This week’s Saudi Round-Up captures strong economic momentum, from a surge in foreign investment to record-breaking non-oil exports.
General Business and Economy
Foreign Investment Inflows Surge 44% to $5.9 Billion in Q1 2025
Net foreign direct investment reached $5.9 billion (SAR22.2 billion) in the first quarter, driven by increased capital inflows and reduced outflows. The performance reflects growing investor confidence despite global FDI declines affecting other markets.
More multinational headquarters are relocating to the Kingdom, and the $1.1 trillion project pipeline keeps drawing international capital to support major transformation projects. This investment momentum strengthens Vision 2030’s funding base while validating Saudi Arabia’s appeal as a regional business hub.
Trade Surplus Reaches $3.8 Billion with China as Leading Partner
The Kingdom recorded $24.1 billion in exports in 2025, with China as the top trading destination. Import activity surged 18.3%, driven by increased purchases of machinery and transportation equipment essential for development projects.
This trade dynamic reflects Vision 2030’s infrastructure expansion as the Kingdom invests heavily in advanced equipment and technology. The strong import growth signals accelerated development activity across multiple sectors, supporting the broader transformation agenda.
Unemployment Rate Drops to Historic Low of 2.8% in Q1 2025
The Kingdom achieved its lowest unemployment rate on record as job creation accelerated across sectors. Saudi national unemployment fell to 6.3%, while female workforce participation climbed to 36.3%, reflecting sustained economic expansion.
This achievement proves Vision 2030’s employment approach works as the Kingdom successfully builds job opportunities for its people. The robust job market supports economic diversification efforts, demonstrating the effectiveness of reforms in building a sustainable and inclusive economy.
Millionaire Inflows to Surge 700% in Kingdom
The Kingdom expects to attract 2,400 high-net-worth individuals in 2025, representing an eightfold increase from 300 millionaires who relocated in 2024. This surge positions the country as the fastest climber globally in wealth migration.
Some reasons that make the Kingdom attractive to international investors include giga projects like NEOM, improved infrastructure, strategic location advantages, attractive residency programs, and tax incentives.
Banking & Finance
PIF Launches Global Commercial Paper Program with Top Credit Ratings
The sovereign wealth fund expanded its financing toolkit by establishing commercial paper programs in the US and European markets. Both programs secured the highest available short-term credit ratings, reflecting strong investor confidence in the fund’s capabilities.
This financing diversification strengthens PIF’s ability to fund Vision 2030 megaprojects while accessing global capital markets efficiently. The move positions the fund among elite international investors with flexible short-term liquidity management options.
Government Issues $627.8 Million in Sukuk Across Five Tranches
Saudi Arabia completed its June sukuk program totaling $627.8 million (SAR2.355 billion) with maturities ranging from 2027 to 2039. The issuance followed the debt management center’s broader strategy of optimizing funding costs while deepening local capital markets.
These Islamic financing instruments support Vision 2030’s infrastructure development while building domestic financial market depth. The successful pricing demonstrates continued investor appetite for Saudi sovereign debt across various maturity profiles.
Manufacturing & Industry
Second Industrial Incentive Package Targets Strategic Manufacturing Sectors
The Kingdom unveiled expanded industrial support covering additional strategic sectors beyond the initial automotive and chemicals focus. Projects can receive up to $13.5 million (SAR50 million) in financial backing, representing 35% of initial investment value over seven years.
This comprehensive incentive structure accelerates Vision 2030’s industrial diversification by enabling domestic production of previously imported goods. The program positions Saudi Arabia as the region’s first to offer standardized industrial support, attracting international manufacturers to establish local operations.
Digital Technologies Could Boost Industrial Productivity by 25%
Saudi Arabia is banking on digital transformation to boost industrial productivity by 15–25%, said Aramco’s CEO during the Saudi Industry Forum. The strategy involves deploying AI, IoT, robotics, and automation across the manufacturing and energy sectors.
To support this, Aramco is launching dedicated initiatives like a private industrial wireless network and “AI on the Edge” for high-stakes environments such as the Hajj. These efforts reinforce the Kingdom’s goal to localize tech supply chains and secure industrial systems against cyber threats.
Tesla Opens First Saudi Center as EV Demand Accelerates
The electric vehicle manufacturer launched its inaugural facility in Riyadh with service capabilities and customer deliveries planned shortly. A second center will open in Jeddah by year-end, while Cybertruck becomes available regionally for the first time outside North America.
This expansion reflects Saudi Arabia’s commitment to sustainable transportation under Vision 2030’s environmental goals. Tesla’s regional debut supports the Kingdom’s green mobility transition while establishing it as a Middle East hub for electric vehicle adoption.
Maritime
Mawani Awards $586 Million Port Privatization Contracts
Saudi Arabia’s Mawani finalized agreements with national partners for multipurpose cargo terminals across eight facilities. The 20-year Build-Operate-Transfer contracts will enhance operational efficiency through advanced crane systems and reduced processing times.
These strategic partnerships strengthen Saudi Arabia’s position as a global logistics hub while supporting Vision 2030’s economic diversification. Private sector involvement accelerates port modernization and reinforces the Kingdom’s role in international maritime trade corridors.