Saudi Arabia’s key economic indicators look healthy, a report said, adding that the money supply (M3) expanded 11.6% y-o-y in November, supported by a rise in M1 and M2, increasing 13.0% and 12.4%, respectively.

Credit to the private sector also increased 15.8% y-o-y in November, while bank claims on the public sector advanced 15.9% y-o-y in November and the deposits grew by 11.9% y-o-y in November, said Al Rajhi Capital, a leading financial services provider in the kingdom.

Further, the banking sector profits increased 9.8% y-o-y to SR4.1 billion in November (+15.8% y-o-y in October). Moreover, growth in mortgage continued with 79% y-o-y in November, driven by House and Apartment mortgages, which grew 86% y-o-y and 66% y-o-y, respectively. LDR came in at 74.9% in November Vs 75.6% in October.

POS transactions continued to maintain the uptrend, growing 32.6% y-o-y in November, driven by increase in ‘Food & Beverages’  (+57.7% y-o-y), ‘Restaurants & Hotels’ (+55.6% y-o-y), and ‘Clothing & Footwear’ (+8.5% y-o-y) segments. The spending in the local market, especially in the retail, food & beverages, and health segments, continues to support the economy.

However, SAMA foreign reserves fell 8.6% y-o-y in November (-8.7% y-o-y in October). Overall, the macro-economic conditions in the Kingdom have started normalizing, but the risk of the pandemic still persists.

Meanwhile, the cost of living index remained in the positive trajectory and increased by 5.8% y-o-y in November (+5.8% y-o-y in October), mainly driven by a rise in VAT from 5% to 15% in July 2020. Major support came from two segments, which are ‘Food and Beverages’ (+13.0% y-o-y) and ‘Transport” (+8.0% y-o-y).

Further, “Furnishings, Household Equipment”, “Communications” and “Restaurants & Hotels” increased by 7.6%, 11.1%, and 7.1%, respectively. Remittances from Saudi nationals declined 18.6% y-o-y in November 2020 (-18.3% y-o-y in October); whereas remittances growth from non-Saudi nationals advanced 29.8% y-o-y in November (+19.2% y-o-y in October). – TradeArabia News Service