Saudi Round-Up: Growth Prospects in Aviation, Mining, Entertainment
This week's roundup spotlights key investment opportunities in sectors: mining, aviation and entertainment.
From 13 January to 20 January 2025
This week, Saudi Arabia made significant strides in achieving Vision 2030 objectives, highlighting growth in investment licensing, digital transformation, and tourism.
General Business and Economy
Saudi Economy to Grow 3.3% in 2025, Says IMF
The International Monetary Fund (IMF) projects Saudi Arabia's economy to grow by 3.3% in 2025 and 4.1% in 2026.
This growth aligns with Saudi Vision 2030’s goals, showcasing the Kingdom's resilience amid global economic challenges.
Saudi Inflation Fell to 1.9% in December
Saudi Arabia's inflation dropped to 1.9% in December, with a sharp 10.6% increase in housing rents leading the rise. Villa rental prices alone jumped by 9.9%, contributing to an 8.9% growth in the housing-related sector.
Food prices rose modestly at 0.8%, while luxury goods like jewelry saw a notable 20.2% price increase. Other sectors, such as transportation and furnishings, recorded declines. The IMF predicts inflation will stabilize at around 2% in the medium term.
Saudi Arabia Sees 60% Surge in Commercial Registrations, Boosting Vision 2030 Goals
In 2024, Saudi Arabia's Ministry of Commerce issued 521,969 commercial registrations—a 60% increase from 2023. Key sectors driving this growth included retail, construction, and manufacturing. The total number of active registrations now exceeds 1.6 million.
This surge highlights Saudi Arabia's ongoing economic diversification under Vision 2030, fostering entrepreneurship and bolstering non-oil sectors.
Saudi Arabia and Portugal Sign Deal to Expand Economic Cooperation
A Saudi-Portuguese Business Council delegation visited Portugal, signing a framework agreement to explore joint ventures in aviation, tourism, agriculture, and tech. Over 260 Portuguese companies showed interest in entering Saudi markets.
Workshops detailed investment opportunities in Saudi Arabia, aligning with Vision 2030’s push for foreign collaboration and economic diversification. Notably, two major Portuguese firms announced plans for regional hubs in the Kingdom.
Aviation
Saudi Arabia Unveils $100 Billion Aviation Investments at WEF
At the World Economic Forum in Davos, Saudi Arabia’s General Authority of Civil Aviation (GACA) will showcase $100 billion in aviation opportunities. Investments include $50 billion for airport modernization, $40 billion for aircraft acquisition, and $10 billion for advanced logistics hubs. Key projects like King Salman International Airport in Riyadh aim to triple passenger traffic and expand to 250 destinations.
The Saudi pavilion will host discussions on innovation and public-private partnerships, emphasizing aviation’s role in transforming the Kingdom’s economy and modernizing its infrastructure.
Expansions
Tesla's Saudi Arabia Launch Set for This Quarter
Tesla will enter Saudi Arabia this quarter, marking its expansion into a major oil-producing nation. The company plans to set up pop-up stores, a showroom, and a service center. Additionally, it will introduce a supercharger network that will be open to other EV brands.
Saudi Arabia’s government aims for 30% of Riyadh’s vehicles to be electric by 2030, and with rising interest in EVs, Tesla’s arrival could reshape the market, despite limited charging infrastructure and low EV penetration at just 1% of car sales.
Honeywell's New Cybersecurity Center Enhances Saudi Arabia's Digital Transformation
Honeywell launched the Himaya Center in Jubail to provide localized cybersecurity solutions for energy, manufacturing, and utilities. The facility supports Vision 2030's emphasis on digitalization and automation.
With Saudi Arabia's cybersecurity market projected to reach $10.5 billion by 2032, the center strengthens the Kingdom's resilience to cyber threats while equipping nationals with advanced technical skills for a knowledge-based economy.
Nokia and Zain KSA Launch First Femtocell Solution in MEA Region
Nokia and Zain KSA introduced the Middle East and Africa’s first 4G/5G Femtocell solution to enhance indoor connectivity for enterprises. The Smart Nodes feature a cost-effective plug-and-play setup.
This partnership underscores Zain KSA's role in Saudi Arabia's digital transformation and Vision 2030 goals through sustainable, future-proof tech solutions.
UK and Saudi Arabia Forge Critical Minerals Partnership
On January 14, the UK announced a critical minerals partnership with Saudi Arabia during the Future Minerals Forum in Riyadh. The deal aims to secure long-term supplies of essential resources like copper, lithium, and nickel, vital for industries such as AI, clean energy, and electric vehicles.
This collaboration reflects the UK’s industrial strategy to boost economic growth and national security. For Saudi Arabia, the partnership aligns with Vision 2030 goals to leverage its $2.5 trillion untapped mineral resources and position itself as a global mining hub.
Mining
Saudi Arabia Unveils $100B Mining Investment Opportunities
On Jan. 17, 2025, Saudi Arabia announced nearly $100 billion worth of investment opportunities in mining. Deputy Minister Khalid Al-Mudaifer highlighted sectors like aluminum, titanium, and battery metals, supported by a robust strategy that has already attracted $20 billion in investments.
This aligns with Vision 2030's diversification goals, creating 133 mining companies, 100 of which were established in 2024. These efforts solidify Saudi Arabia’s position as a lucrative destination for global mining ventures.
Mining Innovation Studio Launched at FMF 2025
The Saudi Ministry of Industry and Mineral Resources introduced the Mining Innovation Studio at FMF 2025. This initiative aims to solve mining challenges using advanced technology and enhance collaboration between the public and private sectors.
The studio aligns with Vision 2030’s goals by promoting technological advancement in mining, bolstering economic growth, and fostering innovation. It cements Saudi Arabia’s position as a forward-thinking player in the global mining industry.
Saudi Arabia’s First Tinplate Production Plant Announced at FMF 2025
On January 19, 2025, Al Watania for Industries and China’s Donghexin Group unveiled plans for Saudi Arabia's first tinplate production facility during the Future Minerals Forum. The plant, with a capacity of 400,000 tons, will localize tinplate manufacturing, supporting domestic industries and reducing imports.
This joint venture supports Vision 2030’s goals by fostering industrial self-reliance, creating over 500 jobs, and enhancing the Kingdom's export capabilities. The facility, set to open by 2027, is a key step in diversifying the economy and boosting the manufacturing sector.
Saudi Mining Giant Ma’aden Launches $922M Third Phosphate Project
On Jan. 20, 2025, Saudi Arabia’s Ma’aden signed $922 million worth of contracts for its third phosphate fertilizer project, aligning with Vision 2030's focus on mining expansion. Deals include a $325M contract with China National Chemical Engineering and $363M with Sinopec Nanjing, boosting annual production capacity by 3 million tons.
This $6.4B project reflects Saudi Arabia's commitment to becoming a global mining hub. The mining sector aims to attract $170B by 2030, with Ma'aden playing a vital role by diversifying the economy and reducing oil dependence.
Trade & Investments
SURJ Sports Investment Partners with Enfield to Elevate Global Sports
Saudi Arabia’s SURJ Sports Investment Co. and US-based Enfield Investment Partners signed a strategic agreement to enhance investments in global sports. The partnership includes exploring opportunities in clubs, leagues, media rights, and infrastructure. Enfield plans a $4 billion global sports fund and will establish a Riyadh base to complement its US headquarters.
This collaboration advances Vision 2030 by fostering a robust sports ecosystem, increasing fan engagement, and boosting Saudi Arabia’s influence in global sports.
Saudi Arabia Announces 29 Entertainment Investment Opportunities
On Jan. 15, 2025, Saudi Arabia's General Entertainment Authority launched 29 investment projects across adventure parks, VR hubs, and e-gaming centers. These initiatives aim to attract investors via the "Invest Saudi" platform, bolstering tourism and leisure sectors.
This move is pivotal for Vision 2030’s economic diversification, creating jobs and enhancing quality of life. The projects position Saudi Arabia as a regional entertainment hub, supporting sustainable growth and global tourism appeal.
Technology
Google Pay to Launch in Saudi Arabia in 2025
On January 16, 2025, the Saudi Central Bank (SAMA) and Google signed an agreement to introduce Google Pay in Saudi Arabia by 2025. This collaboration integrates Google Pay with the national payment system, mada, promoting digital payments across the Kingdom.
The move aligns with Saudi Vision 2030's goals of reducing cash dependency and enhancing the country's fintech infrastructure. Google Pay will offer secure purchasing options in stores, apps, and online, helping position Saudi Arabia as a global leader in digital payments.
MICE (meetings, incentives, conferences, and events industry)
Future Minerals Forum Drives Global Mining Collaboration
On January 16, 2025, Saudi Arabia hosted the fourth edition of the Future Minerals Forum (FMF) in Riyadh, featuring over 250 speakers and 170 exhibitors. The forum focused on global mining collaborations, with key agreements including a joint venture between Aramco and Ma'aden to explore lithium extraction.
The event aligned with Saudi Vision 2030’s objective to diversify the economy and enhance the mining sector, fostering international partnerships and showcasing Saudi Arabia’s commitment to sustainable and innovative mineral extraction technologies.
Saudi Ministry of Education Showcases Innovations at BETT London 2025
At BETT London 2025, Saudi Arabia’s Ministry of Education aims to position the Kingdom as a global education leader, showcasing transformative developments to over 35,000 international visitors.
The Ministry’s pavilion features key entities like Tatweer Education Holding and the National eLearning Center, spotlighting flagship programs and international achievements such as winning 132 international medals in 2024. Interactive displays, including holograms and AR, showcase Saudi Arabia’s digital and educational innovations.
