This week, we cover key advancements in sectors ranging from energy and infrastructure to technology and cultural investments.

From 19 August to 25 August 2024

General Business and Economy

Saudi Arabia Grants 57 Regional HQ Licenses in Q2, Marking 84% Growth

Saudi Arabia granted over 57 regional headquarters licenses to international firms in Q2 2024, marking an 84% year-on-year increase. This brings the total to 184 licenses issued in the first half of the year.

The Ministry of Investment highlighted that these efforts align with Vision 2030’s goals to diversify the economy. New tax incentives for multinationals securing relocation licenses further enhance Saudi Arabia’s attractiveness to global companies.

Saudi Arabia Awards SAR 118.8 Billion in Contracts for Q1 2024

In Q1 2024, Saudi Arabia awarded contracts worth SAR 118.8 billion, according to the US-Saudi Business Council. The contract’s value represents a significant uptick in government spending, particularly in the infrastructure, housing, and energy sectors.

The report highlights continued momentum in key sectors, reflecting the country’s commitment to large-scale projects and economic transformation.

Saudi Arabia's PIF Aims To Exceed $1T In Assets By 2025

Saudi Arabia's Public Investment Fund (PIF) aims to surpass $1 trillion in Assets Under Management (AuM) by 2025, with the current AuM reaching $925 billion as of July 2024.

In 2023, PIF reported a 29% surge in AuM to $765 billion and net cash returns of $11.2 billion for Saudi sector investments. The fund's global capital investment rose by 14%, with $156 billion invested internationally.

In addition, it was reported that PIF created over 763,000 jobs by Q1 2024, highlighting its massive impact on Saudi Arabia's economic diversification and global investment strategy.

Saudi Arabia’s Non-Oil Exports Rise 10.5% In Q2 2024, Re-Exported Goods Jump 39.1%

As a result of the Kingdom’s ongoing efforts to diversify the economy beyond oil, Saudi Arabia's non-oil exports grew by 10.5% in Q2 2024. Re-exported goods saw an even more significant increase, jumping 39.1% during the same period.

The sustained growth in the second quarter of 2024 is evidence of the success of Saudi Arabia's Vision 2030 initiatives, while the increase in re-exports highlights the Kingdom's growing role as a regional trade hub.

UAE and China Drive Saudi Arabia’s Non-Oil Exports in Q2: Gastat

According to GASTAT, the outgoing shipments to the UAE and China led to Saudi Arabia's 10.5% year-on-year increase in non-oil exports in the second quarter of 2024.

The sector recorded SR51.16 billion ($13.63 billion) in exports during this period, with SR15.07 billion sent to the UAE and SR7.08 billion to China. Other significant importers included Bahrain (SR5.79 billion), India (SR5.48 billion), Singapore (SR3.13 billion), Turkiye (SR2.93 billion), and Belgium (SR2.40 billion).

Saudi Arabia to Achieve FDI Target of $24 Billion in 2024: Standard Chartered

According to Standard Chartered, Saudi Arabia is well on track to achieve its objective of attracting foreign direct investments worth $24 billion this year as a result of a slew of new reforms.

This projected surge is driven by rising FDI inflow, enhanced private-sector participation, and increased public spending.

Aviation

Riyadh’s King Khalid Airport Tops Performance Rankings With Lowest Complaint Rate: Gaca

Riyadh’s King Khalid International Airport has topped the performance rankings with the lowest complaint rate, according to the General Authority of Civil Aviation (GACA).

This achievement highlights the airport's commitment to customer satisfaction and operational excellence. At the same time, the recognition aligns with Saudi Arabia's Vision 2030 objectives to elevate the Kingdom's aviation sector and bring even more visitors to Saudi Arabia.

Construction

Red Sea International Signs Deal with Webuild for NEOM

Red Sea International has signed a major contract with Italian construction giant Webuild to collaborate on the NEOM project in Saudi Arabia.

The partnership centers on providing essential infrastructure and construction services for NEOM and reinforces the commitment to developing it into a state-of-the-art city characterized by cutting-edge technology and sustainability.

Red Sea International Secures a $175 Million Contract for NEOM’s Trojena Dam Workers’ Camp

Red Sea International has secured a $175 million contract with NEOM to develop a workers’ camp for the Trojena Dam project—one of the most significant developments within NEOM.

The project involves constructing high-quality accommodations and facilities for the workforce, essential for advancing the dam’s development.

Education

Saudi Education Sector Sees 86% Annual Rise in Investment Licenses

The education sector in Saudi Arabia is witnessing a significant surge in interest and investment. Annual investment licenses have increased by a remarkable 86%, reflecting growing confidence in the Kingdom's educational landscape.

Vision 2030's focus on improving educational quality and attracting private investment has created a favorable environment for growth. The increase in licenses indicates a thriving sector with expanding opportunities, including new schools, universities, and training centers.

Energy and Sustainability

Saudi Arabia’s Red Sea Megaproject to Be Powered by the World’s Largest Clean Energy Grid

Saudi Arabia's ambitious Red Sea project is set to revolutionize sustainable development by harnessing the world's largest clean energy grid. Relying solely on renewable sources like solar and wind power, the grid will supply electricity across the expansive development.

Tech giant Huawei will provide the off-grid clean energy infrastructure, featuring a massive photovoltaic (PV) energy storage system. The project will showcase Huawei's expertise in grid stabilization, synchronization, and smart power plant solutions, incorporating IoT, big data, and AI.

Acwa Power Launches Commercial Operations at Saudi Arabia’s 700 MW AR Rass Solar Project

ACWA Power, a leading Saudi energy developer, has begun commercial operations at the massive 700 MW Ar Rass 1 solar project. With a capacity to power roughly 132,000 homes, the Ar Rass plant represents a substantial step towards a cleaner energy future for Saudi Arabia.

This milestone marks significant progress towards Saudi Arabia's renewable energy goals.

ACWA Power holds a 40.1% stake in AlRass Renewable Energy Company, emphasizing its leading role in the region's energy transition. The Ar Rass project is expected to contribute to ACWA Power's financial performance in the latter half of 2024.

KAUST, NEOM Partner to Boost Saudi Arabia’s Hydrogen Economy Plans

KAUST and NEOM have joined forces in a strategic partnership aimed at accelerating Saudi Arabia's hydrogen economy. By leveraging KAUST's research expertise and NEOM's innovative development, the partnership seeks to drive breakthroughs in hydrogen production and technology.

In addition to this, KAUST and NEOM’s alliance has the potential to strengthen Saudi Arabia's position in the emerging hydrogen market and bring the country closer to its goal of reducing carbon emissions.

Logistics

Private Sector Invests SAR 10 Billion in Logistics Zones at Saudi Ports

According to Transport and Logistics Services, Saudi Arabia's logistics sector is experiencing a surge in private-sector investment. In an interview, the minister announced that private companies have poured over SAR 10 billion into logistics zones at Saudi ports, spanning an area of six million square meters.

The minister's announcement came on the heels of the inauguration of the largest integrated logistics park for Maersk in the Middle East at Jeddah Islamic Port.

This project is one of 18 logistics initiatives undertaken by the Saudi Ports Authority (MAWANI) and Maersk. Three of these projects have already been completed, with the remaining set to be unveiled in the near future. Additionally, the Kingdom is anticipating the signing of 12 more agreements in the coming years.

Maritime

Saudi Arabia’s NEOM to Receive Fleet of Zero-Emission Electric Passenger Ships

Saudi Arabia's ambitious giga-project, NEOM, is set to make a significant leap in sustainable transportation. The futuristic city will receive a fleet of eight Swedish Candela P-12 electric hydrofoil passenger ships, starting in 2025.

The zero-emission electric hydrofoil ships offer several advantages, including frequent departures, high speeds, and low energy costs.

The introduction of these electric hydrofoil ships is expected to revolutionize waterborne transportation in NEOM.

Investments in Saudi Maritime Sector Exceeds $6.7 Billion

The Saudi Arabian maritime sector has witnessed a remarkable surge in investments, reaching a total of SR 25 billion ($6.66 billion) over the past four years. This achievement is a direct result of successful collaborations between the Saudi Ports Authority and private sector partners.

By leveraging the expertise and resources of both public and private organizations, the Kingdom has been able to implement large-scale projects that enhance its port infrastructure and capabilities.

Mining and Minerals

RCF, EVM Partner to Secure Investment for Saudi Arabia’s $906 Million Lithium Chemicals Plant Project

RCF and EVM have partnered up to secure investment for a $906 million lithium chemicals plant project in Saudi Arabia.

The plant will produce essential lithium chemicals used in electric vehicle batteries, aligning with global trends toward sustainable energy and electric mobility. This project is part of Saudi Arabia’s broader strategy to diversify its economy and develop its industrial base, contributing to Vision 2030's goals of economic transformation and technological advancement.

Saudi Arabia’s Najran Region Advances Vision 2030 Goals With a Mine Wealth Worth $38.64 Billion

With investments exceeding SAR4.81 billion ($1.28 billion) in 90 factories, Najran has become a hub for industrial activity. Additionally, the region has received industrial loans totaling SAR 880 million ($234.53 million), further fueling its economic growth.

The Najran region in Saudi Arabia is playing a pivotal role in advancing the Kingdom's Vision 2030 goals through its thriving industrial and mining sectors. With a wealth of mineral resources valued at SAR 145 billion ($38.64 billion), the region has witnessed significant growth in recent years.

Saudi Arabia Offering Over 120 Enablers to Mining Investors

Saudi Arabia's Ministry of Industry and Mineral Resources is actively working to attract investors to the Kingdom's thriving industry and mining sectors.

In a recent announcement, it was revealed that the ministry has developed over 120 enablers and incentives to support investors, making it easier for them to capitalize on the promising opportunities available in these sectors.

The minister said that these catalysts are designed to address the challenges investors may face, streamlining their investment journey. He also highlighted the role of the Industrial Fund in supporting the Najran region with a financing rate of up to 75% of the project size.

Najran Factories Export to Over 25 Countries, Boosting Saudi Industrial Growth

Factories in Saudi Arabia's southwestern Najran region have reached a big milestone by exporting their industrial and mineral products to over 25 countries.

Najran, renowned for its abundant mineral resources valued at SR 145 billion ($38.6 billion), including gold, silver, copper, and zinc, plays a pivotal role in Saudi Arabia's ambition to transform mining into a foundational pillar of its economy.

The ability of Najran's factories to penetrate international markets is a testament to the quality and competitiveness of their products.

Tourism

Saudi Welcomed 109.3 Million Tourists in 2023, Spending hit SAR 256 Billion

In 2023, Saudi Arabia welcomed a record 109.3 million tourists, which generated SAR 256 billion in spending.

The influx of visitors was driven by various cultural, religious, and entertainment attractions, as well as major events hosted throughout the year. For Saudi Arabia, the increase in tourism revenue highlights the sector's growing importance as a key economic driver in the country.

Technology

Saudi Arabia's Cybersecurity Market: A $3.55 Billion Powerhouse

Saudi Arabia's investment in cybersecurity products, solutions, and services witnessed a significant surge in 2023, reaching SR 13.3 billion ($3.55 billion).

The data released by the National Cybersecurity Authority highlighted the Kingdom's growing commitment to fortifying its cybersecurity infrastructure across both the public and private sectors. Government spending on cybersecurity accounted for SR4.1 billion, constituting 31% of the total expenditure. Meanwhile, the private sector contributed SR9.3 billion, representing 69% of the investment.

From groundbreaking AI developments in healthcare to massive investments in infrastructure and sustainable energy, Saudi Arabia continues to solidify its position as a global leader in innovation and economic diversification. Join us next week for another round-up of the week’s most salient business news as the public and private sectors work together to advance the Vision 2030 agenda.