RIYADH — Foreign direct investment (FDI) inflows into Saudi Arabia reached SR26.6 billion ($7 billion) during the first quarter of 2026, marking a 2.4% increase compared to the same period last year, according to the latest economic and investment indicators released by the Ministry of Investment.

The report also showed that gross fixed capital formation grew by 5.1% year-on-year, supported by a 54% increase in government investment and a 1.3% rise in non-government investment.

Saudi Arabia’s labor market continued to improve during the quarter. The unemployment rate among Saudi nationals declined to 6.4%, while the overall unemployment rate fell to 3.1%.

The Saudi labor force participation rate stood at 49%, while the overall participation rate reached 67.2%. Among Saudi women, the labor force participation rate was 33.9%.

The Kingdom’s real gross domestic product (GDP) expanded by 3% year-on-year in the first quarter, with both the oil and non-oil sectors recording identical growth of 2.9%.

The report further revealed that the real estate price index declined by 1.6% compared with the first quarter of 2025, mainly due to a 3.6% decrease in residential property prices. Despite the drop in prices, mortgage lending by commercial banks increased by 6.4% over the same period.

Consumer prices rose 1.8% year-on-year in May, largely driven by a 3.7% increase in housing, water, electricity, gas, and other fuel costs. Transport prices climbed 1.5%, while restaurant and hotel prices increased 1.7%.

Consumer spending also remained resilient, with point-of-sale transaction values rising 6.1% year-on-year in May, reflecting continued economic activity.

The ministry’s report also noted that the average price of Brent crude oil increased 62% year-on-year during May, reaching $103.7 per barrel.