This edition of the Saudi Roundup highlights record investment licensing, strong FDI growth, major infrastructure projects, and key advances in the digital economy and renewable energy.
General Economy & Business
Digital Economy Reaches 16% of Saudi Arabia’s GDP
The digital economy’s contribution to Saudi Arabia’s GDP increased to 16% in 2024, up from 15.6% in 2023. The Information and Communications Technology (ICT) sector generated operating revenues of SR249.8 billion ($66.6 billion), led by telecommunications with SR133.9 billion. ICT imports surged 23.5% to SR67.9 billion, while exports and re-exports jumped 118% to SR25.8 billion, reflecting the sector’s growing competitiveness.
FDI Net Inflows Surge 34% to $6.6 Billion in Q3
Foreign direct investment net inflows reached SR24.9 billion ($6.64 billion) in Q3 2025, marking a 34.5% year-on-year increase and a 5.2% quarterly rise. The growth was driven by both increased inflows (up 4.4% to SR27.7 billion) and a sharp 65.7% decline in outflows. This reflects Saudi Arabia’s ongoing efforts to attract long-term foreign capital under Vision 2030, with the Kingdom targeting $100 billion in annual FDI by 2030.
Saudi Issues Record 6,986 Investment Licenses in Q3 2025
MISA issued 6,986 investment licenses in Q3 2025, an 83% year-on-year increase and the highest quarterly total on record. The figure also represents a 69% rise from Q2 2025. Construction led with 2,583 licenses (143% increase), followed by wholesale and retail trade with 1,214 licenses (234% increase), and manufacturing with 803 licenses. Total licenses for the first nine months of 2025 reached 15,728, already exceeding the 14,320 licenses issued in all of 2024.
Saudization
Saudi Mandates 70% Localization of Procurement Jobs
The Ministry of Human Resources and Social Development approved the localization of key procurement-related professions in the private sector, setting a 70% localization requirement for targeted procurement roles.
The decision applies to private-sector establishments employing three or more workers and covers 12 key procurement positions, including procurement manager, contracts manager, warehouse keeper, and logistics services manager.
Saudi Mandates 30% Localization of Engineering Jobs in Private Sector
Saudi Arabia approved the localization of 30% of 46 engineering professions in the private sector, effective December 31, 2025. The decision applies to private sector establishments employing five or more workers in designated engineering roles, including architect, industrial engineer, and power generation engineer.
Companies must meet a minimum localization rate of 30% with a minimum monthly salary of SR8,000 ($2,133) for Saudi engineers.
Infrastructure & Development
Riyadh Announces $2 Billion Ring Road Development Program
The Royal Commission for Riyadh City launched Package 3 of the Riyadh Main and Ring Road Axes Development Program, comprising six major projects worth over SR8 billion ($2 billion). The package includes the 29-km Jeddah Road project, the 15-km Taif Road project, and developments across King Abdulaziz Road and Othman bin Affan Road. Scheduled for completion within 3-4 years, the projects include the construction of multiple bridges and tunnels to enhance connectivity across the capital.
New Murabba Signs Strategic Deal with Saudi Housing Ministry
New Murabba Development Company, a Public Investment Fund entity, signed a strategic agreement with the Ministry of Municipalities and Housing to advance urban planning and sustainability. The collaboration will align regulations, streamline development processes, implement smart city standards, and enhance quality of life for the 19-square-kilometer New Murabba downtown project in northwestern Riyadh, which will feature The Mukaab as its centerpiece.
Al-Baha Advances Development with Over $327 Million in Projects
The region’s municipality has implemented 125 projects over the past five years, totaling more than SR1.23 billion ($327 million). These projects include paving, sidewalks, lighting, flood control, municipal facilities, urban development, and consulting services. The initiatives have created an attractive investment environment, with 2,237 investment opportunities emerging during the same period. The region leverages its agricultural advantages, producing over 8,000 tons of pomegranates annually and around 1,250 tons of honey per year, positioning Al-Baha as a key agricultural hub.
Industry & Manufacturing
NIDLP Sectors Reach Over $210 Billion GDP
The National Industrial Development and Logistics Program (NIDLP) sectors recorded a real GDP of SR790 billion ($210.6 billion), reflecting 5% growth. Non-oil merchandise exports exceeded SR265 billion, marking an 18% increase. NIDLP sectors now account for 39% of total non-oil GDP growth, with non-oil activities contributing 56% of the Kingdom’s overall GDP. The localization rate of military spending reached 24.89%.
Cybersecurity
Group-IB and VAS Sign MoU to Boost Cybersecurity Across Saudi Arabia
Leading cybersecurity firm Group-IB and VAS Integrated Solutions signed a memorandum of understanding to enhance cybersecurity cooperation throughout the Kingdom. The partnership, signed at Black Hat MEA, establishes a framework for joint market development, partner enablement, and cybersecurity awareness initiatives. The collaboration will deliver advanced cyber threat and fraud intelligence capabilities, educational resources, and training programs to strengthen Saudi Arabia’s cybersecurity resilience.
Energy & Environment
Saudi Completes World’s Largest BESS Project Grid Connection
Saudi Arabia officially completed the grid connection of its landmark battery energy storage system (BESS) with 7.8 GWh capacity, set to become the world’s largest operational BESS once fully energized. The project spans three sites in Najran, Khamis Mushait, and Madaya, featuring over 1,500 PowerTitan 2.0 systems. With annual capacity to generate 2.2 billion kWh, the system can meet the electricity needs of 400,000 households, marking a major milestone in the Kingdom’s renewable energy advancement.
Water & Utilities
Over 60 Top Developers Prequalify for SWPC Wastewater Projects
More than 60 leading developers have prequalified for the Saudi Water Partnership Company’s upcoming wastewater treatment projects, signaling strong interest in the Kingdom’s water infrastructure sector. The initiative reflects Saudi Arabia’s commitment to expanding environmental services and achieving water sustainability in line with Vision 2030 objectives.
Tourism & Hospitality
TDF Unlocks $1 Billion in Partnerships to Boost Tourism MSMEs
The Tourism Development Fund announced SR1 billion in strategic partnerships aimed at supporting micro, small, and medium enterprises in the tourism sector. The initiative is part of broader efforts to diversify the Kingdom’s tourism offerings and strengthen the sector’s contribution to economic growth under Vision 2030.
Transportation
Saudi Railways to Launch Hospitality-Inspired Residential Community in Riyadh
Saudi Railways announced plans to develop a hospitality-inspired residential community in Riyadh, marking the company’s expansion into mixed-use real estate development. The project reflects the Kingdom’s integrated approach to transportation infrastructure and urban development under Vision 2030.