The Report: Saudi Arabia 2023
Saudi Arabia's dynamic economy is poised for growth, driven by its Vision 2030 diversification agenda. The Kingdom aims to transform its industries, stimulate innovation and solidify its global position. The country’s commitment to modernise its energy sector, targeting 650 GW of renewable energy by 2060, signals a promising future characterised by economic diversification and prosperity.
Country Profile
Situated at the crossroads of Europe, Asia and Africa, Saudi Arabia boasts deep historical and cultural roots predating the modern Kingdom's establishment in 1932. Since its initial oil discovery in 1938, Saudi Arabia has become the world's leading oil producer and the sole Arab member of the G20. Underpinned by substantial oil revenue – exemplified by a $161bn profit for national oil company, Aramco, in 2022 – the Kingdom is actively financing giga-projects and strategic investments, bolstering sectors such as tourism, manufacturing and mining. Vision 2030, a comprehensive socio-economic development blueprint, is driving this transformation, aiming to diversify the economy and modernise society. Amid the global energy transition and geopolitical uncertainties, Saudi Arabia remains steadfast in its commitment to prioritise non-oil sectors, enabling sustained growth.
Explore chapterEconomy
Saudi Arabia, started 2023 with its most rapid economic expansion in over a decade, outpacing the growth of its G20 peers despite global economic challenges. The Kingdom benefitted from higher energy prices amid Russia’s invasion of Ukraine, elevating oil sector activity by 15.4% during the year. This boost led to a fiscal surplus, offering flexibility for diversification efforts and non-oil sector growth. Saudi Arabia continues to be a vibrant destination for business, attracting both major corporations collaborating with government entities and smaller firms benefitting from private sector expansion. While dynamics of the global energy market still influence Saudi Arabia's economy, non-oil sectors play an increasingly pivotal role in driving overall growth. With Vision 2030 guiding the way, the country is balancing tradition with innovation – presenting opportunities for companies of all sizes. This chapter contains interviews with Mohannad Basodan, CEO, National Center for Privatization & PPP; Meshaal bin Omairh, Group CEO, Abdullah Al Othaim Investment; and Fahad Al Jubeir, Mayor, Eastern Province Municipality.
Explore chapterBanking
Saudi Arabia's banking sector is undergoing its first regulatory overhaul in over half a century. These changes, combined with regulatory sandboxes and support for financial technology (fintech) firms, mark a rapid transformation. Traditional banking methods face disruption as digital payments and smartphone banking surge, and the competitive landscape includes local and international institutions. The Saudi Central Bank, a well-respected regulator, has been working to support expansion in the sector, which has witnessed increased net profit and assets. Fintech inclusion in the 2023 draft banking law and the Open Banking Lab signal modernisation. While the prospect of unstable global inflation could present liquidity pressure, there are reasons for optimism in the Saudi banking sector. This chapter contains interviews with Ayman Al Sayari, Governor, Saudi Central Bank; and Ibrahim Bin Hamad Al Rashi, CEO, Social Development Bank.
Explore chapterCapital Markets
Saudi Arabia boasts the MENA region's largest and most liquid stock market, with a capitalisation of approximately $2.7trn. It is an appealing destination for international investment, advancing the Financial Sector Development Programme to diversify the economy beyond hydrocarbons in line with Vision 2030. The programme supports regulatory reforms and the rapid growth of local markets, while aiming to elevate the Saudi Exchange on the global stage. A robust initial public offering pipeline, led by increased merger and acquisition activity, reinforces the attractiveness of Saudi capital markets. Although challenges regarding secondary market trading and innovative equity trading options remain, the macroeconomic environment remains stable and the Saudi Exchange is expected to maintain its leading position in the region. This chapter contains interviews with Mohammed Al Rumaih, CEO, Saudi Exchange; and Faris AlGhannam, CEO and Board Member, HSBC Saudi Arabia.
Explore chapterInsurance
Saudi Arabia's insurance market, driven by mandatory health coverage and robust economic growth, emerged as the Gulf's largest in 2022, with gross written premium of SR53.4bn ($14.2bn). Proactive regulatory measures aim to consolidate the industry, promote international investment and bridge coverage gaps. Vision 2030's Financial Sector Development Programme sets ambitious targets, helping to drive regulatory reform and promote digitalisation. Compulsory insurance and economic diversification are creating new opportunities for insurers. Meanwhile, the transition away from carbon-intensive industries is paving the way for broader coverage and risk-management strategies. The Saudi insurance sector looks set to expand its reach and contribute to the broader financial space in the coming years. This chapter contains an interview with Othman AlKassabi, CEO, Tawuniya.
Explore chapterEnergy & Utilities
Saudi Arabia’s energy strategy revolves around extracting maximum economic benefit from its remaining hydrocarbons reserves while expanding renewable power capacity at home by investing in research, development and innovation activities to develop clean energy solutions, as well as to reduce the environmental impact of fossil fuels. Vision 2030 aims to generate 50% of domestic power from green sources by 2030 and amid global climate change mitigation efforts, the Kingdom anticipates a decline in hydrocarbons demand in the years ahead. The National Renewable Energy Programme is leading the shift to sustainable energy as a key component of economic diversification. The Kingdom anticipates continued profitability from hydrocarbons in the immediate term, with plans to invest this profit into clean and renewable energy projects. This chapter contains an interview with Majid Refae, CEO, Desert Technologies Industries.
Explore chapterIndustry
Saudi Arabia’s industrial and mining sectors have long been singled out by the authorities as targets for expansion to support economic diversification. The Kingdom aims to attract international manufacturers, and develop the capacity of industrial small and medium-sized enterprises to strengthen domestic value chains. At the same time, the country is making efforts to upgrade its transport and logistics infrastructure, and investing in enhancing downstream capabilities to better integrate into regional and global supply chains. High oil prices in 2022 positioned Saudi Arabia as the G20's fastest-growing economy, enabling initiatives like the National Industry Strategy and Stimulating Local Industry. With a commitment to local procurement, which could spur foreign investment, the Kingdom is poised for a transformative era of industrial growth. Abundant mineral resources and supportive regulations could position Saudi Arabia as a key player in the global green economy in the years ahead. This chapter contains interviews with Majed Rafed Al Argoubi, CEO, Saudi Authority for Industrial Cities and Technology Zones; Bader Al Reziza, Chairman, Asharqia Chamber; and Khalid Al Salem, President, Royal Commission for Jubail and Yanbu.
Explore chapterSecurity, Aerospace & Defence
Saudi Arabia allocated 7.4% of its GDP to defence expenditure in 2022, making it the world's second-highest spender relative to GDP. Amid escalating global tensions and heightened military spending worldwide, Saudi Arabia emerged as a major player, ranking fifth in global defence spending in value terms, at $75bn. The Kingdom's commitment to reinforcing national security and enhancing defence capabilities aligns with Vision 2030's diversification and reform agenda. Efforts include the development of a thriving domestic defence manufacturing industry, with the aim of reducing reliance on foreign suppliers. Significant investment in advanced defence technology, local military procurement, workforce development, and high-tech security and aerospace segments are in progress, underscoring the Kingdom's strategic vision. This chapter contains an interview with Simon Barnes, CEO, BAE Systems.
Explore chapterICT
Saudi Arabia's ICT sector stands as the largest and fastest-growing in the MENA region, valued at SR154bn ($41.1bn) as of 2022. The Kingdom's ambition has attracted global attention, with multinational ICT providers gathering annually for the LEAP tech conference and Global Cybersecurity Forum. As Saudi Arabia seeks to enhance connectivity and diversify its economy beyond hydrocarbons under Vision 2030, ICT continues to play a central role. Initiatives driving digital transformation encompass various sectors, including government services, banking and manufacturing, the last of which is embracing Industry 4.0 solutions. Saudi Arabia's digital ambitions have attracted major tech players and foreign investors, bolstering the ICT ecosystem. management. The country's commitment to providing the domestic workforce with the appropriate knowledge, skills and abilities for the future will be essential in assisting it to realise its goals. This chapter contains an interview with Mohammed AlShaibi, CEO, Tamkeen Technologies.
Explore chapterInnovation
Saudi Arabia is restructuring its innovation ecosystem, focusing on harnessing top scientists, researchers and inventors; increasing intellectual property; and attracting private investment and venture capital. Funding is being channelled into research, development and innovation (RDI). financing a diverse range of projects and partnerships. Synergising the three constituent components of RDI will be key to achieving these goals. There have been early signs of progress in this regard, with the Kingdom rising through global innovation-related rankings in recent years. Sector-specific strategies are also being explored to build a more productive innovation ecosystem that can support broad-based economic growth. Meanwhile, the entrepreneurial spirit of the Kingdom’s young, motivated and increasingly diverse workforce signals promise for advancements in the Saudi RDI space in the years ahead. This chapter contains an interview with Munir Eldesouki, CEO, King Abdulaziz City for Science and Technology; and Head, Founding Team, Research Development and Innovation Authority.
Explore chapterTransport
Saudi Arabia boasts extensive and increasingly sophisticated transport and logistics infrastructure, supported by significant public funding. Private investment is growing, thanks to privatisation efforts and public-private partnerships. Ambitious logistics projects, if funded and executed successfully, could position the Kingdom as a global leader in the sector. Sustainability is a central pillar of Vision 2030, the Kingdom’s overarching blueprint for diversifying the economy, and the country is seeking to harness its transport sector to enhance its reputation as a modern, advanced economy and profitable investment destination. The streamlining of governmental structures is also making processes more efficient for those investors who are looking to enter the Saudi transport market.
Explore chapterReal Estate & Construction
Saudi Arabia’s economic rebound following the Covid-19 pandemic and the progress made on Vision 2030 projects have created a favourable set of conditions for real estate and construction activity. In September 2023 the Riyadh International Convention and Exhibition Centre is set to host the Saudi Infrastructure Expo, an event at which an estimated $1trn worth of smart city, tourism and clean energy projects will be presented to investors and local stakeholders. Meanwhile, the country’s estimated 5200 ongoing projects, totalling $819bn, continue to attract global construction talent and equipment. Demand for construction-related services remains high, driven by economic growth, oil revenue and giga-projects. While supply constraints may increase price pressures, public sector financing in construction projects is expected to remain robust in the years ahead. This chapter contains an interview with Fabrice Susini, CEO, Saudi Real Estate Refinance Company.
Explore chapterEducation & Training
Saudi Arabia has consistently prioritised the education sector, with significant government spending and wide-ranging reforms that seek to improve learning outcomes and revise curricula to meet the needs of the current and future economy, in line with the goals of the Vision 2030 socio-economic development blueprint. The focus is on preparing the workforce for the technology-driven global economy by enhancing technological proficiency and critical-thinking skills. Technology is being integrated into education, expanding access to high-quality learning through interactive software and online programmes. The Kingdom’s strategic approach combines centralised policy-making with decentralised implementation to empower local education offices. Ongoing education reforms are set to boost economic dynamism, global competitiveness, innovation and digitalisation. As the education system improves, opportunities are opening up for private investment to raise standards and strengthen infrastructure.
Explore chapterHealth & Life Sciences
Saudi Arabia places health care at the centre of its long-term development plans, guided by the Vision Realisation Programme under Vision 2030, the Kingdom’s blueprint for socio-economic transformation. Advanced health care infrastructure is in place, with ongoing efforts to modernise the sector through digitalisation and private sector involvement. Public health care services are provided free of charge to citizens, while non-citizen residents are required to obtain private health insurance – contributing to a thriving private health care segment. Strategic privatisation, innovation and infrastructure investment are key drivers of the sector's growth and efficiency, positioning Saudi Arabia for sustained progress in the space. This chapter contains interviews with Fahad Al Shebel, CEO, National Unified Procurement Company; and Hisham bin Saad Aljadhey, Executive President, Saudi Food and Drug Authority.
Explore chapterTourism
Saudi Arabia, with its rich cultural heritage and natural wonders, is rapidly transforming into a global tourism destination, a trend driven by Vision 2030, the country’s blueprint for socio-economic development. The introduction of tourist visas in 2019 marked a significant shift, emphasising the sector's importance for diversification and job creation. Through strategic infrastructure investment, destination development and an emphasis on heritage, the Kingdom has successfully established itself on the global tourism stage. Government support and collaborative efforts among stakeholders are poised to make tourism a crucial force in reducing oil dependence and creating new revenue streams in the years ahead.
Explore chapterEntertainment
Saudi Arabia is witnessing a flourishing entertainment scene thanks to sweeping regulatory reforms in recent years. This sector is a high priority in the government's economic diversification drive, aiming to cultivate local talent and stimulate job creation. The General Entertainment Authority has been established to drive sector growth, supporting entertainment-related start-ups and expanding the network of small and medium-sized enterprises (SMEs) – a core component of Vision 2030. The entertainment sector has grown rapidly, aligning with the broader diversification agenda. The Kingdom is becoming a regional centre for entertainment activities, hosting international events while expanding its portfolio of homegrown shows, festivals and events. Investment opportunities are expanding, and the focus on local content creation and SME development indicates sustained dynamism in this sector. This chapter contains an interview with Turki Alalshikh, Chairman, General Entertainment Authority.
Explore chapterLegal Framework
Saudi Arabia has embarked on significant legal reforms in line with Vision 2030's focus on creating a vibrant society, a thriving economy and an ambitious nation. These reforms include the introduction of key laws like the Personal Status Law, the Civil Transactions Law, the Penal Code of Discretionary Sanctions and the Law of Evidence. These laws aim to enhance and harmonise the legal ecosystem, as well as reduce ambiguities in the legal framework. The Law of Evidence and the Personal Status Law have already been issued, with the Civil Transactions Law and the Penal Code of Discretionary Sanctions in process as of mid-2023, marking a major milestone in the Kingdom's legal landscape. This chapter contains a viewpoint from Eyad Reda, Managing Partner, Eyad Reda Law Firm.
Explore chapterThe Guide
The Guide contains a selection of hotel and accommodation options throughout Saudi Arabia for both business and leisure travellers. Helpful information is provided on visa regulations, health considerations, business etiquette, and public and private transport options.
Explore chapterTable of Contents
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Mohannad Basodan, CEO, National Center for Privatization & PPP (NCP)
Ayman Al Sayari, Governor, Saudi Central Bank (SAMA)
Ibrahim Al Rashid, CEO, Social Development Bank (SDB)
Mohammed Al Rumaih, CEO, Saudi Exchange
Turki Alalshikh, Chairman, General Entertainment Authority (GEA)
