Saudi Roundup: Energy Sector Sees a Surge in Contract Awards

This week’s Saudi Roundup highlights an increase in contract awards in the energy sector, as well as a spike in public-private partnerships (PPPs) in industrial manufacturing.

General Business & Economy

World Bank Forecasts Saudi Economy to Grow 7.9% in 2027

The World Bank has forecast that Saudi Arabia’s economy will grow by 7.9% in 2027, raising its projection by three percentage points from the 4.9% growth estimate issued in April. The bank highlighted shipping routes, energy infrastructure and the ability to redirect exports as key factors shaping economic activity, underscoring the importance of trade flexibility and resilient supply chains in supporting the region’s economic recovery.

FDI Inflows Rise 33.5% to $42 Billion in 2025

Foreign direct investment (FDI) inflows climbed 33.5% to SAR 159.1 billion in 2025, up from SAR 119.2 billion in 2024, according to the General Authority for Statistics (GASTAT). The Kingdom’s total FDI stock also grew by 8.3%, reaching SAR 1.06 trillion by the end of 2025. Meanwhile, net FDI inflows increased 1.7% to SAR 81.4 billion, compared with SAR 80 billion in the previous year.

Saudi E-Commerce Registrations Grow 25% to 52,259 in Q3 2026

Active e-commerce commercial registrations rose by 25% year-on-year by the end of the third quarter of 2026, according to the Ministry of Commerce. The Kingdom recorded 52,259 active e-commerce commercial registrations by the end of Q3 2026, up by 10,577 from 41,682 during the same period in 2025. Riyadh topped the list with 23,061 registrations, followed by Makkah with 13,177 and the Eastern Province with 7,792.

Real Estate & Construction

Diriyah Awards $720M in Construction Contracts for Luxury Hotels and Residences

Diriyah Company, the developer behind Saudi Arabia’s flagship historical, cultural and lifestyle destination, has awarded two construction contracts worth SAR2.73 billion ($720 million) to develop five luxury hotels and three residential assets in Diriyah Square. The contracts mark a major milestone in the destination’s hospitality development, supporting Diriyah’s ambition to establish itself as an urban hub for living, working and tourism.

Saudi Arabia Prequalifies Bidders for 50-Park PPP Project

Ministry of Municipalities and Housing (MOMAH), in partnership with the National Centre for Privatisation & PPP (NCP), has announced the prequalified bidders for a public-private partnership (PPP) project to rehabilitate, operate, and maintain 50 public parks. The project will be implemented under a 15-year rehabilitate, operate, maintain, and transfer (ROMT) contract covering parks across the Eastern Province, Jeddah, and Madinah.

Energy

Desert Technologies and EnerVenue to Launch 215 kWh Energy Storage Pilot in Saudi Arabia

Desert Technologies (DT), a clean energy and smart infrastructure company, is advancing its efforts to explore and develop advanced energy storage solutions in Saudi Arabia through an agreement with EnerVenue, a specialist in energy storage technologies. The two companies are preparing to launch a pilot project with a capacity of 215 kilowatt-hours (kWh) in the first quarter of 2027.

Sepco Secures Contract for 500 MW/2,000 MWh Battery Storage Project in Saudi Arabia

Shandong Electric Power Construction Corporation (Sepco) has secured the contract for Saudi Arabia’s Group 1-KSB Independent Battery Energy Storage System (BESS) project, part of the Kingdom’s first wave of large-scale battery storage developments. Sepco is a major Chinese engineering, procurement, and construction (EPC) contractor specializing in power generation, transmission infrastructure, and energy projects.

Moxa Secures Saudi Energy Prequalification for Industrial Networking and Computing Solutions

Moxa, a leading provider of industrial communications and networking solutions, has received prequalification from Saudi Energy, comprising Saudi Electricity Company (SEC) and National Grid (NG) in Saudi Arabia, for its ruggedized industrial Ethernet switches, industrial next-generation firewalls, and industrial computers. All three product categories have been approved and added to Saudi Energy’s LOTAM (List of Technically Acceptable Manufacturers).

Elsewedy Electric PSP–Sinohydro JV Signs $2.2 Billion EPC Contract for Rabigh 2 Expansion Project in Saudi Arabia

The joint venture between Egypt-based power contractor Elsewedy Electric PSP and China-based engineering firm Sinohydro has signed an engineering, procurement, and construction (EPC) contract for the 2.3-gigawatt Rabigh 2 Independent Power Plant (IPP) Expansion Project in Saudi Arabia. Awarded by Saudi-based power developer Al Mourjan Two for Electricity Company, the gas-fired combined-cycle project is valued at $2.2 billion and is scheduled to begin commercial operations in May 2029.

Industrial Manufacturing

Riyadh Metro to Add 94 Trains in $1.46 Billion Expansion, Increasing Capacity by 60%

The Royal Commission for Riyadh City (RCRC) has signed contracts worth SAR 5.5 billion to purchase 94 additional trains for the Riyadh Metro, boosting the network’s passenger capacity by 60%. The new trains will increase the metro fleet from 183 to 277, with deliveries set to begin in phases in 2028. The expansion aims to accommodate rising demand for public transportation ahead of Expo 2030 Riyadh and the 2034 FIFA World Cup, alongside the continued development of residential, commercial, and entertainment destinations across the capital.

SPARK Signs $2.1 Billion Manufacturing Deal With China’s Dalipal

Saudi Arabia’s King Salman Energy Park (SPARK) has signed a 25-year land lease agreement with China’s Dalipal Holdings to establish an intelligent energy equipment manufacturing facility, involving a planned investment of approximately $2.1 billion. The agreement covers a 1.03 million-square-meter site at SPARK, where Dalipal International for Industry, a wholly owned subsidiary of Hong Kong-listed Dalipal Holdings, will develop a manufacturing hub serving Saudi Arabia, the wider Middle East, and international markets.

AI & Tech

Cybersecurity Market Grows 10.7% to $4.35 Billion as Digital Economy Expands

Cybersecurity market grew by 10.7% year-on-year to SAR 16.3 billion ($4.35 billion) in 2025, as businesses and government entities increased spending on digital protection amid the Kingdom’s broader technological transformation. Private sector spending accounted for 69% of the market, reaching SAR 11.2 billion, while government entities contributed approximately SAR 5.1 billion, representing the remaining 31%.

MICE

Saudi Poultry Sector Attracts $687M in Deals at Riyadh Expo

Saudi Arabia has signed 27 agreements worth more than SR2.57 billion ($687 million) in poultry-sector investments as the Kingdom works to boost domestic production and strengthen supply chains. The agreements were signed during the opening of the fifth Middle East Poultry Expo on October 4 at the Riyadh International Convention and Exhibition Center. More than 400 companies and exhibitors from 45 countries are participating in the three-day event, which comes amid rapid growth in Saudi Arabia’s poultry sector.