RIYADH — Foreign direct investment (FDI) inflows into Saudi Arabia rose 2.4% year-on-year to SR26.6 billion ($7 billion) in the first quarter of 2026, according to economic and investment indicators released by the Ministry of Investment on Sunday.
The data showed that gross fixed capital formation increased by 5.1% year-on-year in the first quarter, driven by a 54% rise in government investment and a 1.3% increase in non-government investment.
Saudi Arabia’s labor market also continued to strengthen, with the unemployment rate among Saudi nationals falling to 6.4% in the first quarter, while the overall unemployment rate stood at 3.1%.
The labor force participation rate among Saudis reached 49%, while the overall participation rate rose to 67.2%. The participation rate among Saudi women stood at 33.9%.
The Kingdom’s real gross domestic product (GDP) expanded by 3% year-on-year in the first quarter, supported by equal growth of 2.9% in both oil and non-oil activities.
The report also showed that the real estate price index declined by 1.6% in the first quarter compared with the same period a year earlier, largely due to a 3.6% drop in residential property prices. Despite the decline in property prices, mortgage lending by commercial banks increased by 6.4% over the same period.
Consumer prices rose by 1.8% year-on-year in May, driven primarily by higher housing, water, electricity, gas and other fuel costs, which increased by 3.7%. Transport prices rose 1.5%, while restaurant and hotel prices increased by 1.7%.
Meanwhile, point-of-sale transaction values increased by 6.1% year-on-year in May, indicating continued strength in consumer spending.
The report also noted that the average price of Brent crude climbed 62% year-on-year during May to reach $103.7 per barrel.
Source: Saudi Gazette