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/

February 22, Saudi Arabia's aviation industry is set for a major transformation as Riyadh Air, the Kingdom's newest flagship airline, prepares to take flight by the end of 2025. Riyadh Air is a crucial part of the country's Vision 2030 strategy, which aims to position the Kingdom as a leading hub for international air travel.   

February 18, Saudi Arabia is laying a solid foundation to transform its automotive industry into a global leader. Backed by the ambitious Vision 2030 and supported by strategic investments, innovative partnerships, and localization efforts, the Kingdom is creating an enabling environment for sustainable growth in the automotive sector. 

February 16, Saudi Arabia is now ranked among the world's top ten energy storagemarkets, its growth driven by the launch of the 2,000 MWh Bisha Project one of the largest in the Middle East and Africa. 

February 15, The Minister of Economy and Planning of Saudi Arabia, announced that Saudi Arabia plans to invest nearly $1 trillion in infrastructure projects by 2030 to accelerate economic diversification and promote private sector participation. 

February 12, Minister of Investment announced that the number of global companies establishing their regional headquarters in Saudi Arabia has risen to nearly 600. 

February 7, Saudi Arabia's non resident population makes up 44 % of the total population in the Kingdom, people from all over the world are visiting and residing in Riyadh, Jeddah, Dammam, Tabuk and, Al Hofuf. 

February 6, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud has designated King Salman Automotive Cluster as the official name of the cluster for automotive manufacturing activities, located within King Abdullah Economic City (KAEC). 

February 3, The robust growth of e-commerce has driven the sales and rental prices of warehouses in the Sulay area east of Riyadh to increase by more than 20% year - on - year, with the selling price reaching 3,200 Saudi riyals per square meter.

January 29, The developer behind Jeddah Tower in Saudi Arabia has announced that the long-stalled project will complete in 2028. Although the final height has not been revealed, the skyscraper is planned to reach a height of at least 1,001 meters.

January 27, Saudi Arabia is set to begin allowing non-Saudis to invest in publicly-traded companies that own real estate in Mecca and Medina. Foreigners will be allowed to purchase shares and convertible debt instruments in firms owning private or public real estate in the holy cities.

January 17, The International Monetary Fund has lowered its 2025 GDP growth projection for Saudi Arabia to 3.3%, mainly due to extended oil production cuts. 

January 14, Saudi Arabia's Minister of Investment stated that the number of multinational companies setting up regional headquarters in the country has reached 571, exceeding the target set by Vision 2030. These companies are primarily focused on the industrial sector, which contributes 30% of the country's foreign direct investment.

January 9, Saudi Arabia maintained its first rank across Middle East and North Africa region in terms of venture capital funding in 2024, witnessing a total VC deployment of SR2.8 billion ($750 million).

January 5, Minister of Commerce announced that the Kingdom's trade in services reached SAR 540 billion （$144 bln）in 2023, reflecting an annual growth rate of 7%.

December 29, The Ministry of Commerce has instructed all government and private entities that they should not use the term 'sponsor' and should be satisfied with the term 'employer'. The ministry emphasized that Article 2 of the Labor Law defines employer as "any natural or legal person who employs one or more workers in return for a wage."

December 19, Saudi Arabia played a pivotal role in driving a 44 % increase in e-commerce orders across the Middle East and North Africa region during the 2024 festive season. The surge was fueled by trends in mobile shopping, cultural celebrations, and gifting. Saudi Arabia led the way in mobile commerce adoption, with 62 % of online purchases made via mobile devices.

December 19, Saudi Arabia has announced the implementation of definitive anti-dumping measures on imports of PVC-coated textiles and fabrics from China and South Korea. The decision was published in the official gazette on 16 December 2024, and will be effective for five years starting 17 December 2024.

December 16, Saudi Arabia Zakat, Tax, and Customs Authority has launched a new service allowing individual importers to process personal vehicle imports independently through its land and sea customs ports.

December 6, Saudi Arabia has seen an increase in the issuance of tour guide licenses, with a 121% growth in the first nine months of 2024. The Ministry of Tourism reported that the number of tourism guide licenses exceeded 2,500, compared to just 1,100 in the same period last year.

December 4, Ramadan is one of the most significant months in the calendar for Muslims around the world. And it has been pred icted that Ramadan 2025 in Saudi will begin on Saturday March 1, 2025.

November 28, Saudi Arabia will implement a VAT refund system for tourists in 2025, as part of its efforts to enhance the travel experience and boost tourism. 

November 26, Saudi Arabia posted a record surge of 866 % in franchise registrations over the past three years. Tourism, hotels and restaurants activities topped the list of the fastest growing sectors in franchise registrations with 1,232 registrations, followed by the wholesale and retail sector with 689 registrations. 

November 24, Riyadh’s premium office space has achieved a near-full occupancy rate of 98 % due to a wave of international companies establishing a presence in the city. This influx has driven rental prices up by 19 % year-on-year, which solidifies Saudi Arabia’s capital as a key regional business hub. 

November 21, Car buyers in Saudi Arabia and the UAE show trust levels above 70 per cent for Chinese automotive brands—more than double the confidence seen in the United States—establishing the Gulf region as China’s most promising export market, report finds.

November 3, Saudi Arabia and China are taking steps toward a visa-free travel agreement that could open up major economic opportunities for both countries. Tourism, a key player in economic growth, stands to benefit the most from this initiative, fueling new streams of revenue and cultural exchange between the two nations.

November 3, The Eastern Province Municipality awarded a project to establish an integrated industrial city in Dammam on an area of 2.4 million square meters (sqm), in addition to developing the infrastructure and services in the site's industrial masterplan. The scope of work entails building an integrated industrial city, along with the establishment and development of the relevant infrastructure and services.

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.