This week’s Saudi Round-Up highlights a major uptick in greenfield FDI projects across communications, real estate and business service sectors.
General Economy and Business
Saudi sees 28.8% rise in Chinese FDI to reach $8.2bn
In 2024, total Chinese FDI stock reached SR31.1 billion ($8.3 billion), up from SR24.1 billion ($6.4 billion) in 2023, a 28.8% rise. Investment inflows also leapfrogged 164% year on year to SR8.6 billion ($2.3 billion), while net inflows more than tripled to SR7 billion ($1.9 billion).
Bilateral trade between the two nations exceeds $100 billion annually, making China Saudi Arabia’s largest trading partner.
Saudi Issues 34 Licenses for Regional HQs in Q2
Saudi Arabia granted 34 licenses for regional headquarters in the second quarter of 2025.
The Ministry of Investment disclosed that over 125,000 services were delivered through investor outreach centers, including online and in-person services. Since 2021, nearly 600 international companies such as Northern Trust, IHG Hotels & Resorts, and Deloitte have established bases in the country.
Women’s Employment and Labor Participation Rates Rise to 31.8% and 36% in 2024
Saudi has seen significant progress in women’s empowerment and labor market participation in 2024, aligning with Vision 2030 goals. According to the General Authority for Statistics (GASTAT), the total number of Saudi women exceeded 9.8 million, with women aged 15-34 representing 35.7% of this population.
China’s Lenovo to Establish Regional HQ in Saudi
Chinese technology firm Lenovo Group plans to establish a regional headquarters in Saudi Arabia to strengthen its presence across the Middle East. The new HQ will be located in Al Majdoul Tower in Riyadh and is part of Lenovo’s strategic partnership with ALAT, a Public Investment Fund-owned company.
This partnership supports Lenovo’s transformation efforts and expands its global manufacturing footprint. The move aligns with Saudi Arabia’s Vision 2030 goals, focusing on digital transformation and economic diversification.
Energy
ACWA Power Begins Commercial Operations at 3 Solar Plants
ACWA Power has commenced commercial operations at three solar power plants in Saudi Arabia with a combined capacity of 2.79 gigawatts.
This includes the Al Kahfah solar plant in the Hail region with a capacity of 1,425 megawatts, the Al-Rass 2 solar PV plant in Qassim with 1,000 megawatts, and the SAAD 2 PV project in Riyadh, where the latest certificate brought capacity to 1,125 megawatts. ACWA Power owns a 50.1% stake in each of these projects.
These developments support Saudi Arabia’s target to generate 58.7 gigawatts of renewable energy by 2030, including 40 gigawatts from solar PV.
Technology
Saudi Industry Ministry, SIC Partner to Empower Tech Innovators
The Ministry of Industry and Mineral Resources has partnered with the Saudi Innovation Club to support entrepreneurs and innovators in the industrial and mining sectors. This cooperation agreement aims to drive development, creativity, and digital transformation by implementing joint programs and initiatives that empower national talent.
The partnership is part of the ministry’s broader strategy to promote industrial and mining advancement.
PIF Launches ‘Azm’ Program to Equip Saudis for Labor Market Needs
The PIF has launched the “azm” workforce development program aimed at equipping national talents with the skills needed to meet labor market demands and to support economic diversification.
The azm program focuses on employer-driven skill development, with 80% of the training derived from hands-on, real-world applications. Under the initiative, PIF has signed agreements with the Technical and Vocational Training Corp. and the Colleges of Excellence to develop and manage tailored training curricula, oversee registration and evaluations, and operate training facilities.
Banking and Finance
Saudi Leads Emerging Markets in US Dollar Debt Issuances in H1 2025
Saudi Arabia led emerging markets in US dollar debt issuances during the first half of 2025, accounting for 18.9% of the $250 billion issued, according to Fitch Ratings.
This figure slightly exceeded the 18.5% share recorded in the first five months of 2024.
Greenfield FDI Projects Surpass 200 After Sharp Uptick
Greenfield foreign direct investment (FDI) projects in Saudi Arabia surged by 30.1 percent year-on-year in the first half of 2025, reaching 203 projects with a total capital inflow of $9.34 billion, a 1.7 percent increase from the same period in 2024, according to Emirates NBD.
Riyadh emerged as the leading city, attracting 100 projects valued at $2.30 billion, followed by Dammam and Jeddah with 21 and 13 projects respectively.
The United States was the largest contributor, accounting for 61 projects worth $2.1 billion, while Egypt, China, and France were also significant investors.