Saudi GDP grows 2.8% in Q3 amid strong non-oil expansion: GASTAT

According to the General Authority for Statistics, the Kingdom’s non-oil sector expanded by 4.2 percent year on year in the third quarter, reflecting the goals of Vision 2030 to diversify the economy beyond oil revenues. Shutterstock

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Updated 31 October 2024

Nirmal Narayanan

October 31, 2024 09:47

Saudi GDP grows 2.8% in Q3 amid strong non-oil expansion: GASTAT

Updated 31 October 2024

Nirmal Narayanan

October 31, 2024 09:47

RIYADH: Saudi Arabia’s real gross domestic product rose by 2.8 percent in the third quarter of this year compared to the same period in 2023, driven by an increase in non-oil activities, official data showed.

GASTAT data also showed a 3.1 percent rise in government activities year on year, while oil activities grew by a modest 0.3 percent. On a quarterly basis, Saudi Arabia’s seasonally adjusted real gross domestic product rose by 0.8 percent in the third quarter compared to the second quarter.

Breaking down quarterly figures, non-oil activities increased by 0.5 percent, while oil activities saw a 1.5 percent gain. However, government activities declined by 0.3 percent quarter over quarter.

Earlier this month, the International Monetary Fund projected Saudi Arabia’s economy to grow by 1.5 percent in 2024 and 4.6 percent in 2025, affirming the Kingdom’s economic resilience. The World Bank echoed similar optimism, forecasting growth of 1.6 percent this year and acceleration to 4.9 percent in 2025.

These IMF and World Bank projections exceed Saudi Arabia’s own pre-budget forecast, which estimated GDP growth of 0.8 percent in 2024, bolstered by a 3.7 percent rise in non-oil activities.

Credit rating agency S&P Global, in its September report, also highlighted Saudi Arabia’s economic resilience, forecasting GDP growth of 1.4 percent in 2024 and 5.3 percent in 2025, driven by the Kingdom’s commitment to economic diversification and reducing reliance on oil revenues.

Affirming the progress of Saudi Arabia’s economic diversification, GASTAT reported earlier this month that the Kingdom’s non-oil exports, including reexports, increased by 7.5 percent in August, reaching SR27.52 billion compared to the same month last year.

On a monthly basis, Saudi Arabia’s non-oil exports rose by 8.13 percent in August from July levels.

During the Future Investment Initiative’s eighth edition, Saudi Arabia’s Minister of Finance Mohammed Al-Jadaan highlighted the sector’s growth, noting that non-oil GDP now represents 52 percent of the Kingdom’s economy.

Topics: GASTAT GDP Saudi

Saudi Arabia’s supply chain conference drives $2.2bn in new investments

Updated 16 December 2024

Nour El-Shaeri

December 16, 2024 19:39

Saudi Arabia’s supply chain conference drives $2.2bn in new investments

Updated 16 December 2024

Nour El-Shaeri

December 16, 2024 19:39

RIYADH: The Supply Chain and Logistics Conference in Saudi Arabia, which wrapped up on Dec. 16 in Riyadh, saw the signing of 91 agreements totaling SR8.3 billion ($2.2 billion). The two-day event, held under the patronage of Minister of Transport and Logistics Saleh Al-Jasser, focused on optimizing supply chain performance, improving logistics efficiency, and exploring new investment opportunities — all aligned with the Kingdom’s Vision 2030 strategy.

The conference brought together key stakeholders, including ministers, senior officials, top executives, and representatives from both local and international organizations, to discuss the latest advancements in supply chain management and global logistics trends.

In addition to the agreements, the event featured an exhibition with 65 participating companies and hosted eight specialized workshops. These sessions covered a broad spectrum of topics aimed at enhancing supply chain operations and adapting to evolving logistics demands.

One of the standout features of the conference was the Innovation and Entrepreneurship Corner, which displayed cutting-edge technologies such as a solar-powered vehicle and integrated platforms designed to streamline shipping and warehouse management for e-commerce businesses and retailers. These innovations aim to empower logistics teams and enhance omnichannel sales strategies.

A major theme of the discussions was the Kingdom’s progress in enhancing its supply chains and logistics infrastructure, which has become a vital component of Saudi Arabia’s drive for global competitiveness.

Key areas of focus included the role of artificial intelligence, data analytics, and digital innovation in strengthening the logistics sector and supporting the country’s broader economic objectives.

The importance of Saudi Arabia’s transport infrastructure, especially its extensive road network, was also emphasized as a fundamental asset in advancing logistics operations.

The conference aimed to solidify Saudi Arabia’s position as a leading global logistics hub, facilitating trade across Asia, Africa, and Europe. It also emphasized the development of export strategies to boost economic growth, foster collaboration between the public and private sectors, and highlight the Kingdom’s expanding role in global supply chain networks.

Through initiatives like these, Saudi Arabia continues to enhance its strategic importance as a central player in international trade and logistics.

Topics: supply chain logistics

Saudi Arabia’s payments industry poised for $21.7bn revenue by 2028: BCG

Updated 16 December 2024

Nour El-Shaeri

December 16, 2024 18:29

Saudi Arabia’s payments industry poised for $21.7bn revenue by 2028: BCG

Updated 16 December 2024

Nour El-Shaeri

December 16, 2024 18:29

RIYADH: Saudi Arabia’s payments industry is experiencing strong growth, with total revenues expected to reach $21.7 billion by 2028, according to a new report by Boston Consulting Group.

The sector’s expansion is driven by the Kingdom’s focus on digital transformation, fintech adoption, and efforts to improve financial accessibility.

The Kingdom’s payments revenues grew from $10.3 billion in 2018 to $16.2 billion in 2023, reflecting a compound annual growth rate of 9.4 percent. By 2028, this figure is projected to grow by another 34 percent. Additionally, transaction volumes are forecasted to surge by 68 percent, from 11.3 billion in 2023 to 19 billion by 2028.

These developments highlight Saudi Arabia as a leader in the Gulf Cooperation Council payments sector and a key driver of the Middle East’s projected 7 percent CAGR for payments revenue through 2028.

“Saudi Arabia’s payments industry is moving toward a balanced model that integrates rapid growth with sustainable resilience,” said Lukasz Rey, managing director, partner and head of the Middle East Financial Institutions Practice at Boston Consulting Group.

“To achieve this, Saudi firms must prioritize scalable, modular infrastructures that optimize operational flexibility while reducing technology overhead. Incorporating generative AI (artificial intelligence) can elevate customer service, streamline fraud detection, and drive efficiency at scale, which are essential factors as the market matures,” she added.

Rey went on to say that as regulatory scrutiny intensifies, companies that proactively embed risk management and compliance into their core technology will set the standard for delivering secure, innovative services that meet the high expectations of both customers and stakeholders in an evolving sector.

While Saudi Arabia and the broader Middle East region remain growth hotspots, the report highlights a significant global slowdown in the payments industry.

Global payments revenue is expected to see a CAGR of 5 percent through 2028 — just over half of the 9 percent rate achieved over the past five years.

The global revenue pool is expected to increase from $1.8 trillion in 2023 to $2.3 trillion by 2028.

North America and Europe are set to experience the steepest slowdowns, with annual revenue growth of just 3 percent.

In contrast, emerging markets such as the Middle East, Latin America, and Asia-Pacific are forecasted to see stronger development, driven by the accelerating adoption of digital payments.

As global payments markets face increasing regulatory scrutiny, technological disruptions, and evolving customer expectations, the Kingdom is well-positioned to sustain its growth trajectory through continued innovation.

Saudi Arabia’s efforts to modernize its payments infrastructure, expand digital payments adoption, and integrate new technologies like generative AI will play a key role in its long-term success.

“With transaction volumes in Saudi Arabia set to increase by 68 percent by 2028, the payments sector is a regional leader in growth potential,” said Bhavya Kumar, managing director and partner at Boston Consulting Group.

“Capturing this value, however, will require firms to build flexible, API-driven infrastructures that integrate seamlessly into digital ecosystems. By adopting agile methods and focusing on regulatory alignment, Saudi firms can adapt quickly to shifting consumer expectations and market demands,” he explained.

“The companies that strategically invest in scalable technology and embrace a disciplined approach to risk management will distinguish themselves, fostering a resilient framework that drives sustainable success within Saudi Arabia’s dynamic payments industry,” Kumar added.

Topics: Boston Consulting Group Digital payments

Saudi Arabia to develop local talent for container shipping industry

Updated 16 December 2024

NADIN HASSAN

December 16, 2024 16:59

Saudi Arabia to develop local talent for container shipping industry

Supply Chain and Logistics Conference brought together leading figures from the maritime and logistics sectors
It explored the Kingdom’s opportunities as a global trade gateway

Updated 16 December 2024

NADIN HASSAN

December 16, 2024 16:59

RIYADH: Saudi Arabia must cultivate local talent in the container shipping industry to fully achieve its Vision 2030 ambitions and solidify its position as a global logistics hub, said a senior executive.

Speaking at a panel discussion during the sixth edition of the Supply Chain and Logistics Conference in Riyadh, Poul Hestbaek, the CEO of Riyadh-based logistics service company Folk Maritime, highlighted the need for specialized expertise in the container sector.

“We have a strong focus on not just diversification, but also on Saudi talent. These are some of the things that we have had to hire experts from outside the Kingdom, but eventually, we hope to replace them with qualified young people from within Saudi Arabia,” Hestbaek said.

Poul Hestbaek, the CEO of Riyadh-based logistics service company Folk Maritime. Screenshot

He continued: “If the day comes when I have to retire and I am replaced by a Saudi, that would make me really, really happy. So, I think talent is something we will be working on.”

Hestbaek also highlighted the crucial role of collaboration in developing the Kingdom’s maritime industry, saying, “You cannot pull this off alone. It’s clear you depend on collaboration.”

He added, “Whether it is partnering with Maersk, King Abdullah Port, or others, the better experts you bring, the better product you can offer.”

معرض يزدهر ويزهو بشركائه ورواده تحت عنوان إرث يستشرف المستقبل
جانب من المعرض المصاحب لـ #مؤتمر_سلاسل_الإمداد_والخدمات_اللوجستية في نسخته السادسة

An exhibition that thrives and shines with its partners and pioneers under the theme 'Heritage Looking Towards the Future.'
A glimpse… pic.twitter.com/BIFugtk32Z
— مؤتمر سلاسل الإمداد Supply Chain Conference (@scmksa) December 16, 2024

The session brought together leading figures from the maritime and logistics sectors, who explored the Kingdom’s opportunities as a global trade gateway.

Jay New, the CEO of King Abdullah Port, emphasized Saudi Arabia’s unique geographical advantages and infrastructure and said “30 percent of all containers sail past the Red Sea every day.

“The expansion opportunities for King Abdullah Port northbound along the Red Sea are limitless. You could build a port as big as you would ever want globally,” New said.

Jay New, the CEO of King Abdullah Port. Screenshot

He added that King Abdullah Port was designed to accommodate future growth, with deep-water berths, linear quays, and cutting-edge automation.

“In 2021, the World Bank recognized King Abdullah Port as the world’s most efficient port,” New said.

He added, “King Abdullah Port will remain a consistently high-performing port for the future. This should last for decades, and this allows King Abdullah Port, on behalf of Saudi Arabia in many ways, to attract the main shipping lines into the port.”

He further said: “This provides Saudi Arabia, Saudi cargo owners, cargo exporters, and cargo importers with access to the biggest ships in the world that serve the main trade routes from Asia to Saudi Arabia, and from Europe and America to Saudi Arabia.”

Mohammad Shihab, managing director of Maersk Saudi Arabia. Screenshot

During the panel discussion, Mohammad Shihab, managing director of Maersk Saudi Arabia, stressed the dramatic improvements in customs clearance processes over the past decade.

“Nine years ago, clearing cargo could take more than a week — sometimes up to 14 days. Today, many shipments are cleared in hours, with an average of one day for a large percentage of imports,” he said.

Shihab added that these advancements make Saudi Arabia increasingly competitive as a transshipment hub.

“The focus on infrastructure development and digital solutions has significantly enhanced the Kingdom’s position on global trade routes. The ability to clear cargo quickly benefits importers, exporters, and the local economy,” Shihab said.

Turki Alkhorayef, general manager of Ports and Maritime Services at ELM. Screenshot

Technology was another key focus of the discussion. Turki Alkhorayef, general manager of Ports and Maritime Services at ELM, outlined how digital transformation is boosting efficiency in the logistics sector.

“We are leveraging artificial intelligence, the Internet of Things, and real-time tracking to provide live updates on vessel arrivals, cargo movements, and port activities,” Alkhorayef said.

The panel concluded with a consensus that investing in local talent, infrastructure, and advanced technology will be critical to achieving Vision 2030 goals.

By fostering collaboration and ensuring Saudi nationals are trained to lead the industry, the Kingdom is poised to emerge as a dominant player in the global maritime and logistics sectors.

Topics: Saudi Arabia containers shipping

JLL secures contract to support AlUla’s transformation into global tourism hub

Updated 16 December 2024

Miguel Hadchity

December 16, 2024 16:41

JLL secures contract to support AlUla’s transformation into global tourism hub

JLL will provide project and cost management and strategic consulting
Deal to support planning, development, and delivery of AlUla’s hospitality, residential, and retail offerings

Updated 16 December 2024

Miguel Hadchity

December 16, 2024 16:41

RIYADH: US-based real estate firm JLL has secured a program management contract with AlUla Development Co. to support the Saudi city’s transformation into a global tourism hub.

Under the agreement, JLL will provide project and cost management and strategic consulting to support the planning, development, and delivery of AlUla’s hospitality, residential, and retail offerings.

This will include feasibility studies, project planning, construction management, and final handover of completed projects, according to a press release.

The contract with the Public Investment Fund’s subsidiary was signed during a ceremony held at AlUla Development Co.’s office in Riyadh.

Speaking at the event, Maroun Deeb, JLL’s head of project and development services for Saudi Arabia and Bahrain, expressed his pride in contributing to AlUla’s ambitious vision.

“We are honored to have been chosen to support the AlUla Development Co. on such a significant project. This appointment reinforces our reputation as one of the leading project and program management consultancies in the region,” Deeb said.

He added: “By leveraging our expertise in large-scale projects, construction data insights, leading technology, and sustainable practices, we will ensure better client outcomes.”

Saud Al-Sulaimani, country head of Saudi Arabia at JLL, emphasized the company’s in-depth involvement in AlUla’s development journey.

He said: “JLL has been at the forefront of AlUla’s transformation from the very beginning, being one of the first companies to work on this iconic destination. Our deep-rooted expertise in supporting the Kingdom’s vision of economic diversification and sustainable growth positions us uniquely for this appointment.”

Al-Sulaimani added: “We are committed to delivering exceptional value and impactful results as we continue to build upon our legacy in Saudi Arabia and drive forward AlUla’s ambitious development agenda.”

AlUla, a region rich in history, is a cornerstone of Saudi Arabia’s Vision 2030 strategy to diversify the economy and establish the country as a global tourism hub. The area’s development focuses on balancing heritage preservation with innovative urban growth.

JLL’s appointment builds on the company’s significant portfolio in the Kingdom. According to the press release, the project and development services team is currently managing projects with a combined capital value of $30 billion.

The US firm’s services include overseeing development, project and program management, and cost consultancy, as well as engineering design, workplace fit-out, health and safety advisory, digital solutions, and sustainability consulting.

Topics: AlUla Development Co JLL

Closing Bell: Saudi main index ends in the green at 12,097

Updated 16 December 2024

Nirmal Narayanan

December 16, 2024 15:55

Closing Bell: Saudi main index ends in the green at 12,097

Parallel market Nomu dropped 28.63 points to close at 31,144.44
MSCI Tadawul Index rose 4.13 points, or 0.27%, to finish at 1,517.67

Updated 16 December 2024

Nirmal Narayanan

December 16, 2024 15:55

RIYADH: Saudi Arabia’s Tadawul All Share Index rebounded on Monday, gaining 37.20 points, or 0.31 percent, to close at 12,096.73.

The benchmark index saw a total trading turnover of SR4.74 billion ($1.26 billion), with 71 stocks advancing, while 154 declined.

Meanwhile, Nomu dropped 28.63 points to close at 31,144.44. The MSCI Tadawul Index also posted a modest gain, rising 4.13 points, or 0.27 percent, to finish at 1,517.67.

Saudi Industrial Development Co. led the main market, with its share price surging 4.27 percent to SR28.10. Other notable gainers included Riyadh Cables Group Co. and Dr. Soliman Abdel Kader Fakeeh Hospital Co., whose shares increased by 4.14 percent and 4.12 percent, closing at SR151 and SR70.80, respectively.

On the downside, Saudi Chemical Co. saw its share price dip by 3.59 percent to SR9.93.

Balsm Alofoq Medical Co., which debuted on the Nomu market on Monday, was the top performer on the parallel market, with its share price soaring 30 percent to SR78.

Additionally, Neft Alsharq Co. for Chemical Industries saw a notable increase, with its share price rising 13.27 percent to SR5.55.

On the announcements front, Saudi-based online beauty brand Nice One has set its final offer price at SR35 for its upcoming initial public offering, positioning the company for a market capitalization of over SR4 billion upon listing.

The company revealed that institutional book-building orders exceeded SR169 billion, reflecting a subscription coverage of 139.4 times.

The retail subscription period for the IPO is scheduled from Dec. 24 to 25. If all formalities are completed by the Capital Market Authority and Saudi Exchange, the offered shares will be listed on the main market.

Meanwhile, Obeikan Glass Co. announced the commencement of trial operations at its new aluminum casting facility, the Saudi Aluminum Casting Foundry, on Dec. 16. The commercial operations of the plant, located in Al-Madina Al-Munawwara Industrial City, are expected to begin in Q1 2025, with a focus on manufacturing and casting aluminum products.

Topics: TASI NOMU Closing Bell Tadawul Saudi Arabia MSCI Tadawul Index Saudi Stock Exchange (Tadawul) Saudi stock market Tadawul All Share Index (TASI)

Saudi GDP grows 2.8% in Q3 amid strong non-oil expansion: GASTAT

Saudi GDP grows 2.8% in Q3 amid strong non-oil expansion: GASTAT

Saudi Arabia’s real estate price index rises 2.6% in Q3: GASTAT

Saudi Arabia’s non-oil exports surge by 7.5% in August: GASTAT

Saudi Arabia’s supply chain conference drives $2.2bn in new investments

Saudi Arabia’s supply chain conference drives $2.2bn in new investments

Saudi Arabia’s payments industry poised for $21.7bn revenue by 2028: BCG

Saudi Arabia’s payments industry poised for $21.7bn revenue by 2028: BCG

Saudi Arabia nears cashless society with 98% contactless payment: Visa executive

Saudi Arabia part of China trial of yuan digital currency payments

Saudi Arabia to develop local talent for container shipping industry

Saudi Arabia to develop local talent for container shipping industry

Saudi Ministry of Human Resources and Social Development leads in 2024 Digital Transformation Index

Saudi Arabia spotlights private sector’s role in driving logistics transformation

JLL secures contract to support AlUla’s transformation into global tourism hub

JLL secures contract to support AlUla’s transformation into global tourism hub

AlUla celebrated on UN International Mountain Day

Royal Commission for AlUla partners with French School of Culinary Arts

Closing Bell: Saudi main index ends in the green at 12,097

Closing Bell: Saudi main index ends in the green at 12,097

Closing Bell: Saudi main index slips to close at 12,059

Closing Bell: Saudi main index sheds 50 points to 12,099

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Saudi GDP grows 2.8% in Q3 amid strong non-oil expansion: GASTAT

Saudi GDP grows 2.8% in Q3 amid strong non-oil expansion: GASTAT

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Saudi Arabia’s supply chain conference drives $2.2bn in new investments

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