Saudi Round-up: Commitment and Focus for Vision 2030
This week’s round-up includes multi-sector support for Vision 2030 through incentives, investment, and innovation.
From March 19 to March 25, 2024
Our Saudi Round-Up collates and summarizes the main business news across the Kingdom so that you can follow the major economic moves at a glance.
General Business and Economy
11% Annual Growth in Kingdom’s Point-of-Sale Transactions
According to the Saudi Central Bank, point-of-sale payments in the Kingdom rose by 11%, reaching $14.35 billion in January. POS spending on utilities and hotels account for this significant growth.
The increases reflect the Kingdom’s commitment to technology and support of the growing digital economy.
Kingdom Approves International Monetary Fund to Establish Regional Headquarters
On March 19th, the Saudi Cabinet gave final approval for the International Monetary Fund to set up regional headquarters in Riyadh.
The IMF’s presence in the capital is expected to facilitate the establishment of economic policies and reforms, which should contribute to regional growth and stability.
$925 Billion in Assets Makes Saudi PIF GCC’s Second-Largest Wealth Fund
The Saudi Public Investment Fund’s rise to the second-largest GCC sovereign wealth organization is attributable to a 55% increase in its assets, including the PIF’s increase of its stake in Aramco by 8% to $328 billion.
The Saudi PIF is the fifth-largest sovereign wealth fund in the world. Its financial power and credit rating are expected to significantly serve the Kingdom’s Vision 2030 ambitions.
Kingdom Changes Key Saudization Regulations to Attract Foreign Investment
The Ministry of Human Resources and Social Development has approved an amendment to the Nitaqat Saudization program that will allow more people to be treated as nationals within the program.
The deregulation, which will affect the children of local women married to non-Saudis, widows of residents who are not from Saudi Arabia, citizens of Gulf countries, and athletes, among others, is intended to increase foreign direct investment into the Kingdom as per Vision 2030’s objectives for economic diversification.
Manufacturing
New $182 Million Mining Sector Incentive Package
The Ministry of Industry and Mineral Resources is supporting the Kingdom’s mining exploration with approximately $182 million worth of incentives.
Significant financial support awaits companies entering mineral resource exploration. The initiatives should reduce the risks for exploration firms during their initial stages and are set to help the sector grow into a pillar of the Kingdom’s industrial sector.
Technology
Kingdom to Invest $40 Billion in Artificial Intelligence
Saudi Arabia is poised to establish a $40 billion investment fund to support artificial intelligence. This follows the Saudi PIF’s Al-Rumayyan pitching the Kingdom as an AI hub in February.
As part of putting together the AI fund, US venture capital firm Andreessen Horowitz, a potential partner, may set up a Riyadh office. Al-Rummayyan emphasized Saudi’s potential to enhance AI development.
Dahua Technology Collaborates with Alat to Advance Technology Sector
Dahua has signed a deal with Saudi PIF-owned Alat to work on Artificial Intelligence of Things (AIoT) products for smart cities and businesses in MENA.
The first product, anticipated by the end of this year, will be just one component of a long-term plan to build infrastructure and aid economic growth. Dahua emphasized that the firm is driven by the Kingdom’s push for economic diversification and innovation.
Tourism
Qiddiya Set to Build World’s First “Dragon Ball” Theme Park
The Kingdom’s Qiddiya Investment Company will build the first-ever Dragon Ball theme park.
The park will comprise seven areas across 500,000 square meters and is meant to include hotels and restaurants, five state-of-the-art rides, and at least 30 attractions. The plans align with the Kingdom’s objectives to increase tourism to 150 million visitors by 2030.
Neom Unveils Lagoon Landscape Resort Treyam
Neom’s new premium resort Treyam features the group’s characteristic innovative architecture that works with the natural landscape.
The focal point of the 250-room resort is the bridge-like architecture connecting the north and south shores and offering guests panoramic views of the lagoon below. The visitor experience will also include health and wellness offerings, spa treatments, and exceptional dining options.
Neom’s recent announcements demonstrating its commitment to enhancing tourism in the Kingdom include projects Leyka, Epicon, Siranna, and Utamo.
This week’s Saudi Round-Up shows how Saudi’s leadership is diversifying the economy and growing the country’s reputation on the global stage. Bookmark us and come back next week for more of the latest business developments across the Kingdom.
