Saudi Round-Up: FIFA World Cup Drives Industrial Expansion
This week’s edition highlights significant strides driven by Saudi Vision 2030, showcasing growth in non-oil revenues, real estate, and global achievements in sports and entertainment
From 29 July to 05 August 2024
General Business & Economy
Saudi Arabia’s PIF Signs $50bn Deals with Chinese Financial Firms
On August 1, 2024, Saudi Arabia's Public Investment Fund (PIF) signed six memorandums of understanding (MoUs) worth $50 billion with leading Chinese financial institutions. These agreements aim to boost two-way capital flows through debt and equity, supporting the Kingdom’s Vision 2030 plan to diversify its economy away from oil dependence.
The Chinese institutions involved include the Agricultural Bank of China, Bank of China, China Construction Bank, China Export and Credit Insurance Corp., Export-Import Bank of China, and the Industrial and Commercial Bank of China.
Saudi Foreign Reserve Assets Rise to SAR 1.75T in June
Saudi Arabia's international reserve assets increased by 0.1%, or SAR 1.1 billion, in June 2024, reaching SAR 1.75 trillion. According to the Saudi Central Bank (SAMA), this marks the highest level since November 2022 and reflects Saudi Arabia’s ongoing economic resilience and robust financial management.
Saudi Arabia’s Non-Oil Revenues Rise by 26% to $37.48 Billion in Q2 2024
The Ministry of Finance reported that Saudi Arabia's non-oil revenues increased by 26% to $37.48 billion in Q2 2024, up from $29.73 billion in Q1 2024.
The country’s non-oil revenues came from several sectors. Taxes on goods and services generated SAR 70.13 billion, while other classified revenues reached SAR 27.66 billion. Additional taxes, including those on income, profits, and capital gains, contributed to SAR 24.51 billion.
Saudi Arabia Ranks 1st Globally for State of Economy as Consumer Confidence Rises
Saudi Arabia has been ranked first globally for the current state of its economy, with consumer confidence rising significantly. According to the May 2024 Ipsos Primary Consumer Sentiment Index, the index for Saudi Arabia increased to 72.7.
Highlights include 73% of respondents viewing the economy as strong, 95% believing the country is heading in the right direction, and 78% feeling more secure about their jobs. Additionally, 77% are more comfortable making major purchases, which is another indicator of Saudi’s strong economy.
Automotive
Saudi Arabia Among Top 20 Vehicle Import Markets Globally With Imports Exceeding 1 Million Units
Saudi Arabia has become one of the top 20 vehicle import markets globally, with over one million units imported in 2023 and Q1 2024, valued at more than SAR 83 billion.
As a result, the Kingdom now accounts for 36% of total vehicle sales in the Arab world, which solidifies the dominant position of the automotive market in the country. The market for used vehicle imports is less than 10% of total imports, revealing that Saudis have a preference for new vehicles
Energy & Sustainability
Saudi Aramco’s Expansion Strategy Providing Fuel for Vision 2030
Saudi Aramco is accelerating Saudi Arabia's economic diversification plans. By investing $1.5 billion to reduce fossil fuel use and $4 billion in green technologies, the company aims to lower carbon emissions and promote renewable energy.
Experts say this strategy goes beyond profit, focusing on technological innovation to support Vision 2030, aligning with Saudi’s goals for a sustainable economy.
NEOM’s Social Responsibility Programs Helped 50,000 People in 2023
NEOM, Saudi’s ambitious giga-project, is making remarkable progress in social responsibility initiatives. Its programs have positively impacted 50,000 people through 26 projects awarded to Tabuk companies. In the process, these programs created over 583 jobs.
Showing the engagement of the communities, approximately 1,300 volunteers took part in more than 68 projects.
Key initiatives included the "Seven Senses Program," which generated a social return on investment of over SAR 40 million ($10.6 million). Aligned with Vision 2030, these programs focus on socioeconomic engagement, human capacity building, and local community support.
Entertainment
Qiddiya Giga-project Set to Propel Saudi Arabia’s Entertainment Sector
The Qiddiya giga-project aims to transform the entertainment industry by creating the ultimate destination for entertainment, sports, and culture.
The project, which was dubbed the “Capital of Entertainment, Sports, and the Arts,” will feature innovative attractions, including the world’s tallest and fastest rides at Six Flags Qiddiya, a Dragon Ball theme park, and a cutting-edge motor racing track. Qiddiya is expected to attract 48 million visits annually.
Saudi Arabia to Participate in the 2024 K-Pop World Festival
Saudi Arabia will participate in the 2024 K-pop World Festival, with the final preliminary round taking place on August 3 in the JAX district. Thirty teams participated in the initial round of which only ten advanced. Winners will proceed to the festival finals in Changwon, South Korea, in October.
This event, organized by the South Korean Embassy and supported by LG Electronics, is proof of the deepening cultural ties between Saudi Arabia and South Korea, as well as the growing popularity of K-pop in the Kingdom.
Saudi Arabia’s Official World Cup 2034 Bid Book Published
Saudi Arabia's official bid book for the 2034 FIFA World Cup, titled "Growing Together," was revealed, outlining plans for hosting the largest-ever single-country World Cup.
Supported by Crown Prince Mohammed bin Salman, the bid includes proposals for 15 stadiums across five cities: Riyadh, Jeddah, Alkhobar, Abha, and NEOM.
Key highlights include innovative stadium designs, a commitment to sustainability, and extensive infrastructure development. The bid emphasizes Saudi Arabia's rich football heritage, passion for the sport, and readiness to host a 48-team tournament.
Industry & Manufacturing
Saudi Arabia’s MODON Secures Nine Deals Worth $266.47 Million to Develop Industrial Cities
RMODON, the Saudi Authority for Industrial Cities and Technology Zones, recently signed nine contracts worth more than $266.5 million with private sector companies to develop Makkah, Jeddah, Tabuk, and other important sites in the Kingdom.
The Authority manages 36 industrial cities, in addition to private industrial cities and complexes. In the period from April to June 2024, it signed 142 new industrial contracts and attracted more than $910 million in private-sector investments.
Real Estate
Saudi Arabia’s Real Estate Index Up 1.7% in Q2 2024
Saudi Arabia’s real estate price index increased by 1.7% in Q2 2024, reaching 83.94 points from 82.52 points in Q1.
The growth is driven by a 2% rise in residential real estate prices, particularly apartments, which saw a 3.7% increase, while commercial real estate prices remained stable, with only a 0.1% rise.
The rise in real estate prices points to continued strength and demand in the real estate market.
Average Visits to Saudi Real Estate Market Platform Underscore Sector’s Growth
Average daily visits to the Kingdom’s Real Estate Market platform doubled in July compared to February, supported by governmental initiatives to improve transparency and efficiency.
The rapid increase in use demonstrates the success of Real Estate Wealth Digitization initiatives and points to the anticipated growth of the real estate sector, which is set to reach $69.51 billion this year and $101.62 billion by 2029.
Economic diversification continues to shape Saudi Arabia’s future, with significant advancements in non-oil revenues, real estate, and global cultural engagement. Stay tuned with us for the latest updates on Saudi Arabia’s ongoing journey of transformation and global excellence. Keep this page bookmarked for news at your fingertips.
