Car prices in Saudi Arabia increased by 9.6 percent last year, as their price index reached 107.3 points in December of 2020 compared to 97.9 points in the same month of 2019.
According to an analysis of the reports unit in Al-Eqtisadiah newspaper based on official data and the Central Bank of Saudi Arabia (SAMA), the rise in car prices during the past year is the second in a row, as their prices rose 0.04 percent in 2019, where the price index was 97.8 points. In December 2018.
The increase in car prices exceeded the inflation rate, which measures the rise of all goods and services in the country, which recorded 5.3 percent in December 2020.
The car price index had declined three years in a row before increasing in the last two years, falling 4.5 percent in 2016, then 2.6 percent in 2017, and 0.5 percent in 2018.
Saudi Arabia allowed women to drive cars from mid-2018, which may be the reason for the increase in demand during the last three years.
In a related context, financing of car imports through commercial banks increased by 2.8 percent over the past year, to reach 26.2 billion riyals, compared to 25.4 billion riyals in 2019.
This comes despite the global outbreak of the Corona pandemic and the closure of borders between countries for a long time during the past year.
Car import financing increased in 2020 for the second year in a row, as it had increased in 2019 by 28.7 percent, compared to 19.8 billion riyals in 2018.
The financing of car imports had declined before the last two years for three years in a row, as it declined 35.1 percent in 2016 to reach 34.8 billion riyals, then 26.1 percent to reach 25.7 billion riyals in 2017, and a 23.1 percent decline in 2018 to reach 19.8 billion riyals.
Economic Reports Unit