This week’s Saudi Round-Up captures record-breaking investments, a booming financial sector, and major momentum in construction, tourism, and clean energy.
General Business and Economy
Foreign Investments Exceed $813 Billion in Q1 2025
Foreign investments in Saudi Arabia rose by 16% in Q1 2025, surpassing $813 billion (SAR 3 trillion). This total includes direct investments, portfolio investments, and other assets, with FDI alone accounting for over $265 billion (SAR 995.5 billion).
Net inflows reached $5.9 billion (SAR 22.2 billion), marking a 44% jump from last year, driven by strong portfolio activity and reduced outflows. The increase signals growing global confidence in the Kingdom’s economic reforms under Vision 2030.
PIF Launches Tasama Business Services Platform
The Public Investment Fund launched Tasama, a new business services platform formed through the merger of TAQNIA’s Business Incubators and Accelerators Co. and PIF’s Shared Services Center. Tasama aims to support local and international businesses with integrated services, helping them scale within the Kingdom.
It’s a key part of PIF’s strategy to deepen private sector collaboration and build a resilient, tech-driven economy as the fund shifts focus toward long-term sustainable returns.
Banking & Finance
Saudi Banking Sector Hits $1.2 Trillion in Assets
Saudi Arabia’s banking sector reached $1.2 trillion (SAR 4.49 trillion) in assets in 2024, exceeding Vision 2030 goals. Key highlights include 261 fintech firms, 44 new stock listings, 79% digital payment adoption, and SME lending at 9.4% of total credit.
The launch of digital-only D360 Bank further emphasizes the Kingdom’s push for financial innovation and resilience in its economic transformation.
Saudi Arabia’s Financial Sector Hits $267 Billion Milestone
Saudi Arabia’s financial system saw rapid expansion in 2024, with 261 fintech firms and locally managed capital market assets crossing $267 billion (SAR 1 trillion). Foreign investor holdings soared 501% since 2017, and electronic payments made up 79% of retail transactions.
The Financial Sector Development Program’s reforms have fostered strong insurance growth, increased SME credit access, and advanced sustainable investing. The launch of D360 Bank, new capital market tools, and financial literacy campaigns further support Vision 2030’s economic goals.
CMA Approves New Rules to Boost Investment Fund Sector
Saudi Arabia’s capital market regulator approved new reforms to strengthen the investment fund landscape. The updated rules apply to investment funds, REITs, and terminology used across regulations, with a focus on boosting transparency, improving governance, and aligning with international best practices.
The changes allow licensed platforms and e-money institutions to distribute fund units online, including via apps. REITs listed on the parallel market can now invest in real estate development from day one, expanding flexibility and return potential, all in support of deeper capital markets under Vision 2030.
Construction
Construction Output Hits $148 Billion in 2024
Saudi Arabia’s construction sector hit $148 billion (SAR 555 billion) in 2024, a 4.6% annual rise, and is forecast to reach $191 billion by 2029. Backed by Vision 2030, the country is investing heavily across sectors, from housing and tourism to retail and infrastructure.
Since 2020, more than $215 billion in contracts have been awarded, with Riyadh leading the way.
Energy & Sustainability
Saudi Arabia Signs $8.3 Billion Clean Energy Deals
Saudi firms, led by ACWA Power in partnership with Aramco Power and Badeel (PIF), signed power purchase agreements for clean energy projects worth $8.3 billion (SAR 31.1 billion).
The deals cover 15 GW of capacity, including five solar plants in Aseer, Medina, Mecca, and Riyadh, plus two wind projects in Riyadh. These moves support Saudi Arabia’s goal of reaching 130 GW of renewable energy by 2030.
Manufacturing & Industry
Industrial Production Grows 1.5% in May
Saudi Arabia’s Industrial Production Index rose 1.5% year-on-year in May 2025, driven by gains in mining, manufacturing, and waste management. Mining and quarrying rose 2.1%, while manufacturing activity grew 0.9%.
Non-oil sectors posted a 3.8% increase, outpacing the 0.5% rise in oil activity. The growth highlights the ongoing shift toward diversified industrial development under Vision 2030.
Saudi Arabia Issues 1,346 New Industrial Licenses in 2024, Attracting $13.3 Billion in Investment
Saudi Arabia granted 1,346 industrial licenses in 2024, drawing over $13.3 billion (SAR 49.8 billion) in new investments. Private sector investment in industrial cities reached $513 billion (SAR 1.9 trillion), as the Kingdom aims to operate 36,000 factories by 2035, with 4,000 fully automated. The ministry also identified 454 investment opportunities worth $38.6 billion (SAR 143 billion).
The country rose to 33rd globally in the Competitive Industrial Production Index, reflecting its growing position as a global manufacturing and industrial hub under Vision 2030.
Real Estate
New Property Law Opens Market to Foreign Buyers
Saudi Arabia has approved a law allowing foreign ownership in designated real estate zones, including Riyadh and Jeddah, starting in 2026. Special regulations will apply to Mecca and Medina, where ownership remains restricted.
The move supports rising foreign investment, as real estate’s share of GDP doubled in a year. High demand in residential and office markets, especially in Riyadh, reflects strong momentum behind Vision 2030’s urban development goals.
Webuild Lands $600 Million Contract for Diriyah Square Development
Italian firm Webuild secured a $600 million (SAR 2.25 billion) contract from Diriyah Company for Package 3 of Diriyah Square, covering over 70 buildings and public spaces inspired by Nadji architecture. The 365,000 sqm contract includes finishing and MEP works.
Webuild is already building a massive underground car park and has now received nearly $2 billion in total contracts tied to Diriyah, highlighting its expanding footprint in Saudi Arabia’s strategic urban projects.
Tourism
Tourism Fund Launches Programs for Startups
Saudi Arabia’s Tourism Development Fund has unveiled three initiatives to support tourism startups: an incubator, regional hackathons and bootcamps, and a growth accelerator. These aim to provide non-financial support like training, mentorship, and investor connections.
The programs align with Vision 2030’s goal of 150 million annual visitors by 2030. With over 8,800 entrepreneurs already supported, the push marks a major step in scaling a vibrant tourism ecosystem across the Kingdom.
Al-Ahsa Signs $400 Million in Projects to Boost Tourism and Services
Al-Ahsa municipality signed five development deals worth $400 million (SAR 1.5 billion) to improve infrastructure, tourism, and municipal services. Projects include a tourist resort, vehicle centers, and a cultural hub, along with a new date processing factory.
Tourism in Al-Ahsa surged 500% in 2024, with spending exceeding $880 million. The region is rapidly transforming into a key Vision 2030 destination through strategic public-private investments.