In 2022, the Saudi Arabian government (SAG) continued its ambitious socio-economic reforms, collectively known as Vision 2030. Spearheaded by Crown Prince Mohammed bin Salman, Vision 2030 provides a roadmap for the development of new economic sectors and a transition to a digital, knowledge-based economy. The reforms aim to diversify the Saudi economy away from oil and create more private sector jobs for a young and growing population.

To accomplish these ambitious Vision 2030 reforms, the SAG is seeking foreign investment in burgeoning sectors such as infrastructure, tourism, entertainment, health and science, technology, and renewable energy. Saudi Arabia aims to become a major transport and logistics hub linking Asia, Europe, and Africa. Infrastructure projects related to this goal include various “economic cities” and special economic zones, which will serve as hubs for petrochemicals, mining, logistics, manufacturing, and digital industries. The SAG plans to double the size of Riyadh city and welcomes investment in its multi-billion-dollar giga-projects around the country (including NEOM, Qiddiya, the Red Sea Project, and Diriyah Gate), which are the jumping-off points for its nascent tourism industry. The Kingdom is also developing tourism infrastructure at natural sites, such as AlUla, and the SAG continues to grow its successful Saudi Seasons initiative, which hosts tourism and cultural events throughout the year and across the country.

The Saudi entertainment and sports sector, aided by a relaxation of social restrictions, is also primed for foreign investment. The country hopes to build hundreds of movie theaters and the SAG aims to sign agreements for production studios in Saudi Arabia for end-to-end film production. The SAG seeks to host world class events, such as Expo 2030, and has already hosted the European Golf Tour, Diriyah ePrix, Dakar Rally, and Saudi Formula One Grand Prix. In addition, recent film festivals and concerts have demonstrated strong demand for art and cultural events.

Saudi Arabia’s healthcare privatization program provides lucrative opportunities for foreign investment. The SAG also aims to partner with tech companies to become a leader in next-generation technologies and digital infrastructure. Lastly, Saudi Arabia is eager for foreign investment in green projects related to renewable energy, hydrogen, waste management, and carbon capture to reach net-zero emissions by 2060. It is particularly interested in green capacity-building and technology-sharing initiatives.

The pressure to generate non-oil revenue and provide increased employment opportunities for Saudi citizens has prompted the SAG to implement measures that may weaken the country’s investment climate going forward. Increased fees for expatriate workers and their dependents, as well as “Saudization” policies requiring certain businesses to employ a quota of Saudi workers, have led to disruptions in some private sector activities. Additionally, Saudi Arabia announced in 2021 that multinational companies wanting to contract with the SAG must establish their regional headquarters in Saudi Arabia by 2024. The SAG has taken important steps since 2018 to improve intellectual property rights (IPR) protection, enforcement, and awareness. 

While the sharp downturn in oil prices in 2020 put pressure on Saudi Arabia’s fiscal situation, the subsequent spike in oil prices following Russia’s further invasion of Ukraine increased government revenue and the SAG ran an estimated $27 billion budget surplus in 2022. It expects a $4.26 billion surplus in 2023.

For more information, please refer to: https://www.state.gov/reports/2023-investment-climate-statements/saudi-arabia/

October 29      Saudi Arabia's sovereign wealth fund plans to cut its overseas investments by about a third, its governor told a conference in Riyadh, as the Kingdom taps into its resources to fund plans to wean the economy off oil.  

October 28      Saudia has officially launched its inaugural flight from King Fahd International Airport in Dammam to Beijing, China. The new route will operate twice a week in each direction, as part of a connecting flight from King Abdulaziz International Airport in Jeddah.

October 28      Riyadh Season announces that tickets for the Wonder Garden, one of its most popular attractions, are now available for purchase. Set to open on November 7, the amusement park features themes of magic and nature, offering 10 new experiences and over 90 games suitable for all ages.

October 28      Saudi Arabia has begun construction on the Mukaab, a cube-shaped attraction in Riyadh that is set to be the world's largest structure. The building will be the main centrepiece of New Murabba, a major development project in downtown Riyadh launched in February last year.

October 17     The Ministry of Culture of the Kingdom of Saudi Arabia and the Ministry of Culture and Tourism of the People's Republic of China have officially signed the "Saudi-China Cultural Year 2025 Executive Program," laying a solid foundation for deepened cultural cooperation between the two nations. 

October 15     Saudi Arabia Railways hopes to finalize financing for its “Landbridge” project linking the east and west of the country within months, an official said. It will cost at least $7 billion. 

October 14     EWPartners, an investment firm backed by Saudi Arabia's sovereign wealth fund, is planning to develop a so-called special economic zone inside the country to boost Chinese trade with the oil-rich kingdom. The KSA-Sino Logistics Zone will be developed at Saudi Arabia’s new King Salman International Airport. It will aim to bring in Chinese firms involved in logistics, light manufacturing and reexports into Saudi Arabia to serve the wider Middle East, Africa and Europe. 

September 17, The Egyptian cabinet said in a statement that Saudi Crown Prince Mohammed bin Salman has directed the Saudi Public Investment Fund to pump $5 billion worth of investment money into Egypt in what it called a "first stage".

September 13, The Kingdom of Saudi Arabia plans to introduce over 1 million new homes by 2030. This development is part of the broader Vision 2030, aimed at diversifying the Kingdom's economy and improving housing accessibility. According to Knight Frank's Saudi Giga Projects Report, a total of 1,048,000 residential units have been announced since 2016, with 4% already completed. 

September 10, Chinese car manufacturers are in talks to set up factories in Saudi Arabia, citing China’s Ambassador to Saudi Arabia Chang Hua. Eight companies, including Changan, Geely, MG, Chery, Great Wall Motor, Hongqi, GAC and BYD, have already opened branches.

September 9, Chinese Premier and Saudi Crown Prince Mohammed Bin Salman discussed cooperation in several sectors including energy, investment and trade in a meeting in Riyadh. Earlier, He had urged government and the Gulf Cooperation Council, which includes Saudi Arabia and the United Arab Emirates, to accelerate free trade negotiations.

September 4, Saudi Arabia decided to cancel fees for issuing commercial activity licenses for hotels, hotel apartments and residential resorts in the kingdom. The decision, effective Sept. 4, is part of the Tourism Investment Enabler Program that Saudi Arabia launched in March, aimed at making the kingdom a global tourism powerhouse.

September 1, Saudi Arabia is seeking cooperation with Chinese companies in the car sector and automation as a top industrial official kicks off a tour of East Asia. China and Saudi Arabia have strengthened ties in recent years while their relations with the United States have soured. 

August 27, Saudi Arabia saw more than $426m of investment in e-commerce projects last year, according to the General Authority for Small and Medium Enterprises (Monsha'at). In a report titled Small and Medium Enterprises and Promising Prospects for E-Commerce, Monsha'at provides insight into the e-commerce system in Saudi Arabia and government initiatives supporting the small and medium enterprises sector. 

August 23, As many as 184 foreign companies moved their regional headquarters to Saudi Arabia after obtaining an investment license during the first half of 2024, according to a report of the Ministry of Investment of Saudi Arabia (MISA). 

August 20, The King Salman International Airport Development Company (KSIADC), a subsidiary of the Public Investment Fund (PIF), has solidified strategic partnerships with four industry-leading firms to transform King Salman International Airport (KSIA) into a premier global hub for tourism, trade, and transportation.

August 20, Saudi Arabia is planning to build a version of the Louvre Museum in Riyadh according to a claim in a new BBC documentary. The Louvre of Saudi Arabia would feature artwork valued at close to $500million, with the gallery acting as a magnet for global tourism.

August 19, Saudi Arabia is keen to attract more foreign direct investment from Asia and Europe as the Kingdom continues its economic diversification journey. Saudi Arabia’s Assistant Minister of Investment Ibrahim Al-Mubarak said that the Kingdom is targeting $100 billion in FDI by 2030.

August 13, Foreign tourists visiting Saudi Arabia spent a record SAR 45bn ($12bn) on hospitality facilities in 2023, accounting for 32% of total tourist expenditure, the Saudi Ministry of Tourism reported. The ministry disclosed that foreign visitors' total spending reached SAR141bn last year, with SAR25.5bn (18%) allocated to shopping.

August 11, Minister of Investment announced that the updated Saudi Investment Law and its executive regulations will come into effect from the beginning of 2025. He said that the new law offers unprecedented opportunities for investors, and would enhance the Kingdom’s position as a premier global investment destination.

August 6, Danish shipping giant Maersk has opened its largest logistics park in the Middle East, situated at Jeddah Islamic Port, Saudi Arabia. The $250 million facility totals 225,000 square meters and is designed to strengthen Saudi Arabia's rapidly growing logistics sector and bolster non-oil trade.

August 4, A total of 8.6 million tourists from GCC visited Saudi Arabia during the year 2023 and their total spending accounted for more than SR15 billion, according to the Saudi Ministry of Tourism. 

July 24     Tourist spending in Saudi Arabia reached approximately SAR150 billion (US$40 billion) in the first half of 2024, reflecting a 10% rise compared to the same period in the previous year. 

July 17     Saudi Arabia is gearing up to launch Riyadh Metro in 2024, upon completion of on-site works. Riyadh Metro extends for 176 kilometers in length and boasts 85 stations.

July 12     Saudi Arabia's logistics services sector logged a remarkable growth rate of 76%, with 11,928 registrations, making it the leading sector in the April-June quarter, said the Business Sector Bulletin issued by the Ministry of Commerce.

July 10     Riyadh is set for a major shopping boom as retail space in the city is forecast to hit 4.6million sqm by 2026, according to Knight Frank. Average rental rates across Riyadh’s retail market have increased marginally by 3 per cent to SR2,725 ($727) psm for both regional and super regional malls in the last 12 months, while occupancy rates across the retail market increased by 5 percentage points to 90 per cent. 

July 8      Riyadh has been named one of the top 15 fastest-growing cities by 2033, according to the Savills Growth Hubs Index. The Saudi capital’s inclusion highlights the city’s significant potential for development and business expansion, driven by Saudi Vision 2030.

July 04      Employers are obligated to provide healthcare for their workers under the Saudi labour law, the kingdom’s Ministry of Human Resources has stressed. Article 144 of the Saudi labour law stipulates that the employer has to provide preventive and curative healthcare for the employees. 

July 03     The Royal Commission for Riyadh City (RCRC) has announced the start of the construction works of the King Abdulaziz Park, as part of the Green Riyadh program. The park will cover an area of over 4.3 million square metres (sq m). The construction works are expected to be completed in three years.

June 24     Chinese tourist groups will now find it easier to visit Saudi Arabia following the implementation of the Approved Destination Status arrangement, effective July 1. The agreement aligns with Saudi Arabia’s goal of attracting 5 million Chinese tourists by 2030, facilitated by new direct flights from Air China, China Eastern, and China Southern, alongside existing Saudia flights.   

June 24      China remains Saudi Arabia’s main trading partner. China held the first place for Saudi Arabia’s imports, accounting for 22.4% of total imports in April. In second place came the United States with 8.3% of total imports then India with 6.6% of the total. 

June 19      Riyadh is the region’s most expensive city to build in at $2,593 per m2, as the Saudi capital benefits from accelerated growth. A five-star luxury hotel in the city now costs an average of $4,798 per m2. KSA has also been trying to attract global corporate occupiers with the price of an average high-rise CBD office in Riyadh now standing at $2,266 per m2.

June 5       7 in 10 residents of Saudi Arabia are "very" or "moderately" likely to purchase a battery-electric vehicle (BEV), a figure that is projected to rise to 85% by 2035, indicating significant growth potential for BEVs in the country over the coming years.

June 3       The Saudi Tourism Authority has announced the achievement of more than 100 million tourist visitors to the Kingdom in 2023, +56% growth compared to 2019. The target has been reached seven years ahead of the original schedule set by the country’s ambitious Vision 2030. It underscores Saudi Arabia’s emergence as a global tourism powerhouse.

June 3      More than 120 international firms received licenses to relocate their regional headquarters to Saudi Arabia during the first quarter of 2024, representing a 477% year-on-year increase. 

June 3      Jeddah gets a second ring road. KSA has inaugurated a second ring road in Jeddah worth USD 176 mn (SAR 660 mn) and spanning a total of 113 km. The project comes as part of the Kingdom’s drive to upgrade its roads and boost connectivity with the region. 

May 26      Saudi Minister of Investment underscored the plan to draw investments and financial flows exceeding $3 trillion by 2030.

May 25      Credit rating agency Moody's raised Saudi Arabia's local and foreign currency rating to 'Aa1' from 'Aa2', citing increased predictability of the government's decision-making processes affecting the private sector.

May 12      Riyadh Airports Company, which manages and operates Riyadh’s King Khalid International Airport, has announced the launch of a new air service connecting Riyadh and Beijing with three weekly flights operated by AIR CHINA, starting the 6th of May.

May 7       GCC Grand Tours will be the name of the new unified tourist visa of the Gulf Cooperation Council (GCC), which will allow tourists to spend more than 30 days in all six Gulf countries.

May 2       Saudi Arabia’s Sharqia Development Authority is set to build an 8 mn sqm regional logistics hub in Dammam Port, dubbed Dammam Regional Logistics Center (RLC). No further details regarding the investment ticket or the project’s timeline were disclosed. 

May 1       Ceer has awarded a contract to Modern Building Leaders (MBL) to begin construction of its electric vehicle (EV) manufacturing complex in King Abdullah Economic City, Saudi Arabia.

May 1       Cashless payments in Saudi Arabia are expected to surge by 7.6 % in 2024 to SR550 billion ($146.8 billion) as compared to SR511.5 billion the previous year. 

April 26        The various Saudi Vision 2030 initiatives have now been completed or are on track to meet targets. Out of the 1,064 initiatives that have been rolled out under the ambitious strategy, 87% are complete or on track. 

April 22        Saudi Arabia took its Neom road show to China. Neom officials visited Beijing, Shanghai, and Hong Kong to court Chinese investors and shed more light on the mysterious megacity.

April 15      The World Bank has raised its expectations for Saudi Arabia’s economic growth to 5.9% in 2025 from 4.2% predicted earlier in January. In its latest report the bank, however, revised its 2024 forecast for the Kingdom’s gross domestic product growth downward to 2.5% from an earlier forecast of 4.1%.

April 15      Starting April 16, 2024, flights will operate from Beijing, Guangzhou, and Shenzhen to Riyadh. The summer 2024 schedule will see four passenger/commercial flights and three air cargo flights weekly. 

April 4        Kuwait and Saudi Arabia are moving forward with a strategic railway network project that would significantly reduce travel times between the two countries. According to Kuwait’s Ministry of Public Works, the project is expected to be completed by 2028.

April 3       Saudi Arabia has seen a big rise in e-payments by individuals, making up 70% of total individual transactions in 2023, up from 62% in 2022—a 13% increase. According to the Saudi Central Bank, almost all transactions, 96%, were made using Near Field Communication (NFC) technology.

March 22      Saudi Arabia’s Qiddiya Investment Company revealed plans to construct the world’s first-ever “Dragon Ball” theme park. Spanning over 500,000 square meters, the park will transport visitors into the vibrant world of Goku and his epic adventures.

March 21      The number of POS operations in Saudi Arabia during the first week of Ramadan reached 168,615,000, with a value of SR11,688,154,000. The number of operations in clothing and shoes reached 6,283,000 with a value of SR914,909,000 while the number of operations in construction materials stood at 1,522,000, with a value of SR307,596,000.

March 21      The General Authority of Civil Aviation (GACA) has reported remarkable progress in Saudi Arabia's air traffic performance for 2023. In 2023, the Kingdom experienced a 16% increase in the total number of flights, rising from 701,290 to 814,995. The number of passengers surged by 26% from 88 million to 112 million. 

March 18       The Saudi Ministry of Human Resources and Social Development has approved the classification of foreign investors (owners of private establishments) as Saudis under the Nitaqat Saudization program. This is one of the provisions for the classification of categories of people who will be treated equal to Saudis while calculating the percentage of Saudization. 

March 17       Saudi Arabia has attracted approximately $13 billion in private investments for its burgeoning tourism sector, positioning the Kingdom as a burgeoning travel destination. These investments are set to introduce between 150,000 to 200,000 new hotel rooms within the next two years, as part of the nation's ambitious plans to amplify its tourism offerings.

March 16     S&P Global Rating has reaffirmed Saudi Arabia's foreign and local currency sovereign credit ratings at 'A/A-1', maintaining a Stable Outlook.

March 15     Non-oil activities in Saudi Arabia recorded their highest contribution to the real gross domestic product (GDP) during the year 2023, representing 50%, which is the highest historical level it has ever reached. 

February 29  Minister of Investment Khalid Al-Falih announced that over 350 international investors have so far obtained licenses to establish their regional headquarters in Saudi Arabia, most of which will be in Riyadh.

February 28  Saudi Energy Minister Prince Abdulaziz bin Salman said that the ministry is working on a program to Saudize 75 percent of jobs in the energy sector.

February 27  The National Transformation Program, one of the Saudi Vision 2030 programs, was able to accomplish 34 strategic goals, equivalent to 35 percent, last year, out of 96 goals set to be achieved by 2030.

Feb 26  Saudi Arabia's sovereign wealth fund has hired banks to tap the debt market for the second time this year with an Islamic dollar bond, a document emailed to the banks and reviewed by Reuters showed.

Feb 20   A subsidiary of Saudi Arabia's sovereign wealth fund with ambitions to develop sophisticated technology announced a $200 million partnership with a Chinese surveillance technology company Dahua Technology previously sanctioned by the United States.

Feb 20   Saudi Arabia has invited the market to join a public consultation on a planned framework to enable large shareholders to float additional shares, said Abdullah Binghannam, Deputy of Financing and Investment, Capital Market Authority.

Feb 19   Saudi Arabia's non-oil growth is expected to come in above 5% in the medium term, Finance Minister Mohammed Al Jadaan said, slightly lower than the 6% figure previously projected, but likely to outperform the wider region this year.

Feb 12   Saudi Arabia's U-turn on its oil capacity expansion plans was because of the energy transition, its energy minister said , adding that the kingdom has plenty of spare capacity to cushion the oil market.

Feb 07   Saudi Arabia drew 27 million foreign tourists in 2023 and has more than doubled its goal for the end of the decade, an official said.