From recent developments in the aviation sector to major corporate announcements in real estate, this week’s edition from the Saudi Round-Up comprehensively covers the latest updates across strategic sectors in Saudi Arabia.
General Business and Economy
S&P Upgrades Saudi Arabia’s Credit Rating to A+
S&P Global Ratings raised Saudi Arabia’s credit rating from A to A+ with a stable outlook. The agency attributed the upgrade to sustained economic reforms and diversification efforts, particularly in developing domestic capital markets. Strong non-oil sector growth and continued financial policy improvements were key drivers of the decision.
This marks another in a series of credit rating upgrades for Saudi Arabia, reinforcing the country’s financial stability and economic transformation under Vision 2030. S&P projected an average GDP growth of 4% between 2025 and 2028, highlighting the Kingdom’s success in reducing reliance on oil revenues.
Saudi Bank Credit Surges to Record $799.85 Billion, Up 15%
Saudi bank credit reached an all-time high of $799.85 billion by January 2025, marking a 15% increase from the previous year. This rise, driven by increased lending to both public and private sectors, highlights Saudi Arabia’s expanding financial sector and economic momentum.
The monthly report from the Saudi Central Bank (SAMA) also showed a 2% increase from December 2024. The surge in credit aligns with Vision 2030’s financial sector reforms, supporting business growth, infrastructure projects, and overall economic diversification.
Aviation
Private Aviation Market Expands with Regulatory Reforms
Saudi Arabia’s private aviation sector is experiencing rapid growth, with flight volume rising 24% in 2024. New regulations have opened the market, attracting international operators and positioning the industry for a projected $2 billion valuation by 2030. Riyadh remains the key hub, while demand for flights to NEOM and the Red Sea is rising.
Regulatory changes now permit one-way private jet operations and will allow foreign-registered aircraft to fly domestically from May 2025. The Kingdom is investing heavily in infrastructure, with six new business aviation airports and nine terminals planned, creating thousands of jobs and reinforcing Saudi Arabia’s push to become a global aviation hub.
Construction
Armani Unveils Exclusive Residences in Diriyah
Diriyah Company has launched Armani Residences Diriyah, marking Armani’s first branded residential project in Saudi Arabia. The 15 luxury residences, designed by Giorgio Armani, reflect traditional Najdi architecture while offering high-end contemporary living.
Located in Diriyah Square, the development enhances Saudi Arabia’s push to become a global luxury destination. The project aligns with Vision 2030’s focus on cultural preservation and premium real estate investment, positioning Diriyah as a hub for exclusive lifestyle experiences.
Retal Urban Development Secures $120 Million Contract
A joint venture under Retal Urban Development signed a $120 million contract with Specialised Construction Company for MEP works in Al Khobar. The projects include the Retal Rise residential development and Nobu Hotel, enhancing the city’s luxury real estate sector.
These developments support Saudi Arabia’s tourism and real estate expansion, which are key drivers of Vision 2030. By improving urban infrastructure and attracting high-end investors, the projects contribute to economic diversification and the Kingdom’s position as a hospitality hub.
Hospitality
Licensed Hospitality Facilities in Makkah Surge by 80%
Saudi Arabia’s Ministry of Tourism reported an 80% increase in licensed hospitality facilities in Makkah by the end of 2024, reaching over 1,000 establishments. This growth reflects the highest number of licensed rooms in the country and aligns with efforts to enhance service quality for visitors and Umrah performers.
To ensure compliance, the ministry conducts regular inspections and enforces penalties for violations. A new online verification tool now allows visitors to check the status of hotel and apartment licenses in Makkah and Madinah. This initiative, part of the “Our Guests Come First” campaign, aims to improve accommodation quality and protect travelers’ rights.
Commerce
PIF Launches 1st Saudi-Owned Duty-Free Retailer
Saudi Arabia’s Public Investment Fund (PIF) introduced Al Waha, the country’s first locally owned duty-free retailer, to boost travel retail. Al Waha will operate at airports, land borders, and seaports, offering luxury goods, local products, and a seamless digital shopping experience.
With projects like King Salman International Airport, Riyadh Air, and Cruise Saudi, PIF continues to invest in tourism and retail. With around $925 billion in assets, PIF’s expansion supports Vision 2030’s goal of diversifying the economy and strengthening Saudi Arabia’s global position in travel and retail.
Real Estate
Residential Real Estate to Attract $1.22 Billion in 2025
Private buyers in Saudi Arabia are expected to invest $1.22 billion in residential real estate this year, with NEOM emerging as the most desirable location. The report by Knight Frank highlights that NEOM, a futuristic city along the Red Sea, is central to Saudi Arabia’s economic diversification strategy.
Saudi nationals and expatriates plan to allocate $489 million for housing across the country and $733 million for properties within giga-projects. These developments, backed by PIF, aim to create new economic opportunities beyond oil, reinforcing Vision 2030’s ambition to transform the real estate sector.
Energy & Sustainability
UN Recognizes Saudi Arabia as a Global Leader in Water Management
The UN-Water Committee has acknowledged Saudi Arabia as a global model for integrated water resources management, highlighting its success under Vision 2030 and the National Water Strategy. The recognition places the Kingdom at the forefront of efforts to achieve Sustainable Development Goal 6 (SDG 6), emphasizing its innovative water strategies.
A workshop in Riyadh gathered government officials, international organizations, and experts to review Saudi Arabia’s achievements. The UN is conducting a case study on the Kingdom’s approach, with findings expected to guide other nations in improving water management and accelerating progress toward global sustainability goals.
Ministry of Environment Launches Digital Platform for Environmental Grants
The Ministry of Environment has launched an electronic platform to streamline incentives and grants for environmental projects. This initiative, part of the Environment Fund, aims to accelerate sustainability efforts, promote eco-friendly practices, and support the National Environment Strategy. The platform will enhance accessibility for businesses, research centers, universities, and non-profits.
By digitizing the grant process, the platform encourages investment in conservation, innovation, and pollution reduction. It aligns with Vision 2030 by fostering environmental responsibility across industries, ensuring a balance between economic growth and ecosystem protection.
Technology
Saudi Arabia Launches First AI Employee to Boost Aviation Services
The Minister of Transport introduced the first digital employee at Saudi Ground Services (SGS), which was designed to enhance efficiency in aviation operations. This AI-driven system automates routine tasks like attendance management and report generation, saving over 10,000 work hours annually. It aligns with Saudi Arabia’s push for digital transformation in key sectors.
The digital employee improves real-time operational readiness, allowing human workers to focus on strategic tasks. It reflects Saudi Arabia’s broader efforts to integrate automation and AI into logistics and aviation, ensuring higher productivity and better services for airlines and passengers.
Saudi, South Korea Strengthen Space Cooperation
Saudi Arabia and South Korea have signed an agreement to expand collaboration in space exploration, satellite development, and deep space technologies. The partnership will focus on knowledge exchange, capacity building, and enhancing research in space science and engineering.
The agreement aims to create investment opportunities and strengthen both nations’ positions in the global space industry.
Scopely to Acquire Niantic, Pokémon Go Maker, for $3.5 billion
Saudi-backed Scopely Inc. has agreed to acquire Niantic Inc.’s gaming division, including Pokémon Go, for $3.5 billion. This move strengthens Saudi Arabia’s presence in the gaming industry, where its PIF already holds stakes in major publishers like Nintendo and EA. The acquisition includes Niantic’s development teams and key titles like Pikmin Bloom and Monster Hunter Now.
Scopely itself was acquired by PIF subsidiary Savvy Games Group in 2023 for $4.9 billion, highlighting Saudi Arabia’s long-term commitment to gaming. Pokémon Go, despite being nearly a decade old, still has 30 million active players monthly. Riyadh is also set to host the Olympic eSports Games in 2027, further positioning the kingdom as a global gaming hub.
Saudi Strengthens Cybersecurity with Tier 1 MSOC Licenses
The National Cybersecurity Authority has granted Tier 1 licenses to six companies to provide Managed Security Operations Center (MSOC) services. These providers will enhance cybersecurity monitoring and threat detection for critical infrastructure, government entities, and private organizations.
This move ensures standardized cybersecurity practices and mandates that entities managing national infrastructure utilize approved MSOC providers. Strengthening cybersecurity aligns with Vision 2030’s push for digital transformation and a resilient tech ecosystem.
Tourism & Culture
Saudi Arabia Restores 60 Historic Mosques in Major Preservation Project
Saudi Arabia has completed the restoration of 60 out of 130 historic mosques under the Prince Mohammed bin Salman Project for the Development of Historical Mosques. The initiative, launched in 2018, aims to preserve the Kingdom’s architectural heritage while modernizing facilities to accommodate worshippers. Now at its midpoint, the project is the largest restoration effort in Saudi history.
The initiative supports Vision 2030’s goal of preserving cultural identity while revitalizing communities. Restoration efforts have reopened long-closed mosques, integrating modern amenities while maintaining historical authenticity. The project also fosters national expertise in heritage restoration, ensuring the sustainability of these efforts.
Saudi Unveils Architecture Map to Modernize Urban Design
Saudi Arabia has launched the Saudi Architecture Characters Map, defining 19 architectural styles based on the Kingdom’s cultural and geographical diversity. The initiative integrates heritage with modern design, aiming to enhance urban landscapes while preserving local identity.
The project is expected to generate over $2.1 billion in GDP and create 34,000 jobs by 2030. Its phased rollout will begin in cities like Al-Ahsa, Taif, Makkah, and Abha, ensuring sustainable urban development aligned with Vision 2030’s modernization goals.
MICE
Sports Investment Forum 2025 to Boost Saudi Arabia’s Sports Economy
Saudi Arabia will host the Sports Investment Forum 2025, gathering industry leaders, investors, and officials to shape the future of the Kingdom’s sports sector. Discussions will cover infrastructure, investment opportunities, and talent development.
The event will highlight women’s participation in sports, global tournament hosting, and sports tourism. With a dedicated investment hall and exhibition, the forum aims to attract private sector involvement and solidify Saudi Arabia as a global sports hub.