This edition of the weekly Saudi Round-Up covers major announcements and significant infrastructure developments across energy and logistics.
General Business and Economy
Inflation in Saudi Remains Among the Lowest in the G20
The inflation rate in Saudi held steady at 2% in February, maintaining one of the lowest levels among G20 nations. The Consumer Price Index, which tracks 490 goods and services, reflects price stability despite global economic fluctuations. The data, gathered through field visits, highlights the effectiveness of Saudi Arabia’s economic policies.
Aviation
AviLease Expands Fleet with Three A320neo Deliveries to SDH Wings
AviLease, PIF’s aircraft leasing arm, has delivered three Airbus A320neo aircraft to SDH Wings, a joint venture between Saudi Arabia and China. These aircraft will be leased to a Saudi airline, bringing SDH Wings’ total fleet to 25 planes.
This marks a new phase in their partnership, with a broader agreement to acquire 20 more aircraft. AviLease, launched in 2022 to drive economic diversification, continues to expand its portfolio, having also acquired nine aircraft from Avolon in October 2024.
Construction
Saudi Arabia to Build 16 New Water Purification Plants
Saudi Arabia has signed an agreement to construct 16 decentralized water purification plants to enhance water security and advance sustainable groundwater desalination. The facilities will produce over 18,000 cubic meters of water daily, aligning with plans to increase wastewater reuse from 21% to 70% by 2030.
The new plants will serve over 80,000 residents, reinforcing efforts to address water scarcity and enhance service reliability across the Kingdom.
Energy & Sustainability
Aramco Unveils Saudi Arabia’s First CO2 Direct Air Capture Unit
Aramco has launched Saudi Arabia’s first Direct Air Capture (DAC) test unit, designed to remove 12 tons of CO2 annually. Developed with Siemens Energy, the facility will test new CO2 capture materials suited to Saudi Arabia’s climate while working toward cost reductions. The project supports scaling up DAC technologies for larger deployments in the future.
As such, this initiative aligns with Saudi Arabia’s Vision 2030 goals for sustainability and carbon neutrality.
Saudi Launches $266 Million Environment Financing Initiatives
A new $266 million environmental financing initiative has been introduced to boost private sector investment in sustainable projects. The program, supported by Riyad Bank, includes an Incentives and Grants Program digital platform to streamline access to funding and drive innovation.
The initiative aligns with Vision 2030’s sustainability goals, encouraging businesses to adopt eco-friendly practices.
Entertainment
Manga Productions Seeks Japanese Investment for Riyadh Season
Manga Productions has partnered with Saudi entertainment firm Sela to attract Japanese companies to Riyadh Season. The collaboration will create opportunities for Japanese firms to engage with Saudi and international audiences through immersive entertainment experiences. Promotions will take place at Anime Japan 2025, where Manga Productions is an official sponsor.
The initiative builds on past successes, such as Sela’s record-breaking Grendizer statue at Riyadh Season 2022.
Expansions
Istituto Marangoni to Open Riyadh Campus in 2025
Istituto Marangoni will launch its Riyadh campus in August 2025, following a market study with the Fashion Commission. The Higher Training Institute will offer specialized programs to support Saudi Arabia’s fashion and luxury industries.
The campus will be at King Abdullah Financial District (KAFD) in the Riyadh Creative District (RCD).
Tourism & Hospitality
Madinah’s Hospitality Sector Sees 93% Growth in Licensed Facilities
Madinah now has over 450 licensed hospitality facilities, a 93% increase from the previous year, according to the Ministry of Tourism. The number of licensed rooms also rose by 62% to nearly 62,000, making Madinah the third-leading city in Saudi Arabia for hospitality.
This expansion supports the National Tourism Strategy’s goal of accommodating more Hajj and Umrah travelers. Across Saudi Arabia, licensed hospitality facilities exceeded 3,950 by late 2024, with Makkah leading at 1,030 licensed properties.
Mining
Saudi Grants Exploration Licenses to Local, Int’l Firms
Saudi Arabia has issued mineral exploration licenses to local and international firms, focusing on Jabal Sayid and Al-Hajjar, spanning 4,788 square kilometers. The initiative aligns with Vision 2030’s goal of expanding the mining sector, estimated to hold $2.5 trillion in mineral resources.
To attract investment, the Kingdom offers 100% foreign ownership and financing of up to 75% of capital expenses. At the Future Minerals Forum, officials revealed 50,000 square kilometers of resource-rich sites, reinforcing Saudi Arabia’s position as a global mining hub.
Sports
PFL MENA Expands MMA in Saudi Arabia
The Professional Fighters League (PFL) announced that Season 2 of PFL MENA will take place in Jeddah as part of the Jeddah Season. The event, set for May 9 at Onyx Arena, builds on the success of the inaugural season by showcasing regional talent and strengthening Saudi Arabia’s role in global MMA.
Additionally, this partnership integrates high-profile fights into a major entertainment festival, drawing international attention to Saudi Arabia’s combat sports scene.
Logistics and Infrastructure
SAL, Sela Sign $1.07 Billion Deal for Logistics Zone
Saudi Logistics Services Company (SAL) and Sela signed a $1.07 billion deal to develop the SAL Logistics Zone in Falcon City. Spanning 1.5 million square meters, the project aims to strengthen Saudi Arabia’s global logistics position by improving supply chain efficiency and attracting foreign investment.
The initiative will create an integrated logistics hub, reduce operational costs, and drive job creation. With sustainability and environmental responsibility as priorities, the project aligns with Vision 2030’s goal of transforming Saudi Arabia into a leading logistics center.
Riyadh Municipality Unveils New Investment Projects
Riyadh has launched 20 new investment opportunities spanning commercial, residential, industrial, and leisure projects. Covering 175,000 square meters across multiple districts, these investments aim to boost urban development and private sector participation.
Contracts range from five to 25 years, with projects accessible through the Furas platform. Parallel efforts include the development of 87 new parks, reinforcing Riyadh’s commitment to livability, green spaces, and sustainable urban growth under Vision 2030.