WHY SAUDI?
MARKET INSIGHTS
Vision 2030: Transition to a Non-Oil Economy
Embracing Economic Diversification
For decades, Saudi Arabia has been synonymous with oil. However, with the launch of Saudi Vision 2030, the Kingdom is undergoing a remarkable transformation aimed at diversifying its economy. This ambitious government initiative is positioning Saudi Arabia as a global hub of industry and innovation. As the nation transitions away from oil, a wealth of opportunities emerges. Businesses that establish themselves in Saudi Arabia now will benefit from the first-mover advantage, driving economic growth while accelerating their own expansion efforts.
Sustained Economic Momentum
Saudi Arabia's economic growth is outpacing that of major global economies, including Japan, Australia, France, the United Kingdom, and Singapore. According to IMF data, while Singapore's nominal GDP stood at USD 120.6 billion in 2023, Saudi Arabia has surpassed the USD 1 trillion mark. This dynamic market is rich with investment opportunities and holds immense growth potential.
Diversified Economic Landscape
In Q1 2023, Saudi Arabia's non-oil sector recorded an impressive 5.8% growth, showcasing significant economic progress. This vibrant environment provides a fertile ground for businesses eager to leverage the Kingdom's rapid development, welcoming innovative ventures that are primed for swift expansion and meaningful impact.
Surging Investment Influx
Saudi Arabia is experiencing a surge in investments, driven by both international investors and substantial government funding. This influx is unlocking a myriad of opportunities for local and global businesses. The Kingdom is leading the MENA region in venture capital (VC) investments, with 44% of the region's total capital deployed here. This robust support system is crucial for the sustainable growth of startups.
Empowering Investment
The National Investment Strategy, introduced in 2021, is a cornerstone of Saudi Vision 2030. It focuses on boosting investments within the Kingdom through three key pillars: enhancing the private sector's role in the economy, strengthening strategic sectors, and fostering innovation and local content. The strategy aims to double annual investments to SAR 2 trillion (30% of GDP) by 2030. This includes SAR 1.7 trillion in domestic investments and a surge in foreign direct investment (FDI) to 5.7% of GDP, heralding a new era of economic vitality and growth.
These goals are pivotal in enhancing Saudi Arabia's competitiveness as a prime investment destination. The strategy seeks to foster a robust private sector, reduce unemployment, and boost global competitiveness. Collaboration between the Ministry of Investment and other government entities has led to significant achievements, including regional center licensing and the launch of the “Meza” platform. With around 40 initiatives aimed at empowering the private sector and improving the investment climate, special economic zones have attracted SAR 47 billion in investments. Tax incentives and 100% foreign ownership rights further encourage international investments in these zones.
The National Development Fund
The National Development Fund (NDF) plays a vital role in advancing the financial goals of Saudi Vision 2030. It focuses on enhancing the efficiency and sustainability of development funds and banks, ensuring alignment with key development priorities. Through strategic oversight, the NDF drives industrial, economic, and social development by investing in impactful and sustainable projects. Notable achievements include providing over SAR 14.1 billion in financing in the first half of fiscal year 2023, with additional support totaling SAR 10.3 billion and guarantees surpassing SAR 5.6 billion.
The Industrial Development Fund injected SAR 1.6 billion into 104 industrial facilities, supporting both strategic companies and SMEs. The Human Resources Development Fund allocated SAR 4.6 billion to citizen support, training, and private sector employment. The Real Estate Development Fund extended loans exceeding SAR 5.5 billion to over 31,000 beneficiaries. The Agricultural Development Fund provided SAR 2.9 billion in financing to individuals and entities.
The Small and Medium Enterprises Bank facilitated SAR 5.2 billion in guarantees through the Kafalah Program, strengthening joint ventures and small businesses. The Social Development Bank allocated SAR 3.8 billion in financing, assisting over 70,000 individuals. Lastly, the Saudi Export-Import Bank financed non-oil exports with SAR 2.8 billion, backed by SAR 4.25 billion in credit insurance, bolstering non-oil exports and enhancing global market access.
VISION 2030
Saudi Vision 2030: Transforming the Kingdom
What is Saudi Vision 2030?
Saudi Vision 2030 is an ambitious strategic framework aimed at transforming Saudi Arabia's economy, society, and government operations. Launched in April 2016 by Crown Prince Mohammed bin Salman, this initiative seeks to reduce the Kingdom's dependence on oil, diversify its economy, and enhance various sectors such as health, education, infrastructure, and tourism.
Key Objectives of Vision 2030
Economic Diversification
A primary goal of Vision 2030 is to diversify Saudi Arabia's economy beyond oil. The Kingdom aims to increase the contribution of non-oil sectors to its GDP by focusing on industries such as tourism, entertainment, renewable energy, and technology. This diversification will create new job opportunities and drive sustainable economic growth.
Social Development
Vision 2030 emphasizes improving the quality of life for Saudi citizens and residents. Initiatives include enhancing cultural and recreational activities, promoting sports, and preserving the Kingdom's cultural heritage. The vision also aims to improve healthcare services, making them more accessible and efficient.
Government Efficiency
Another critical aspect of Vision 2030 is enhancing the efficiency of government operations. This includes fostering a culture of transparency, accountability, and efficiency within government institutions. The vision aims to implement e-government initiatives to streamline processes and improve public services.
Strategic Programs
National Transformation Program (NTP)
The NTP aims to enhance the capacity and capabilities of government agencies to implement Vision 2030 efficiently. It focuses on improving public services, promoting economic development, and ensuring sustainable growth.
Fiscal Balance Program
This program seeks to achieve fiscal sustainability by diversifying government revenue sources, optimizing spending, and managing financial risks. It aims to balance the budget and reduce the Kingdom’s dependence on oil revenues.
Privatization Program
The Privatization Program aims to increase the private sector’s role in the economy by transferring ownership of certain government services and assets to private entities. This initiative seeks to improve efficiency, stimulate economic growth, and attract foreign investment.
Education and Innovation
Vision 2030 places a strong emphasis on education and innovation. The goal is to align the education system with market needs, promote research and development, and foster a culture of innovation and entrepreneurship. Initiatives include partnerships with leading global universities, investment in vocational training, and support for research centers and incubators.
Saudi Vision 2030 is a comprehensive plan to transform the Kingdom into a diversified and sustainable economy. By focusing on economic diversification, social development, and government efficiency, Vision 2030 aims to position Saudi Arabia as a leader on the global stage. The successful implementation of this vision will not only benefit the Kingdom but also contribute to regional and global economic stability and growth.
GIGA Projects
Saudi Vision 2030: Transformative Giga Projects
Under the ambitious framework of Saudi Vision 2030, the Kingdom of Saudi Arabia has launched several giga projects. These massive initiatives aim to revolutionize various sectors of the economy, create job opportunities, and position Saudi Arabia as a global hub for innovation and sustainability. Here, we explore all the key giga projects driving the Kingdom's transformation.
Neom: The City of the Future
Neom is one of the most prominent giga projects under Vision 2030. This futuristic city, located on the Red Sea coast, is designed to be a hub for innovation, technology, and sustainable living. Neom will feature cutting-edge technologies, renewable energy sources, and smart infrastructure, making it a beacon for global talent and investment.
Key Features of Neom
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Innovative Technology: Neom will leverage advanced technologies such as artificial intelligence, robotics, and IoT to create a seamless and efficient living environment.
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Sustainability: The city will be powered entirely by renewable energy, aiming to minimize its carbon footprint and promote environmental conservation.
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Global Talent Hub: Neom is set to attract professionals and innovators from around the world, fostering a culture of creativity and collaboration.
The Red Sea Project: A Luxury Tourism Destination
The Red Sea Project is a luxury tourism development that aims to transform Saudi Arabia’s western coastline into a world-class tourist destination. Covering an archipelago of more than 90 islands, the project will offer pristine beaches, coral reefs, and diverse marine life, providing unique experiences for visitors.
Highlights of the Red Sea Project
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Sustainable Tourism: The project emphasizes sustainable tourism practices, including conservation of marine and coastal environments.
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Luxury Resorts: Visitors will have access to high-end resorts and hotels, providing exceptional hospitality and leisure experiences.
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Cultural Heritage: The project will also highlight the rich cultural and historical heritage of the region, offering immersive cultural experiences.
Qiddiya: The Ultimate Entertainment Hub
Qiddiya is poised to become Saudi Arabia’s premier entertainment, sports, and cultural destination. Located near Riyadh, Qiddiya will feature a wide range of attractions, including theme parks, sports facilities, and cultural venues, catering to both residents and tourists.
Key Attractions of Qiddiya
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Theme Parks: Qiddiya will host world-class theme parks with thrilling rides and attractions for families and adventure seekers.
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Sports Facilities: The destination will include state-of-the-art sports venues for events and activities, promoting a healthy and active lifestyle.
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Cultural Venues: Qiddiya will offer cultural experiences through museums, galleries, and performance spaces, celebrating Saudi Arabia’s artistic heritage.
Amaala: Wellness and Health Tourism
Amaala is a luxury destination focused on wellness, health, and transformative experiences. Located along the northwestern coast of Saudi Arabia, Amaala aims to redefine the concept of wellness tourism, combining luxury with holistic well-being.
Features of Amaala
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Wellness Resorts: Amaala will host top-tier wellness resorts offering personalized health and wellness programs.
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Marine Activities: Visitors can enjoy a range of marine activities, including yachting, diving, and water sports, amidst stunning natural beauty.
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Cultural and Artistic Retreats: Amaala will feature cultural and artistic retreats, providing a serene environment for creative and intellectual pursuits.
AlUla: Heritage and Culture
AlUla is a heritage and cultural project that aims to preserve and promote the rich historical and archaeological significance of the AlUla region. The project focuses on restoring ancient sites and creating sustainable tourism opportunities.
Highlights of AlUla
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Historical Preservation: Efforts to restore and conserve ancient structures, including tombs, monuments, and dwellings.
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Cultural Events: Hosting cultural festivals, exhibitions, and events that celebrate the heritage and traditions of the region.
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Sustainable Tourism: Developing eco-friendly tourism infrastructure to ensure the protection of AlUla’s unique landscapes and heritage.
Jeddah Tower: World’s Tallest Building
Jeddah Tower, also known as the Kingdom Tower, is set to become the tallest building in the world. Located in Jeddah, the tower will be a symbol of Saudi Arabia’s architectural ambition and technological prowess.
Highlights of Jeddah Tower
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Architectural Marvel: The tower will stand over 1,000 meters tall, featuring advanced engineering and design.
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Mixed-Use Development: It will include residential, commercial, and hotel spaces, providing a multifaceted urban experience.
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Observation Deck: The tower will boast the world’s highest observation deck, offering breathtaking views of the Red Sea and the city of Jeddah.
Diriyah Gate: Birthplace of the Saudi State
Diriyah Gate is a cultural and historical project aimed at transforming the ancient city of Diriyah into a global tourism destination. It will celebrate the heritage and history of Saudi Arabia as the birthplace of the Saudi state.
Key Features of Diriyah Gate
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Historic Restoration: Restoration of historical sites, including At-Turaif District, a UNESCO World Heritage Site.
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Cultural Attractions: Museums, galleries, and cultural institutions showcasing Saudi history and culture.
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Tourism Infrastructure: Development of hotels, restaurants, and leisure facilities to cater to tourists and visitors.
King Salman Energy Park (SPARK): Industrial Hub
King Salman Energy Park (SPARK) is an industrial mega project aimed at creating a global energy and industrial hub. Located in the Eastern Province, SPARK will support the growth of the energy sector and related industries.
Key Features of SPARK
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Industrial Integration: SPARK will host a wide range of industrial activities, including manufacturing, services, and logistics.
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Innovation and Research: The park will promote innovation and research in the energy sector, fostering technological advancements.
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Job Creation: SPARK aims to create thousands of jobs, contributing to economic diversification and development.
Seven: Entertainment Complexes
The Saudi Entertainment Ventures (Seven) project focuses on developing state-of-the-art entertainment complexes across the Kingdom. These venues will offer a variety of recreational activities, including cinemas, amusement parks, and sports arenas.
Highlights of Seven
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Entertainment Hubs: Establishing multiple entertainment complexes in major cities.
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Family-Oriented Activities: Providing diverse entertainment options for families and individuals.
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Economic Impact: Boosting the local economy through job creation and tourism.
Roshn: Residential Communities
Roshn is a real estate development company tasked with creating modern residential communities. These communities will offer high-quality living standards, with a focus on sustainability and community engagement.
Features of Roshn
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Modern Housing: Developing affordable and high-quality housing units.
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Sustainable Design: Incorporating green spaces and eco-friendly infrastructure.
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Community Amenities: Providing schools, healthcare facilities, and recreational areas.
Entertainment: Comprehensive Experiences
Saudi Vision 2030 includes a broad push to enhance the entertainment sector, making it a significant contributor to the national economy. This initiative aims to provide diverse cultural, recreational, and leisure experiences.
Key Elements of the Entertainment Sector
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Cultural Festivals: Hosting local and international cultural festivals.
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Live Performances: Building venues for concerts, theater, and other live performances.
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Leisure Activities: Developing amusement parks, cinemas, and sports facilities.
Saudi Downtown: Urban Regeneration
The Saudi Downtown project focuses on revitalizing the downtown areas of various cities across the Kingdom. It aims to create vibrant urban centers that combine residential, commercial, and recreational spaces.
Highlights of Saudi Downtown
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Urban Renewal: Transforming old city centers into modern urban areas.
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Mixed-Use Developments: Integrating residential, commercial, and leisure facilities.
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Cultural Preservation: Preserving historical sites while introducing contemporary amenities.
Masar Destination: Makkah Development
Masar Destination is a major development project in Makkah, designed to improve infrastructure and enhance the experience of pilgrims visiting the holy city.
Key Features of Masar Destination
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Transportation Infrastructure: Developing advanced transportation systems to facilitate pilgrim movement.
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Hospitality Services: Building hotels and accommodations for visitors.
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Cultural and Religious Sites: Enhancing access to important cultural and religious landmarks.
King Abdullah Financial District (KAFD): Financial Hub
The King Abdullah Financial District (KAFD) is designed to be the leading financial center in the region, attracting international banks, investment firms, and financial services companies.
Highlights of KAFD
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Financial Institutions: Hosting regional headquarters for global financial companies.
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Business Environment: Providing state-of-the-art office spaces and amenities.
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Sustainable Design: Incorporating eco-friendly building practices and green spaces.
Mohammed bin Salman Non-profit City (MISK): Innovation and Education
The Mohammed bin Salman Non-profit City (MISK) aims to be a center for innovation, education, and culture. It will support initiatives that promote youth development, entrepreneurship, and community engagement.
Key Features of MISK
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Educational Institutions: Establishing schools, universities, and research centers.
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Innovation Hubs: Creating spaces for startups and entrepreneurial activities.
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Cultural Centers: Developing museums, galleries, and cultural venues.