This week’s Saudi Round-Up highlights major strides across the board, from a surge in new commercial registrations to groundbreaking developments in energy, manufacturing, and space.
General Business and Economy
New Commercial Registrations in Jump 48% in Q1 2025
Official data shows a 48% year-on-year rise in business registrations during Q1 2025, totaling over 154,000 new records. Recent legal reforms eliminated location-based registration limits and simplified the commercial register system, encouraging more entries across Riyadh, Makkah, and the Eastern Province.
The sharp increase reflects Saudi Arabia’s commitment to entrepreneurship under Vision 2030, with strong growth in key areas like e-commerce (+6%), cloud computing (+33%), and AR/VR technologies (+39%).
FDI in Saudi Quadruples Over the Past Decade
According to the Minister of Investment, foreign direct investment in Saudi Arabia has quadrupled over the past decade. Jobs in foreign-backed firms rose by 40%, and regional HQs and licenses saw steady increases.
This shift links directly to Vision 2030, where human capability is central. Upskilling, adaptability, and collaboration across sectors are being emphasized to match the rapid pace of change in the labor market.
Saudi Rises in Global FDI Rankings Amid Growing Investor Trust
Saudi Arabia climbed to 13th in Kearney’s FDI Confidence Index, its highest-ever position. The Kingdom also retained third place among emerging markets, thanks to steady reforms, economic performance, and investor-friendly policies aimed at diversifying away from oil.
Foreign direct investment into non-oil sectors rose 10.4% in 2023, while Q3 inflows jumped 37% to $4.26 billion.
Aviation
Charter Airline License Bidding Opens to Grow Aviation Sector
Saudi Arabia launched a public tender for a national charter air carrier license, opening the door for private and international operators. The move aims to boost service quality and competition, in line with the National Aviation Strategy’s goal of handling 330 million passengers and connecting to 250+ global destinations by 2030.
The reform follows the lifting of cabotage restrictions, allowing foreign carriers into domestic routes. With business jet activity already up 24% in 2024, Saudi Arabia is positioning to build a $2 billion general aviation industry by 2030, with six new business airports, nine terminals, and 35,000 new jobs.
Banking & Finance
Saudi Pushes New Rules to Boost Transparency in Capital Markets
Saudi Arabia’s Capital Market Authority proposed stricter disclosure rules for all share classes, aiming to improve transparency and open up more funding channels for businesses. The draft framework allows listed companies to issue new types of shares and requires updated ownership disclosures based on voting rights.
This shift aligns with broader efforts to deepen capital markets and attract investment under Vision 2030. Additional consultations are underway to let SPACs list on Nomu, expand the scope for Special Purpose Entities, and grow the sukuk and debt markets.
Energy & Sustainability
US and Saudi Lay Groundwork for Civilian Nuclear Energy Deal
The US and Saudi Arabia began formal talks to finalize a civilian nuclear technology agreement. The deal centers on building a commercial nuclear industry in the Kingdom, backed by American technology and partnerships. Details are expected later in the year.
This cooperation aligns with Saudi Arabia’s push to diversify its energy mix under Vision 2030. Expanding nuclear energy would reduce reliance on fossil fuels, support industrial growth, and bolster energy security. The US also signaled interest in broader investment ties across energy and minerals with the Kingdom.
Saudi-backed ITFC signs $45M energy deal with Comoros
The International Islamic Trade Finance Corporation signed a $45.4 million Murabaha financing deal with Comoros to support its energy sector. The funds will secure refined fuel supplies and boost key sectors like agriculture and manufacturing.
This deal helps stabilize Comoros’ energy access while promoting sustainable infrastructure aligned with UN goals. It’s part of a broader $330 million agreement expected to meet all of Comoros’ annual fuel needs, showcasing Saudi-backed efforts to support inclusive growth across Africa.
AI’s Power Hunger Could Reshape Global Energy Grids
According to the International Energy Agency, electricity demand from data centers is set to double by 2030 due to rapid AI adoption. These facilities could consume as much energy as Japan does today, with the US, Japan, and Malaysia among the hardest hit.
This trend could strain energy security and emissions targets but also open doors for cleaner tech. Vision 2030 could benefit if Saudi Arabia leverages AI to boost energy efficiency, scale renewables, and become a regional data hub backed by robust infrastructure.
Hospitality
Hospitality Sector Sees 89% Growth in Licensed Facilities
According to the Ministry of Tourism, licensed hospitality facilities in Saudi Arabia jumped 89%, reaching 4,425 in 2024. Makkah led with over 1,000 licensed sites, reflecting both strong pilgrimage demand and the country’s tourism boom.
The surge follows tighter regulations, frequent inspections, and rising traveler numbers. With over 30 million inbound tourists recorded last year and a 2030 target of 150 million, this expansion supports Vision 2030’s aim to make tourism a core economic pillar.
Manufacturing & Industry
Saudi Arabia Adds 103 New Factories, Fuels Industrial Growth
In January, Saudi Arabia launched 103 new factories with $240 million in investments, creating over 1,500 jobs. The Ministry of Industry also issued 63 new industrial licenses as part of a wider push to grow non-oil sectors.
This growth supports Vision 2030’s industrial targets, including 36,000 factories by 2035, 4,000 of which will be fully automated. Backed by programs like NIDLP, the Kingdom aims to become a regional hub for advanced manufacturing and sustainable industry.
MICE (meetings, incentives, conferences, and events industry)
Human Capability Initiative 2025 Kicks Off to Redefine Future of Jobs and Skills
The Human Capability Initiative 2025 kicked off in Riyadh, spotlighting education, technology, and workforce transformation amid global shifts. Under the theme “Beyond Readiness,” it gathered over 12,000 global participants to rethink how individuals and nations can stay ahead of disruptive changes in the labor market.
The event showcased immersive platforms and 120 sessions covering AI, lifelong learning, and inclusive development. With topics ranging from workforce resilience to human-machine integration, the forum marks a pivotal step toward sustainable growth.
Real Estate
Real Estate Fuels Record Bank Lending Surge
Saudi Arabia’s bank loans hit $811 billion in February, driven by corporate borrowing tied to Vision 2030 goals. Real estate topped the list with $91.2 billion in loans, followed by trade, manufacturing, and utilities.
Real estate lending rose over 30% amid housing demand, state-backed mortgages, and massive residential projects. To manage rising exposure, regulators are tightening controls, ensuring financial stability while supporting the Kingdom’s long-term urban and industrial transformation.
Technology
Saudi Arabia’s space economy surged to $8.7 billion in 2024, with forecasts pointing to $31.6 billion by 2035. This growth includes commercial services, infrastructure, and advanced technologies, supported by a 12% annual growth rate.
Earth observation, small satellite deployment, and private sector expansion are reshaping the sector, helping Saudi Arabia build a globally competitive, innovation-led economy in line with Vision 2030.
Sports
60 Sports Investment Deals Signed at Riyadh Forum
At the Sports Investment Forum in Riyadh, Saudi Arabia announced over 60 investment deals involving 50+ local and international entities. The event hosted 2,800+ attendees and 140 speakers, reflecting the Kingdom’s growing status as a global player in the sports economy.
Valued at $8 billion and expected to grow to $22.4 billion by 2030, the sports sector is now a key economic engine under Vision 2030. New investments in media, e-sports, infrastructure, and privatization are reshaping it into a sustainable, tech-driven industry with global reach.