Saudi Round-Up: Real Estate & Industrial Upsurge
From major investments in solar energy and real estate to the rapid growth of the pharmaceutical, fintech, and esports sectors, the country is making strides toward its Vision 2030 goals.
From 26 August to 02 September 2024
From major investments in solar energy and real estate to the rapid growth of the pharmaceutical, fintech, and esports sectors, the country is making strides toward its Vision 2030 goals.
General Business and Economy
The Kingdom Launched $266 Million Boulevard Business Park in Riyadh
By launching the $266 million project, Saudi Arabia just completed the first phase of the urban plan to redesign and reorganize Riyadh’s Boulevard District.
In addition to this, with the unveiling of the park, the country plans to attract foreign investment and create national job opportunities. Spanning 60,000 square meters of leasable space, the park is expected to play a significant role in positioning Riyadh as a leading global business hub.
Saudi Arabia Achieves $26 Billion Trade Surplus in Q2 2024, With China Leading Export Markets
Saudi Arabia recorded a trade surplus of $26.21 billion in Q2 2024, driven by significant petroleum exports, which accounted for 75% of total exports. China emerged as the largest importer of Saudi goods, representing 16.2% of exports.
The overall trade reached approximately $131 billion, with non-oil exports contributing $19.64 billion. Asian countries were the primary destination for Saudi exports, followed by the European Union and the Gulf Cooperation Council (GCC) countries.
Saudi Arabia's Factory Count Soars 60% Since Vision 2030 Launch
Since the launch of Vision 2030, Saudi Arabia has experienced a 60% increase in the number of factories, rising from 7,206 in 2016 to 11,549 in 2023. This growth aligns with the Kingdom's National Industrial Strategy, which aims to transform Saudi Arabia into a top global industrial hub by 2035.
The strategy targets an increase in the industrial sector's GDP contribution from $88 billion in 2020 to $223 billion by 2035.
Legal Reforms in Saudi Arabia to Attract International Law Firms
Saudi Arabia is set to attract foreign law firms through proposed legal reforms that would allow non-Saudi firms to establish wholly foreign-owned entities within the Kingdom.
The reforms are expected to boost competition, improve legal services, and create job opportunities for Saudi nationals. As such, the initiative, led by the National Competitiveness Center, aspires to improve the legal sector's quality and efficiency while aligning with Vision 2030's goals of economic diversification and attracting foreign investment.
Madinah Region Experiences 8.6% Growth in Commercial Registrations in Q2 2024
The Madinah region saw an 8.6% increase in commercial registrations in Q2 2024, reaching 61,833 in total.
This increase was largely fueled by significant expansions in the transportation and construction sectors, which saw 19.1% and 18.8% growth, respectively. The region's economic activities continue to diversify, reflecting Saudi Arabia's broader economic ambitions.
Saudi Arabia and Poland Establish Business Council to Enhance Economic Collaboration
Saudi Arabia and Poland have launched a joint business council to strengthen trade and investment ties between the two nations. The council, formed by Saudi Arabia’s General Authority for Foreign Trade, will focus on expanding economic relations – key industries include agriculture, machinery, and manufacturing.
Saudi Arabia and Portugal Create Business Council to Enhance Economic Relations
In addition to Poland, Saudi Arabia has also established a business council with Portugal to strengthen economic ties, focusing on key sectors such as infrastructure, agriculture, tourism, and renewable energy.
Led by Alwaleed bin Khaled Al-Baltan, the council will work to foster investment opportunities and facilitate market entry for Portuguese companies in Saudi Arabia.
Saudi PIF Secures $15 Billion Credit Facility to Bolster Economic Initiatives
Saudi Arabia’s Public Investment Fund (PIF) has secured a $15 billion revolving credit facility from a consortium of 23 international financial institutions. This facility, with an initial three-year term extendable by two years, will support the fund's corporate operations.
This move reflects PIF’s strong financial standing and is part of its strategy to diversify funding sources as it drives Saudi Arabia’s economic diversification under Vision 2030. The facility replaces a similar agreement from 2021.
Riyadh Firms Invest $405 Million to Revitalize Historic Qasr Al-Hukm Area
An association of Riyadh-based companies has announced a $405 million partnership aimed at transforming the historic Qasr Al-Hukm area into a modern urban destination.
The project will focus on preserving the cultural heritage of the area while introducing new residential, commercial, and entertainment facilities. In addition to this, the project serves as an example of the importance of integrating historical preservation with contemporary development.
Automotive
High-Level East Asia Visit to Boost Saudi Arabia’s Automotive Industry
Saudi Arabia's automotive sector is set to advance following a high-profile visit to East Asia led by the Minister of Industry and Mineral Resources, Bandar Alkhorayef.
The delegation's goal is to strengthen bilateral ties with China and Singapore, attract investments, and explore joint ventures. The initiative also aims to deepen economic partnerships and bolster Saudi Arabia's industrial sector.
Industry and Manufacturing
Arabian Mills Targets $271 Million in IPO Amid Flour Market Growth
Saudi Arabia's Arabian Mills plans to raise up to $271 million through an IPO, offering 15.4 million shares, which represents 30% of its capital.
The move is part of the company’s strategy to expand its presence in the growing Saudi flour market, where it currently holds a 28.4% market share. The IPO is expected to boost the company’s growth and transparency, aligning with the Kingdom's ongoing dominance in regional IPO activities.
Saudi Electricity Company Secures $4 Billion Credit Facility for Corporate Initiatives
The Saudi Electricity Company (SEC) has closed a deal worth $4 billion with a credit facility that can support its corporate initiatives and financial needs.
The unsecured credit line, backed by a consortium of international banks, will improve SEC’s liquidity and financial flexibility as it continues to invest in infrastructure and energy projects across Saudi Arabia.
Saudi Arabia’s Esports Sector to Gain $13.3 Billion by 2030
Saudi Arabia's e-sports industry is set for a significant boost, with projections indicating a $13.3 billion increase by 2030, according to a report by PwC Middle East.
The Saudi Esports Federation is leading this initiative, aiming to position the Kingdom as a global leader in the esports arena, create jobs, and attract international events and investments.
Fintech
Saudi Fintech Startups Secure $1.84 Billion in VC Investments Since 2018
Saudi fintech startups have attracted a staggering $1.84 billion in venture capital funding since 2018, according to Monsha’at.
Such remarkable growth was possible thanks to the Kingdom’s supportive government policies and a young, tech-savvy population.
The sector’s rapid expansion aligns with Vision 2030’s goals to diversify the economy and boost financial inclusion through innovation. The investments highlight Saudi Arabia's rising status as a regional fintech hub.
Real Estate
Saudi Housing Firm Sees Residential Sales Quadruple to $3.6 Billion in H1 2024
A Saudi housing company just announced a massive sales increase—their revenue from home sales quadrupled in the first six months of 2024, reaching a whopping $3.6 billion.
This boom is being fueled by a combination of factors, including a growing population and government programs that make it easier for people to buy homes. It's a clear sign that Saudi Arabia's real estate market is on the rise as the country continues to push for more people to own their own homes and develop vibrant cities.
Real Estate Transactions Soar 38% in H1, Reaching $34 Billion
Saudi Arabia's real estate market is thriving. Sales numbers shot up by 38% in the first half of this year, reaching a total value of $34 billion.
This growth underscores the Kingdom's ongoing urban development and increasing investor confidence. Contributing factors include government-led initiatives and the expanding housing sector under Vision 2030, which have fueled both residential and commercial real estate activities.
The success is part of a bigger picture as Saudi Arabia continues to transform its economy and attract attention from around the world.
Sustainability
ACWA Power Secures $2.6 Billion Financing for Three Solar Projects in Saudi Arabia
ACWA Power has successfully secured $2.6 billion in financing to develop three large-scale solar projects in Saudi Arabia. This shows that the Kingdom is serious about switching to renewable energy, which is a big part of Vision 2030.
The projects are expected to significantly boost Saudi Arabia's solar power capacity, contributing to the country's broader efforts to reduce its reliance on fossil fuels and promote clean energy initiatives.
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