Qiddiya awards $1bn contract for Prince Mohammed bin Salman Stadium to Saudi-Spanish consortium

Qiddiya awards $1bn contract for Prince Mohammed bin Salman Stadium to Saudi-Spanish consortium
The new stadium is likely to host games during the Kingdom’s 2034 FIFA World Cup. File/@spagov
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Updated 03 October 2024
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Qiddiya awards $1bn contract for Prince Mohammed bin Salman Stadium to Saudi-Spanish consortium

Qiddiya awards $1bn contract for Prince Mohammed bin Salman Stadium to Saudi-Spanish consortium

JEDDAH: Saudi Arabia’s project developer Qiddiya Investment Co. has awarded a Spanish consortium an SR4 billion ($1 billion) contract for the Prince Mohammed bin Salman Stadium initiative. 

The agreement was granted to the company FCC Construction and the Kingdom’s leading contracting firm Nesma & Partners for the building of the sports facility at the project on the outskirts of Riyadh.

With the US-based architect Populous as the undertakings consultant, the contract covers the construction of a multipurpose stadium on top of the 200-meter-high Tuwaiq cliff in the new sports and entertainment district within the city, according to media outlet MEED.

In July, Saudi Arabia submitted its official bid to host the 2034 FIFA World Cup at a ceremony organized by the Federation Internationale de Football Association, known as FIFA, in Paris, France. The official announcement of the host nation for the tournament will be made on Dec. 11.

The new project marks a significant milestone in the realization of Vision 2030, aimed at enhancing tourism, generating thousands of jobs, boosting the national economy, and increasing annual visitors to the Kingdom by 1.8 million football fans and an additional six million drawn to non-football events.

The stadium’s design allows for multipurpose use, with the entire pitch capable of being transformed within hours to host various sporting and entertainment events, including rugby, boxing, and mixed martial arts, as well as esports championships, exhibitions, and concerts.

The facility will be built in the heart of Qiddiya, just 40 minutes from Riyadh, atop one of Tuwaiq Mountain’s peaks at an elevation of 200 meters, according to the Saudi Press Agency.

With a seating capacity of over 45,000, it is expected to attract international visitors with its innovative design and unique technological offerings, creating an immersive experience for guests. 

Among its features are retractable flooring, a foldable roof, and a movable upper wall that can open, revealing views of the lower city, home to key attractions like Six Flags Qiddiya and the water park.

The sports facility’s exterior frame, selected interior walls, and roof will also be covered with 1.5 km display screens. 

A standout feature of the stadium is its advanced climate control system, which will enable year-round events without excessive energy consumption. This will be achieved through an eco-friendly cooling lake located beneath the stadium, where rainwater collected from the surrounding area will be pumped into an ice wall to cool the air entering the central conditioning system.

Earlier in 2024, the investment company announced the launch of the stadium, which is set to be one of the world’s most prominent. 

The announcement followed Crown Prince Mohammed bin Salman’s unveiling of Qiddiya’s urban master plan and global brand, positioning it to become a leading destination for entertainment, sports, and culture globally.


Riyadh, Jakarta hold talks to strengthen ties in mining sector

Riyadh, Jakarta hold talks to strengthen ties in mining sector
Updated 1 min 5 sec ago
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Riyadh, Jakarta hold talks to strengthen ties in mining sector

Riyadh, Jakarta hold talks to strengthen ties in mining sector

JEDDAH: Economic ties between Saudi Arabia and Indonesia are set to deepen as the Kingdom’s top minister visits Jakarta to explore investment opportunities and enhance cooperation in the mining and industrial sectors. 

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef is leading a high-level delegation to Indonesia from April 15 to 17, aiming to strengthen bilateral business relations and forge strategic partnerships across mining, food, pharmaceuticals, and auto parts industries, the Saudi Press Agency reported. 

This comes as the Kingdom aims to position mining as a foundational pillar of its industrial economy, with its mineral wealth estimated at SR9.4 trillion ($2.4 trillion). 

In a post on his X account, Alkhorayef said: “At the start of my visit to Indonesia, I met with the Special Presidential Envoy for Energy and Environmental Affairs to discuss cooperation in mining and explore opportunities to strengthen bilateral partnerships.”  

His meeting with Special Envoy Hashim Djojohadikusumo focused on enhancing collaboration in the mining sector. The Indonesian official highlighted promising prospects in the production of strategic minerals, including nickel and copper, according to a statement from the Saudi Ministry of Industry. 

Alkhorayef emphasized the alignment of Saudi-Indonesian priorities, citing the mining sector’s key role in Saudi Arabia’s economic diversification under Vision 2030. 

The Saudi minister also held a meeting with Industry Minister Agus Gumiwang Kartasasmita and Minister of State-Owned Enterprises Erick Thohir.

“During the two meetings, we discussed ways to enhance industrial cooperation and expand partnerships between private sector entities in the two countries, in addition to reviewing investment opportunities and the Kingdom’s goals to become an industrial and logistics hub in the region.” Alkhorayef said.

As part of his trip, Alkhorayef also visited PT Vale Indonesia Tbk and Mining Industry Indonesia, or MIND ID, to learn about their pioneering efforts in mineral exploration and mining. 

During these visits, he held discussions with senior executives on ways to boost cooperation in strategic minerals — particularly nickel, cobalt, and copper — while promoting sustainable practices and outlining Saudi Arabia’s National Mining Strategy and investor-friendly ecosystem. 

The talks also focused on strengthening private sector collaboration, attracting investment, and sharing expertise in critical minerals essential to the global energy transition. 

Technology and innovation were highlighted as key drivers of growth in the mining sector, aligned with broader sustainable development goals. 

At MIND ID, both sides discussed best practices in mining operations and explored potential partnerships to develop strategic minerals sustainably. 

Conversations with PT Vale underscored the importance of innovation and technology in shaping the future of mining. 

Alkhorayef noted that Indonesia’s mining achievements align closely with Saudi Arabia’s mining strategy, which aims to unlock domestic mineral resources, localize value chains, and position the Kingdom as a global hub for mining investment and innovation. 

Indonesia ranks among the world’s top producers of strategic minerals, including nickel, cobalt, copper, tin, and gold. In 2023, the mining sector contributed 11.9 percent to the country’s gross domestic product, underscoring its critical role in the national economy. 

The country continues to attract international investment focused on developing downstream industries and reinforcing global mineral supply chains — goals that mirror Saudi Arabia’s own strategy to localize value chains and maximize its mineral wealth, the ministry’s statement added. 


Saudi Arabia set to dominate $8bn feeder shipping market by 2030

Saudi Arabia set to dominate $8bn feeder shipping market by 2030
Updated 18 min 57 sec ago
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Saudi Arabia set to dominate $8bn feeder shipping market by 2030

Saudi Arabia set to dominate $8bn feeder shipping market by 2030

RIYADH: Saudi Arabia is on track to become a dominant force in the $8 billion feeder shipping market across the Middle East, Eastern Africa, Turkiye, and South Asia by 2030, according to new research.

The global feeder shipping industry is expected to reach a staggering $451 billion by the end of the decade, with the Kingdom emerging as a key regional and international player in maritime trade.

Feeder vessels—smaller ships that transfer cargo between regional ports and large mainline vessels—play a critical role in streamlining supply chains.

These ships are adept at navigating smaller or less accessible ports, where they consolidate cargo before transferring it to larger vessels for long-distance transport.

This method reduces the number of port calls required by mainline ships, easing congestion and enhancing overall logistics efficiency at major terminals.

A new report by global consulting firm Arthur D. Little, titled “Unlocking Opportunities in the Feeder Shipping Sector,” reveals that Saudi Arabia could capture up to 45 percent of feeder shipping trade in the Red Sea and 35 percent in the Gulf.

This expected growth is fueled by the Kingdom’s ongoing investments in port infrastructure, its strategic geographic location, and its ambitious logistics agenda under Vision 2030.

Recent initiatives, such as the launch of the “JRS” shipping service by Global Feeder Shipping in collaboration with the Saudi Ports Authority, support this outlook.

Announced in December, the JRS service connects Jeddah Islamic Port with key terminals in Egypt, Oman, and India—bolstering Saudi Arabia’s role in enhancing international maritime connectivity and operational efficiency.

Paolo Carlomagno, partner at Arthur D. Little, highlighted the findings, noting Saudi Arabia’s increasingly vital role in shaping the future of global trade.

“Saudi Arabia sits at the intersection of macroeconomic shifts in global trade, regional port infrastructure growth, and heightened investor appetite for logistics assets that deliver strong, stable returns,” he said.  

“Its ability to combine geographic proximity to high-growth corridors with government-backed investment strategies creates a uniquely scalable feeder shipping environment that few markets globally can match,” he added. 

Feeder shipping—the transport of containers between smaller ports and major global hubs—is becoming an increasingly attractive segment due to asset returns of 17 to 23 percent—outpacing other freight sectors like rail, trucking, and traditional maritime transport, ADL stated. 

While historically underutilized, the feeder shipping sector is rapidly emerging as a vital link in the global logistics chain.

According to projections, container throughput in the Red Sea is set to nearly double — from 12 million twenty-foot equivalent units in 2021 to 23 million by 2030. This surge further solidifies Saudi Arabia’s position as a regional logistics hub, enhancing intra-regional connectivity and strengthening its role along critical East-West trade routes.

The Arthur D. Little report emphasizes that as consolidation and investment continue to reshape the global maritime landscape, Saudi Arabia’s strategic significance will only grow.

To capitalize on this momentum, the report outlines a phased market entry strategy for feeder shipping operators.

ADL recommends an asset-light approach in the initial stages, focusing on vessel chartering and flexible operations.

This model allows new entrants to quickly establish a foothold, mitigate upfront capital risks, and respond nimbly to market demand.

Over time, operators can scale into asset ownership and pursue deeper integration with major shipping lines, freight forwarders, and exporters—cementing long-term growth and resilience within the sector.

“Saudi Arabia offers a rare combination of volume potential, policy alignment, and port readiness that makes it a natural launchpad for feeder shipping operations,” said Alexandre Sawaya, principal at ADL, Middle East. 

“The Kingdom is no longer a peripheral player in maritime trade. It is fast becoming a focal point for regional connectivity and a strategic base for operators seeking scale and resilience,” he added. 

The analysis also highlights that feeder shipping is well-aligned with Saudi Arabia’s environmental and sustainability goals.

Due to their smaller size and adaptable design, feeder vessels are particularly suitable for retrofitting with cleaner fuel alternatives — such as methanol, biodiesel hybrids, and hybrid-electric propulsion systems. This technological flexibility complements the Kingdom’s broader climate agenda, which includes a 25 percent reduction in carbon emissions by 2030 and a commitment to achieving net-zero emissions by 2060.

With rising container volumes, expanding port infrastructure, and growing investor interest, Arthur D. Little concludes that Saudi Arabia is uniquely positioned to lead the next wave of growth in the feeder shipping sector—both regionally and on the global stage.


Saudi asset management industry hits $266bn, poised for further growth: Fitch Ratings 

Saudi asset management industry hits $266bn, poised for further growth: Fitch Ratings 
Updated 16 April 2025
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Saudi asset management industry hits $266bn, poised for further growth: Fitch Ratings 

Saudi asset management industry hits $266bn, poised for further growth: Fitch Ratings 

RIYADH: Saudi Arabia’s asset management industry grew by 20 percent year on year in 2024, pushing the sector’s total assets to SR1 trillion ($266 billion) for the first time, according to a new analysis by Fitch Ratings. 

In its latest report, the ratings agency said the industry is expected to continue attracting steady inflows through 2025 and 2026, with assets under management projected to exceed SR1.3 trillion. 

Fitch attributed the sector’s momentum to several key factors, including a growing investor base, favorable demographics, ongoing economic reforms, strong capital markets, and digital transformation initiatives. 

Bashar Al-Natoor, global head of Islamic Finance at Fitch, said: “Saudi Arabia’s asset management industry is the largest in the GCC (Gulf Cooperation Council) with AUM having crossed SAR1 trillion, and further growth expected.”  

He added: “Almost all mutual funds listed on the Saudi Exchange are Shariah-compliant, indicating strong demand for Islamic products.” 

An earlier report by Fitch in October noted that growth in 2025 would be further supported by a rising number of high-net-worth individuals seeking asset management services within the Kingdom. 

The Saudi government aims for the industry’s AUM to reach 40 percent of the Kingdom’s gross domestic product by the end of the decade. 

The report also noted that bank-affiliated asset managers in Saudi Arabia accounted for nearly two-thirds of the industry’s revenues by the end of 2024. 

However, Fitch pointed out that international competition is likely to intensify as global players such as BlackRock, Goldman Sachs, and Morgan Stanley, as well as Citigroup and Mizuho Bank, have received regulatory approval to establish regional headquarters in the Kingdom. 

The analysis highlighted that around half of Saudi Arabia’s AUM is held in private funds, followed by discretionary portfolio management and public funds. 

Private fund assets are primarily concentrated in real estate and equities, while half of the AUM under discretionary portfolio management is invested in local shares. 

Public fund assets are distributed across money market funds, equities, real estate investment trusts, and debt instruments. 

Fitch also noted that the combined market capitalization of listed equity markets in the GCC surpassed $4 trillion at the end of 2024, led by the Saudi Exchange. 

Despite the strong outlook, the report warned of potential challenges, including trade tensions and fluctuations in oil prices. 

“The market is not immune from global volatilities, such as those caused by the US government’s tariff rises on April 2. Oil price changes are among the key factors that could affect the industry,” Fitch added. 


Saudi Arabia signs aviation deals at ICAO Conference in Doha

Saudi Arabia signs aviation deals at ICAO Conference in Doha
Updated 16 April 2025
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Saudi Arabia signs aviation deals at ICAO Conference in Doha

Saudi Arabia signs aviation deals at ICAO Conference in Doha

RIYADH: Saudi Arabia’s General Authority of Civil Aviation has signed multiple air transport agreements at the International Civil Aviation Organization Facilitation Conference in Doha, as part of its strategy to bolster international cooperation and expand the Kingdom’s global aviation footprint.

Held from April 14 to 17 in Qatar, the conference brought together officials from 190 countries, including more than 120 ministers of transport and heads of civil aviation authorities.

The agreements aim to establish regulatory frameworks for air transport, reinforce civil aviation safety and security standards, and offer travelers more connectivity options, according to the Saudi Press Agency.

These developments are aligned with Saudi Arabia’s ambitious aviation strategy, which targets seamless travel for 330 million passengers to over 250 destinations and the transportation of 4.5 million tonnes of air cargo annually by 2030. The Kingdom also aims to attract 150 million tourists by the end of the decade.

As part of the latest agreements, GACA President Abdulaziz bin Abdullah Al-Duailej signed air services deals with Liberia and Grenada, and a record of discussions in the field of air transport with Samoa and Fiji. A separate agreement with Ecuador was signed on behalf of GACA by Ali bin Mohammed Rajab, executive vice president for Air Transport and International Cooperation.

“These agreements aim to strengthen ties between Saudi Arabia and participating nations, facilitate the operation of air transport services, and support the safe and orderly growth of the sector in line with the 1944 Chicago Convention,” SPA reported.

The accords also reflect Saudi Arabia’s broader goals of becoming a leading aviation hub in the Middle East and a global player in civil aviation, while maintaining a strong focus on air safety and environmental sustainability.

In addition to signing new agreements, GACA held bilateral meetings with aviation authorities from Qatar, the UAE, Egypt, Syria, Yemen, and Seychelles. Discussions focused on enhancing joint cooperation, forming strategic partnerships, and advancing safety and facilitation standards in the aviation sector.

Organized by the Qatar Civil Aviation Authority in collaboration with ICAO, this year’s conference—held under the theme “Facilitating the Future of Air Transport: Collaboration, Efficiency, and Inclusiveness”—served as a platform for global dialogue on the evolving landscape of civil aviation.


Saudi retail real estate outlook strong on tourism and Vision 2030, S&P says 

Saudi retail real estate outlook strong on tourism and Vision 2030, S&P says 
Updated 16 April 2025
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Saudi retail real estate outlook strong on tourism and Vision 2030, S&P says 

Saudi retail real estate outlook strong on tourism and Vision 2030, S&P says 

RIYADH: Saudi Arabia’s retail real estate market is poised for growth in the near term, driven by population growth, expanding tourism, and economic diversification efforts under the Vision 2030 initiative, according to S&P Global. 

In its latest report, the credit rating agency said that ongoing mega-projects and the expansion of international brands are expected to propel further demand for retail space across the Kingdom. 

This comes as Saudi Arabia steps up efforts to become a global hub for tourism and business by the end of the decade, with the Real Estate General Authority projecting the property market to reach $101.62 billion by 2029, driven by an anticipated compound annual growth rate of 8 percent from 2024. 

“The growth path for retail real estate in Saudi Arabia is looking good for 2025-2026. The government’s commitment to infrastructure development, the rise of mega projects, and the expansion of international brands into the Saudi market will boost demand for retail spaces,” S&P Global said. 

The report aligns with findings from real estate advisory JLL, which in March forecast a shift in the Kingdom’s retail market toward “experiential formats” and a strong growth outlook for 2025. 

Riyadh, Jeddah, and other major cities are witnessing a wave of new retail developments, ranging from malls and entertainment venues to mixed-use spaces combining residential, hospitality, and retail components, S&P noted. 

Driving factors 

The US-based agency added that the strong influx of tourists into the Kingdom and the government’s foreign investment policies — such as allowing 100 percent foreign ownership — will also help the retail real estate sector grow and evolve. 

The report cited the Kingdom’s major developments — including NEOM, The Red Sea Project, and AlUla — as key drivers for retail real estate expansion. 

“Saudi Arabia’s per capita income is strong, and consumer spending on retail and entertainment is expected to grow, given the dominance of youth in the growing population. The country’s gradual transformation toward being a more socially liberal, entertainment-friendly society is leading to higher footfall in malls and retail destinations,” S&P Global said. 

In addition to international tourism, the domestic retail environment is evolving, with open-air and boulevard-style outlets gaining popularity. According to JLL, open-air boulevard-type retail is gaining popularity in the Kingdom, while traditional mall concepts are facing declining occupancy rates due to their standard “closed mall” designs and generalized retail offerings.  

S&P Global added that growing urbanization — particularly among the youth — is lifting demand for modern retail formats such as lifestyle centers and high-end shopping malls.  

“The country has become a major target market for international brands in the fashion, luxury, and food and beverage segments. Global retailers are expanding their footprints in Saudi Arabia, leading to increased demand for premium retail spaces,” the agency noted. 

It added that upcoming high-profile events, including Expo 2030 and the 2034 FIFA World Cup, are likely to boost demand further. 

Although the affinity toward e-commerce shopping is rising in the Kingdom, the demand for physical stores that offer in-store experiences is also expected to grow in the coming years. 

S&P Global said that people in the Middle East region consider malls to be spaces for entertainment, recreation, dining, and social interaction, and as a result, the retail real estate sector will experience growth, similar to the e-commerce industry. 

Supply pressures ahead 

Despite the positive outlook, S&P Global flagged several risks that could weigh on the sector. These include oversupply, changing retail preferences, and pressure on rental yields amid elevated capital expenditure by landlords. 

“The volume of retail projects in the pipeline raises the risk of potential oversupply, in our view, particularly in secondary locations where demand may not be sufficient to absorb new retail spaces,” said S&P Global. 

Rental rates could also face downward pressure as the volume of retail real estate space increases. 

S&P Global highlighted that additional factors like location, competition, and asset quality could also affect rental rates in the retail property space. 

According to Knight Frank’s 2024 Saudi Arabia Giga Projects Report, 7.4 million sq. meters of new retail real estate are under development, including spaces at Diriyah Gate, The Red Sea Project, and NEOM. 

Moreover, lower oil prices, market volatility, escalating global trade tensions, and a fragmented geopolitical environment could dampen government spending and non-oil economic growth in the Kingdom. 

Citing the Knight Frank report, S&P Global noted that Riyadh’s real estate supply is expected to grow by 50 percent by 2027, while Jeddah’s will increase by 75 percent during the same period. 

“This rapid growth could lead landlords to offer rental discounts, revenue-sharing lease models, and other incentives to maintain occupancies. Retailers are increasingly prioritizing foot traffic and tenant mix over sheer size,” the analysis said. 

It added: “While prime locations in Riyadh and Jeddah will likely maintain stable rental rates due to strong demand, secondary locations might see a drop in rental values due to oversupply.”