” Jadwa”: Saudi economy has achieved well in Q2 despite decline in oil prices

A report issued by Jadwa Investment Company revealed that the Saudi economy achieved well in the first half of the year 2025, despite the low oil prices. Initial estimates of the GDP for the second quarter of 2025 indicate the growth of real GDP by 3.9%on an annual basis, mainly supported by the growth of the non -oil gross domestic product by 4.7%, in addition to the increase in GDP by 3.8%. With regard to consumer spending, the total consumer spending increased by 8.8% year on year in June, despite its 8.6% decrease compared to May.

The “Female Investment” report said that the Saudi Central Bank reserves of foreign currencies settled in June at 457.7 billion dollars, which is higher than its level at the end of 2024. Regarding cash supply, banking deposits, and credit: M3 cash supply increased by 7.6% on an annual basis, by 0.9% on a monthly basis in June. Total deposits also grew by 7.7% on an annual basis. Credit growth slowed slightly to 15.8% on an annual basis.

With regard to inflation, consumer prices in June increased by 2.3% on an annual basis, by 0.2% on a monthly basis. The prices of “food and beverages” increased by 1.5%. Inflation in “housing and facilities” slowed to 6.5%, touched by the slowdown in the “housing rents”, as it reached 7.6% on an annual basis.

Globally and oil markets, the company’s financial report indicates that the average price of Brent crude recorded $ 70 a barrel in July, the same level in June. American threats to tighten sanctions against Russia if they did not agree to a ceasefire with Ukraine to the rise in oil prices at the end of July. The price of Brent crude fell below $ 70 a barrel in the beginning of August, affected by the last round of American customs decisions.

Saudi oil production rose to 9.36 million barrels per day in June. Production is expected to rise to nearly 10 million barrels per day in September, according to the latest OPEC production plan. The oil export revenues, which decreased to $ 59 billion in May, were likely to increase in June and July.