance Program. The offering, split into two tranches, saw strong demand with an oversubscription of four times the issuance size, attracting €10 billion in orders. The €1.5 billion green tranche has a seven-year maturity, while the €750 million tranche matures in 12 years.
- Residential transaction values in Saudi Arabia have surged 35% over the past five years, reaching SR164.8 billion ($43.94 billion), according to a Knight Frank report. These deals accounted for 61.5% of all real estate transactions by value, with the number of sales rising 38% to nearly 202,661 during the same period.
- Saudi Arabia issued 1,346 industrial licenses in 2024, attracting over $13.3 billion in investments and creating more than 44,000 new jobs, according to the Ministry of Industry and Mineral Resources. The move aligns with the Kingdom’s National Industrial Strategy, which aims to expand the industrial sector and increase the number of factories to 36,000 by 2035.
- Saudi Arabia has launched the third round of its Sah savings product for 2025, offering a 4.98% return for March under the Ijarah sukuk structure. Managed by the National Debt Management Center, Sah is the Kingdom’s first savings bond designed for individuals, providing a Shariah-compliant investment option. The initiative supports Saudi Vision 2030’s goal of increasing the national savings rate to 10% by the decade’s end.
Saudi Arabia stock market update
February brought mixed results for Saudi markets. The Tadawul All-Share Index declined by 2.45%, closing at 12,111.9, reflecting some market pressure. Meanwhile, the Parallel Market Capped Index saw a modest gain of 0.49%, ending the month at 31,404.47. A month of contrasting performances across key Saudi indices.
- Saudi Aramco has lowered its official selling prices for propane and butane for March, setting them at $615 and $605 per tonne, respectively. These liquefied petroleum gases are widely used for heating, vehicle fuel, and petrochemical production. Aramco’s pricing serves as a key benchmark for LPG contracts across the Middle East and Asia-Pacific.
- Abdullah Al Othaim Markets Company has signed a non-binding Memorandum of Understanding to acquire a 51% stake in Ebdaa Al Qasr Marketing LLC, which operates 11 retail branches under the “Manuel” brand in Jeddah and Riyadh. The acquisition aligns with Al Othaim’s expansion strategy in the food and consumer goods retail sector.
- Sumou Real Estate Co. has been awarded a project to complete the development and implementation of infrastructure for the Sharia Grant Scheme No. 17 in collaboration with the Holy Makkah Municipality. Under the agreement, Sumou will receive 7.04% of the project’s sales after development.
- Naseej International Trading Company has signed a sale and purchase agreement to acquire 100% of Etmam Arabian Real Estate Development Company by issuing new shares to Etmam’s owners. This follows the non-binding MoU signed in March 2024 and is based on a fair valuation of Etmam’s shares, rights, and obligations.
Saudi Arabia top gainer and top loser stocks for February
Summary
Saudi Arabia’s economy remains strong in February, with industrial expansion, real estate growth, and strategic investments aligning with Vision 2030. Market performance was mixed, with real estate and retail sectors seeing major deals while energy faced price adjustments.
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