Saudi Round-Up: FIFA World Cup & Stronger Global Relations
This week's roundup features updates from Riyadh's newly launched metro, the official bid for FIFA 2034 World Cup and more.
From 09 December to 16 December 2024
This week’s Saudi Arabia business roundup underscores transformative progress across a variety of industries, from a 5% growth in the Industrial Production Index to groundbreaking strides in AI, tourism, and infrastructure. Highlights include a new PIF-backed hospitality venture, major tech event LEAP 2025, and the revolutionary digitalization of stadiums, setting new benchmarks in global innovation.
General Business and Economy
Saudi Arabia to Host 2034 FIFA World Cup
FIFA confirmed that Saudi Arabia will host the 2034 World Cup, marking the World Cup’s first return to the GCC region after the 2022 event in Qatar. The tournament will be held in 15 stadiums across five cities, with the opening and final matches taking place at King Salman International Stadium in Riyadh.
The event is part of Saudi Vision 2030, focusing on long-term sports, infrastructure, and societal benefits. The bid to FIFA includes new stadiums in innovative locations like NEOM.
Saudi Arabia’s Industrial Production Index Grows by 5%
Saudi Arabia's Industrial Production Index (IPI) grew by 5% in October 2024 compared to the same month in 2023, driven by mining and quarrying (up 0.4%), oil-related activities (up 5.4%), and non-oil industries (up 4%).
What’s driving this growth are strategic initiatives like "Made in Saudi Arabia," positioning the country as a global industrial leader. Organizations such as Maaden and SABIC are transforming mining and petrochemicals, while Modon’s industrial zones now host over 4,000 factories and employ more than half a million people.
Dubai’s Parkin Partners with Saudi’s BATIC to Enter the Saudi Market
Dubai’s Parkin, the largest paid public parking operator in the UAE, is teaming up with BATIC Investment and Logistics Company to expand into Saudi Arabia. The collaboration focuses on integrating advanced parking technologies like AI, real-time analytics, and smart sensors to streamline parking operations.
In alignment with Saudi Vision 2030, the partnership aims to enhance mobility and explore strategic opportunities in public and private parking sectors.
LyondellBasell Opens Regional Office in Riyadh’s KAFD
Global chemical leader LyondellBasell (LYB) has opened its first regional office in Saudi Arabia at the King Abdullah Financial District (KAFD) in Riyadh. LYB’s move to KAFD strengthens its regional presence and supports its continued expansion in the Kingdom.
KAFD’s smart city features and sustainable design align with Saudi Vision 2030’s objectives, positioning it as a key destination for global corporations and innovation hubs.
Aviation
Saudi Arabia’s PIF Acquires 15% Stake in Heathrow Airport
Saudi Arabia’s PIF has acquired a 15% stake in Heathrow Airport, marking a strategic investment in one of the world’s busiest hubs. PIF’s investment aims to support Heathrow's sustainable growth and its role as a global aviation hub, aligned with Saudi Arabia's strategic vision for long-term infrastructure development.
The airport expects its busiest December, with a 21% increase in passengers compared to last year.
Entertainment
Noor Riyadh Festival Breaks Two New Guinness World Records
The Noor Riyadh Light Festival has made history again with two new Guinness World Records, bringing its total to 16. UK artist Chris Levine set the record for the longest distance covered by a laser light in a laser show. The second record was for the largest illuminated recyclable material sculpture of a pyramid.
This year’s festival attracted millions and featured over 60 artists from 18 countries.
Manufacturing & Industry
Saudi Arabia Signs Defense Deal with Spain for Corvette Ships
Saudi Arabia’s Ministry of Defense has inked a deal with Spanish shipbuilder Navantia for three Avante 2200 corvette ships for the Royal Saudi Navy. The deal includes the construction of the first vessel in Spain and the remaining two in Saudi Arabia, with final delivery slated for 2028.
This agreement aligns with Saudi Vision 2030, aiming to localize military industries, integrate advanced naval systems, and provide extensive training programs for over 100 engineers.
MICE (Meetings, Incentives, Conferences, and Events)
LEAP 2025 Tech Event in Saudi Arabia
The fourth edition of Saudi Arabia’s LEAP tech event, set for February 9-12, 2025, will feature over 680 startups and 1,000 speakers. Under the theme “Into New Worlds,” the event introduces new features such as LEAP Nights, DeepFest, and Tech Arena while addressing innovation across sectors like gaming, education, space, and smart cities.
Co-organized by the Ministry for Communications and Information Technology (MCIT) and Tahaluf, this ticketed event will emphasize valued interactions between exhibitors and industry leaders.
Saudi Conference Sector Set for Global Leadership
The chair of the Saudi Conventions and Exhibitions General Authority, Fahd Abdulmohsen Al-Rasheed, emphasized the growing opportunities in the Kingdom’s conferences sector during the International MICE Summit in Riyadh.
With a 15% growth between 2022 and 2023, the sector’s success is driven by major events and an enhanced quality of life, which supports tourism, hospitality, and infrastructure development.
Over 1,000 Experts to Attend Saudi Exhibitions Summit
The inaugural International Summit for Exhibitions and Conferences in Riyadh is bringing together 1,000 industry leaders from 73 countries this week. Hosted at Mohammed Bin Salman Nonprofit City, the event focuses on investment opportunities in Saudi Arabia’s MICE sector, a key element of Vision 2030.
With local and international players in attendance, the summit seeks to foster collaborations, drive growth, and position Saudi Arabia as a premier destination for exhibitions and conferences.
Real Estate
Stake Expands to Saudi Arabia: A Step Toward Regional Growth
UAE-based real estate platform Stake aims to relocate its regional HQ to Saudi Arabia, although no specific timeline has been set. The expansion is driven by Saudi Vision 2030's real estate goals, including a goal to achieve 70% homeownership by 2030.
The platform has already launched its operations in Saudi Arabia, facilitated over $130 million in transactions, and is expected to roll out more funds in the Kingdom, including an SR1 billion fund within six months.
Sustainability & Energy
COP16: Saudi Arabia Co-leads Global Initiative to Tackle Sandstorms
Saudi Arabia is leading a $2 billion initiative with other nations to create an early warning system for sand and dust storms in the Middle East. The system aims to improve global monitoring, coordination, and proactive measures for land degradation and drought, focusing on enhancing capabilities in vulnerable countries.
This initiative ties into Saudi Arabia's environmental goals and its role as a host of a regional center for dust storm monitoring.
Trade & Bilateral Relationships
Saudi Arabia, UK Agree to Increase Bilateral Trade to $37.5 Billion by 2030
Saudi Arabia and the UK have committed to boosting their bilateral trade to $37.5 billion by 2030. This agreement follows UK Prime Minister Keir Starmer’s recent visit to Riyadh, where both countries emphasized strengthening their economic partnership.
They welcomed the progress on the GCC-UK Free Trade Agreement and recognized significant Saudi investments in the UK, including projects in retail, airports, and football. Both sides also plan to enhance cooperation in areas like energy, green finance, and cultural exchange.
Technology
Digital Stadiums Set to Revolutionize Sports in Saudi Arabia
Digital stadiums are poised to revolutionize the sports experience in Saudi Arabia through 5G, cloud computing, and extended reality (XR). With the upcoming AFC Asian Cup 2027 and FIFA World Cup 2034, they will play a key role in the Kingdom's sports vision, creating operational efficiencies and a global benchmark for future stadiums.
NEOM Fund Partners with GMT Robotics for Construction Innovation
NEOM Investment Fund (NIF) has signed a deal with GMT Robotics to invest in automation technology for construction projects. This collaboration aims to advance NEOM’s capital project program and establish the region as a hub for modern construction techniques.
GMT Robotics will localize the technology, creating high-skilled jobs and boosting Saudi engineers' expertise in robotic applications for construction.
Tourism
PIF Launches Adeera Hospitality Venture
Saudi Arabia's Public Investment Fund (PIF) has launched Adeera, a new hospitality management company focused on creating homegrown Saudi hotel brands. The company will develop a diverse portfolio ranging from mid-range to ultra-luxury hotels and catering to various visitor categories and will collaborate with local private sectors to maximize involvement.
This initiative aligns with Saudi Arabia’s National Tourism Strategy, targeting 150 million visitors and 10% GDP contribution by 2030. It follows PIF's earlier investments in boutique hospitality and agritourism ventures.
PIF’s Dan Co. Launches Resort to Boost Saudi Tourism in Al-Ahsa
Dan Co., a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), is set to build a resort in Al-Ahsa, focusing on sustainability, innovation, and high-quality service. This project supports Saudi Vision 2030’s goal to attract 150 million visitors by 2030 and increase tourism’s contribution to the GDP.
The resort will promote agritourism, ecotourism, and adventure tourism, highlighting Al-Ahsa’s rich natural beauty and cultural heritage.
Transportation
Riyadh Metro Expands With New Red and Green Lines, Paving the Way for a Smarter City
The Riyadh Metro’s Red and Green lines have been opened to the public, providing new routes along King Abdullah and King Abdulaziz roads. These additions bring the total number of operational lines to five, marking a major step in the city's Vision 2030 initiative to reduce traffic congestion and improve urban living.
The Red Line spans 25.1 km with 15 stations, while the Green Line runs for 13.3 km and serves key government and residential areas. The metro system is set to be operational by January, 2025.
Saudi Arabia’s latest developments underscore a dynamic and rapidly evolving landscape, with progress spanning energy, technology, trade, and entertainment. As the Kingdom drives forward on its Vision 2030 goals, next week promises even more updates on pivotal projects and global collaborations. Stay tuned to explore the next chapter in Saudi Arabia’s transformative journey.
