Saudi Round-Up: Saudi Attracts More French HQs
This week's roundup features updates from Riyadh's newly launched metro, the official bid for FIFA 2034 World Cup and more.
From 02 December to 09 December 2024
General Business and Economy
Saudi Non-Oil Economy Shows Strong Growth with 4.8% Q3 Expansion
Saudi Arabia's economic diversification continues to show impressive results, with non-oil activities growing 4.8% in Q3 2024. GASTAT reports robust performance across multiple sectors, with hospitality and retail leading at 5.8% growth, followed closely by financial services at 5.7%.
This expansion, which helped drive overall GDP to SR1 trillion, reinforces Minister Al-Ibrahim's recent announcement that non-oil activities now represent 52% of GDP—a significant progress in Vision 2030's diversification goals.
Saudi GDP Grows 2.8% in Q3, Led by Service Sector Strength
Saudi Arabia's economy expanded 2.8% year-on-year in Q3 2024, with notable growth in key sectors, according to GASTAT data. The hospitality and retail sector led with 5.8% annual growth, followed by financial services at 5.7%. Government activities rose 3.1% annually, while sequential growth showed the economy advancing 0.9% from the previous quarter, demonstrating continued economic momentum.
ICAEW Projects 4.4% Saudi Economic Growth in 2025
International forecasts paint a strong outlook for Saudi Arabia's economy, with ICAEW predicting 4.4% growth in 2025, up from 1.4% in 2024. The projection aligns with OECD's positive outlook of 3.6% growth in 2025 and 3.8% in 2026. Multiple sectors, including tourism, real estate, and finance, are expected to drive this expansion, reflecting successful economic diversification efforts.
MBS Launches Strategy to Drive Saudi Blue Economy
Crown Prince Mohammed bin Salman has unveiled the National Red Sea Sustainability Strategy, marking a significant step in Saudi Arabia's transition to a blue economy. The initiative aims to establish the Kingdom as a global leader in maritime sustainability and innovation while protecting the Red Sea ecosystem.
The strategy represents a key pillar in Saudi Arabia's economic diversification efforts, positioning the Red Sea region as a global reference for blue economy activities.
Apple Announces Major Saudi Expansion with Online Store and Flagship Outlets
Apple has unveiled plans for a big expansion in Saudi Arabia. The expansion will start with its first Arabic-language online store in the summer of 2025, followed by multiple physical locations, including a flagship store in historic Diriyah by 2026.
CEO Tim Cook highlighted the importance of the Saudi market, where Apple has already invested over SR10 billion in the past five years. The expansion marks Apple's deepening commitment to the Kingdom's growing tech market.
Aviation
Airbus Establishes Regional HQ in Riyadh Under Saudi Leadership
Airbus has strengthened its presence in Saudi Arabia by opening its regional headquarters in Riyadh and appointing Eid Al Qahtani as President. The move demonstrates Airbus's long-term commitment to the Kingdom and its focus on government partnerships.
The expansion is another milestone in Saudi Arabia's growing aviation sector and the Kingdom's success in attracting major international companies.
Manufacturing & Industry
Saudi Arabia Opens Bidding for 22 Strategic Quarry Sites Worth SR5 Trillion
The Ministry of Industry and Mineral Resources has launched competitive bidding for 22 gravel and sand quarry sites in the Eastern Province and Tabuk region. This initiative, part of the Kingdom's strategy to develop its mining sector, includes over 5,300 mineral sites valued at SR5 trillion.
In addition, it also supports Saudi Arabia's growing construction sector and Vision 2030's goal of establishing mining as the third pillar of Saudi industry alongside oil and petrochemicals.
Real Estate
Saudi Real Estate Lending Hits Record SR846 Billion in Q3 2024
Saudi Arabia's real estate lending reached a historic SR846.48 billion in Q3 2024 after reaching a 13.29% annual increase. Corporate lending surged 22% to SR189.6 billion, while individual loans grew 11.02% to SR656.88 billion. The expansion, supported by Vision 2030 initiatives and recent interest rate cuts, reflects the sector's growing strength, with real estate now comprising nearly 30% of Saudi banks' SR2.85 trillion loan portfolio.
Sustainability & Energy
Saudi Arabia Launches Riyadh Action Agenda at COP16
Saudi Arabia introduced the Riyadh Action Agenda during COP16, focusing on land restoration and drought resilience. Led by Dr. Osama Faqeeha, the initiative mobilizes stakeholders, including farmers and indigenous peoples, to address agriculture-driven land degradation, deforestation, and emissions.
Launched on Agri-food Systems Day, it highlights sustainable practices, resilient crops, and private-sector engagement, aiming to transform food systems and build global momentum for environmental action over Saudi Arabia’s two-year COP16 presidency.
TOPIAN Unveils First Climate-Resilient Greenhouse in NEOM’s Oxagon
NEOM’s TOPIAN has launched a cutting-edge climate-resilient greenhouse in Oxagon, pioneering sustainable agriculture in arid conditions.
The greenhouse uses advanced hydroponics and renewable energy to maximize productivity and water efficiency. This initiative aligns with Saudi Vision 2030 and highlights NEOM’s commitment to redefining food systems through sustainability and innovation.
Saudi Green Initiative Launches $60M Environmental Projects at COP16
Saudi Arabia’s Green Initiative (SGI) unveiled five new environmental projects worth $60M during the COP16 forum, which brought total SGI investments to $188 billion. These projects address emissions reduction, desertification, and ecosystem preservation.
SGI plans to cut 278 million tonnes of emissions annually, achieve net zero by 2060, and derive 50% of electricity from renewables by 2030. The initiatives affirm Saudi Arabia’s leadership in global climate efforts and align with Vision 2030.
Trade & Bilateral Relationships
Saudi Arabia Launches First Japanese Equity Fund with SBI Holdings
Saudi Arabia has introduced its first Japanese equity mutual fund through a partnership between Albilad Capital and Japan’s SBI Holdings. This initiative grants Saudi investors access to Japanese equities and enables Japanese investors to explore Shariah-compliant ETFs.
In addition, this collaboration strengthens investment ties, building on SBI’s earlier launch of Japan’s first Saudi stock index-linked ETF.
Saudi PIF, Bpifrance Sign $10 Billion MoU for Vision 2030 Projects
Saudi Arabia’s Public Investment Fund (PIF) and France’s Bpifrance Assurance Export signed a $10B MoU to support Vision 2030 projects. The five-year agreement focuses on financing PIF’s portfolio companies and fostering Saudi-French commercial partnerships. This collaboration aims to diversify Saudi Arabia’s economy, drive innovation, and develop strategic sectors while strengthening economic ties between the two nations. The deal reinforces PIF’s role in advancing Saudi Arabia’s transformation goals.
Saudi Arabia and Pakistan Sign Customs Cooperation Agreement
Saudi Arabia and Pakistan formalized a customs cooperation agreement during the Zakat, Tax, and Customs Conference in Riyadh. The deal, signed by Eng. Abdullah bin Ahmed Alfuntukh and Ambassador Ahmad Farooq, will improve trade facilitation through mutual administrative assistance and expertise sharing. It focuses on adopting advanced customs technologies and exchanging best practices, strengthening the bilateral relations and trade capabilities between the two nations.
Saudi Arabia and UNDP Partner for Sustainable Development
Saudi Arabia’s Ministry of Economy and Planning and the UN Development Programme (UNDP) signed an agreement to advance economic and social policy planning under Vision 2030. The partnership is expected to strengthen the national policy development and sustainable development initiatives.
Saudi and Chinese Investors Eye Healthcare and Biotech for Growth
At the Saudi-Chinese Business Council Forum, investors highlighted opportunities in healthcare and biotechnology to enhance the $18.7 billion trade relationship between Saudi Arabia and China. The discussions focused on expanding collaborations in these innovative sectors, reflecting a shared commitment to diversify economies and foster strategic partnerships.
Technology
Microsoft Makes Strong Progress on Saudi Arabia Data Center
Microsoft has announced that they have made significant progress in its data center region in Saudi Arabia, with the completion of all three Azure availability zones. Located in the Eastern Province, these zones are set to provide low-latency, high-availability cloud services that are set to provide both government and private sector workloads.
Scheduled for availability in 2026, the data center will deliver enterprise-grade reliability, ensuring customer privacy, data residency, and alignment with Microsoft’s security and compliance standards.
Tourism
Saudi Arabia Ranks 3rd Globally for Tourism Rebound After the Pandemic
Saudi Arabia has ranked third globally in international tourist growth for the first eight months of 2024, with a 61% increase compared to 2019, according to the UNWTO. The Kingdom also jumped 15 places to 12th globally in international tourist spending in 2023, marking the largest leap among the top 50 countries.
Additionally, Saudi Arabia led G20 nations in international tourist growth during the first seven months of 2024.
Saudi Red Sea Authority Issues Yacht Licenses to Boost Marine Tourism
The Saudi Red Sea Authority (SRSA) has issued its first-ever yacht charter licenses, marking a major step in promoting marine tourism. This initiative aims to enhance coastal tourism services, supporting the broader tourism economy and aligning with Saudi Vision 2030 goals.
The licenses are expected to boost the Kingdom's tourism sector, offering new recreational opportunities and attracting international interest.
Stay tuned for more updates next week as we continue to track Saudi Arabia's progress toward a diversified, sustainable, and dynamic economy.
