Spending boom on the horizon in Saudi Arabia: Jadwa

Consumer confidence in Saudi Arabia is at a record high and will likely lead to a spending boom in the coming months, according to a report from Jadwa Investment.

The investment management and advisory firm made the forecast as it revealed the Kingdom’s non-oil Purchasing Managers’ Index hit its highest level for three months.

The report said that February’s PMI saw a sharp rebound to 56.2.

When it comes to inflation in Saudi Arabia, prices in February rose by 1.6 percent year-on-year — the highest rise in eight months — and by 0.3 percent month-on-month. 

“Looking ahead, we expect rises in global food prices, as a result of the Russian-Ukrainian conflict, to put upward pressure on food prices locally,” said the report.

The unemployment rate across the Kingdom declined to 11 percent in the final quarter of 2021, compared to 11.3 percent in the previous three months. 

Participation rates rose to 51.5 percent during Q4, compared to 49.8 percent in Q3, mainly as a result of higher female participation.