Saudi Round-Up: Non-oil Sector Growth & Increased Saudi-Italy Synergies
Get the latest insights on strategic announcements and game-changing partnerships that unfolded in the Saudi business landscape last week.
From 03 March to 10 March 2025
General Business and Economy
Non-Profit Sector Hits Record $26.7 Billion Contribution
Saudi's non-profit sector reached a historic milestone, contributing $26.7 billion to the economy and accounting for 3.3% of the GDP. Education and research organizations led in revenue, while healthcare entities recorded the highest spending.
The sector is on track to achieve Vision 2030’s 5% GDP target two years ahead of schedule. Government-backed digital donation platforms and increased community participation played key roles, with nearly half of Saudi citizens donating in 2024.
Saudi Launches Investment Marketing Authority to Boost Foreign Investment
Saudi Arabia has approved the formation of the Investment Marketing Authority to enhance its investment landscape and attract foreign capital. The new body will focus on strategic sectors like technology, tourism, and renewable energy, aligning with Vision 2030’s goal of economic diversification.
The authority will market investment opportunities globally, highlighting Saudi Arabia’s competitive advantages.
Non-Oil Job Growth Hits Second-Highest Level in a Decade
The non-oil private sector saw strong job creation in February, driven by increased customer demand and business expansion. Employment levels remained high, particularly in manufacturing and services.
New export businesses surged due to strong international demand, while firms expanded workforces to meet rising workloads.
Real Estate Sector Doubles Contribution to GDP
The real estate sector contributed 12% to the GDP in 2024, up from 5.9% in 2023. The growth was driven by regulatory reforms, with over 20 new laws introduced to attract investment. The sector saw 192 new real estate project licenses and a 59% increase in construction permits in Q4.
A major shift came with Mecca and Medina opening to foreign investment through listed developers, boosting liquidity.
Aviation
Air Connectivity Expanded with Direct Flights from Stuttgart to Jeddah
The Saudi Air Connectivity Program (ACP), in collaboration with the Saudi Tourism Authority (STA) and Jeddah Airports Company (JEDCO), is launching direct flights from Stuttgart to Jeddah. Set to begin in late 2025, the twice-weekly service on an A321neo aircraft aims to strengthen air links between Saudi Arabia, Europe, and the U.S.
ACP sees this as a key step in developing air routes and fostering long-term partnerships, including collaborations with Eurowings, to further integrate Saudi Arabia into global travel networks.
Banking & Finance
Saudi PIF Signs $3 Billion Deal with Italian Export Credit Agency
The Public Investment Fund (PIF) has signed a memorandum of understanding with SACE, Italy’s export credit agency, to strengthen financial collaboration.
The deal includes up to $3 billion in additional financing for PIF-led projects, focusing on strategic sectors and enhancing cooperation between Saudi and Italian businesses.
Construction
Riyadh to Host 100 New Commercial Towers
Developers are building nearly 100 high-rise commercial towers in Riyadh, costing $27 billion. These towers, in their final construction stages, will significantly boost the city’s business landscape, attracting multinational companies and investors. Riyadh now ranks third in MENA for skyscrapers, already housing 25 tall buildings.
Hospitality
Makkah’s Hospitality Sector Sees 80% Growth
The Ministry of Tourism announced an 80% increase in licensed hospitality facilities in Makkah, surpassing 1,000 by the end of 2024. This marks the highest number of licensed accommodations in the Kingdom, driven by efforts to enhance service quality and regulatory compliance.
Regular inspections ensure adherence to licensing standards, ensuring a seamless experience for visitors and Umrah pilgrims.
Logistics & Maritime
Jeddah Launches First-Ever Sea Taxi Service
Jeddah launched its first sea taxis, connecting the Jeddah Yacht Club, Historic District, and Sharm Obhur. Operating from 3:30 PM to 1:30 AM during Ramadan, fares range from $6.70 to $13.35, with free rides for children. The service aims to improve urban transport and boost maritime tourism.
Initially, two boats with capacities of 94 and 55 passengers will be in use, with designated spaces for people with disabilities. Future plans include 20 water taxi stations accommodating 29,000 daily passengers, significantly easing traffic congestion and integrating with Jeddah’s public transport system.
Manufacturing & Industry
Saudi Refinery Project Focuses on Efficiency and Sustainability
Satorp, a joint venture between Saudi Aramco and TotalEnergies, awarded a three-year engineering services contract to Maire’s Nextchem Tech. The project targets efficiency improvements and emission reductions at the Sulfur Recovery Complex in Jubail, which includes sulfur recovery, amine regeneration, and sour water stripping units.
The contract covers operational troubleshooting, energy efficiency enhancements, and investment recommendations.
Sports
Saudi Launches Major Boxing Promotion Led by Dana White
The General Entertainment Authority (GEA) has announced a new boxing promotion in partnership with TKO Group Holdings and Sela Company. The initiative will provide a top-tier platform for elite and rising boxers, positioning the Kingdom as a global hub for combat sports. UFC’s Dana White and WWE’s Nick Khan will lead the venture.
TKO will oversee daily operations, while Sela, a PIF-backed entity, brings expertise from hosting major events. The collaboration aims to modernize boxing and elevate its status worldwide.
Trade & Investments
PIF and Goldman Sachs Join Forces to Expand Investments in Saudi Arabia
Saudi Arabia’s Public Investment Fund (PIF) and Goldman Sachs Asset Management have signed an MoU to boost private credit and public equity strategies across Saudi Arabia and the GCC. PIF will act as a strategic anchor investor, aiming to attract global capital and expertise while strengthening the local asset management industry.
The partnership focuses on direct lending and equity investments in companies operating in the GCC, reinforcing Saudi Arabia’s capital markets. It also facilitates knowledge-sharing and supports Vision 2030’s goal of positioning the Kingdom as a global investment hub.
Goldman Sachs recently expanded into Riyadh.
Technology
SDAIA Strengthens Saudi Women’s Role in AI
The Saudi Data and Artificial Intelligence Authority (SDAIA) is increasing Saudi women’s participation in AI and data fields through leadership roles, technical positions, and pioneering projects. This initiative fosters a work environment that promotes sustainability, innovation, and national digital transformation.
By appointing female data scientists and AI engineers, SDAIA aligns with Saudi Arabia’s broader goal of creating a knowledge-based economy. This effort not only enhances workforce diversity but also ensures that women play a key role in AI development, decision-making, and regulatory advancements.
Saudi Telecom Expands Data Streaming with Confluent
Saudi sccc by stc has partnered with US-based Confluent to enhance real-time data streaming in Saudi Arabia. As a managed service provider, sccc will integrate Confluent’s platform with its cloud solutions, enabling businesses in finance, retail, healthcare, and public services to gain instant insights and improve efficiency.
By leveraging real-time data, the partnership aims to accelerate digital transformation, improve customer engagement, and strengthen Saudi Arabia’s position as a global tech hub.
MICE (meetings, incentives, conferences, and events industry)
FHS Saudi Arabia Launches NextGen Investment Forum to Shape the Future of Hospitality
The Future Hospitality Summit (FHS) Saudi Arabia will host the first-ever NextGen Investment Forum to address key challenges in hospitality education, training, and talent retention. The forum, set for May 11, will bring together over 30 speakers and industry stakeholders to drive solution-oriented discussions and shape the future of hospitality education and workforce development.
The forum will focus on workforce readiness, bridging academia-industry gaps, investment in education, and increasing women’s participation, which currently stands at just 8%.
