Foreign direct investment (FDI) inflows into Saudi Arabia increased by 2.4% year-on-year to SR26.6 billion ($7 billion) during the first quarter of 2026, according to new economic indicators released by the Ministry of Investment.
The report showed that gross fixed capital formation rose by 5.1% compared with the same period last year, supported by a 54% increase in government investment and a 1.3% rise in private sector investment.
Saudi Arabia’s labour market also continued to improve. The unemployment rate among Saudi nationals fell to 6.4% in the first quarter, while the overall unemployment rate stood at 3.1%. The labour force participation rate reached 49% for Saudi citizens and 67.2% overall, with women’s participation recorded at 33.9%.
The Kingdom’s real gross domestic product (GDP) grew by 3% year-on-year during the quarter, supported by 2.9% growth in both oil and non-oil sectors.
The report also indicated that the real estate price index declined by 1.6%, mainly due to a 3.6% fall in residential property prices. Despite this, mortgage lending by commercial banks increased by 6.4% compared with the first quarter of 2025.
Consumer prices rose by 1.8% in May, driven largely by higher housing and utility costs. Transport, restaurant and hotel prices also recorded moderate increases.
Meanwhile, point-of-sale transactions rose by 6.1% year-on-year in May, reflecting continued consumer spending, while the average price of Brent crude reached $103.7 per barrel during the month.
