This week’s Saudi Round-Up spotlights significant advancements in AI, energy, and tourism, underlining sustained foreign investor confidence in the capital market.
General Business and Economy
PIF to Invest $170B in Europe by 2030, Opens Paris Office to Deepen Ties
Saudi Arabia’s Public Investment Fund (PIF) will raise its European investments to $170 billion by 2030, building on $84.7 billion already invested from 2017 to 2024. These investments have contributed $52 billion to Europe’s GDP and created over 254,000 jobs.
The Paris office launch marks a strategic push to build closer ties with European markets. The move reflects Vision 2030’s global economic agenda and PIF’s aim to partner with high-impact sectors worldwide.
Trade and Investments
Saudi Arabia and Spain Sign Deal to Advance Joint Economic Projects
Saudi Arabia and Spain signed an MoU to enhance economic ties through joint initiatives in policymaking, SME support, and knowledge exchange. The agreement includes cooperation on economic modeling and participation in key development programs.
Trade between both countries reached $1.5 billion in 2024, with Spain exporting machinery, electronics, and pharmaceuticals. The deal aligns with Saudi Arabia’s diversification strategy and paves the way for stronger EU-GCC cooperation.
Aviation
Betchel to Oversee Three New Terminals at King Salman International Airport
Bechtel has been appointed the delivery partner for three new terminals at King Salman International Airport in Riyadh. This includes a commercial terminal, a low-cost carrier terminal, and a private aviation terminal with hangars. The project will replace King Khalid International Airport’s current facilities and incorporate sustainable design to meet LEED Platinum certification.
Once completed, the airport is set to become the largest in the world, handling 185 million passengers and 3.5 million tons of cargo annually. This is critical to positioning Riyadh as a global hub under Vision 2030.
Capital Market
Saudi Capital Market Hits $266.6 Billion in Managed Assets
In 2024, the total assets under management (AUM) grew to $266.6 billion. The number of investment funds rose to 1,549, with subscriber numbers climbing 47% to over 1.72 million, marking increased public participation and market maturity.
Sukuk and debt listings grew to $177 billion, while foreign investment hit $58.1 billion, signaling strong global confidence. IPO activity stayed hot, with 44 new listings and a 36% rise in approvals. These gains reflect CMA’s push to expand funding options and boost transparency.
Foreign Investment in Capital Market Hits $58B
Foreign investment in Saudi Arabia’s capital market climbed to $58.1 billion in 2024, up 10.1% year-over-year. Total foreign ownership reached $112.8 billion, or 11% of the main market’s free float shares, highlighting increasing confidence from international investors.
These gains followed regulatory reforms and transparency efforts aligned with Vision 2030. Saudi Arabia topped G20 nations in capital market performance across four global indices, solidifying its push to become a regional financial hub.
Construction
Saudi Construction Pipeline Tops $1.5 Trillion
Saudi Arabia now leads the world in active construction projects, with over $1.5 trillion in developments fueled by Vision 2030. The pipeline includes giga projects like NEOM, Diriyah Gate, and King Salman International Airport, and is reshaping the Kingdom’s economic landscape by diversifying beyond oil.
Digitalization and sustainability are at the core of this transformation. AI is widely adopted across projects to optimize efficiency, while modular building techniques and renewable energy sources are being integrated to meet environmental goals and reduce costs at scale.
Zaha Hadid Architects Begins Adobe Museum Project in Diriyah
Zaha Hadid Architects has started construction on the Asaan Museum in Diriyah, marking its first project using adobe, a traditional clay-based building method. The museum is designed to blend with its UNESCO-listed surroundings by adopting Najdi architectural styles and using locally sourced materials suited for the region’s heat.
Commissioned by the Misk Foundation, the museum will feature educational and cultural spaces centered around three courtyards. As part of the broader Diriyah Gate development, the project balances heritage preservation with urban growth, aligning with Vision 2030’s push to highlight Saudi identity through modern design rooted in tradition.
Energy & Sustainability
Aramco Launches World’s First Renewable Battery Storage for Gas
Aramco has commissioned the first renewable energy storage system specifically for gas operations using iron-vanadium redox flow battery technology. Installed in Waad Al Shamal, this 1-MWh system supports up to five wells, with a 25-year lifespan and stable performance under extreme weather.
The system enables frequent energy cycling with minimal degradation and no need for thermal regulation. Unlike traditional batteries, it uses a safer, more efficient modular setup. This innovation supports Aramco’s net-zero emissions target for Scope 1 and 2 by 2050 and reflects its pivot toward renewables.
Industrial
Saudi Arabia, China Partner on First Tinplate Plant in Ras Al-Khair
Saudi Arabia will host the region’s first tinplate and tin-free steel plant through a joint venture with China’s DHX Group. Set to begin operations by mid-2027, the plant will have a capacity of 400,000 tonnes and create over 500 direct jobs.
This project strengthens local industrial capabilities and aligns with Vision 2030’s goal of diversifying beyond oil. It also reflects a growing emphasis on sustainable manufacturing, as the facility will incorporate environmentally friendly production methods.
Sports
Saudi Arabia Launches “Sports Facilities Investment” Initiative
Saudi Arabia has launched the Sports Facilities Investment Project, allowing private investors access to three major sports complexes in Jeddah and Makkah. The initiative includes renewable five-year contracts for naming rights, leasing, and operations, marking a new phase in the commercialization of sports infrastructure.
This move is a key step in diversifying the economy under Vision 2030. It’s designed to boost efficiency, expand commercial use, and enhance fan engagement ahead of the 2034 FIFA World Cup. With the sports sector projected to grow to $22.4 billion by 2030, this initiative opens doors to $20 billion in private investment opportunities.
Technology
AI Startup Incubator Aims to Boost Digital Economy
Saudi Arabia’s Ministry of Communications launched a new AI incubator, targeting 20 startups with mentorship, funding, and training. The four-month program, run with support from SDAIA, SambaNova, and other partners, focuses on turning early-stage ideas into scalable solutions.
This initiative is part of Saudi Arabia’s broader Artificial Intelligence Mission (AI.M) strategy to lead the region in artificial intelligence. It follows major funding efforts like the $1 billion accelerator announced at Leap 2024 and contributes directly to building a competitive, tech-driven economy under Vision 2030.
Telecommunications
Saudi Arabia Ranks Second in Global ICT Regulation
Saudi Arabia has secured second place among G20 countries in the UN’s ICT Regulatory Tracker Index for 2024. The ranking reflects strong advances in telecom regulation, infrastructure, and market governance, highlighting the Kingdom’s focus on digital policy reform.
This recognition cements Saudi Arabia’s status as a global leader in regulatory innovation. It supports Vision 2030 goals by promoting investment, enabling digital growth, and establishing a stable, transparent tech environment for long-term development.
Tourism
Saudi Arabia Launches TOURISE to Accelerate Global Tourism Innovation
Saudi Arabia has launched TOURISE, a year-round global platform aimed at reshaping the tourism industry. Backed by an international advisory board, the initiative will host its first summit in Riyadh in November 2025, focusing on AI, investment models, sustainable tourism, and travel experience revamps.
The initiative also introduces the TOURISE Awards, spotlighting leadership in digital transformation, inclusivity, and sustainability, and supporting Vision 2030’s push to diversify the economy beyond oil.