In this week’s edition, we spotlight Saudi Arabia’s accelerated progress to economic diversification, driven by strategic investments in technology, mining, and sustainable transport.

From 05 August to 12 August 2024

General Business and Economy

Saudi Arabia’s FDI Balance Rises 6.1% to $217.88 Billion in Q1 2024: Report

According to a recent report, Saudi Arabia's foreign direct investment (FDI) balance surged by 6.1% in Q1 2024, reaching $217.88 billion.

The increase in FDI reflects strong investor confidence in Saudi Arabia's economic reforms and emerging sectors, including technology, tourism, and renewable energy. This boost aligns with the broader trend of rising FDI in the region, signaling a positive outlook for future growth.

Saudi Arabia Sees Nearly 50% Surge in Investment Licenses in Q2 Amid Rising Investor Confidence

Saudi Arabia's investment licenses surged 50% in Q2, indicating that investor confidence has soared. The surge, driven by reforms and incentives under the Vision 2030 initiative, highlights the growing appeal of Saudi Arabia as a destination for both local and international investors.

Key sectors attracting interest include manufacturing, technology, and renewable energy.

Saudi Arabia Unveils Updated Investment Law to Facilitate Foreign Investors

Saudi Arabia has introduced an updated investment law aimed at simplifying processes for foreign investors, reflecting its commitment to attracting international business.

The new regulations, part of the Vision 2030 initiative, streamline procedures, enhance legal protections, and offer greater transparency, making it easier for foreign entities to establish and operate businesses in the Kingdom. The law also includes incentives for strategic sectors such as technology and renewable energy.

Saudi Arabia’s Startup Appeal Spans Across Diverse Sectors

Saudi Arabia's growing startup ecosystem is attracting attention across a wide range of sectors, from technology and fintech to health and renewable energy.

The Kingdom’s commitment to fostering innovation is evident through various initiatives, including government-backed incubators and venture capital funds aimed at supporting entrepreneurs, such as Monsha'at authority, which has supported over 10,000 startups.

Additionally, hundreds of international startups have expanded into Saudi Arabia in the past few years, attracted by government-backed incubators, accelerators, and a $1.4 billion venture capital fund aimed at fueling entrepreneurial growth.

Aviation

Riyadh Air Grants $400 Million Ground Handling Contract for King Khalid International Airport

Saudi Arabia’s Riyadh Air, a subsidiary of the Public Investment Fund (PIF), has awarded a SR1.5 billion ($400 million) contract for ground handling services.

The Saudi Ground Services Co. has been selected to oversee Riyadh Air’s operations at King Khalid International Airport in Riyadh.

Automotive

Lucid Secures $1.5 Billion From Saudi Sovereign Fund PIF Ahead Of Electric SUV Launch

Lucid Group has secured a $1.5 billion cash infusion from Saudi Arabia's Public Investment Fund (PIF) as it prepares to launch its highly anticipated electric SUV, the Gravity, later this year.

PIF’s continued commitment to the electric vehicle (EV) sector aligns with Saudi Arabia's Vision 2030 strategy to boost non-oil sectors.

Lucid, which is partly owned by PIF, reported better-than-expected quarterly revenue, reflecting growing confidence in the company's future. The additional funding is expected to bolster Lucid’s production capabilities and accelerate its expansion in the global EV market.

Saudi EV Market Expected to Grow by 6% YoY Until 2030: Lucid

Lucid Group forecasts 6% annual growth in Saudi Arabia's EV market until 2030, with annual sales reaching 250,000 units – a projection that aligns with the Kingdom's ambitious EV manufacturing plans.

The Middle East is a key market for Lucid, which is expected to grow to $8 billion by 2028. The company's first EV plant, partly backed by the Public Investment Fund, opened in Saudi Arabia last September.

Industry and Manufacturing

Saudi Arabia Launches Bid for Seven Mining Exploration Licenses

Saudi Arabia is seeking investors for seven new mining exploration licenses as part of its Vision 2030 economic diversification drive.

The licenses cover copper, zinc, lead, and gold deposits in Asir and Makkah. The bidding process is open to both local and international investors, reflecting the Kingdom’s commitment to attracting global expertise and capital to develop its mining industry.

This move aims to boost the mining sector's contribution to the economy, create jobs, and solidify Saudi Arabia's position as a regional mining hub.

Saudi's Ma'aden Posts 160.4% Jump In First-Half Net Profit To $534.3 Million On Higher Sales Volume

Saudi Arabian Mining Co. (Ma'aden) has announced a staggering 160.4% year-on-year surge in its first-half net profit to $534.3 million. The company attributed this exceptional performance to increased sales volume and lower raw material costs.

While revenue dipped slightly due to lower commodity prices, higher sales of key products offset the decline. The company's strong results align with Saudi Arabia's ambitious goal of boosting the mining sector's contribution to GDP to $80 billion by 2030.

Real Estate

Saudi Retail Real Estate Sales to Reach $183 Billion by 2027: Deloitte

According to a report by Deloitte, Saudi Arabia's retail real estate sector is expected to grow significantly in the upcoming years, with sales projected to hit $183.2 billion by 2027.

The report highlights the positive impact of post-pandemic recovery, driven by eased travel restrictions and a booming tourism industry. Saudi Arabia's ascent to third place in the Global Retail Development Index is another indicator of its growing prominence in the global retail landscape.

Sustainability

Riyadh Air Unveils 1st Electric Bus as Part of Sustainable Transport Initiative

Riyadh Air has introduced its first electric bus as part of a broader sustainable transport initiative, marking a significant step towards reducing carbon emissions in the Kingdom. This move aligns with Saudi Arabia’s Vision 2030 commitment to environmental sustainability and cutting-edge technology.

The electric bus will transport passengers at Riyadh’s King Khalid International Airport, further illustrating the airline's dedication to eco-friendly solutions.

Saudi Arabia’s Technological Advancements Drive Sustainability Efforts

Saudi Arabia is making significant headway in sustainability through technological innovation and strategic partnerships. The Communications, Space, and Technology Commission has highlighted 13 successful projects that have positively impacted the environment, economy, and society.

Key initiatives include the development of underwater communication technology, Aqua-Fi, which promises to revolutionize ocean monitoring and research. Additionally, satellite imagery and field data are being combined to optimize agricultural practices and conserve water resources.

Technology

Oracle Bolsters Saudi Arabia’s AI Economy With Second Public Cloud Region in Riyadh

Oracle has opened its second public cloud region in Riyadh as part of its $1.5 billion investment in Saudi Arabia's digital infrastructure. The new cloud region will provide businesses with access to advanced cloud services, enabling them to modernize operations and leverage AI and data analytics.

By expanding its cloud footprint, Oracle is supporting Saudi Arabia's digital transformation goals and fostering innovation across various sectors. In addition, the move is going to accelerate the Kingdom's AI ambitions, with the sector projected to reach $135.2 billion by 2030.

Saudi Arabia Makes Significant Moves in the Semiconductor Sector With Strategic Investments

Saudi Arabia is ambitiously pursuing a role in the global semiconductor industry, driven by the Kingdom's Vision 2030. Recognizing the critical importance of semiconductors in modern technology and the current concentration of production in a few key regions, Saudi Arabia is investing heavily in building a domestic semiconductor manufacturing base.

The goal is to reduce reliance on imports, diversify the economy, and capitalize on the expected growth of the semiconductor market to $1 trillion by 2030.

Stay connected with us for the latest updates on Saudi Arabia’s journey towards a diversified, sustainable, and technologically advanced future. Keep this page bookmarked for news at your fingertips.