This edition of the Saudi Round-Up reflects on the official launch of Air Riyadh, recent investments in the EV and automotive spaces, as well as the growing US investor interest in the entertainment sector.
General Economy
World Bank Raises Saudi Arabia’s 2025 Growth Forecast to 3.2%
The World Bank has upgraded Saudi Arabia’s economic growth forecast for 2025 to 3.2%, up from the previous 2.8%, buoyed by increased oil output and strong growth in the non-oil sector, especially services. The Kingdom’s economy grew 3.9% in the first half of 2025, with further acceleration expected to 4.35% in 2026 and 4.4% in 2027. This outlook is consistent with projections from the IMF and OECD.
Industrial Production Rises 7.1% in August
Industrial Production Index increased by 7.1% year-on-year in August 2025, driven mainly by growth in the manufacturing, mining, and utilities sectors. Manufacturing output grew 5.6%, led by an 8.9% rise in coke and refined petroleum products and an 8.6 %increase in chemicals production.
The mining and quarrying sector expanded 8.1%, supported by higher oil production averaging 9.72 million barrels per day, up from 8.99 million bpd in August 2024.
Belarus and Saudi to Establish Joint Business Council to Boost Cooperation and Trade Relations
A Belarus-Saudi Arabia business council is being set up to enhance economic cooperation between the two countries. Both parties agreed on practical ways to increase trade turnover and to organize joint events for their business communities. The council aims to foster closer economic ties through coordinated efforts and is part of broader cooperation that includes recent agreements in civil aviation between Belarus and Saudi Arabia, which are expected to stimulate trade and connectivity further.
Expansions
ALSA Secures Eight-Year Contract to Operate 156 Buses
The Mobico Group’s subsidiary ALSA has won an eight-year capital-light contract worth €500 million to operate 156 buses in Saudi Arabia, mostly electric vehicles.
This joint-venture project focuses on serving Qiddiya, a new city near Riyadh, and includes managing Park & Ride facilities and shuttle services between Riyadh and Qiddiya. ALSA, which began operations in Saudi Arabia in October 2023, aims to strengthen its presence in the Middle East by delivering sustainable and innovative transport services in this large-scale project.
HP Launches First Global Tech Manufacturing Facility and AI R&D Center in Saudi
HP has inaugurated its first global manufacturing facility in Riyadh, marking a significant milestone in Saudi Arabia’s technology sector.
The facility, officially opened on October 12, 2025, began operations with the production of HP EliteDesk AI PCs and will expand to produce a broader range of products. This move aims to improve supply chain resilience, customization, and lead times for the Kingdom and the Middle East & Africa region.
Ford Motors Gearing Up to Launch EV in Saudi Market
Ford Motors is preparing to enter Saudi’s electric vehicle (EV) market by introducing the Mustang Mach-E in November 2025, initially rolling out between 500 and 1,000 units to test market demand. Despite the growing EV momentum in Saudi Arabia supported by players like Lucid, BYD, and the local brand Ceer, Ford notes that battery electric vehicle demand remains limited in the region, with consumers favoring hybrids for now.
Entertainment
Forum Highlights Lucrative Investment Opportunities in Entertainment Sector
The U.S.-Saudi Business Council, in collaboration with the General Entertainment Authority and the Ministry of Investment, hosted a high-profile forum in California on September 8, 2025, focused on unlocking investment and partnership opportunities in Saudi Arabia’s booming entertainment sector. The event gathered senior Saudi officials, giga-project executives, and U.S. industry leaders to explore collaboration in cultural destinations, theme parks, major festivals, and urban entertainment projects.
Aviation
Riyadh Air Ready for Take-Off With First Flight to London on Oct. 26
Riyadh Air, Saudi Arabia’s newest national airline owned by the Public Investment Fund, is set to launch its maiden flight to London Heathrow on October 26, 2025, using a Boeing 787-9 aircraft named “Jamila.” The airline plans to start commercial operations with ticket sales shortly after, expanding routes to Dubai and more destinations in winter 2025 and summer 2026.
Technology
Saudi Launches Mostaqbali Program to Train 50,000 Saudis in Future Digital Skills
Ministry of Communications and Information Technology has initiated the Mostaqbali (My Future) program to train, upskill, and reskill 50,000 Saudi citizens in high-demand future jobs, focusing on artificial intelligence and digital technologies. Developed in collaboration with Oracle and the National eLearning Center, the program is delivered via the FutureX national eLearning platform.
It offers 23 training tracks totaling 300 hours, covering AI, cloud computing, database management, and Oracle applications, among other digital skills.
Kyndryl, Auj Collaborate on Digital Innovation in Aviation
Kyndryl, a leading enterprise technology services provider, and Auj, an aviation strategy and operations advisory firm, announced a strategic partnership aimed at accelerating digital transformation in Saudi Arabia’s aviation sector. Unveiled at the World Aviation Festival in Lisbon, the collaboration focuses on helping airlines, airports, and regulators adopt cutting-edge technologies and operating models to enhance efficiency, resilience, and innovation.
Combining Kyndryl’s expertise in IT consulting, cloud, AI, cybersecurity, and managed services with Auj’s local aviation knowledge, the partnership aims to deliver tailor-made solutions addressing the unique challenges of Saudi Arabia’s aviation industry.
Construction
UK’s Mobico Unit Wins Transport Contract for Qiddiya
British public transport company Mobico Group, through its ALSA subsidiary, has won an eight-year transport contract in Saudi valued at €500 million ($581 million). The contract includes operating 156 vehicles, 126 of which will be electric, to serve the Public Investment Fund-backed Qiddiya megaproject near Riyadh.
The services cover park-and-ride facilities and shuttle operations connecting Riyadh and Qiddiya. This contract builds on ALSA’s presence in Saudi Arabia since October 2023, where it operates long-haul intercity services in the southern region.