Overview:
Saudi Arabia has climbed to the 13th position worldwide in attracting foreign direct investment, rising from 17th place previously, signaling strengthening investor confidence. Simultaneously, oil prices declined over 6 percent in early Asian trading following U.S. President Donald Trump's announcement of a suspended attack on Iran. OPEC+ members, including Saudi Arabia and Russia, approved production increases effective September, compensating for previous shortfalls since January.
Details:
Gold prices rose 0.7 percent to 4,067.06 dollars per ounce as crude oil retreated, providing modest relief from inflation and interest rate concerns. Brent crude futures fell 5.52 dollars—a 6.28 percent decline—to 82.41 dollars per barrel, reflecting reduced geopolitical tensions following Trump's statement regarding Iran.
The Saudi equity market advanced 116.15 points, closing at 10,705.87 points with trading volume reaching 3.7 billion riyals. Market capitalization of listed shares rose to 9,452.81 billion riyals by end of July 2026, gaining approximately 17.4 billion riyals. Saudi institutions recorded strong net purchases of 410.83 million dollars (1.54 billion riyals) in July, while foreign institutions sold net positions valued at 728.2 million riyals during the same period.
Non-oil sector activity continued expanding at 0.6 percent growth rate during the second quarter of 2026. Banking credit to the private sector increased 3.77 percent in the first half of 2026, reaching 3.266 trillion riyals (870.92 billion dollars). The Eastern Province municipality reported 470 investment opportunities and contracts generating revenues exceeding 1.218 billion riyals during the first half of 2026.
Outlook:
Investors are monitoring OPEC+ production compliance and the impact of Trump administration policies on crude markets. The investment climate remains favorable, with focus on non-oil economic diversification and infrastructure development initiatives across Saudi regions including major tourism and real estate projects scheduled through 2027.