Bandar Al-Mosalam

Riyadh has opened applications for the second year of its Real Estate Balance Program, which will provide between 10,000 and 40,000 developed residential plots annually for five years at prices capped at SR1,500 per square meter. Overseen by the Royal Commission for Riyadh City, the initiative is intended to increase homeownership, develop unused land and bring housing supply and demand into balance. Real estate specialists say the program could narrow the gap between asking prices and affordability, pressure private sellers to moderate prices, and stimulate financing, construction and housing-related services. Its continuation is also seen as a signal that addressing Riyadh’s housing costs will require sustained efforts as the city’s population and economy expand.

Saudi Arabia’s annual inflation held at 1.8% in July, with price increases concentrated mainly in housing, water, electricity, gas and other fuels. Housing rents rose 4.3%, while food and beverages increased 1.5% and transport 1.4%; clothing, footwear, and household furnishings declined slightly, limiting broader inflationary pressure. Consumer prices rose 0.2% month on month, driven largely by a 0.9% increase in housing-related costs. Economists described the overall rate as favorable amid global inflation but warned that persistent housing demand, particularly in major cities, could spread price pressures to other categories.

Saudi Arabia’s Cabinet approved accession to the 2005 United Nations Convention on the Use of Electronic Communications in International Contracts. The move is intended to give electronic contracts and communications the same legal recognition as paper documents, increasing certainty for Saudi companies and international partners. Officials and an international trade expert say the framework could reduce paperwork, disputes, transaction costs and completion times while signaling that Saudi Arabia is aligning its business laws with modern global commerce. Its ultimate impact will depend on effective implementation, including rules governing electronic communications and automated contract formation.

Bank of Jordan Group has opened its first Riyadh branch, marking its entry into Saudi Arabia as it seeks to benefit from the investment cycle created by Vision 2030, mega-projects and private-sector growth. General Manager Saleh Hammad said the Kingdom’s expanding economy, strong banking system and evolving regulatory environment make it a strategically important market. The move reflects broader interest among regional financial institutions in supporting trade, development and investment as Saudi Arabia seeks to increase the financial sector’s contribution to economic diversification.

Saudi Arabia’s Ministry of Finance has warned private-sector companies not to begin government projects, services or procurement before contract awards and all required contracting procedures are completed. Verbal work orders and work beyond a contract’s scope without legal approval could lead to unjustified claims, disputes and delayed payments. The warning follows Cabinet approval of a new Government Tenders and Procurement Law designed to improve transparency, competition, payment discipline and project execution. The law also merges bid-opening and evaluation committees, expands certain purchasing and tendering powers, and supports private-sector growth, innovation, industrial localization and knowledge transfer.

Saudi Arabia’s merchandise trade surplus rose 328.8% year on year in May 2026 as oil exports increased 19.5% and imports fell 19.5%. Oil accounted for 75.6% of total exports, while non-oil exports and re-exports declined substantially, particularly machinery and electrical equipment. China was the largest export destination, followed by South Korea and the UAE. Economists attributed the result to stronger external demand, higher oil shipments, expanding manufacturing and petrochemical activity, and diversification efforts aligned with Saudi Vision 2030.

Saudi Arabia’s inflation remained steady at 1.8% in June, supported by stable economic fundamentals despite rising energy prices linked to renewed Middle East conflict. Housing costs were the primary driver of inflation, while declines in other consumer categories helped contain overall price growth. The Kingdom continued to rank among the G20’s lowest-inflation economies and remained aligned with government and IMF forecasts projecting inflation near 2% for 2026. Analysts attributed stability to effective fiscal and monetary policies, improved supply chains and strong non-oil economic activity. Stable prices are expected to support investment confidence and allow policymakers to advance development projects with limited inflationary pressure.

Saudi Arabia approved a new regulatory framework transferring payroll deduction, financing and receivables services from the Ministry of Finance to the National Center for Government Resources Systems through the Etimad digital platform. The reform strengthens SAMA oversight, expands competition among financing providers and supports Vision 2030 goals for digitalization and financial sector development. Enhanced coordination with the National Development Fund will set service fee structures, while unified rules are expected to improve market efficiency, liquidity and customer protection.