Saudi Roundup: Mixed-Use Development & Infrastructure Investment

This week’s Saudi Roundup covers PIF’s acquisition of Electronic Arts, a new housing and land-ownership framework, and five mixed-use development opportunities in Qassim.

General Business & Economy

Saudi Arabia’s Business Confidence Index Remains Stable at 56.5 in July

Saudi Arabia’s Business Confidence Index remained firmly in positive territory at 56.5 in July, continuing its recovery following the slowdown recorded in March, according to official data. The index, published by the General Authority for Statistics (GASTAT), edged down by just 0.03 points from 56.6 in June, staying well above the neutral 50-point threshold and indicating continued optimism among businesses.

Saudi Business Sector Records 46,900 New Companies in 1H 2026

Saudi Arabia’s business sector gained momentum during the first half of 2026, with 46,900 new companies established during the period. The growth highlights the continued expansion of commercial activity and the Kingdom’s business base, alongside government efforts to streamline procedures for starting and operating businesses.

Saudi Arabia’s SAL Expands Into Europe With Belgium Cargo Hub Acquisition

SAL Logistics Services has completed the acquisition of Belgium-based Aviapartner Liege for approximately SR120 million ($32 million), marking its first operational expansion outside the Kingdom. The deal gives SAL its first international operating base at one of Europe’s major air cargo hubs. The all-cash acquisition, funded through SAL’s internal resources, gives the company full ownership of Aviapartner Liege and expands its network to 20 stations.

Saudi Arabia Emerges as Middle East Tourism Leader as Sector Accounts for 14.1% of GDP

Saudi Arabia continues to lead the Middle East’s tourism transformation, with strong growth expected across the travel and tourism sector over the next decade. According to the World Travel & Tourism Council’s (WTTC) latest Economic Impact Research: Global Trends Report, the Kingdom’s travel and tourism sector contributes approximately 14.1% of GDP. Saudi stands out as one of the region’s strongest examples of this commitment, recording 19.4% growth in Travel & Tourism investment in 2025.

Gaming & Entertainment

PIF-Led Consortium Completes $55 Billion Electronic Arts Acquisition

A consortium led by the PIF has completed its approximately $55 billion acquisition of Electronic Arts, marking a major step in the Kingdom’s ambitions to establish itself as a global gaming hub. The consortium, which also includes technology investment firm Silver Lake and Affinity Partners, first announced the deal on Sept. 29. Following the completion of the acquisition, EA became a privately held company, with shareholders receiving $210 in cash for each outstanding share.

stc Group Collaborates With Disney+ to Expand Entertainment Offering in Saudi Arabia

stc Group, a leading digital enabler, and Disney+ have announced a collaboration to bring Disney’s iconic stories to stc customers across the Kingdom through stc tv. The partnership expands Disney+ access across selected stc services, including Baity broadband packages and bundled subscription offers, making it easier for households to access premium entertainment while strengthening stc group’s entertainment offering.

Construction & Real Estate

Saudi Arabia Allows Investors to Build Housing Projects for Partial Land Ownership

The Council of Ministers has approved a framework allowing investors to develop designated land and construct housing units for beneficiaries of developmental housing programs in exchange for ownership of a percentage of the land. During its session in Jeddah on Tuesday, chaired by Crown Prince and Prime Minister Mohammed bin Salman, the Cabinet also approved a one-year extension to the deadline for rectifying undocumented real estate transactions.

Saudi Launches Five Mixed-Use Development Opportunities in Qassim

The Qassim Municipality has launched five investment opportunities for the development, operation and maintenance of mixed-use residential and commercial buildings in Buraidah as part of efforts to attract private sector investment and support urban development. The projects will be offered under 25-year investment contracts. The five investment plots cover areas of 13,058 square meters (sqm), 8,972 sqm, 12,203 sqm, 11,642 sqm and 8,881 sqm.

Ministry Launches Contractor Qualification Service With June 2027 Grace Period

The Ministry of Municipalities and Housing has launched a new contractor qualification service for the municipal sector through the Balady Business platform, enabling contracting firms to meet qualification requirements and obtain accreditation under unified standards. The service aims to improve the efficiency of service providers and strengthen their readiness to execute municipal works and projects.

Saudi Arabia Opens 246-Km Rafha-Hail Road to Strengthen Regional Connectivity

Saudi Arabia has announced the opening of the 246-km Rafha-Hail Road, expanding the Kingdom’s transport network with a new route connecting Rafha to Hail via the Hail-Baqaa Road. The infrastructure project is designed to strengthen land transport links between the Kingdom’s northern and central regions by providing a direct connection to the Hail-Baqaa Road.

Once completed, the corridor will connect directly to the 414-km Hail-Madinah Direct Road, creating an integrated route to facilitate travel and the movement of goods between different regions.

Saudi Office and Retail Markets Remain Resilient as Housing Sector Weakens in Q2: CBRE

Riyadh’s prime office rents rose 3% to SR3,320 ($886.72) per square meter in the second quarter, as limited supply and strong demand from international firms kept Grade A occupancy near full capacity, according to CBRE. The capital’s office market remained the strongest-performing segment of Saudi Arabia’s property sector. The strong office market comes as Saudi Arabia accelerates project delivery under Vision 2030.

Energy

Saudi Renewable Energy Capacity Rises 88% to 12,313 MW in 2025

Saudi Arabia’s operational renewable energy capacity increased by 88% to 12,313 megawatts (MW) by the end of 2025, following the addition of five new solar energy projects during the year, according to the Renewable Energy Statistics 2025 report released by the General Authority for Statistics (GASTAT). The number of operational renewable energy projects reached 15 by the end of 2025. GASTAT attributed the growth in capacity to the launch of five new solar projects with a combined capacity of 5,762 MW.

Al Henakiyah 1 Solar Plant to Power 190,000 Homes Annually

Al Henakiyah 1 Solar Photovoltaic Power Plant in the Madinah Region has a generation capacity of 1,100 megawatts (MW), enough to supply electricity to approximately 190,000 homes annually. Operating under the National Renewable Energy Program, supervised by the Ministry of Energy, the solar plant is located south of Al Henakiyah Governorate in the Madinah Region. The project is part of the Kingdom’s efforts to expand renewable energy generation and energy storage systems, support the objectives of the Liquid Fuel Displacement Program, and reduce emissions.