Saudi Round-Up: Transformative Growth in Construction, Tourism, and Aviation
This week's roundup features updates from Riyadh's newly launched metro, the official bid for FIFA 2034 World Cup and more.
From 09 December to 16 December 2024
In this edition, we've compiled the most significant updates influencing the Saudi Arabian business scene within the last two weeks, focusing on key sectors like construction, tourism, and aviation.
General Business and Economy
Riyadh Metro Fully Operational With the Orange Line Launch
The Riyadh Metro network officially reached full operational capacity following the inauguration of the Orange Line, also known as the Al-Madinah Al-Munawwarah Axis.
The milestone marks the completion of the grand six-line project, a crucial step towards modernizing transport systems and promoting sustainable urban development as set out in Vision 2030.
67% Surge Recorded in Commercial Licenses in Saudi Arabia
Ministry of Commerce in Saudi Arabia revealed that 160,000 new commercial registrations were recorded in Q4 2024, raising the total to 1.6 million active registrations – highlighting an increase of 67% compared to Q3 2024.
Saudi Arabia Introduces New Laws to Streamline Business Registration and Trade Names
Saudi Arabia is introducing new regulations to streamline commercial registration and trade name processes, which are set to take effect in the coming weeks. The changes include a unified national registration system, simplified processes, and improved trade name protection, which will particularly benefit small businesses and women entrepreneurs.
Experts describe these regulations as a "game-changer" for entrepreneurship in Saudi Arabia, as they are expected to encourage entrepreneurship, attract more investment, and support the Kingdom's economic diversification efforts as outlined in Vision 2030.
GASTAT Reports Growth in Saudi Non-Oil Exports in October 2024
According to GASTAT's report, Saudi Arabia's non-oil exports surged by 12.7 percent in October 2024. National non-oil exports rose by 5.1 percent, and re-exports increased dramatically by 47.1 percent.
Despite this positive trend, total merchandise exports fell by 10.7% due to a 17.2% decline in oil exports, reducing oil's share of total exports from 78.3% to 72.6%. The Kingdom also saw a 3.8% decrease in imports and a 28.6% drop in the merchandise trade balance surplus year-on-year.
Saudi Arabia's Net FDI Rises by 37% in Q3 2024
Saudi Arabia experienced a 37% rise in net FDI inflows in Q3 2024, reaching SAR 16 billion ($4.26 billion), up from SAR 11.7 billion in Q2. This growth was primarily due to a significant 74 percent drop in FDI outflows, which reduced to SAR 2 billion from SAR 7.8 billion in Q3 2023.
The country aims to achieve $100 billion in FDI by 2030 as part of its National Investment Strategy.
Manufacturing & Industry
Saudi Industrial Sector Poised to Grow Continued Growth in 2025
Saudi Arabia's industrial sector is set for sustained growth in 2025, driven by a notable 18% increase in exports and a 23% rise in re-exports in 2024.
The Minister of Industry and Mineral Resources underscored the growing industrial collaboration between Saudi Arabia and Egypt, particularly in sectors like pharmaceuticals, automotive, mining, and chemicals, which is expected to foster more investment and industrial integration.
Saudi Arabia Allocates 5 Sites for Mining Complexes
Saudi Arabia has allocated five sites for establishing mining complexes in the Makkah and Asir regions as part of its efforts to boost foreign investments, enhance transparency, and support local communities.
The initiative, led by the Ministry of Industry and Mineral Resources, aims to establish mining as a pivotal component of the Kingdom’s industrial base.
Logistics
Logistics Centers Increase by 267% Amid Vision 2030 Push
As reported by the General Authority for Statistics, Saudi Arabia's logistics sector has experienced a 267% increase in facilities since 2021, with 22 hubs covering 34 million sq. meters in 2023. The Eastern Province leads in the number of centers, while Makkah occupies the largest area. Additionally, the sector includes 12,451 warehouses, mostly in Riyadh, with maritime transport being the primary cargo mover.
This expansion, coupled with giga-projects like NEOM and the National Industrial Development and Logistics Program, positions Saudi Arabia to become a global trade and logistics powerhouse, aiming to capture 55% of the GCC's logistics market.
Real Estate and Construction
Dar Global and Trump Organization Unveil SAR 2bn Tower in Jeddah
Dar Global and the Trump Organization have launched the Trump Tower Jeddah, a 47-floor, Rs. 2 billion mixed-use development designed to meet the growing demand for vibrant, modern living spaces.
The CEO of Dar Global emphasized Jeddah's transformation into a hub for high-rise, mixed-use developments. The executive VP of the Trump Organization highlighted the tower as a landmark project that will set a new standard in luxury living for the city.
Riyadh Development Signs SAR 3.5bn Deal for Mixed-Use Real Estate Fund
Riyadh Development Company has secured a Rs. 3.5 billion agreement to establish a real estate investment fund aimed at developing a mixed-use project in the URBAN WADI area, part of Riyadh’s Sports Boulevard.
The project will span 39,759 square meters and include over 207,000 square meters of built-up space. Jadwa Investment will manage the fund, with ownership details to be finalized after a project study. The deal is set for a seven-year term with a possible extension.
Vision 2030 Drives Construction Sector towards $91.36 Billion by 2029
Currently valued at $70.33 billion, Saudi Arabia's construction sector is expected to reach SAR342.6 billion ($91.36 billion) by 2029, fueled by Vision 2030 and substantial infrastructure investments. JLL reported at its Riyadh roundtable that current projects in the capital exceed $20 billion, highlighting Riyadh's role in economic diversification.
Despite some project delays, the long-term outlook remains strong. Cash flow is expected to peak by 2027, supported by government initiatives and increasing interest in public-private partnerships.
Saudi Arabia’s ROSHN Launches Al-Manar, First Residential Project in Makkah
Saudi Arabia's property developer ROSHN has launched the Al-Manar Community project, its first residential community in Makkah. Located within the Al-Haram Boundaries, just 20 minutes from Al-Masjid Al-Haram, the project spans over 21 million square meters and will offer more than 33,000 homes with 150 amenities, reflecting a blend of traditional and modern architecture.
ROSHN's acting CEO, Dr. Khalid Johar, emphasized the company's commitment to enhancing quality of life and reshaping Makkah's urban landscape while aligning with Vision 2030’s national development objectives.
Tourism and Entertainment
SEVEN Announces SAR 1.3bn Entertainment Hub in Jazan with World-Class Services
Saudi Entertainment Ventures (SEVEN), part of the Public Investment Fund’s Qiddiya, has unveiled a Rs. 1.3 billion entertainment project in Jazan, located by the North Corniche Park. Covering over 60,000 square meters with 73,000 square meters of built-up space, the project will feature a diverse range of attractions, including an indoor golf course, thrill rides, a state-of-the-art cinema, and an adventure center.
This development is part of SEVEN's broader SAR 50 billion investment in 21 entertainment destinations across Saudi Arabia.
Trade & Investments
Federation of Saudi Chambers Announces the Launch of 1st Joint Saudi-Kuwaiti Business Council
The Federation of Saudi Chambers has launched the first joint Saudi-Kuwaiti Business Council, aiming to enhance economic ties. In a meeting between Hassan bin Moejeb Al-Huwaizi, President of the Federation of Saudi Chambers, and Kuwait's ambassador to Saudi Arabia, they discussed investment opportunities and reviewed 2023's trade figures, which reached SR10 billion, with Saudi exports at SR8.4 billion and Kuwaiti imports at SR1.6 billion.
The initiative aims to foster comprehensive economic integration and capitalize on Saudi Arabia's growing investment appeal.
Saudi-Omani Forum Spotlights Investment in Education, Health, and Technology
Saudi Arabia and Oman are strengthening their economic ties through a partnership forum organized by the Oman Chamber of Commerce and Industry, where they explored cooperation opportunities in the health, education, technology, and consulting sectors. Trade between the nations exceeded 1 billion Omani riyals ($2.59 billion) in the first half of 2024, with Saudi investments in Oman increasing by over 50% since 2021.
The forum highlighted Oman's investment incentives and strategic location, while also presenting opportunities aligned with Oman Vision 2040 and Saudi Vision 2030.
Saudi Arabia's KHC Doubles Down on xAI with $400 Million Stake
Saudi Arabia's Kingdom Holding Company (KHC) has invested an additional SAR1.5 billion ($400 million) in Elon Musk's xAI Corporation, marking its second investment in the company after a similar contribution in the Series B round, totaling $800 million. The company, aiming to advance AI for scientific discovery, has attracted substantial investments from major players like NVIDIA, AMD, and regional investors including Kingdom Holdings and Qatar Investment Authority in this funding round.
This move not only solidified KHC's collaboration with Musk but also coincided with xAI's valuation jump to $45 billion.
Technology
Saudi Arabia Unveils Riyadh Declaration for Inclusive and Innovative AI
At the 19th session of the Internet Governance Forum (IGF Riyadh 2024), Saudi Arabia launched the Riyadh Declaration, emphasizing the role of artificial intelligence in digital accessibility, literacy, sustainability, and economic inclusion.
Backed by the HRH Crown Prince and Prime Minister, the declaration stresses the impact of AI on improving public health and addressing global challenges. Saudi Arabia’s proactive approach to AI, aligned with Vision 2030, aims to foster global cooperation and drive positive transformation for humanity and the planet.
Saudi Arabia Greenlights D360 Digital Bank to Begin Operations
The Saudi Central Bank (SAMA) has approved D360 Bank, one of three licensed digital banks in the Kingdom, to commence operations.
This move aligns with SAMA's efforts to enhance financial stability, foster competition, and drive economic growth. The launch highlights the Kingdom's commitment to innovation and regulatory excellence in its rapidly evolving banking sector.
Parkin and Batic Join Forces to Innovate Smart City Parking Solutions in Saudi Arabia
Parkin Company has signed a memorandum of understanding (MoU) with Batic Investments and Logistics Company to enhance smart city parking solutions across Saudi Arabia. This partnership will merge Parkin’s advanced technology with Batic’s local public parking network, managed by its subsidiary, Smart City Solutions Company (SCSC).
The two companies will explore opportunities to expand paid parking services in collaboration with municipalities, developers, and venue operators.
Aviation
Saudi Aviation Soared After Record Growth, Major Expansions
Saudi Arabia’s aviation sector recorded significant growth over the past 12 months. This growth is marked by a surge in passenger numbers, a fleet and capacity expansion with new jet acquisitions, and strategic global partnerships.
With continued focus on enhancing global connectivity and boosting its private sector, Saudi Arabia is well on its way to becoming a global aviation hub as part of its diversification strategy, Vision 2030.
King Fahd International Airport Achieves 12 Million Passengers in 2024, Reflecting Strong Growth
King Fahd International Airport (KFIA) in Dammam has hit a major milestone in 2024, welcoming 12 million passengers, a 15% growth from 2023. The airport also achieved an all-time high with over 99,000 flights, a 5% increase from the previous year. New daily records were set, with over 50,000 passengers on a single day.
KFIA’s growth is part of a national trend in Saudi Arabia’s aviation sector, which saw a 17% rise in passenger traffic across the country.
King Abdulaziz International Airport Welcomed 49.1 Million Passengers in 2024
The King Abdulaziz International Airport in the Saudi port city of Jeddah welcomes 49.1 million passengers in 2024, marking a 14% growth compared to the year prior.
The aviation sector has significantly maintained robust growth thanks to the government’s initiatives to expand the footprints of existing airports and build new ones to support the country’s aspirations to become a global tourist hub by 2030.
Business Expansions
Orient Insurance Launches Operations in Saudi Arabia
Orient Insurance, a division of Al-Futtaim, has launched in Saudi Arabia with offices in Al Ghadir, Riyadh, led by CEO Turki Alshahrani. With an A+ rating from S&P and a+ from AM Best, Orient will offer comprehensive insurance solutions, including general, life, medical, and motor insurance.
Vinsys Advances Middle East Presence with Second Saudi Office
Vinsys IT Services India Limited has opened another office in Saudi Arabia, marking their sixth in the Middle East. This expansion reflects their dedication to AI-driven digital solutions. Vinsys plans further expansion in Oman and aims to capitalize on Saudi Arabia's $100 billion Project Transcendence, which seeks to establish the nation as an AI leader.
With 25% of its revenue coming from the Middle East, Vinsys is positioning itself as a key player in digital transformation and talent upskilling services in the region.
