RIYADH: Rent increases and fuel price rises across April saw Saudi Arabia post an annual inflation rate of 2.3 percent for the second month in a row, official data showed.

According to the latest figures from the General Authority for Statistics, a 6.8 percent increase in the cost of housing, water, electricity, gas, and other fuels contributed to the rise.

Within this category, rents paid for housing rose by 8.1 percent, driven by an 11.9 percent spike in apartment rental prices, a category that holds significant weight in the overall index. 

This comes as Saudi Arabia’s real estate market continued its growth trajectory in the first quarter of 2025, with overall property prices rising 4.3 percent year on year. 

The Kingdom’s inflation rate was similar to Middle Eastern neighbour Jordan, which posted a modest increase of 1.97 percent in the first four months of 2025, but significantly lower than the 13.5 percent registered in April by Egypt.

In its release, GASTAT stated that rental growth “had a substantial effect on the overall annual inflation rate for April 2025 due to the section’s weight, which amounted to 25.5 percent.” 

The release showed that food and beverage prices also saw an increase of 2.2 percent, influenced by a 9.4 percent rise in vegetable prices. The prices of restaurants and hotels rose by 2 percent, driven by a 2 percent increase in catering services. 

The education sector witnessed a 1.3 percent increase, mainly due to a 5.6 percent rise in fees for intermediate and secondary education. 

The prices of furnishing and home equipment, however, decreased by 1.8 percent, driven by a 3.5 percent decline in furniture, carpets, and flooring prices. 

Clothing and footwear prices dropped by 1.2 percent, with ready-made clothing prices falling by 2.1 percent. 

Transportation costs also decreased by 1 percent, primarily due to a 1.8 percent reduction in vehicle purchase prices. Communication services saw a slight decrease of 1.5 percent. 

Monthly inflation 

The consumer price index recorded a slight increase of 0.3 percent in April compared to March. 

This monthly increase was mainly influenced by the rise in housing, water, electricity, gas, and other fuels by 0.3 percent, driven by a 0.4 percent increase in actual housing rents and prices. 

The report also noted a minor increase in food and beverages with 0.4 percent, restaurants and hotels with 0.7 percent, and personal goods and services with 0.8 percent, compared to the previous month. 

Prices of education saw an increase of 0.2 percent, while furnishing and home equipment prices edged up by 0.4 and clothing and footwear prices went up by 0.2 percent. 

There were decreases in the prices of recreation and culture by 0.4 percent and the transportation, communication and health section by 0.1 percent. 

The prices of tobacco division products showed no significant change in April. 

Wholesale Price Index 

In another report, GASTAT revealed that the Wholesale Price Index reached 2 percent in April compared to the same month of the previous year. 

This increase was mainly driven by a 4.5 percent rise in the prices of agriculture and fishery products, which was affected by a 6.9 percent rise in prices of agricultural products. 

Prices of other transportable goods, excluding metal products, machinery and equipment, saw a year-on-year increase of 4.1 percent, driven by an 8.2 percent rise in the prices of refined petroleum products. Moreover, the prices of furniture rose by 9.3 percent. 

Prices of food products, beverages, tobacco, and textiles remained unchanged in April, but ores and minerals prices dipped by 1.7 percent, due to a 1.7 percent decrease in stone and sand prices. 

On a monthly basis, the WPI increased by 0.1 percent in April compared to March, attributed to a 0.7 percent rise in prices of agriculture and fishery products, driven by a 1.3 percent increase in the prices of agricultural products, and a 2.5 percent rise in the prices of fish and other fishing products. 

The prices of metal products, machinery and equipment increased by 0.2 percent driven by a 1.1 percent uptick in the prices of basic metals and a 0.1 percent increase in the prices of equipment transport. 

In a month-on-month comparison, the prices of ores and minerals increased by 0.1 percent, due to a 0.1 percent rise in the prices of stone and sand. 

The prices of other transportable commodities except metal products, machinery and equipment, and the prices of food products, beverages, tobacco, and textiles remained stable, and did not record any significant relative change in April. 

Global and regional inflation trends

Global headline inflation is set to keep moving down, with the World Bank projecting it to decline to 4.2 percent in 2025 and to 3.5 percent in 2026, “converging back to target earlier in advanced economies than in emerging markets and developing economies,” according to an International Monetary Fund report in January.

Across the Middle East, inflation patterns show notable divergence. Lebanon has seen a dramatic slowdown, with annual inflation dropping to 14.2 percent in March from 70.36 percent a year earlier. This sharp deceleration stems largely from exchange rate stabilization, as the Lebanese pound has maintained a steady rate of about 89,500 to the US dollar since mid-2023. 

“Inflation is projected to continue declining across MENA economies, remaining elevated only in few cases,” Jihad Azour, director of the Middle East and Central Asia Department at the International Monetary Fund, stated in April.

Meanwhile, Qatar’s inflation eased by 1.15 percent year on year in January, driven by declines in food, housing, and transport costs, according to data from the National Planning Council.

In late 2024, Gulf economies experienced measured inflationary pressures. Data from the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf showed that overall inflation across GCC states rose by 1.7 percent year-on-year in October. 

RIYADH: Saudi Arabia’s Public Investment Fund has signed a series of landmark agreements with leading US financial institutions worth a combined potential investment of up to $11 billion, signaling a major push to strengthen and diversify the Kingdom’s capital markets as part of Vision 2030.

The deals — sealed with Franklin Templeton, Neuberger Berman, and BlackRock — aim to boost local asset management capabilities, deepen investor participation, and enhance the Kingdom’s global financial standing.

These agreements were signed during US President Donald Trump’s visit to Riyadh, underscoring the deepening economic ties between the two nations and the Kingdom’s growing role as a regional and global financial hub.

Agreement with Franklin Templeton

In a major step toward diversifying Saudi Arabia’s investment landscape, PIF signed a memorandum of understanding with Franklin Templeton to jointly invest up to $5 billion. The collaboration will span Saudi equities and fixed income strategies across both public and private markets.

According to a joint statement, the agreement focuses not only on capital deployment but also on knowledge transfer, talent development, and innovation within the local asset management sector.

The move aligns with PIF’s broader agenda to partner with top global financial institutions and expand its international investment portfolio.

Neuberger Berman joins forces with PIF

In a separate deal, the wealth fund has partnered with Neuberger Berman to launch a Riyadh-based multi-asset investment platform with up to $6 billion in assets. The US firm, which manages $515 billion globally, will establish operations in Saudi Arabia — pending regulatory approval — covering equities, fixed income, and private market strategies.

George Walker, CEO of Neuberger Berman, emphasized the firm’s commitment to building local teams, promoting education, and aligning with regional investment priorities under Vision 2030. The agreement is expected to attract further international interest and bolster the Kingdom’s standing as a global investment destination.

Collaboration with BlackRock

Building on an existing relationship, PIF and BlackRock have signed a non-binding letter of intent to deepen their collaboration via a new index mandate focused on Saudi equities. The initiative, announced at the Saudi-US Investment Forum in Riyadh, will be managed through BlackRock’s Riyadh Investment Management platform, established in 2024.

The expanded partnership underscores PIF’s confidence in BlackRock’s capabilities and highlights efforts to diversify investment offerings and advance Saudi Arabia’s capital market ecosystem. While the agreement is subject to regulatory and internal approvals, it marks a significant step in positioning Saudi equities on the global stage.

These agreements follow a series of high-profile engagements aimed at strengthening Saudi-US economic ties, including recent discussions around broader investment flows.

Collectively, the new partnerships reinforce the PIF’s role as a catalyst for financial transformation, in line with the national agenda to diversify the economy and promote sustainable growth.

PIF’s latest annual report revealed a 390 percent surge in assets under management since the 2016 launch of Vision 2030 — underscoring the rapid pace of institutional development and global investor interest in the Kingdom.