Saudi Round-Up: Entertainment & Hospitality Expansion
This week, we spotlight the Kingdom's remarkable progress in economic diversification, technological innovation, and global partnerships.
General Business and Economy
Non-Oil Activities in Saudi Arabia to Contribute 6% More to GDP by 2030
S&P Global projects that Saudi Arabia's non-oil activities will grow by up to 6% by 2030, with the oil sector's share of GDP expected to drop from 30% to 24-26%. Such a drop reflects the Kingdom’s efforts to move away from hydrocarbon dependence.
Major investments in the tourism, retail, and entertainment sectors largely drive the rise in non-oil activities’ contribution to the nation’s GDP.
MENA Private Equity Hits $5.9 Billion in H1 2024, Saudi PIF Leads
Private equity deals in the MENA region totaled $5.9 billion in the first half of 2024, with Saudi Arabia’s Public Investment Fund (PIF) being the most active investor.
The PIF’s focus on diversifying the economy follows Vision 2030 plans and targets key sectors like real estate, technology, and renewable energy.
Saudi Delegation Boosts Cooperation with UK’s National Audit Office
A Saudi delegation met with the UK's National Audit Office (NAO) to explore avenues for enhanced cooperation in auditing and public finance management.
The meeting focused on exchanging expertise and strengthening institutional partnerships. As part of Vision 2030’s goals for improving transparency and efficiency in government, this collaboration will support the Kingdom’s efforts to advance accountability and governance in its public sector.
Foreign Investments in Saudi Market Surpass SAR 400 Billion
Mohammed Al-Rumaih, CEO of the Saudi Exchange Co. (Tadawul), announced that non-Saudi investors have poured over SAR 400 billion into the Saudi market.
This number will likely increase as Tadawul is about to introduce advancements in the derivatives and options contracts market to boost liquidity and diversify offerings.
The exchange also launched a subscription management system in the Nomu-Parallel Market, doubling coverage and increasing subscribers by 50%. Plans are underway to implement this system in the Main Market and the Sukuk and Bonds market to provide faster, cost-effective financing options for companies.
Saudi Investment Minister Meets German Companies to Boost Economic Ties
Saudi Arabia's Minister of Investment, Khalid Al-Falih, held a roundtable discussion with executives from German companies spanning the automotive, mutual funds, energy, manufacturing, and supply chain sectors.
The minister highlighted talks on the companies' expansion interests within the Kingdom and explored available investment opportunities across various industries.
AlUla Dates Festival Boosts Region's Agriculture
The AlUla Dates Festival, organized by the Royal Commission for AlUla, commenced this week with a strong turnout of farmers and investors. On its first day, the festival received 110 tonnes of dates, which demonstrates the region’s rich agricultural heritage and potential for growth.
The event supports local farmers and promotes sustainable agriculture through workshops and training programs aimed at improving the quality and competitiveness of AlUla dates in local and global markets.
Aviation
Saudi Arabia Aims for Global Leadership in Advanced Air Mobility, Says GACA Chief
According to the president of the General Authority of Civil Aviation (GACA), Saudi Arabia is positioning itself as a global leader in advanced air mobility (AAM) to revolutionize its transportation, tourism, and healthcare sectors.
Speaking at the ICAO Advanced Air Mobility Symposium in Montreal, Al-Duailej highlighted the Kingdom’s push to accelerate AAM technologies. He also focused on the importance of international collaboration to advance low-emission alternatives addressing climate change, noting that the global AAM market is projected to grow from $9.7 billion in 2023 to $50 billion by 2032.
Entertainment
Saudi Arabia's Events Industry Poised to Hit $3.45 Billion by 2029
Saudi Arabia's events management industry is projected to grow from $2.38 billion in 2024 to $3.45 billion by 2029, according to a report by Mordor Intelligence.
The Kingdom is rapidly becoming a hub for high-profile events like MDL Beast, LEAP, Riyadh Season, the Red Sea Film Festival, and Formula 1. Cities such as Riyadh, Jeddah, and Dammam are emerging as prominent MICE (Meetings, Incentives, Conferences, and Exhibitions) destinations, thanks to government initiatives, substantial investments in hospitality and travel infrastructure, and the integration of technology in live events.
Industry and Manufacturing
Manufacturing Growth Drives Saudi Industrial Production Index Up by 1.6% in July
According to the General Authority for Statistics, Saudi Arabia's Industrial Production Index (IPI) rose by 1.6% in July compared to the same month last year, propelled by a 4.6% increase in manufacturing activities.
The growth can be largely attributed to a 5.7% rise in chemical product manufacturing and a 10.1% surge in food item production. While mining and quarrying activities dipped by 0.8% due to deliberate oil production cuts to 8.9 million barrels per day in line with OPEC+ agreements, non-oil activities saw an 8.2% boost.
Nestlé Invests $72 Million in First Saudi Manufacturing Plant in Jeddah
Swiss food and beverage giant Nestlé has signed an agreement to establish its first manufacturing plant in Saudi Arabia—located on a 117,000-square-meter site in Jeddah's Third Industrial City.
Announced by the Saudi Authority for Industrial Cities and Technology Zones (MODON), the plant is scheduled to open in 2025 with an initial investment of SR270 million ($72 million). The facility aims to improve local production capabilities, contribute to sustainable food security, meet local demand, and enable exports to Middle Eastern and North African markets.
Bloom Consulting opens its first Middle East office in Saudi Arabia
Madrid-based Bloom Consulting has opened its first Middle East office in Saudi Arabia. The company partnered with Destination Consultancy to assist cities and regions in improving economic growth.
With extensive experience in nation and place branding—including a 2020 collaboration with the Royal Commission for Riyadh City—Bloom Consulting's expansion aligns with the Kingdom's Vision 2030 transformation goals.
The office opening also reflects a trend of international firms establishing a presence in Saudi Arabia, as the country continues to attract global businesses seeking opportunities in the region.
AMAK and UK's Power Metal Resources Form Joint Venture for Qatan Mining Exploration
Saudi Arabia's Al-Masane Al-Kobra Mining Co. (AMAK) has signed a letter of intent with UK-based Power Metal Resources to establish a joint venture aimed at advancing exploration at the Kingdom's Qatan mining site.
This collaboration comes shortly after AMAK announced a strategic growth plan focusing on gold production and operational expansion through 2025. The partnership supports Saudi Arabia’s vision of positioning mining as the third pillar of its economy and tapping into the nation's estimated $2.5 trillion in mineral wealth.
Construction
Saudi Arabia's Giga Projects’ Value Hit $1.3 Trillion Since Vision 2030 Launch
Since the inception of its National Transformation Plan in 2016, Saudi Arabia has initiated real estate and infrastructure projects valued at $1.3 trillion.
According to a report by global property consultancy Knight Frank, the Kingdom has experienced an annual growth rate of 4% between 2023 and 2024. While the total value of commissioned projects dipped by $85 billion year-on-year to $164 billion in 2024, projects in the pipeline have surged to $249 billion.
Technology
Saudi Arabia's AI Market Set for 42.6% Annual Growth Through 2030
Saudi Arabia's artificial intelligence market is projected to grow at a compound annual growth rate of 42.6% between 2024 and 2030. Speaking at the Global AI Summit 2024, the CEO of the Saudi Company for Artificial Intelligence (SCAI), George Nazi, attributed this rapid growth to rising investments in AI solutions and increased technology adoption across sectors like finance, healthcare, manufacturing, and automotive.
Saudi Arabia Hosts Third Global AI Summit with Over 450 Global Experts
The third edition of the Global Artificial Intelligence (GAIN) Summit has commenced in Riyadh, gathering more than 450 speakers from 100 countries.
Hosted by the Saudi Data & Artificial Intelligence Authority (SDAIA), the event features 159 sessions under the theme "the Now, the Next, and the Never" of AI.
With an expected attendance of over 32,000 delegates during the three-day summit, key topics include generative AI, AI in urban life, and ethical governance. The summit offers a variety of activities such as panels, roundtable discussions, and talks across four stages: AI Minds, AI Synergy Sessions, Deep Learning Sessions, and AI Unplugged Sessions.
Saudi and the Brazilian Space Agency Ink Deal to Boost Space Cooperation
The Saudi Space Agency (SSA) and the Brazilian Space Agency have signed an agreement to enhance their collaborative efforts in the peaceful exploration and utilization of outer space.
This partnership was formalized during the official visit of SSA Chief Executive Dr. Mohammed bin Saud Altamimi, who is attending the fifth Space Economy Leaders Meeting (SELM) from September 11 to 13 in Foz do Iguacu, Brazil.
Saudi Arabia's New SAMAI Initiative Plans to Educate One Million Citizens in AI
Saudi Arabia has launched the "One Million Saudi in AI" (SAMAI) initiative to empower one million citizens with artificial intelligence skills. Announced during the third Global AI Summit by Minister of Education Yousef bin Abdullah Al-Benyan and SDAIA President Abdullah bin Sharaf Alghamdi, the program is meant to improve understanding of AI, its uses, and ethics among both men and women.
Partnering with global tech giants like Microsoft and IBM SkillsBuild, the initiative will provide accessible training through its educational platform.
Saudi Arabia Secures Top Ranking in the UN Global Cybersecurity Index 2024
Saudi Arabia has achieved the highest ranking in the United Nations Global Cybersecurity Index (GCI) 2024, solidifying its position as a global leader in cybersecurity. The International Telecommunication Union recognized the Kingdom's comprehensive national strategies by designating it as Tier 1 – Role-modeling among over 190 member states.
Saudi Arabia and UK Tech Firm Collaborate on $3.3 Billion Sports Complex
Saudi Arabia plans to develop a $3.3 billion sports complex through a partnership between Alpha Jossor Investments and the UK-based Blockchain Sports Ecosystem.
The project aims to create one of the largest innovative athletic hubs in the Middle East and North Africa, integrating advanced technology solutions to attract significant investments in sports and entertainment. The complex will feature a state-of-the-art football academy, 1,500 villas, and over 3,300 apartments valued at $1.6 billion.
Tourism
Saudi Arabia Exceeds Vision 2030 Tourism Goals Seven Years Early, Says IMF
Saudi Arabia has surpassed its Vision 2030 target of attracting 100 million annual visitors by 2023, seven years ahead of schedule.
In a recent report, the International Monetary Fund (IMF) highlighted the tourism sector as a significant contributor to the Kingdom's economic diversification. Saudi Arabia now earns more from international visitors than it spends on outbound tourism, shifting its service balance into a surplus.
Stay tuned for more updates on how the Kingdom continues to push boundaries and set new benchmarks across various industries. Your engagement keeps you at the forefront of these exciting changes shaping the future of Saudi Arabia.
