Saudi Roundup: PPPs Drive Energy and Infrastructure Deals

This week’s Saudi roundup highlights rising AI adoption among Saudi businesses, continued PPP-driven expansion in the energy sector, and Saudi GDP reaching $1.31 trillion, supported by strong non-oil sector growth.

General Economy & Business

Saudi Arabia’s Economy Reaches $1.31 Trillion GDP In 2025 As Non-Oil Sector Expands

Real GDP reached $1.31 trillion in 2025, with non-oil activities accounting for 55% of the economy, according to the National Transformation Program (NTP) 2025 Annual Report. The report highlighted broad-based progress across economic development, investment, tourism, digital transformation, environmental sustainability, and quality-of-life indicators. The Kingdom also attracted more than 700 international companies establishing regional headquarters, reflecting increasing investor confidence in Saudi Arabia’s business environment.

Saudi Arabia And Russia Sign SR4.8 Billion Agreements To Strengthen Agricultural Cooperation

Saudi Vice Minister of Environment, Water and Agriculture Mansour Al-Mushaiti witnessed the signing of 13 agreements and memoranda of understanding worth SR4.8 billion ($1.28 billion) between Saudi and Russian entities during the St. Petersburg International Economic Forum. The deals aim to expand trade, investment, and bilateral cooperation, particularly in food security, biotechnology, livestock production, and supply-chain resilience. Al-Mushaiti noted that Saudi Arabia is actively attracting leading Russian companies in the agriculture and food sectors to deepen economic ties between the two countries.

Saudi Arabia Deepens China Partnership with $506M Housing and Construction Deals

Saudi Arabia has signed six agreements with Chinese entities and awarded housing projects worth $506 million in Riyadh and Dammam, strengthening cooperation in construction, housing development, and project delivery. The agreements span construction investment, advanced building technologies, financing, and workforce development, reflecting deeper collaboration between both countries across the infrastructure and real estate sectors.

Infrastructure

Saudi Launches Tender For Major Mixed-Use Development Project In Makkah

Holy Capital Municipality, in partnership with the Ministry of Municipalities and Housing and the National Center for Privatization & PPP, has launched the tender process for a major development project on Prince Sultan bin Abdulaziz Road (Al-Hada Road) in Makkah. Private sector partners will be responsible for the design, financing, construction, operation, and maintenance of the project aimed at meeting growing demand for services in the city and increasing private sector participation in urban development.

Bidding Process Launched For Taif International Airport

MATARAT Holding, in cooperation with the National Centre for Privatisation & PPP (NCP), has launched the Request for Proposals (RFP) stage for the new Taif International Airport project in Makkah Province. Four consortia and one standalone company have been prequalified to compete for the project, including partnerships involving regional and international firms. The project will be delivered under a 30-year Build-Transfer-Operate (BTO) contract.

National Digital Waste Management Platform PPP Project Attracts 123 Firms

Saudi Arabia’s National Centre for Waste Management (MWAN), in collaboration with the Ministry of Environment, Water and Agriculture (MEWA), the Environment Fund, and the National Centre for Privatization and PPP (NCP), has announced that 123 local and international companies have expressed interest in developing and operating a national digital platform for waste management. The project will be delivered under an 11-year Design, Build, Finance, Operate, Maintain and Transfer (DBFOMT) model.

Energy

Saipem Secures $1 Billion EPC Contract for Saudi Gas Compression Project

Italy-based energy and infrastructure contractor Saipem has been awarded a contract worth approximately $1.04 billion for the Uthmaniyah Gas Compression Plant project in Saudi Arabia. The engineering, procurement, and construction (EPC) contract was awarded to Saipem Nasser Saeed Al-Hajri Contracting Company (SNSH), a joint venture between Saipem and Saudi-based Nasser Saeed Al-Hajri & Partners.

Saudi Awards LPG Infrastructure And Distribution Licenses To Private Sector Investors

Ministry of Energy has announced the winners of eight licenses covering the establishment, development, operation, and maintenance of liquefied petroleum gas (LPG) filling and storage facilities, as well as wholesale LPG distribution across the Kingdom. A consortium comprising NGC Energy Saudi LLC. and Zamil Group Holding Company secured two LPG facility licenses in Jeddah and Jazan, as well as a nationwide wholesale distribution license.

Financial Markets

Saudi Capital Market Assets Under Management Surpass SR1.2 Trillion In 2025

Assets under management in Saudi Arabia’s capital market exceeded SR1.2 trillion ($320 billion) in 2025, marking an 18 percent year-on-year increase, according to the Capital Market Authority. Growth was driven by strong performance across multiple investment categories, including a 53 percent rise in private real estate fund assets and a 57 percent increase in public money market funds. Demand for debt instruments also remained strong, with assets in public and private debt funds growing 44%, while private equity funds expanded by 31% by year-end.

Logistics

Saudi Awards SR2 Billion Jubail Port Terminal Concession To Boost Logistics Capacity

Saudi has awarded a container terminal concession at Jubail Commercial Port valued at more than SR2 billion ($533 million) as part of efforts to expand port capacity, attract private investment, and strengthen the Kingdom’s role as a global logistics hub. The agreement was signed between the Saudi Ports Authority (Mawani), represented by President Suliman bin Khalid Al-Mazroua, and Saudi Global Ports, represented by CEO Rob Harrison, for the operation of the container terminal.

Saudi Arabia and Türkiye Sign Railway Cooperation Agreement To Advance Transport Infrastructure

Saudi Arabia and Türkiye have signed a memorandum of understanding to strengthen cooperation in the railway sector, supporting the Kingdom’s efforts to expand international partnerships and enhance its transport infrastructure. The agreement aims to improve passenger transport services, boost operational efficiency, and enhance supply chain performance. The partnership will focus on railway technologies, standards, infrastructure development, safety practices, research and innovation, as well as the exchange of technical expertise, supporting Saudi Arabia’s Vision 2030 goal of becoming a global logistics hub.

Technology

Zoom’s Saudi Investments Exceed SR300 Million As Company Expands Local Technology Infrastructure

Zoom’s total investments in Saudi Arabia have surpassed SR300 million ($80 million), according to Mohannad Al-Kalash, the company’s vice president for the Middle East, Turkey, Africa, and Pakistan. He highlighted Zoom’s partnership with Saudi Aramco as a key driver of its regional presence and local content development efforts. Saudi Arabia holds strategic importance within Zoom’s METAP region operations, with investments focused on technology infrastructure, including data centers, talent development initiatives, and expanding access to certified digital solutions for government entities.

AI Adoption Among Saudi Businesses Climbs To 33.1% In 2025

Artificial intelligence adoption among businesses in Saudi Arabia reached 33.1% in 2025, marking a 20 percent increase compared to the previous year, according to data from the General Authority for Statistics. The information and communications sector recorded the highest AI adoption rate at 61.1%, followed by financial and insurance activities at 52.9 % and education at 51%. Other sectors showing strong uptake included transportation and storage at 44.4%, as well as professional services at 43.9%, highlighting the growing integration of AI across the Kingdom’s economy.

UNITAR Opens First Global Cybersecurity Office In Riyadh To Strengthen International Cyber Resilience

The United Nations Institute for Training and Research (UNITAR) has launched its first global cybersecurity office in Riyadh, marking a major step in advancing international cooperation on cyber resilience, training, and capacity building. The office, established in collaboration with Saudi Arabia’s National Cybersecurity Authority, aims to support research, policy development, workforce training, and knowledge exchange to strengthen global cybersecurity capabilities.