Strategic Leadership, Logistics Growth and Regulatory Efficiency Drive Saudi Economic Momentum

Saudi Arabia’s economic landscape this week reflects strategic leadership transitions, resilient performance in maritime logistics, enhanced regulatory efficiency in urban development, and evolving price trends across key sectors. As the Kingdom advances toward Vision 2030, these institutional developments and data-driven indicators reinforce its commitment to sustaining investment momentum and improving the ease of doing business. 

Strategic Leadership Transition in the Ministry of Investment 

A notable shift in economic leadership occurred following the issuance of Royal Decrees appointing Fahd bin Abduljalil Al-Saif as the new Minister of Investment, succeeding Khalid Al-Falih. 

Mr. Al-Saif brings extensive experience from the Public Investment Fund (PIF), where he has: 

• Led the Investment Strategy and Economic Studies division since 2024 

• Headed Global Investment Finance since 2021 

His professional background also includes serving as the first CEO of the National Debt Management Centre and holding board positions at NEOM and ACWA Power. 

Eng. Khalid Al-Falih has been appointed Minister of State and member of the Council of Ministers, ensuring continued strategic contribution at the highest governance level. 

This transition reflects deeper integration between the Kingdom’s sovereign investment strategy and its ministerial regulatory framework 

Logistics Sector Resilience: Port Handling Growth 

The Saudi Ports Authority (Mawani) reported a positive start to 2026, with container handling volumes increasing by 2.01% year-on-year in January. 

• Total containers handled: 738,111 TEUs (up from 723,571 TEUs in January 2025) 

• Growth was primarily driven by increases in transshipment containers, passenger movement, and livestock traffic 

• A slight decline was observed in total tonnage and general maritime traffic 

Overall, the data signals operational resilience despite broader trade fluctuations. 

Regulatory Efficiency and Urban Development Progress 

The Ministry of Municipalities and Housing reported strong regulatory performance throughout 2025, reflecting the accelerated pace of urban development. 

Key Highlights: 

• Total Municipal Licenses Issued: Over 574,000 

• Commercial Licenses: More than 202,000 

• Building Licenses: Approximately 78,000 

• Occupancy Certificates: 66,000 

Operational Improvements: 

• Average license issuance time reduced to approximately 24 hours 

• 100% target achievement in the first phase of the building compliance certificate program 

These developments significantly enhance the private sector’s operating environment and improve service delivery efficiency. 

January 2026 Price Trends: Inflation, Commodities and Construction 

The General Authority for Statistics reported that the Kingdom’s annual inflation rate reached 1.8% in January 2026, reflecting a moderate year-on-year increase in the Consumer Price Index (CPI). 

According to official data, the rise in inflation was primarily driven by: 

• Housing, water, electricity, gas and other fuels: +4.2% 

• Restaurants and hotels: +1.0% 

The increase in the housing category was largely attributable to a 5.2% rise in actual residential rents, while transportation prices rose by 1.5%, influenced by a 6% increase in passenger transport services. Prices in restaurants and hospitality were supported by a 1% increase in food and beverage services.

Sources

• General Authority for Statistics – Average Prices of Goods and Services Report (January 2026)

• Royal Decree on Ministerial Appointments (February 2026)

• Saudi Ports Authority (Mawani) – Monthly Performance Data (January 2026)

• Ministry of Municipalities and Housing – Annual Licensing Report 2025