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Insights

Economic updates

Our in-depth, independent reports cover the macroeconomic environment, the Saudi government’s annual budget, and Saudi Arabia’s monetary and financial developments, labor market, and inflation.

Shifts in foreign investor flows and the TASI

Big changes in foreign investment in the Saudi stock market tend to come ahead of moves in the TASI, meaning that local investors can benefit from tracking what foreign investors are doing. In six of the seven cases in which monthly net foreign investment flows have moved by over SR750 million, the TASI has moved in the same direction as this change the following month.

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Seasonality and the Saudi stock market

All economies have seasonal trends, but for Saudi Arabia these trends are more pronounced than for most other global economies. In this report, we examine quarterly earnings for each of the 15 sectors of the market as well as quarterly real GDP growth rate to determine seasonal trends.

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Mortgage Law

The endorsement by the Council of Ministers of the mortgage law is a very important step in broadening home ownership. It will help to tackle one of the most pressing social issues for many in the Kingdom and will generate significant benefits to the economy. However, it will take some time before the full benefits of the mortgage law are realized and the initial impact will probably not be substantial.

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