Saudi Roundup: French Firms Deepen Their Saudi Presence

This week's Saudi Roundup highlights the rise of foreign private capital investment in Saudi Arabia, stronger French-Saudi business ties, and new seasonal tourism investment opportunities in Asir.

General Business & Economy

Services Exports Climb 7.9% in Q1 as Travel Drives Non-Oil Growth

Services exports increased by 7.9% quarter on quarter to SR71.3 billion ($18.96 billion) in the first quarter of 2026, reflecting continued momentum in the Kingdom's non-oil economy. Travel services remained the largest export category, contributing SR44.3 billion, or 62% of total services exports, with personal travel accounting for the vast majority of the segment. Transportation services ranked as the second-largest contributor at SR10.9 billion, led by air transport, which represented nearly 40% of transportation exports.

Saudi Arabia and France Deepen Economic Ties Through Private Sector Cooperation

Saudi Arabia reaffirmed its commitment to deepening economic ties with France during the Vision Golfe forum, highlighting growing cooperation across strategic sectors aligned with the Kingdom's Vision 2030 agenda. Saudi officials emphasized that France's expertise in innovation and development complements the Kingdom's long-term economic transformation goals. The partnership continues to gain momentum, with bilateral trade rising 7.8% year on year to $12 billion in 2025. Around 500 French companies now operate in the Kingdom, including 30 that have established their regional headquarters in Riyadh.

International Investors Deploy $5.3bn Into Saudi Arabia's Private Markets in 2025

Foreign private capital investment in Saudi Arabia's private markets reached SR20 billion ($5.3 billion) in 2025, accounting for around 60% of total private capital investment in the Kingdom. According to a report by Saudi Venture Capital Co., international capital has flowed across venture capital, private equity, and private debt markets, reinforcing the Kingdom's position as an increasingly attractive destination for global investors. The report highlights the key drivers behind Saudi Arabia's emergence as a leading private investment hub.

Infrastructure

Saudi Arabia to Privatize 4 Water Sector Activities

Saudi plans to expand the privatization of water production, treatment, transportation, and storage as part of efforts to improve efficiency, attract private investment, and strengthen the long-term sustainability of the sector. The initiative aligns with the Kingdom's National Water Strategy, which prioritizes greater private sector participation. The water sector has already attracted foreign investment while delivering key improvements, including lower reliance on non-renewable groundwater, increased desalinated water production, and expanded strategic water storage capacity.

Al-Jouf Governor Reviews $3.2bn Government Project Portfolio

Prince Faisal bin Nawaf bin Abdulaziz chaired the second-quarter 2026 meeting of the Supreme Coordination Committee to review the progress of government projects across Saudi Arabia's Al-Jouf region. The meeting included an update from the Strategic Office for the Development of Al-Jouf on a portfolio of 111 projects valued at more than SR12 billion ($3.2 billion). Performance indicators showed improved project execution during the second quarter, with 59 projects progressing according to schedule, up from 52 in the first quarter.

Tourism

Asir Municipality Offers 44 Tourism Investment Sites for Summer

The Asir Region Municipality has unveiled 44 tourism investment opportunities for the 2026 summer season as part of its efforts to attract private investment, enrich visitor experiences, and strengthen the region's tourism economy. The initiative supports the municipality's broader strategy to expand tourism and entertainment offerings during the peak travel season. Alongside the investment opportunities, the municipality is advancing infrastructure and urban development projects, including upgrades to roads, parks, sidewalks, lighting, and municipal services.

Jazan Tourism Surges with 47% Visitor Growth in 2025

Jazan Region welcomed more than 4 million domestic and international overnight visitors in 2025, representing a 47% increase compared to the previous year. Visitor spending surpassed SAR3 billion, rising 19% year on year, reflecting the region's growing appeal as a tourism destination. The growth has been driven by continued investment in tourism infrastructure, natural and cultural attractions, and new visitor experiences in line with Saudi Vision 2030. Leveraging its diverse landscapes and historical heritage, Jazan is strengthening its position as a year-round tourism destination while supporting economic diversification and sustainable regional development.

Business Expansions

Multiply Media Group Expands Into Saudi Arabia Through Cenomi Centers Partnership

UAE-based Multiply Media Group (MMG) has entered the Saudi market through a strategic partnership with Cenomi Centers, launching BackLite KSA to develop and operate a premium digital out-of-home (DOOH) advertising network across leading retail destinations in Riyadh and Jeddah. The expansion marks MMG's entry into the GCC's largest advertising market and strengthens its regional growth strategy.

Squatwolf Fuels Saudi Fitness Culture With Expansion

Dubai-founded premium performance wear brand SQUATWOLF has officially entered Saudi Arabia with the opening of its first store at Riyadh Park, marking a major milestone in its regional expansion. Supported by AstroLabs, the company is building on an already strong customer base in the Kingdom, where demand for its products had grown years before its physical launch. The expansion comes as Saudi Arabia's sportswear market is projected to grow from $2.03 billion in 2024 to $2.61 billion by 2030, driven by Vision 2030 initiatives promoting healthier lifestyles and increased sports participation.