Saudi Roundup: Q1 Non-Oil Sector Expansion

This week’s Saudi Roundup highlights 2.8% GDP growth in Q1 2026, strong private sector expansion in Makkah, and continued growth in date exports and renewable energy capacity.

General Economy & Business

Saudi Arabia’s Economy Grows 2.8% in Q1 as Non-Oil Sector Expands

Saudi Arabia’s real GDP grew by 2.8% year-on-year in the first quarter of 2026, supported by broad-based expansion across sectors. Preliminary estimates from the General Authority for Statistics indicate that non-oil sectors also recorded a 2.8% annual increase during the quarter, highlighting continued momentum in the Kingdom’s diversification efforts.

The solid first-quarter performance, despite escalating regional developments, points to the resilience of Saudi Arabia’s economic fundamentals and the steady advancement of its non-oil economy.

Saudi Rail Network Transports Over 45 Million Passengers in Q1 2026

The Transport General Authority reported that more than 45 million passengers used the Kingdom’s rail network in the first quarter of 2026. The regulator said urban rail systems accounted for the bulk of traffic, with 42 million passengers during the period, including 31 million riders on the Riyadh Metro. In the freight segment, the authority said rail transport handled more than 4 million tonnes of minerals and other cargo.

Saudi Arabia-GCC Trade Expands 125% in Five Years

Trade between Saudi Arabia and GCC countries reached approximately SAR 270 billion ($72 billion) in 2025, according to preliminary data presented at the 70th meeting of the Gulf Cooperation Council Trade Cooperation Committee. Over the past five years, total trade between Saudi Arabia and GCC member states has risen by 125%, while exports climbed to around SAR 188 billion ($50.14 billion), reflecting a 163% increase.

Environment & Energy

Saudi Renewable Energy Capacity Climbs to 64 GW

The Ministry of Energy said the Kingdom has reached around 64 gigawatts (GW) in cumulative renewable energy project capacity launched so far. Around 12.3 GW of renewable energy capacity is currently operational and connected to the national grid, while energy storage is expanding with 30 GWh of battery capacity launched, including 8 GWh already integrated into the system.

Saudi Launches SAR 700 Billion Investment Push as Environment Sector Achieves Record Progress

Saudi Arabia’s Ministry of Environment Water and Agriculture reported significant national progress, including raising waste diversion to 18% of 134 million tonnes annually, up from 5% in 2018, as part of broader efforts to enhance quality of life, strengthen food and water security, support environmental sustainability, preserve natural resources, and diversify the economy. The plan outlines 387 investment opportunities with a combined value exceeding SAR700 billion ($186.7 billion).

Saudi Date Exports Jump Across Key Markets, Rising 67% in 2025

Saudi date exports posted strong growth across major global markets in 2025, increasing by between 39% and 67% compared to 2024, according to the National Center for Palms and Dates. The total value of exports exceeded SAR 1.9 billion (507 million) in 2025, marking a 14.3% annual rise among more than 125 importing countries, recording particularly strong gains.

Saudi Arabia Expands Architecture Design Code to New Regions in Phase Four Rollout

Saudi Arabia has begun the fourth phase of applying residential and commercial design standards under the Saudi Architecture Charter, extending its implementation to cities and governorates across Riyadh, Makkah, the Northern Borders, and Tabuk regions. The architecture map features 19 distinct styles inspired by Saudi Arabia’s varied geographic and cultural environments, developed through extensive urban and historical research reflecting the country’s architectural heritage.

Tourism & Hospitality

Makkah’s Private Sector Expands by Over 129% Since 2020

Private sector businesses in Makkah have expanded by more than 129% since 2020, underscoring the city’s rapidly advancing economic transformation. The surge reflects the growing influence of the private sector as a central engine of development, supported by coordinated strategies to diversify the economy and improve the overall business climate. The increase is largely driven by a pickup in economic activity across the region.

Saudi to Roll Out Program to Revive Over 500 Private Heritage Towns and Villages

Saudi is set to introduce a nationwide initiative to restore and activate heritage towns, aiming to rejuvenate historic villages and sites while repositioning them as cultural, tourism, and economic hubs. Official data shows there are around 562 privately owned heritage towns and villages across the Kingdom, highlighting both the richness of Saudi Arabia’s architectural legacy and the wide range of investment opportunities it presents.

Technology & AI

Saudi Ranks Second Globally in Data Center Market Attractiveness

Saudi Arabia has been ranked second globally, after the United States, among the most attractive destinations for data center investment, highlighting its strengthening role in digital infrastructure amid rising demand driven by artificial intelligence and cloud computing. The Kingdom placed second worldwide in data center market attractiveness, with factors such as power availability and land readiness accounting for 58% of overall competitiveness.

NextEra Opens New Headquarters in King Abdullah Financial District to Advance Saudi Digital Transformation

Riyadh-based IT solutions firm NextEra has inaugurated its new headquarters in the King Abdullah Financial District in the Saudi capital. The move represents a strategic expansion for NextEra, reinforcing its commitment to the Saudi market and strengthening its position as a key partner in advancing the Kingdom’s digital transformation agenda.

Blossom Accelerator Launches DominAite to Scale AI Startups

Blossom Accelerator has launched DominAite, a national AI scale-up accelerator aimed at strengthening Saudi Arabia’s position in global artificial intelligence leadership. Supported by the National Technology Development Program, the platform is designed to build a collaborative ecosystem that helps accelerate the growth of AI-native startups. The initiative is backed by a network of major local and international partners, including SDAIA, NVIDIA, and Elm.

Construction

Saudi Launches $2.1 Billion “Jewel of the Bride” Residential Mega Project in Jeddah

Saudi Arabia has unveiled its largest private-sector residential development, Jawharat Al Arous (“Jewel of the Bride”), with an investment value of SAR 8 billion ($2.1 billion). Covering an area of 107 million square meters, the premium development will feature 18 residential neighborhoods designed to accommodate more than 700,000 residents. It also includes 41 government plans and over 80,000 residential and commercial plots, alongside integrated service and government facilities.