Saudi Round-Up: Policy Changes to Boost Business Climate

From 18 November to 25 November 2024

This week's developments reflect Saudi Arabia's multifaceted growth story: Moody's projecting 4.7% economic growth, major banks like Morgan Stanley and Citi establishing regional headquarters in Riyadh, the launch of the groundbreaking Riyadh Metro, and significant investments in railways and hospitality.

General Business and Economy

Moody's Upgrades Projections: 4.7% Saudi Economic Growth for 2024-25

Saudi Arabia's economy is set to outperform expectations, with Moody's forecasting 4.7% growth in 2024-25, surpassing the government's projections. Backed by a $343 billion budget for 2025, the Kingdom's diversification efforts through mega-projects and investments in technology, tourism, and renewable energy are driving growth. Notable is Saudi Arabia's exceptional inflation control, with expectations for inflation to stay at 1.6% for 2024 and 1.9% for 2025—among the lowest in the region.

Morgan Stanley Establishes Regional HQ in Riyadh

Morgan Stanley has secured regulatory approval to base its Middle East headquarters in Saudi Arabia, joining other Wall Street giants in the Kingdom. The move, announced by Saudi CEO Abdulaziz Alajaji, follows new regulations requiring firms to maintain at least 15 employees in their regional headquarters.

Citigroup Gets Green Light for Saudi Regional Headquarters

Citigroup has received approval from Saudi Arabia's Ministry of Investment to establish its regional headquarters in Riyadh, marking another significant win for the Kingdom's financial sector. The decision follows Goldman Sachs' similar move in May and the recently announced move for Morgan Stanely, which shows Saudi Arabia successfully attracting global financial institutions through strategic incentives and its growing market importance.