Vision 2030 putting Saudi Arabia on the map for global investors, experts say

Special Vision 2030 putting Saudi Arabia on the map for global investors, experts say
Vision 2030 is continuing to bear fruit. Shutterstock
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Updated 12 April 2024
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Vision 2030 putting Saudi Arabia on the map for global investors, experts say

Vision 2030 putting Saudi Arabia on the map for global investors, experts say

JEDDAH: Saudi Arabia’s investment landscape is poised for a prosperous future, fueled by its equity and debt markets, a range of economic experts have told Arab News.

Senior figures from the Kingdom’s branch of investment bank J.P. Morgan, financial media outlet Bloomberg, and Saudi tourism funding firm ASFAR all spoke of the positive impact of the Vision 2030 economic diversification strategy. 

By focusing on the growth of various sectors, such as tourism, healthcare, and renewable energy, the Kingdom aims to reduce its economic reliance on fossil fuels, foster innovation, create jobs, and enhance citizens’ quality of life. 

This is already bearing fruit, according to Amine Fichtali, head of investment banking at J.P. Morgan Saudi Arabia.

He told Arab News that the Kingdom stood out as an exciting, compelling investment story for investors.

Fichtali added that Saudi Arabia is a top-down, long-term structural story underpinned by socio-economic transformation and the execution of several regulatory reforms that help to promote the Kingdom globally.

These sentiments were echoed by European Director of Bloomberg Constantin Cotzias. 

He believes that Saudi Arabia — with various reforms in its regulatory framework — is emerging as a favorite destination for international investors. 

Cotzias told Arab News that international investors want three things.

“They want liquidity, a framework of governance and regulation that works, and a balance of good supervision and innovation to be properly balanced. And then they want that framework to encourage them with investment and the growth in that investment,” he said, adding that Saudi Arabia is on the right path.

One of the initiatives to attract businesses to the Kingdom was to offer tax breaks and other incentives to companies that applied to move their regional headquarters to Riyadh before the end of 2023.

This helped encourage some 200 firms to make the shift, including Northern Trust, Bechtel and Pepsico from the US, and IHG Hotels and Resorts, PwC, and Deloitte from the UK.  

Google, Microsoft and IBM as well as Oracle, Pfizer and Amazon, also have regional headquarters in Riyadh.




Saudi Arabia’s Minister of Investment Khalid Al-Falih presented IBM executives with the regional HQ license in January. IBM

Tourism strategy 

Tourism is one of the key sectors driving the economic shift in the Kingdom, and Saudi Arabia has launched several initiatives to grow the industry.

These include the opening of historical sites, easing of visa restrictions, and the promotion of cultural heritage to attract international visitors. 

All these measures are expected to have huge economic returns and boost the tourism sector resulting in the creation of direct and indirect jobs.

The Kingdom is targeting more than 30 million pilgrims and 150 million tourists every year as part of its ambitious Vision 2030, having already met its original goal of 100 million visitors.

Speaking during a ministerial panel session at the Private Sector Forum held in Riyadh in February, Tourism Minister Ahmed Al-Khateeb said that the total number of hotel rooms in the Kingdom reached 280,000 in December.

“The quality of rooms and projects is excellent and will place the Kingdom among the best in the world. The target for 2030 is approximately 550,000 hotel rooms,” the minister informed.

Moreover, the Ministry of Tourism recently unveiled the Tourism Investment Enablers Program, aimed at streamlining business practices and bolstering investment appeal for both local and international investors.

As part of the program, the Ministry of Tourism, in collaboration with the Ministry of Investment, announced the Hospitality Sector Investment Enablers Initiative, aiming to increase and diversify tourism offerings and bolstering the capacity of hospitality facilities in targeted tourist destinations across the Kingdom.

This initiative aims to attract investments in the hospitality sector, with a value of approximately SR42 billion ($11.46 billion), projecting estimated revenues of about SR16 billion to the Kingdom’s gross domestic product by 2030, reported SPA.

Al-Khateeb stated: “We witnessed a 390 percent increase in demand for tourism activity licenses last year, marking the beginning of the Kingdom’s significant investment in the tourism sector over the next decade, providing opportunities and a conducive investment environment for both local and international investors.”

Meanwhile, ASFAR CEO Fahad bin Mushayt told Arab News many regulations have recently changed, and more are yet to come, including the facilitation of visa issuance, be it for business, religious, or tourism purposes.

ASFAR is a company owned by the Public Investment Fund to drive investments in tourist destinations and projects across the Kingdom. 

“The other target that the country has set as part of Vision 2030 is to drive the contribution of tourism to the gross domestic product from 3 percent to 10 percent by 2030,” he added.




Fahad bin Mushayt, CEO of ASFAR. (Supplied)

National industrial program 

The Saudi industrial sector is significantly contributing to economic diversification through various programs and initiatives.

One of these is the National Industrial Development and Logistics Program, which seeks to elevate the Kingdom into a premier industrial powerhouse and a worldwide logistics center.

NIDLP focuses on optimizing the mining and energy sectors’ value while harnessing the full potential of other local resources. 

Speaking at the NIDLP annual ceremony in December, Minister of Industry and Mineral Resources Bandar Alkhorayef explained that the program acquired five new renewable energy projects to ensure reasonable costs.  

He noted that the NIDLP program has significantly contributed about 35 percent of the non-oil GDP, making up to SR345 billion. 

Furthermore, NIDLP announced investments worth SR206 billion in non-oil exports and SR97 billion in nongovernmental funds.

Alkhorayef also highlighted the mining sector’s record revenues of over SR1.45 billion in 2023. 

Economic journalist Jamal Banoon told Arab News that diversifying the industrial base is a strategic challenge for Saudi Arabia, as it seeks to develop this sector sustainably and achieve economic diversification.

“One of the most important aspects is investing in infrastructure and research and development, while enhancing industrial infrastructure to accommodate investments and develop industrial projects, with the aim of improving production techniques and processes and enhancing efficiency,” he said.

Banoon added that, in recent years, Saudi Arabia has focused on emerging industries, including renewable energy, information and communications technology, robotics, and smart manufacturing. 

Consequently, this direction will drive it toward more alliances with international companies to transfer technologies and experiences, enhance competitiveness, and expand markets.

Furthermore, he added that Saudi Arabia has invested around $50 billion in infrastructure and research and development so far, especially in the field of emerging industries. It has also achieved significant growth in sectors such as aviation, space, and maritime industries.

Renewable energy drive 

Saudi Arabia has been actively pursuing renewable energy initiatives to diversify its energy mix and reduce its reliance on fossil fuels, with Vision 2030 outlining ambitious goals for the Kingdom's renewable energy sector.

The vision aims to increase the share of renewable power in the energy mix to 50 percent by 2030.

NEOM, for instance, is a flagship project aimed at developing a futuristic city powered entirely by renewable energy. It envisions a sustainable and environmentally friendly urban center with a focus on renewable energy and innovation.

Moreover, the Green Riyadh Initiative aims to transform the capital city into a more sustainable and environment-friendly metropolis. It includes plans for expanding green spaces, promoting energy efficiency, and implementing renewable energy projects.

Furthermore, Saudi Arabia has been investing in research and development of renewable energy technologies to drive innovation and enhance the efficiency of renewable power generation.

According to Banoon, Saudi Arabia is expected to become a leader in clean energy and achieve environmental sustainability.

“Within its plans and programs toward further economic liberalization and income source diversification, the Kingdom has invested in renewable energy sources. It aims to increase productivity from the current 300,000 megawatts through the Sakaka solar power plant and the Dumat Al-Jandal wind farm, expecting to reach 2 gigawatts of renewable resources,” he said, adding this project relies on generating electricity from traditional fuel sources.

Healthcare development 

Saudi Arabia’s efforts to diversify its economy through healthcare are commendable and strategically significant.

By focusing on the healthcare sector as a key driver of economic diversification, the Kingdom aims to enhance the quality of healthcare services, improve accessibility, and foster innovation and technological advancement within the industry.

Banoon commented that the healthcare sector diversification strategy is crucial for Saudi Arabia’s economic resilience and sustainability.

“Saudi Arabia’s investments in healthcare infrastructure are pivotal for attracting foreign investment and talent, driving economic growth in the long term,” the economist said, adding that investing in preventive healthcare not only improves public health outcomes but also reduces costs in the long run, contributing to economic stability.


Over 1,300 Saudi industrial licenses awarded in 2024, attracting $13.3bn investment, latest figures show

Over 1,300 Saudi industrial licenses awarded in 2024, attracting $13.3bn investment, latest figures show
Updated 27 February 2025
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Over 1,300 Saudi industrial licenses awarded in 2024, attracting $13.3bn investment, latest figures show

Over 1,300 Saudi industrial licenses awarded in 2024, attracting $13.3bn investment, latest figures show

JEDDAH: More than 44,000 new jobs are expected in Saudi Arabia after the Kingdom issued 1,346 industry licenses in 2024, an official report has revealed.

The Ministry of Industry and Mineral Resources announced that the permits have also helped attract investments worth over SR50 billion ($13.3 billion), driving economic growth and diversification.

The ministry added that the jobs figure is based on a report by its National Industrial and Mining Information Center, which analyzes key sector changes.

The issuance of the permits aligns with Saudi Arabia’s National Industrial Strategy, launched by Crown Prince Mohammed bin Salman in October 2022, that aims to drive sector growth and increase the number of factories in the Kingdom to about 36,000 by 2035.

The strategy focuses on 12 sub-sectors, targeting more than 800 investment opportunities worth SR1 trillion, striving toward tripling the industrial gross domestic product.

The analysis by the ministry also shows that 1,075 factories began production in 2024, with investments exceeding SR48 billion and a workforce of about 39,000 employees.

The issuance of permits aligns with the Kingdom’s National Industrial Development and Logistics Program, which was launched in 2019 to support the industrial sector and drive sustainable development. 

It also furthers the ministry’s goal of strengthening the industry and diversifying the economy under Vision 2030.

NIDLP aims to position Saudi Arabia as an international leader in energy, mining, logistics, and industry. Key components include improving regulations, investing in renewable energy, and boosting local content through initiatives like “Made in Saudi,” all supporting the goal of enhancing industrial capacity and global competitiveness.

In February 2024, the Ministry of Industry reported a 10 percent year-on-year increase in operational factories for 2023, totaling an investment of approximately SR1.5 trillion.

The body also revealed that 1,379 industrial licenses were issued in 2023, attracting investments exceeding SR81 billion. Additionally, production commenced in 1,058 factories during the same period, with total financial commitments reaching SR45 billion.


Closing Bell: Saudi main index ends week in red; Nomu gains

Closing Bell: Saudi main index ends week in red; Nomu gains
Updated 27 February 2025
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Closing Bell: Saudi main index ends week in red; Nomu gains

Closing Bell: Saudi main index ends week in red; Nomu gains

RIYADH: Saudi Arabia’s Tadawul All Share Index ended the week in the red, as it shed 120.75 points or 0.99 percent to close at 12,111.90 on Thursday.

The total trading turnover of the benchmark index was SR8.32 billion ($2.22 billion), with 69 stocks advancing and 172 retreating. 

Nomu, Saudi Arabia’s parallel market, gained 118.24 points to close at 31,404.47. 

The MSCI Tadawul Index, however, shed 17.71 points to 1,514.81. 

The best-performing stock on the main index was Alkhorayef Water and Power Technologies Co. The firm’s share price increased by 4.48 percent to SR163.20. 

The share price of Saudi Paper Manufacturing Co. rose by 2.65 percent to SR65.90.

Banan Real Estate Co. also saw its share price increasing by 2.56 percent to SR6.82. 

Conversely, the share price of Mobile Telecommunication Co. Saudi Arabia, also known as Zain KSA declined by 4.57 percent to SR10.86. 

On the announcements front, Arabian Pipes Co. reported a net profit of SR168.18 million in 2024, representing a rise of 27.3 percent compared to the previous year. 

In a Tadawul statement, the firm attributed the rise in profit to improved sales volumes and new project awards to support the company’s production levels.

The share price of Arabian Pipes Co. declined by 2.51 percent to SR11.64. 

The Company for Cooperative Insurance, also known as Tawuniya, said that it witnessed a net profit of SR1.02 billion in 2024, marking a 65.8 percent rise compared to 2023. 

According to a Tadawul statement, insurance revenues of the company rose by 19.7 percent year on year in 2024 reaching SR18.27 billion. 

Tawuniya’s share price increased by 1.83 percent to SR144.60. 

National Gas and Industrialization Co. revealed that its net profit for 2024 reached SR248.7 million, representing a rise of 9.41 percent compared to 2023. 

According to a Tadawul statement, the increase in net profits was driven by growth on higher gas sales which went up by SR365 million due to the rise in gas prices and volume.

National Gas and Industrialization Co.’s share price decreased by 1.52 percent to SR103.40. 

Conversely, the net profit of Gulf Insurance Group fell to SR98.19 million in 2024, representing a decline of 23.6 percent compared to the previous year. 

The group’s share price dropped by 1.54 percent to SR28.85.


Saudi Arabia strengthens halal leadership with 13 new deals at Makkah forum 

Saudi Arabia strengthens halal leadership with 13 new deals at Makkah forum 
Updated 27 February 2025
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Saudi Arabia strengthens halal leadership with 13 new deals at Makkah forum 

Saudi Arabia strengthens halal leadership with 13 new deals at Makkah forum 

JEDDAH: Saudi Arabia saw the signing of 13 agreements at a special event in Makkah, boosting its halal industry leadership by expanding investment, strengthening certification standards, and enhancing food production.

Announced during the second edition of the Makkah Halal Forum, held from Feb. 25 to 27, the deals included partnerships between the Halal Products Development Co., a subsidiary of the Public Investment Fund, and Al-Watania Poultry, Golden Chicken Farms Co., and Ajlan & Bros Holding Group.

The Islamic Chamber of Commerce and Development also signed agreements with Brazil’s Fambras Halal, Thailand’s Halal Science Center, and Slovenia’s KulinWorld to enhance global certification and research in the industry.

Additionally, the Saudi Authority for Industrial Cities and Technology Zones, or MODON, secured deals with First Milling Co. and Ghitha Alzad Food Industries to strengthen halal food production infrastructure. 

Held under the theme “Sustainable Development through Halal” and inaugurated by Saudi Commerce Minister Majid Al-Kassabi, the forum aligns with the Kingdom’s Vision 2030 goals of economic diversification and private sector expansion. 

As the birthplace of Islam, the Kingdom has long been a trusted source of halal products and is leveraging its influence to lead the $7 trillion global halal market, which is projected to reach $10 trillion by 2030. 

Muslim consumer spending on halal-certified products is estimated at $207 billion, according to the American Halal Foundation, underscoring the sector’s economic potential. 

With participation from over 150 companies across 15 countries, the forum has become a key platform for driving innovation, enhancing standards, and reinforcing Saudi Arabia’s role as a central hub in the international halal economy. 

The agreements signed during the forum support business development and economic growth across various sectors. They establish a framework for halal sciences, contribute to the advancement of scientific and educational materials, and reinforce the forum’s global standing. 

Serving as a global gathering for industry leaders, the forum facilitated collaboration on innovations and best practices in the halal sector, with a focus on sustainability and development. As a platform for business partnerships and investment, it reinforced Saudi Arabia’s position in the global halal economy.


Madinah’s economy expands as logistics, tourism, and tech sectors grow 

Madinah’s economy expands as logistics, tourism, and tech sectors grow 
Updated 27 February 2025
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Madinah’s economy expands as logistics, tourism, and tech sectors grow 

Madinah’s economy expands as logistics, tourism, and tech sectors grow 
  • Commercial activity expands as business licenses reached 86,000 in 2024

RIYADH: Saudi Arabia’s Madinah region saw its logistics services sector grow 54 percent year on year in 2024, underscoring the city’s growing role as a transport and trade hub, according to the latest official data. 

Figures from the Ministry of Commerce also revealed that the region’s commercial activity expanded 37 percent from 2018 to 2024, with registered business licenses reaching 86,000 last year.   

Madinah’s rise as a logistics center is fueled by its robust infrastructure, including three airports, an extensive highway network connecting five regions, the Haramain High-Speed Railway, and two major ports — one commercial and one industrial. These facilities supported nearly $1.1 billion in non-oil exports and over $1.4 billion in imports in 2021. 

The region’s broader economy also experienced strong growth, with the hotel sector reporting a 42 percent annual increase in 2024, while tourism-related businesses, including organized trip activities, grew by 33 percent.  

The technology sector also expanded, with computer programming services growing 28 percent, while date drying, packaging, and manufacturing climbed 14 percent year on year.   

This comes as consumer spending in the region continues to rise, with point-of-sale transactions reaching SR536.89 million ($143 million) in the week ending Feb. 22, signaling steady retail growth and stable inflation. 

The Madinah region has maintained strong demand growth from 2020 to 2024, underscoring its investment appeal, the Saudi Press Agency reported. 

The region’s development aligns with Saudi Arabia’s Vision 2030, which aims to transform Madinah into a key investment and cultural hub.  

In February, the Madinah Region Development Authority reported improvements in quality of life, economic growth, and cultural initiatives. The region ranked 88th globally in Euromonitor International’s 2024 Top 100 City Destinations Index and seventh in the Tourism Performance Index, with 3,200 locations registered in the National Urban Heritage Register. 

Saudi Arabia has also eased restrictions on foreign investments in real estate, allowing international investors to buy shares in Saudi-listed firms that own property in Makkah and Madinah, a move expected to drive further capital inflows into the region. 

Madinah’s digital transformation efforts are also gaining traction, with the Al-Madinah Smart City initiative climbing 11 places in the International Institute for Management Development’s Smart City Index, ranking 74th globally, up from 85th in 2023. 


Arab stock markets extend gains, aligning with global rebound: AMF report

Arab stock markets extend gains, aligning with global rebound: AMF report
Updated 27 February 2025
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Arab stock markets extend gains, aligning with global rebound: AMF report

Arab stock markets extend gains, aligning with global rebound: AMF report

RIYADH: Arab stock markets recorded a positive performance in January for the second consecutive month, mirroring the upward trajectory of global exchanges.

According to the latest Arab Monetary Fund report, the gains came after markets worldwide rebounded from the declines observed in December, driven by improving investor sentiment, monetary policy adjustments, and strong corporate earnings in key industries.

In January, the global uptrend was reflected in Arab stock markets, with major indices such as MSCI and the UK’s FTSE posting strong gains.

The report stated that the composite index for Arab financial markets increased by 0.97 percent at the end of January, reflecting broad-based improvements across regional exchanges. 

The positive sentiment was fueled by a combination of factors, including rising corporate profits, enhanced liquidity conditions, and policy measures aimed at strengthening market stability and attracting foreign investment.

Regional market performance

Casablanca’s stock exchange emerged as the top performer among Arab markets in January, with its index surging by 9.98 percent. This was followed by strong performances on the Kuwaiti and Amman bourses, which recorded gains of 5.73 percent and 5.11 percent, respectively. 

The Saudi, Tunisian, and Abu Dhabi markets also posted solid gains, rising by 3.15 percent, 2.69 percent, and 1.77 percent, respectively. 

Meanwhile, Egypt, Qatar, Palestine, and Dubai registered more modest gains of less than 1 percent, respectively.

Three Arab stock exchanges experienced declines. Bahrain Bourse saw a 5.36 percent fall, Iraq Stock Exchange dropped by 1.8 percent, while Muscat Securities Market fell by 0.73 percent.

Key drivers of market gains

One of the primary factors driving the positive performance in Arab stock markets was the robust financial results posted by listed companies, particularly in the banking sector. 

Many financial institutions across the region reported strong earnings for the end of 2024, which significantly boosted investor confidence and contributed to the stock market rally.

Global and regional central banks played a crucial role in supporting financial markets by maintaining accommodative monetary policies. Several central banks in the Arab region, including those in Saudi Arabia, the UAE, and Qatar, reduced interest rates to stimulate economic activity. 

Similarly, major international central banks, such as the US Federal Reserve and the European Central Bank, signaled a shift toward looser monetary policy to counter slowing economic growth and ease inflationary pressures. These moves improved market liquidity and encouraged risk-taking among investors.

In an effort to attract foreign investment, Arab stock exchanges intensified their market development initiatives. Many bourses focused on improving governance, enhancing transparency, and simplifying regulatory processes to facilitate foreign capital inflows. 

Structural reforms, such as digitalization of trading platforms, improved disclosure requirements, and the introduction of new financial instruments, contributed to increasing market attractiveness.

Strong performances in key sectors like banking, real estate, telecommunications, pharmaceuticals, and technology helped drive growth in Arab stock markets.

The surge in these industries contributed to broad-based market gains. Additionally, the insurance and consumer goods sectors saw increased activity, reflecting growing investor confidence in long-term economic stability.

Trading activity and market liquidity

Despite overall market gains, trading values across Arab stock exchanges recorded a mixed performance in January. The total value of traded stocks declined slightly by 2.96 percent compared to December. 

However, some markets showed strong growth in trading activity. The Palestinian market recorded the highest surge in traded value, jumping by 261.4 percent. 

The Kuwaiti and Amman stock exchanges followed with gains of 31.8 percent and 20.6 percent, respectively. 

The Saudi, Qatari, and Abu Dhabi markets also registered healthy increases in trading value, ranging from 12.3 percent to 19.6 percent.

Conversely, markets in Dubai and Egypt experienced declines, with decreases of 2.6 percent and 23.3 percent. The market in Muscat also fell 32.8 percent.

The largest drop was observed in the Tunisian market, which saw a 71.7 percent decline in traded value.

The total market capitalization of Arab financial markets increased by 0.60 percent at the end of January, adding approximately $26.28 billion in value compared to the previous month. 

The biggest contributors to this growth were Bourse de Casablanca, which rose by 10.17 percent, followed by Amman Stock Exchange with a gain of 7.55 percent. 

Kuwait Stock Exchange recorded an increase of 5.73 percent, while Tunis’s stock market and the Egyptian bourse saw growth of 2.93 percent and 2.76 percent, respectively.

On the other hand, Iraq’s market capitalization dropped by 2.42 percent, Beirut’s by 5.01 percent, and Bahrain’s by 5.36 percent.

Arab markets in a global context

Arab stock markets followed the global trend, where major indices posted strong gains in January. 

The MSCI Latin America Index rose by 9.37 percent, while the MSCI Europe Index increased by 8.42 percent. 

In France, the CAC 40 advanced by 7.72 percent, and in the UK, the FTSE 100 gained 6.13 percent. 

The Dow Jones saw gains of 4.70 percent, while Nasdaq rose by 1.64 percent and the S&P 500 increased by 2.70 percent.

In contrast, Japan’s Nikkei index declined by 0.81 percent, while the MSCI Asia Index showed marginal growth of 0.60 percent. 

Additionally, the MSCI Emerging Markets Index for the Arab region increased by 3.21 percent, highlighting the region's resilience in a recovering global economic environment.

Interest rate developments and economic outlook

Central banks worldwide adjusted their monetary policies in response to changing economic conditions. 

The US Federal Reserve held its interest rate steady at 4.50 percent to 4.25 percent following three consecutive cuts in 2024, reflecting a cautious approach to inflation management. 

Meanwhile, the European Central Bank and the Bank of China reduced their rates to support economic growth. 

In the Arab region, interest rate cuts in Saudi Arabia to 5 percent, the UAE to 4.4 percent, and Qatar to 5.1 percent, helped enhance liquidity and investor sentiment.