Saudi Round-Up: Critical Infrastructure Investments
This week's roundup features the latest projects and market movements in finance, logistics, and tourism.
From 27 January to 03 February 2025
This week, Saudi Arabia continued its remarkable progress toward Vision 2030, setting new records in economic growth, trade, and investment.
General Business and Economy
Saudi Economy Sees 1.3% Growth in 2024
Saudi Arabia’s economy grew by 1.3% in 2024, supported by a 4.3% rise in non-oil activities and a 2.6% increase in government spending. The fourth quarter showed 4.4% GDP growth, the highest in two years, fueled by strong non-oil sector performance.
The government projects a 4.6% GDP growth in 2025, with increased investments and a budget deficit of $26.9 billion.
Saudi GDP Records 4.4% Growth in Q4 2024, Marking a Two-Year High
In Q4 2024, Saudi Arabia’s real GDP rose by 4.4% year-on-year, marking the strongest growth in two years. Non-oil activities led with a 4.6% increase, while oil activities grew 3.4%, reflecting the country’s diversification efforts. Government activities also rose by 2.2%, showing broad-based growth across sectors.
This rebound follows a 0.8% economic contraction in 2023 due to oil production cuts. The non-oil sector now represents 52% of the economy, a significant milestone for Vision 2030. Future projections indicate sustained non-oil growth, reinforcing Saudi Arabia’s economic resilience beyond oil revenues.
Saudi Non-Oil Exports to GCC Countries Surge 43% in November 2024
In November 2024, Saudi Arabia’s non-oil exports to GCC countries soared by 43% year-on-year, reaching SR9.4 billion. This growth led to a trade surplus of SR3.8 billion, driven by strong UAE demand, accounting for nearly 76% of total exports, followed by Bahrain, Kuwait, Qatar, and Oman.
This surge highlights Saudi Arabia’s expanding regional trade ties and the success of its diversification strategy under Vision 2030.
Fitch Affirms Saudi Arabia's ‘A+’ Credit Rating
Fitch Ratings has affirmed Saudi Arabia's long-term foreign currency at ‘A+’ with a stable outlook, highlighting robust fiscal and external balance sheets. Sovereign Net Foreign Assets (SNFA) are projected to hit 63.7% of GDP in 2024–2025, far exceeding the ‘A’ median of 8.7%.
This reflects Saudi Arabia’s fiscal reforms aimed at reducing oil dependency, bolstering economic resilience, and aligning with Vision 2030 goals to diversify revenue streams through non-oil exports and strong service sector growth.
Construction
NEOM’s THE LINE to Begin Vertical Construction
On January 29, 2025, Saudi Arabia announced that NEOM’s THE LINE will commence vertical construction by the end of the year. Designed to house 9 million residents, this 170-kilometer-long, car-free city will feature a vertically layered structure powered entirely by renewable energy. Its efficient transport network and integration with nature aim to redefine sustainability and urban living.
This ambitious project is a key pillar of Vision 2030, showcasing Saudi Arabia’s drive to revolutionize urban planning.
Saudi Arabia Unveils The Region’s First Five-Star Luxury Train
On January 28, 2025, Saudi Arabia Railways and an Italian hospitality firm revealed the Dream of the Desert, the Middle East’s first five-star luxury train. Featuring 14 carriages and 34 luxury suites, it blends traditional Saudi design with modern elegance, offering immersive cultural experiences while traversing Saudi’s scenic landscapes.
This luxury train strengthens Saudi Arabia’s position as a global travel destination, merging luxury transport with heritage to attract elite travelers worldwide.
Riyadh Launches SR8 Billion Road Projects to Boost Connectivity
On February 2, 2025, the Royal Commission for Riyadh City announced eight major road projects under the Riyadh Ring Roads and Main Axes Development Program, with costs exceeding SR8 billion. These projects aim to improve traffic flow, enhance connectivity, and reduce travel times amid the city's rapid population growth.
Aligned with Vision 2030, this initiative underscores Saudi Arabia’s ambition to position its capital as a leading global metropolis.
Expansions
Saudi Arabia to Host INTERPOL's MENA Regional Office
On January 30, 2025, Saudi Arabia signed a Host Country Agreement with INTERPOL to establish its Middle East and North Africa (MENA) regional office within the Kingdom. This move followed high-level discussions on mutual security interests and was formalized by officials from the Ministry of Interior and INTERPOL’s leadership.
This development is significant for Vision 2030 as it strengthens Saudi Arabia’s role in global security coordination, enhancing regional stability.
STC Bank Set to Launch Full Banking Operations
On January 29, 2025, Saudi Arabia’s central bank announced that STC Bank, a licensed digital bank, received approval to commence full banking operations. Building on the success of its digital wallet, STC Pay, the bank will offer a range of Sharia-compliant financial products, focusing on security and customer-centric digital services.
By enhancing the competitiveness of the financial sector and promoting fintech growth, STC Bank’s launch supports economic diversification and fosters financial inclusion across the Kingdom.
Logistics & Maritime
Saudi Arabia’s Maritime Transport Sector Ranks 20th Globally with 6.4% Growth
Saudi Arabia’s maritime transport sector has recorded a 6.4% growth in gross tonnage, securing the 20th spot globally. This milestone aligns with the National Transport and Logistics Strategy, reinforcing Saudi Arabia’s ambitions to lead in maritime trade while supporting Vision 2030’s goals of economic diversification and sustainable development.
Over 2,000 certified Saudi seafarers played a key role in this progress, showcasing the Kingdom’s focus on national talent. Combined with strategic investments in infrastructure, Saudi Arabia is positioning itself as a global maritime hub, leveraging its location to boost international trade and economic resilience.
Sports
Global Sports Pitches Leader to Design Al-Khobar Stadium Ahead of 2034 FIFA World Cup
On January 28, 2025, it was announced that a leading global sports pitch firm will design a major stadium in Al-Khobar for the 2034 World Cup. This project, part of Saudi Arabia’s broader sports infrastructure push, includes a hybrid grass pitch, advanced ventilation systems, and natural grass training fields sourced locally.
The stadium is one of 15 planned for the tournament, reflecting Saudi Arabia’s commitment to boost sports tourism and enhance the Kingdom’s global sports presence.
Trade & Investments
PIF Secures $4 Billion Through Oversubscribed International Bond Offering
On 28 January 2025, Saudi Arabia’s Public Investment Fund (PIF) completed the pricing of a $4 billion international bond, part of its Euro Medium-Term Note Program. The offering was oversubscribed four times, attracting $16 billion in orders and reflecting global investor confidence in PIF's strong credit profile and financial position.
The proceeds will support general corporate purposes, reinforcing PIF’s role in Saudi Arabia’s Vision 2030.
Telecommunications
STC Group Tops MENA Telecom Market with $57.7 Billion Valuation
As of 28 January 2025, Saudi’s stc Group led the MENA telecom sector with a market cap of $57.7 billion. Alongside UAE’s e&, Mobily, Ooredoo, and du, the top five operators held 84.7% of the region’s $132 billion telecom market value, highlighting GCC dominance.
STC to Build $9 Billion Telecom Network
On 28 January 2025, Saudi Telecom Company (STC) signed a $9 billion contract with a government entity to develop telecom infrastructure. The project includes an 18-month setup phase, followed by 15 years of operations, with revenue impacts expected from late 2025.
This deal strengthens Saudi Arabia’s ICT sector and supports Vision 2030’s goal of accelerating economic growth through technological advancement.
Tourism
Saudi Arabia Breaks Tourism Records with 30 Million Foreign Visitors in 2024
As of January 30, 2025, Saudi Arabia welcomed 30 million foreign tourists in 2024, marking a 9% increase from 2023. This growth reflects the Kingdom’s Vision 2030 focus on tourism, supported by rapid expansion in transport and international events, with ambitions to reach 70 million visitors annually by 2030.
MICE (meetings, incentives, conferences, and events industry)
Saudi Arabia Hosts Two Major Events, Signing Deals Worth Over SAR 100 Billion
On January 27, 2025, Saudi Arabia held the Real Estate Future Forum and Saudi Franchise Expo, drawing thousands of participants worldwide. The real estate forum, with 15,000 visitors and 300 speakers, focused on sustainable urban growth, securing deals surpassing SAR 100 billion.
Simultaneously, the franchise expo attracted 10,764 visitors from 18 countries. Both events align with Vision 2030’s goals to strengthen non-oil sectors, drive economic diversification, and foster global business ties.
