Economy Saudi Arabia’s FDI inflows fall 21%, putting 2024 target in doubt Foreign direct investment into Saudi Arabia has fallen 21 percent year on year, according to the country’s statistics agency. In the third quarter of 2024, Saudi Arabia recorded SAR18 billion ($4.8 billion) of FDI inflows, compared to SAR22.6 billion in the third quarter of 2023, the General Authority for Statistics said. FDI inflows were also […] December 31, 2024
Giga-projects Neom’s air taxi partner Volocopter files for insolvency Volocopter, the German air taxi developer backed by Saudi Arabia’s Neom giga-project, has filed for insolvency, blaming difficulties in securing fresh funding. The company, whose high-profile backers include Mercedes-Benz, Honeywell, Daimler, Intel and Mitsui Sumitomo Insurance Group, said its operations would continue during the insolvency proceedings as it seeks new investors. The insolvency raises concerns […] December 31, 2024
Tourism Saudi hotel rates are flat, but tourists are staying longer Room rates in Saudi hotels are flat, but visitors to the kingdom are staying for longer, according to government figures. The average daily room rate was SAR725.50 ($193.50) in the second quarter of 2024, said the General Authority for Statistics. This was a dip of 0.4 percent year on year. Average room occupancy rates in […] December 24, 2024
Analysis Economy Why Saudi Arabia expects public debt to rise Saudi Arabia expects its public debt to steadily rise in the next three years, despite the massive financial reserves controlled by the central bank and the Public Investment Fund (PIF). Estimates by the Saudi Finance Ministry show that public debt will swell by around SAR375 billion ($100 billion) between the end of 2024 and the […] December 23, 2024
Opinion Finance My humble submission for the 2025 Pulitzer Prize Our editor-at-large reviews his year in columns and finds his triumphs abound December 20, 2024
Real Estate Seven awards $346m contract for new entertainment venue Saudi Arabian developer Seven is investing SAR1.3 billion ($346 million) to develop a new entertainment destination in the Jazan region. The development has been awarded to Riyadh-based Alfanar Projects. Located adjacent to the North Corniche Park along Jazan’s waterfront, it will span more than 60,000 sq m, with 73,000 sq m of built-up space. Designed […] December 18, 2024
Construction Diriyah begins second-phase work with $202m contract Diriyah Company, backed by Saudi Arabia’s Public Investment Fund, has awarded a SAR758.5 million ($202.2 million) contract to China Harbour Engineering Company for bulk excavation works in the second phase of the Diriyah giga-project. The excavation will span 6.3 sq km, covering much of the second phase of the 14 sq km development. More than 600 […] December 18, 2024
Tourism Saudi Arabia donates $52m for Paris Pompidou Centre renovation Saudi Arabia has agreed to donate €50 million ($52 million) towards the renovation of the Pompidou Centre, one of the landmark buildings in Paris. Officially named Centre National d’Art et de Culture Georges Pompidou, the building is closing next year for five years for renovation works. Famous for its inside-out architecture and colourful exterior, it […] December 12, 2024
Opinion Trade Kaizen meets Vision 2030: Japan’s expanding role in Gulf growth Trade with the GCC is already almost $100 billion in imports and exports December 12, 2024
Analysis Sustainability Red Sea coral to get extra protection from tourists Saudi Arabia has vowed to implement a series of measures to protect its Red Sea coral reef over the next five years as it pushes ahead with major tourism projects in the area. But experts have warned that Saudi coral remains at risk, even with major spending policies. According to the National Red Sea Sustainability […] December 12, 2024
Tourism PIF sets up company to develop Saudi hotel brands Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has launched Adeera, a hotel management company. The aim is to develop homegrown Saudi hotel brands and help the kingdom achieve its goal of attracting 150 million annual tourists. Adeera has been described as “a national champion” that will build new world-class Saudi hotel brands […] December 11, 2024
Analysis Economy Saudi penal code expected to be finalised next year A new Saudi penal code is taking longer than expected to complete as interested parties debate points relating to the death penalty and Islamic punishments. The proposed new legislation comes after the government introduced a new commercial code for businesses, revised family law and introduced a new law of evidence. These are seen to complement […] December 10, 2024
Infrastructure Parsons signs deal to improve Riyadh’s road network US company Parsons Corporation has won a contract to manage the development of Riyadh’s road network, as the Saudi capital city gears up to host Expo 2030 and the Fifa World Cup 2034. The $53-million three-year contract was awarded by the Royal Commission for Riyadh City (RCRC) to the New York Stock Exchange-listed company, which […] December 10, 2024
Analysis Business of Sport Saudi Arabia expands global reach with 900 sports deals Saudi Arabia’s vast number of sports sponsorship deals, now in excess of 900, are part of the kingdom’s strategy to diversify away from oil but their long-term success will not be known for some time to come, experts have said. Play the Game, a publicly funded sports ethics institute in Denmark, compiled a list of […] December 9, 2024
Economy PIF secures $10bn from French export credit agency Saudi Arabia’s Public Investment Fund has signed an agreement with Bpifrance Assurance Export, a French export credit agency, to seek funding for up to $10 billion. The five-year pact will focus on projects supporting Vision 2030 and is aligned with the fund’s strategy to grow build long-term global partnerships. The agreement will unlock new opportunities for French […] December 6, 2024
Agriculture Almarai to foray into food segments beyond dairy Almarai, the largest dairy producer in Saudi Arabia, will launch seafood and red meat facilities to help achieve the Vision 2030 goal of becoming food self-reliant. The company is building domestic production facilities for seafood and beef and lamb, which will become operational in two years, Bloomberg reported, citing CEO Abdullah Albader. In March, Almarai […] December 5, 2024
Opinion Transport Now on platform 1 … a stylish ride for Riyadh commuters Riyadh Metro's bright and spacious trains will have a huge impact on the city’s productivity December 2, 2024
Economy Saudi R&D growth fuelled by AI and green industries Research and development spending in Saudi Arabia increased by 17.4 percent in 2023, and the number of people employed in R&D rose significantly. Figures released by the General Authority for Statistics showed R&D spending of SAR22.6 billion ($6 billion) in 2023, up from SAR19.25 billion in 2022 and SAR14.5 billion in 2021. The total number […] December 2, 2024
Giga-projects Riyadh hopes to entice private sector to landmark projects Riyadh is courting private-sector investors to fuel its ambitious development agenda, offering significant opportunities but grappling with resistance from companies citing financial risks, a senior official said. The push to involve private firms highlights Saudi Arabia’s challenges as it transitions from government-led development to growth driven by the private sector, a pillar of its Vision […] November 29, 2024
Analysis Agriculture Down on the farm, Saudi Arabia has a $9.8bn hole to fill The Saudi government is stepping up efforts to attract investors to its agriculture sector after identifying a funding gap of SAR37 billion ($9.8 billion). The Ministry of Environment, Water and Agriculture says there are investment opportunities in plant and animal production, as well as fisheries, processing, manufacture of agricultural products and infrastructure development. Saudi Arabia […] November 28, 2024
Analysis Giga-projects Rise in major US law firms setting up in Saudi Arabia Attracted by the host of complex and potentially lucrative legal issues raised by Saudi Arabia’s development push, several of the largest law firms in the US are formally setting up shop in the kingdom, either directly or through mergers and acquisitions. Among those making the leap is Atlanta-based company King & Spalding. A spokesperson confirmed […] November 28, 2024
Analysis Real Estate Why Saudi real estate stocks are less popular than you might think Saudi Arabia has rising property prices, soaring homeownership rates and steady mortgage approvals – so you might think its real estate sector would be in high demand on the stock market. This is the case in Dubai, where Emaar Properties and its subsidiaries serve as a proxy for equity investors to gain exposure to the […] November 27, 2024
