Saudi Round-Up: Italian Firms Eyeing Growing Saudi Opportunity
This week's roundup highlights significant strides in tourism, technology, and more.
General Business and Economy
Saudi Arabia's GDP Set for 4% Growth by 2025-2027
Saudi Arabia is projected to achieve an average GDP growth rate of 4% from 2025 to 2027, a significant leap from 0.8% in 2024, per S&P. The key driver of this transformation is the continued focus on non-oil expansion under Vision 2030, with an emphasis on sectors like construction, services, and tourism, whose contributions to the GDP rose to 4% in 2023.
Female workforce participation has stabilized at 36%, a leap from 17% in 1999. With robust bank capitalization and strategic Vision 2030 projects, lending growth is expected to surge by 10%, particularly in corporate and residential sectors. These advancements underscore Saudi Arabia’s trajectory toward a diversified, resilient economy.
Saudi Arabia’s Construction Growth to Hit 4.5%
Saudi Arabia’s construction sector is forecasted to grow 3.5% to 4.5% annually through 2026, fueled by infrastructure, housing, and tourism projects.
Bain & Company highlights Vision 2030's initiatives to enhance homeownership and transform the Kingdom into a leisure hub as the key drivers of this boom. This positions Saudi Arabia as a regional leader in sustainable development, aligning with global trends.
Saudi Arabia’s Non-Oil Exports See 19.7% Year-on-Year Growth
Saudi Arabia’s non-oil exports surged by 19.7% in November, reaching SR26.92 billion ($7.18 billion), according to the General Authority for Statistics (GASTAT). This marks significant progress toward the Kingdom's Vision 2030 goal of economic diversification, reducing reliance on oil revenue.
The growth was led by chemical products, which accounted for 24% of non-oil exports, followed by plastic and rubber products, making up 21.7%. Non-oil exports now contribute significantly to the economy, representing 52% of the gross domestic product as of November.
Italy and Saudi Arabia Sign $10 Billion Cooperation Agreements
Italy and Saudi Arabia have signed $10 billion in agreements across infrastructure, energy, defense, and tourism, marking a new phase of strategic partnership. The agreements include multiple government-level initiatives and MoUs involving public and private entities.
The Prime Minister of Italy expressed optimism about the partnership’s potential for growth during her meeting with Saudi's Crown Prince in AlUla. Meloni highlighted these agreements as a foundation for deeper, more effective bilateral cooperation between the two nations.
Saudi Arabia Plans Localisation for 269 Professions to Boost National Workforce
On January 23, 2025, Saudi Arabia’s Ministry of Human Resources and Social Development (HRSD) unveiled Saudisation plans targeting 269 professions, including dentistry, pharmacy, accounting, and engineering. The initiative, effective July 2025, mandates localization rates in establishments with specified employee thresholds, with phased increases over several years.
Notably, pharmacy localization will reach 65% in hospital operations, while dentistry salaries will start at a minimum of SR9,000 ($2,400). This aligns with Saudi Vision 2030’s objective of enhancing employment opportunities for citizens across sectors.
Saudi Arabia Accelerates AI-Driven Economic Transition Amid Vision 2030
On January 24, 2025, Saudi Arabia's Minister of Communications highlighted the Kingdom's leadership in AI-powered innovation at the World Economic Forum. Backed by Crown Prince Mohammed bin Salman, the Kingdom is building a sustainable economy through cutting-edge infrastructure, with over $10.6 billion invested in cloud computing by global giants like Amazon, Microsoft, and Google.
Notably, women's tech sector participation rose from 7% to 35% under Vision 2030. Saudi Arabia’s focus on bridging gaps in AI, including data and algorithms, positions the country as a hub for global digital collaboration, with advancements spanning healthcare, energy, and robotics.
Trade & Investments
Foreigners Can Now Invest in Makkah and Madinah Property Firms
Saudi Arabia’s Capital Market Authority has approved foreign investment in listed real estate companies operating in Makkah and Madinah. This groundbreaking move aims to attract foreign capital and boost funding for development projects in the holy cities.
Shares of key companies like Jabal Omar Development and Makkah Construction surged following the news. The initiative aligns with Vision 2030, enhancing the real estate sector’s appeal and opening new doors for international investors while supporting economic growth.
Saudi Arabia to Invest $600 Billion in U.S., Strengthening Ties
Saudi Crown Prince announced a $600 billion investment in the U.S. over four years during a call with the U.S. President on January 23, 2025. The leaders discussed enhancing economic partnerships, promoting Middle East stability, and Riyadh as a potential first foreign visit destination for the U.S. President’s term.
The massive investment reflects Saudi Arabia’s Vision 2030 strategy to diversify its economy while leveraging U.S. reforms for shared prosperity. The move builds on a history of substantial bilateral agreements, underscoring the Kingdom’s commitment to strengthening ties with the U.S. across various sectors.
Saudi Arabia Gears Up as a Global Trade Gateway with Trillion-Riyal Investments
At the World Economic Forum, Saudi officials shared their ambitious plans to transform the Kingdom into a global trade hub. Backed by Vision 2030, initiatives include massive investments in logistics and infrastructure like the Riyadh Metro, Jeddah Metro, new airports, expanded ports, and a GCC-connected railway. Panelists highlighted Saudi Arabia's thriving business-friendly environment, with companies like Agility expanding their operations, showcasing the Kingdom's appeal as a top destination for global investment.
Kingdom Holding Eyes Investment in TikTok
Saudi Arabia’s Kingdom Holding Co. (KHC) is considering investing in TikTok—if the company changes ownership. ByteDance, TikTok's parent company, faces regulatory scrutiny over data privacy, fueling discussions of a potential sale.
With stakes already in Elon Musk's ventures, KHC sees opportunities to expand TikTok’s reach. US officials are pushing for TikTok to transition to non-Chinese ownership, creating a unique chance for buyers like Musk or Oracle. KHC’s interest reflects its strategy of diversifying investments globally.
Technology
Saudi Arabia Achieves Record 178 Venture Capital Deals in 2024
Saudi Arabia set a new milestone with 178 venture capital (VC) deals in 2024, capturing 31% of the MENA region's total deals. The Saudi VC ecosystem saw a 34% increase in funding for deals under $100 million, reflecting growing support for early-stage startups. E-commerce dominated the scene, securing 33% of the total funding at $247 million, while Fintech led in deal numbers with an 18% share.
This growth underscores the Kingdom’s commitment to Vision 2030, focusing on fostering entrepreneurship and stimulating startup investments.
Ericsson Highlights Connectivity’s Role in Vision 2030 at LEAP 2025
At LEAP 2025, running February 9-12 in Riyadh, Ericsson will showcase advanced technologies under the theme "Step Forward: Discover the Unfolding Future." With over 40 years of partnerships in Saudi Arabia, Ericsson bolsters the Kingdom’s digital transformation by nurturing local talent and advancing connectivity.
Riyadh to Host Pioneering Centre for Cyber Economics
On January 24, 2025, Saudi Arabia's National Cybersecurity Authority and the World Economic Forum signed an agreement to establish a Centre for Cyber Economics (CCE) in Riyadh. Aimed at boosting global cyber resilience, the CCE will develop frameworks to mitigate cyber risks and foster economic stability, aligning with Vision 2030’s focus on digital growth.
By equipping decision-makers with robust models, the CCE underscores the role of cybersecurity as a catalyst for GDP growth, especially in developing nations, while fostering global collaborations for a safer digital economy.
Tourism
Saudi Arabia is Doubling Top Global Tourism Status by 2030
Saudi Arabia is doubling its tourism accommodation capacity by 2030, increasing the number of guest rooms to 800,000 to meet growing demand. The Kingdom's tourism sector is propelled by mega-projects like NEOM, a futuristic city by the Red Sea, and The Red Sea Project, which focuses on luxury and eco-tourism. Cultural landmarks like AlUla, rich in ancient Nabatean heritage, and Diriyah, the birthplace of Saudi Arabia, are also undergoing major restoration to provide distinctive cultural experiences for visitors.
MICE (meetings, incentives, conferences, and events industry)
Saudi Arabia to Host Regular WEF Meetings from 2026
Starting Spring 2026, Saudi Arabia will host regular World Economic Forum (WEF) global meetings, building on the success of the 2024 special meeting in Riyadh. The 2024 meeting brought together 700 leaders to discuss economic policies, energy transitions, and bridging North-South divides.
This partnership underscores Saudi Arabia’s commitment to fostering global collaboration and sustainable development through the WEF platform.
Saudi Arabia Hosts 2nd Global Labor Market Conference
Saudi Arabia will host the second Global Labor Market Conference (GLMC) on 29-30 January 2025 in Riyadh. The event will feature over 45 labor ministers and 200 global experts from 100+ countries.
