Saudi Round-Up: Dammam’s Industrial Hubs Attract Fresh Funding Wave

This week’s Saudi Round-Up highlights key project announcements in Dammam and Saudi’s global ranking as among the world’s top AI talent hubs.

General Business and Economy

IMF Raises Growth Forecast to 3.6% for 2025

The International Monetary Fund has increased Saudi Arabia’s 2025 GDP growth projection to 3.6%, up from its previous estimate of 3.0%. This revision is tied to steady momentum in non-oil industries such as tourism, logistics, and manufacturing.

With continued reform and diversification efforts, the Kingdom is now set to be one of the fastest-growing major economies globally. This momentum supports Vision 2030’s strategy to shift from oil dependence to a more balanced and resilient economic model.

GDP Grows 3.9% in Q2 on Broad Economic Strength

Saudi Arabia’s economy grew by 3.9% in Q2 2025, driven by strong performance across key sectors. Non-oil activities saw a 4.7% annual increase, while government services posted slight but steady growth.

The data reflects the Kingdom’s ongoing shift toward a diversified economy. Non-oil industries are playing a larger role in shaping national growth, reinforcing Vision 2030’s push to build a more sustainable and innovation-led economic model.

Non-Oil Revenues Climb 7% in Q2 2025

Saudi Arabia’s non-oil revenues climbed 7% in Q2 2025, reaching $39.9 billion (SAR  149.9 billion), making up nearly half of the Kingdom’s total income. This helped ease the impact of a 29% drop in oil revenues over the same period.

Despite running a quarterly deficit of $9.2 billion (SAR 34.5 billion), the uptick in non-oil income, driven by taxes and trade, shows meaningful headway toward revenue diversification. The Kingdom’s expanding tax base and tighter spending align with Vision 2030’s fiscal transformation.

FDI Nets SR1.9 Billion in Stock Market in July

The main Saudi stock market attracted SR1.9 billion ($507 million) in FDI during July 2025, signaling sustained foreign investor interest. 

Individual investors recorded net purchases of about SR2.12 billion, while high-net-worth individual investors posted net purchases of SR1.1 billion.

$173M Global City Project Launched in Dammam

Saudi Arabia launched the Global City Dammam, a $173.3 million cultural and tourism destination developed with a Thai investor. The project will feature pavilions from 16 countries, a floating market, an artificial lake, and a 7,000-seat open-air theater.

Spanning over 600,000 square meters, the city combines entertainment, food, and culture to attract both domestic and international visitors. 

Energy & Sustainability 

Saudi Arabia to Build 1,000 Rainwater Dams

Saudi Arabia plans to build 1,000 rainwater harvesting dams with a total capacity of 4 million cubic meters annually. Completed water projects have already surpassed $61.3 billion, with significant investments in production, storage, and efficiency upgrades.

These efforts are part of a sweeping environmental transformation that includes rehabilitated land, millions of trees planted, and a fourfold expansion of protected areas. The Kingdom’s environmental initiatives are helping reshape food security, improve climate resilience, and make Saudi Arabia a global model for sustainable water practices.

Logistics 

Pilot Program for Self-Driving Delivery Vehicles Begins

Saudi Arabia has launched a pilot program for self-driving delivery vehicles at ROSHN Business Front, in partnership with Jahez and ROSHN Group. The initiative aims to test AI-powered transport solutions within real urban settings and is part of a broader push for smart city integration.

This marks a major step in modernizing logistics services while reducing carbon emissions. It reflects the country’s broader goal of creating sustainable, tech-driven infrastructure in line with the National Transport and Logistics Strategy under Vision 2030.

Industrial 

Eastern Region Launches New Industrial Projects in Dammam

The Eastern Region has inaugurated new industrial projects in Dammam’s first and second industrial cities. 

Key projects include an eight-story multi-purpose factory complex in Dammam’s First Industrial City, A ready-built factory development in the Second Industrial City, and A fully integrated new industrial city spanning 2.4 million square meters. The latter is set to host various light industries, manufacturing facilities, worker accommodations, and support services.