Overview:
Saudi Arabia has assumed the presidency of the Arab Chambers Federation, represented by Abdullah Saleh Kamel, chairman of the Saudi Chambers of Commerce Union. Simultaneously, the kingdom's primary stock index declined 15 points to 10,440.64, while unemployment fell to 6.5% in the second quarter of 2026. Foreign direct investment reached 19.1 billion riyals in Q2, and services export revenues contracted 16.5% quarter-on-quarter to 59.5 billion riyals.
Details:
Abdullah Saleh Kamel has taken leadership of the Arab Chambers Federation in its new term, succeeding Tunisia. The appointment reflects Saudi Arabia's expanded economic engagement across Arab business sectors and regional trade frameworks. Kamel also chairs the Islamic Chamber of Commerce and Development, positioning the kingdom as a central player in Arab economic coordination.
Domestic labor market conditions have improved, with the General Authority for Statistics confirming that unemployment declined to 6.5% in the second quarter of 2026, down from 6.8% in the same period of 2025. This represents a positive trend in employment generation across the kingdom. However, services export performance weakened significantly, falling 16.5% from the first quarter to 59.5 billion riyals in Q2, signaling pressure in non-oil sectors despite broader investment activity.
Foreign direct investment flows showed resilience. Net FDI inflows registered 19.1 billion riyals during the second quarter, demonstrating continued confidence among international investors in Saudi economic opportunities. Oil markets remained volatile, with crude prices influenced by Middle East geopolitical tensions and US bond yield movements. The currency market reflected this volatility, with the US dollar approaching two-month highs, buoyed by rising US Treasury yields and energy price fluctuations.
Outlook:
Investors are monitoring the interplay between strong FDI inflows and weakening services exports, which may indicate structural shifts in the diversification agenda. Regional business confidence, now anchored by Saudi Arabia's federation leadership, could drive new multilateral partnerships and trade frameworks across Arab economies through the coming quarter.