Saudi Round-Up: Tourist Spend & Giga Projects Growth
Saudi is experiencing robust growth in various sectors, including e-commerce, tourism, and technology.
From 30 September to 07 October 2024
General Business and Economy
Positive Economic Growth Predicted for Saudi Arabia in 2025
Saudi Arabia's Finance Minister, Mohammed Al-Jadaan, predicts positive economic growth for the country in 2025 and the medium term.
Al-Jadaan attributes this positive outlook to the ongoing implementation of reforms, strategies, and projects under Vision 2030.
The government is committed to long-term financial planning to ensure the stability of strategic spending, ultimately driving economic gains and sustainable growth. The pre-budget statement projects a real GDP growth of 4.6%, reflecting the Kingdom's dedication to its ambitious strategies and sustainable development goals.
Saudi Arabia Attracts Over Half of MENA Startup Funding in September
Saudi Arabia is becoming a driving force in the MENA startup ecosystem, securing over half of the total funding in September. Investors demonstrated their confidence by pouring $165 million into 13 Saudi firms.
This funding surge highlights the region's growing role in the global startup landscape, driven by government initiatives and a rising appetite for risk and innovation. The Saudi government's proactive approach, which includes the Public Investment Fund (PIF) and various venture-focused initiatives, has been instrumental in attracting private investments.
Saudi Arabia's Official Reserves Hit a 21-Month High
Saudi Arabia's official reserve assets reached $469.83 billion in August, marking a 10% year-on-year increase and the highest level in 21 months.
Foreign reserves, comprising currency, deposits abroad, and investments in foreign securities, constituted 95% of the total reserves. Special drawing rights, accounting for 5% of the total reserves at $79.35 billion, experienced a 2% increase.
Moody's Projects 5.5% Growth for Saudi Arabia's Non-Oil GDP
Moody's forecasts a 5-5.5% growth in Saudi Arabia's real GDP from 2025 to 2027.
The positive outlook stems from increased government spending and efforts to diversify the economy, reducing reliance on oil revenue. In addition, sustained government spending is deemed crucial for supporting economic diversification initiatives.
Saudi Arabia's Non-Oil Business Growth Remains Strong
Saudi Arabia's non-oil private sector continues to grow, with the Purchasing Managers' Index reaching 56.3 in September, up from 54.8 in August.
The growth is attributed to improved sales momentum and rising new orders, and it underscores the success of Vision 2030's objective to diversify the economy.
Automotive
EVIQ and Ceer Collaborate to Boost Saudi Arabia's EV Infrastructure
EVIQ and Ceer are partnering to accelerate the adoption of electric vehicles in Saudi Arabia. The collaboration’s goal is to expand the nation's charging infrastructure, supporting Saudi Arabia's goal of converting 30% of vehicles in Riyadh to electric by 2030.
E-commerce
Saudi Arabia Witnesses 9.4% Surge in E-Commerce Registrations in Q3
Saudi Arabia's e-commerce sector is booming, with 39,769 businesses registering in Q3, a 9.4% year-on-year increase. Riyadh leads with 16,274 registrations, followed by Makkah (10,023) and the Eastern Province (6,328).
This growth underscores Saudi Arabia's transition to a diversified, digitally driven economy, placing it among the top 10 countries globally for e-commerce expansion.
The commercial sector also saw a 62% year-on-year increase in commercial record issuance in Q3. Riyadh again led with 53,150 registrations, followed by Makkah (24,482) and the Eastern Province (19,840). This brings the total active commercial records in the Kingdom to over 1.5 million.
Construction
Qiddiya Awards $1 Billion Stadium Contract to Saudi-Spanish Consortium
Qiddiya Investment Co. has granted a $1 billion contract to a Saudi-Spanish consortium for the construction of the Prince Mohammed bin Salman Stadium. This project aligns with Vision 2030's goals of boosting tourism, generating employment opportunities, and strengthening the national economy.
Industry and Manufacturing
Saudi Arabia's Petrochemical Industry Experiences Accelerated Growth
Saudi Arabia's strategic investments and commitment to economic diversification are fueling its rise as a global leader in the petrochemical industry.
The nation's petrochemical capacity is projected to double within the next five years, reaching over 140 million tonnes per year.
Tourism
Saudi Arabia's Tourism Industry Booms with 8.2% Increase in Inbound Spending
Saudi Arabia's tourism sector experienced an 8.2% year-on-year growth in inbound tourism spending in the first half of 2024, reaching SAR 92.6 billion. This resulted in an estimated travel account surplus of SAR 41.6 billion in the balance of payments.
The Kingdom welcomed 60 million tourists during this period, with spending reaching SAR 150 billion, a 10% year-on-year increase.
Don't miss out on the next edition, where we'll bring you the latest news and developments from Saudi Arabia! The Kingdom is constantly evolving, and we're dedicated to keeping you informed about the latest trends, breakthroughs, and opportunities.
