This week’s Saudi Round-Up spotlights the most significant economic movements in the broader business landscape as well as recent global business expansions in the Kingdom.
Expansions
1,266 Investment Licenses Granted to US Firms
A total of 1,266 investment licenses were obtained by the U.S. firms by the end of January 2025, according to Invest Saudi. The Saudi-US Investment Forum is poised to catalyze deeper business relationships between corporations from both countries, paving the way for more US firms to set up business in Saudi.
Jubail Industrial Zone Expands to Meet Investor Demand
With the launch of Jubail 3, Saudi Arabia has begun expanding Jubail Industrial City to meet surging demand as the current zone nears full capacity. The new area will focus on renewable energy, auto parts, electronics, and advanced manufacturing.
With nearly 500 active projects and 98% capacity usage, the expansion aims to support rising investor interest and accelerate industrial diversification under Vision 2030’s non-oil growth strategy.
VOQIN’ Launches Experiential Joint Venture in Saudi Arabia
VOQIN’, a global experience management firm, has entered the Saudi market through a joint venture with local events specialist Entertainment Gears. The partnership aims to introduce “Emotional Thinking” to public and private events across the Kingdom.
The move strengthens Saudi Arabia’s creative and event infrastructure, aligning with Vision 2030’s focus on tourism, culture, and global engagement. VOQIN’ is already leading major projects, including immersive experiences for high-level investment forums.
Scale AI Enters Saudi Amid MENA Expansion Push
Scale AI confirmed it will open an office in Riyadh by year-end, marking its first move into Saudi Arabia. The expansion follows rising AI demand across the Gulf, as regional governments invest heavily in data infrastructure and tech capabilities.
The San Francisco-based startup, valued at $13.8 billion, serves major players like OpenAI and Microsoft. Its entry into the Kingdom signals growing global tech interest in the region, reinforcing Saudi Arabia’s ambition to lead in digital innovation under Vision 2030.
General Business and Economy
Trade Surplus Jumps to $8.2 Billion in February 2025
Saudi Arabia recorded an $8.2 billion trade surplus in February 2025, its highest in nine months, marking a 44.6% monthly increase. The country’s export volume reached $25 billion, driven mainly by $18 billion in oil shipments.
Non-oil exports, including re-exports, contributed 27.8% of total exports, showing steady progress in economic diversification. Asia remained the top export destination, highlighting strong regional market demand.
Saudi IPO Proceeds Lead MENA in Q1 Surge
Saudi Arabia drove a 106% year-on-year jump in IPO proceeds across MENA, contributing 12 of the region’s 14 listings in Q1 2025. Tadawul’s main market raised $1.8 billion, while the parallel market Nomu added another $69 million. The largest IPOs came from the real estate and healthcare sectors.
This strong listing momentum reflects Saudi Arabia’s push to deepen capital markets and diversify its economy. With 17 companies already cleared to list, the IPO pipeline remains strong, signaling investor confidence and sustained capital market reform under Vision 2030.
Capital Investment in 2024 Hits $355B, Exceeds Target
Capital investment surged to $355 billion in 2024, surpassing its goal by 38%. Private sector investment grew by 11% and now makes up nearly 90% of total capital formation, while government spending declined significantly.
Higher investment levels support infrastructure, real estate, and tourism, all core drivers in Saudi Arabia’s transformation plan.
Automotive
Riyadh Set to Launch Self-Driving Taxis
Saudi Arabia is preparing to roll out self-driving taxis in Riyadh as part of a broader push for smart mobility. The Transport General Authority has marked five cities ready for autonomous vehicles, including cars, trucks, and drones.
With 120 future mobility projects in progress, 16 focused on AI, the Kingdom is embracing smart transport as a pillar of urban development. These efforts align with Vision 2030’s goals to modernize infrastructure and reduce emissions through cutting-edge tech.
Aviation
Aviation Sector Adds $90.6 Billion to Saudi GDP
The aviation sector added $90.6 billion to GDP, accounting for 8.5% of the national economy. This success is driven by infrastructure expansion, skilled workforce growth, and rising tourism. The sector supports 1.4 million jobs, with 141,000 directly employed.
This surge reflects the Kingdom’s push to become a global aviation hub and tourist magnet under Vision 2030. Investments are accelerating to strengthen supply chains and aviation-related services across the country.
Hospitality
Hotel Industry Hits 45% Saudization as Talent Drive Accelerates
The Kingdom’s hotel sector has recorded a 45% Saudization rate. The shift reflects a strategic push to localize jobs and build a competitive talent base in hospitality.
With Diriyah alone expected to generate up to 15,000 jobs, the sector is rapidly becoming a cornerstone of Vision 2030’s job creation targets. Educational gaps remain, but efforts are underway to build institutions that supply world-class talent.
Over 1,000 New Hotel Keys Announced at Future Hospitality Summit
Saudi Arabia added more than 1,000 hotel keys through major development deals on the first day of the Future Hospitality Summit. Projects span key cities like Jeddah, Madinah, and Qassim, with global investors backing luxury and midscale offerings.
The expansion includes a 540-room property in Madinah and a luxury hotel on Jeddah’s King Road. These deals support the Kingdom’s tourism goals, helping diversify the economy and attract millions of visitors in line with Vision 2030.
Manufacturing & Industry
Saudi Arabia Eyes Helicopter Manufacturing with Airbus
Saudi Arabia is advancing talks with Airbus Helicopters to localize production and establish joint manufacturing operations. The partnership aims to transfer technology, build maintenance capabilities, and develop unmanned aerial systems.
These efforts align with the Kingdom’s aerospace goals under Vision 2030, targeting a $10B market and $88B GDP contribution by 2035. By fostering innovation and regional manufacturing, Saudi Arabia is positioning itself as a global leader in aviation technology.
Trade and Investments
Saudi-French Talks Target Aerospace, Mining, and Manufacturing Growth
Saudi Arabia wrapped up high-level talks in France focused on strengthening industrial and mining ties. Officials met with leaders from major French firms like Airbus and Safran to explore collaboration on critical minerals and advanced aerospace technologies, key sectors for energy transition and local manufacturing goals.
The visit also pushed forward new investment opportunities in sectors like food tech, satellites, and aviation. Notably, a $2.67B industrial incentive package and a new 1.2 million sq. m aviation hub were highlighted to attract FDI and advance localization under Vision 2030.
Saudi, U.S. Advance Strategic Mining Agreement
Saudi Arabia is finalizing a landmark mining agreement with the U.S. to boost resource development and secure strategic mineral supply chains. The deal, approved by the Cabinet, is set to be signed by the Saudi industry minister and the U.S. Department of Energy.
This move marks a major step toward economic diversification and global collaboration in mining. leading more U.S mining companies to promptly start the process of company formation in Saudi.
Saudi, Egypt Strengthen Investment Cooperation with Targeted Incentives
Saudi Arabia and Egypt deepened investment ties during a recent business forum in Cairo. New incentives were introduced across sectors like real estate, tourism, and special economic zones.
Trade between the two countries reached $15.9 billion in 2024, up 29%. Saudi Arabia highlighted its support through financial deposits and 7,000 licenses granted to Egyptian businesses.