Saudi Roundup: Real Estate Partnerships & Urban Growth Initiatives

This week’s Saudi roundup highlights key developments across trade, the macroeconomic outlook, Saudization initiatives, tourism growth, and strategic infrastructure investments.

General Business & Economy

Saudi Arabia’s Growth Set to Expand to 4.3% in 2027

Saudi Arabia’s economy is expected to regain stronger momentum in 2027, with growth projected to rise to 4.3% after moderating to 3.2% in 2026, driven by continued strength in the non-oil sector and solid domestic demand. The projections are broadly in line with the International Monetary Fund’s April estimates, which forecast 3.1 percent growth for Saudi Arabia in 2026 and continue to rank the Kingdom among the more resilient economies in the Gulf region.

Saudi Arabia–Russia Trade Surpasses $4 Billion

Trade between Saudi Arabia and Russia has now exceeded $4 billion, highlighting the rapid expansion of economic ties between the two countries. Both sides are actively pursuing greater diversification in their economic and industrial cooperation, adding that substantial untapped potential remains well above current trade levels.

Aramco Awards Project Management Consultancy Contract to McDermott

Aramco has signed a long-term project management consultancy (PMC) agreement with McDermott to support the execution of major energy, downstream, petrochemical, and low-carbon developments across Saudi Arabia. McDermott is among 11 contractors selected by Aramco to provide project management consultancy services for the company’s large-scale projects.

Saudi Arabia Implements 70% Localization in Procurement Professions

The Ministry of Human Resources and Social Development has announced the implementation of a decision to raise the Saudization rate in 12 procurement-related professions to 70%, effective Sunday, May 31. The targeted roles include procurement manager, procurement representative, contracts manager, warehouse keeper, logistics manager, warehouse manager, tenders specialist, procurement specialist, e-commerce specialist, market research specialist, warehouse specialist, and private-label supply specialist.

Tourism

Jayasom to Open Flagship Wellness Resort at Amaala’s Triple Bay

Jayasom is set to launch its inaugural flagship wellness resort at Amaala’s Triple Bay, marking a major addition to Saudi Arabia’s growing luxury tourism and wellness sector. Located along the pristine Red Sea coastline and spanning more than 7,000 square meters, the development is designed around an “East meets West” wellness philosophy that blends traditional healing practices with modern approaches to well-being.

Aviation

Riyadh Air Launches Five New Destinations as Dreamliner Fleet Expands

Riyadh Air has announced the addition of five new destinations to its network—Cairo, Dubai, Jeddah, Madrid, and Manchester—as it continues to expand its global route network. The announcement coincides with the arrival of the airline’s first three Boeing 787-9 Dreamliner aircraft, marking a key milestone in its operational ramp-up. The new routes form part of Riyadh Air’s strategy to strengthen connectivity between the Saudi capital and major economic, tourism, and cultural centers worldwide.

Saudia Tops Global Airline Punctuality Rankings in May

Saudia secured the top global ranking for both departure and arrival punctuality in May, according to data released by aviation analytics firm Cirium. The recognition marks the airline’s second major operational achievement this year, reinforcing its position among the industry's leading carriers for on-time performance. The latest ranking follows Cirium’s January assessment, which placed Saudia as the world’s second-most punctual airline for arrivals in 2025, extending the carrier’s strong track record of operational reliability and service efficiency.

Infrastructure & Real Estate

Six Development Sites Worth SR13.3 Billion Awarded Under Makkah Districts Program

The Royal Commission for Makkah City and Holy Sites has announced the awarding of six major development sites under its Developed Districts Program, covering a combined area of more than 2.7 million square meters and attracting investments worth approximately SR13.3 billion ($3.5 billion). The initiative forms part of broader efforts to enhance the urban fabric of Makkah, improve infrastructure, and elevate the quality of life for residents and visitors.

PIF and Talaat Moustafa Group Saudi Sign MoU to Explore Urban Development Opportunities in the Kingdom

The Public Investment Fund and Talaat Moustafa Group Saudi have announced the signing of a Memorandum of Understanding (MoU) to explore collaboration opportunities in mixed-use real estate developments across projects owned by PIF throughout Saudi Arabia. The partnership aims to combine PIF’s large-scale investment capacity and ecosystem with TMG’s experience in delivering integrated mixed-use communities, with a focus on residential, commercial, hospitality, and retail developments, as well as broader urban environments.

SR473 Million Road Projects Unveiled Across Asir Region

Nine major road projects have been inaugurated across the Asir Region, with a total investment of SR473 million ($126 million) and a combined length of 252 kilometers. New projects are expected to improve regional mobility and strengthen connectivity, supporting residents and visitors while contributing to broader development efforts across the Asir Region.

Business Expansions

Georg Fischer Expands Presence in Saudi with New Commercial Office in Riyadh

Georg Fischer has established a local company and opened a new commercial office in Riyadh, strengthening its presence in Saudi Arabia and reinforcing its long-term commitment to the Kingdom’s ongoing transformation. The move brings the company’s global flow solutions expertise closer to local customers, supporting applications across infrastructure, industrial, and building sectors, with a particular focus on improving water security and availability.