THE BASELINE

Saudi Arabia's foreign direct investment stock reached SR1,122.8 billion at the end of Q1 2026, up 12% year on year and representing about 32% of total foreign investment in the Kingdom. Total foreign investment stood at SR3,530.8 billion, up 18% year on year.

Consumer spending in Saudi Arabia surged 6.8% year-on-year, reaching SR425 billion in the first quarter of 2026. This growth, which includes spending made through cards, cash, and e-commerce, occurred alongside a GDP increase of just 3% and an inflation rate of 1.8%. When adjusting for inflation, real consumption growth was nearly 5%, outpacing the economy's overall growth rate. (Arab News)

The Q2 budget deficit, down sharply from Q1's SR125.7bn, but only 1% below the same quarter last year, in three months when oil revenue climbed 22%. Spending rose to meet it. The shortfall held. Every riyal of the SR160bn half-year gap was borrowed, none from reserves, which grew 8.06% to $494.55bn.

Total Saudi bank credit as of May, a record, up 16.2% in a year. Every giga-project render you've seen is, underneath, this number at work. The balance sheet is funding the build. (Arab News)