In this week’s Saudi Round-Up, we observe strategic international cooperation and major investments in energy, technology, and entertainment.
General Business and Economy
Real GDP Rises 3.4% in Q1, Non-Oil Sector Leads Growth
Saudi Arabia’s real GDP grew 3.4% in Q1 2025, compared to the same period in 2024. This growth was mainly driven by a 4.9% jump in non-oil activities and a 3.2% rise in government output.
Non-oil activities added 2.8 percentage points to the total GDP growth, showing continued diversification.
Banking & Finance
E-Commerce Sales Jump 57% in April, Hitting $6.2 Billion
Online spending via Mada cards surged to $6.2 billion (SAR 23.27 billion) in April, up 57% from a year earlier. Transaction volumes rose nearly 41%, reflecting Saudis’ growing reliance on digital purchases through apps and websites.
Meanwhile, in-store POS spending dipped 1.38% despite a jump in transaction count, signaling a shift toward lower-value, high-frequency purchases. Over 94% of in-store card payments are now contactless, and the rollout of Google Pay is expected to push this even further in 2025.
Banking Sector Posts $2 Billion in April Profits, Up 16%
Saudi commercial banks earned $2.07 billion (SAR 7.77 billion) in April, before zakat and tax, a 16% year-over-year increase. Year-to-date profits hit $8.79 billion (SAR 32.97 billion), boosted by robust credit demand and government-backed mega projects.
Lenders are scaling up financing for giga-projects like NEOM and Diriyah while offloading non-performing loans and raising capital. The sector has already issued $5.6 billion in AT1 bonds this year, the second-highest total globally, positioning itself for Saudi Arabia’s next investment wave.
Construction
Eastern Province’s Dhahran to Host a Tourism City
Saudi Arabia awarded a project to develop a tourism and entertainment city in Dhahran, covering 190,000 square meters. The project includes educational and sports facilities and is part of efforts to energize private investment in the Eastern Province.
Over the last two years, active developments in the region have surpassed $8 billion (SAR 30 billion), underlining investor confidence in the province’s economic potential.
Entertainment
Entertainment Sector Projected to Hit $6.1 Billion by 2033
Saudi Arabia’s entertainment market is on track to grow from $2.46 billion in 2024 to $6.1 billion by 2033. This rise is largely driven by rapid tech integration, especially in VR, AR, and HD formats, reshaping consumer experiences and fueling demand for immersive offerings.
A young, tech-savvy population and strong government backing through Vision 2030 are pushing this growth forward, leading to a sustained rise in investors pursuing a business setup in Saudi Arabia.
Logistics
New Shipping Services Expand Saudi Port Reach to 19 Destinations
Saudi Arabia has launched two new shipping services, expanding its maritime network to 19 global destinations. The IM2 service connects Jeddah to major ports in India, Egypt, and Turkey with a capacity of 2,800 TEUs, while the MSC Chinook Clanga route links Dammam and Jubail to 16 key hubs across Asia and North America. These additions boost port competitiveness and align with the Kingdom’s strategy to become a top 10 global logistics hub by 2030.
In 2024, Saudi ports handled over 320 million tons of cargo, a 14.45% increase, and exported more than 2.8 million TEUs, up 8.86% year-on-year.
To support this growth, Mawani launched new logistics zones in Jeddah and Dammam, backed by $773 million (SAR2.9 billion) in private investment. These projects are part of a broader $2.66 billion (SAR10 billion) plan to develop 18 logistics parks and increase the sector’s GDP contribution from 6% to 10% by 2030.
Trade & Investments
Saudi Arabia and Netherlands Sign $114 Million in Agriculture-Focused Deals
Saudi Arabia signed 27 agreements with Dutch firms, valued at over $114 million (SAR 428 million), to enhance water, agriculture, and environmental tech. The deals include initiatives for localizing biotechnology, improving crop protection, and supporting smart greenhouse solutions.
This move boosts the Kingdom’s food security and tech independence, aligning with Vision 2030’s goal to localize innovation and reduce import reliance. Major players from both sides are collaborating to drive agricultural R&D, modernize farming systems, and ramp up domestic food production.
Saudi-UK Investment Partnership Targets $37.5 Billion Trade by 2030
More than 400 leaders gathered in London to expand Saudi-UK investment cooperation, aiming to boost bilateral trade from $21.6 billion to $37.5 billion by 2030. The summit emphasized infrastructure, green economy, and finance as top priority sectors.
The UK has attracted $21 billion in Saudi investments since 2017, while UK investment in Saudi Arabia hit $13 billion by 2023. As Vision 2030 pushes economic diversification, both sides are leveraging strategic ties, free trade talks, and tech collaboration to build long-term economic resilience.
11 Agreements Inked to Bring Dutch Entities into SAFTA
Saudi Arabia signed 11 new agreements with Dutch firms and institutions, integrating them into the Saudi AgriFood Tech Alliance (SAFTA). The deals focus on joint development in water, environment, and agriculture, reinforcing the Kingdom’s strategy to attract cutting-edge farming tech and expertise from global partners.
A separate MoU was signed with the Netherlands Water Partnership and the Dutch Water Alliance to collaborate with the Saudi Water Innovation Alliance. These moves support Vision 2030 by enhancing food security, scaling sustainable agriculture, and fast-tracking smart farming methods through international research and tech exchange.