The Report: Saudi Arabia 2025

Economy

Saudi Arabia is entering a new phase of its Vision 2030 agenda, with greater emphasis on consolidating and maximising the impact of economic reforms introduced over the past decade. Since the launch of Vision 2030, the Kingdom has pursued an ambitious agenda aimed at diversifying away from hydrocarbons, expanding private sector activity across the economy and positioning the Kingdom as a globally competitive investment destination. The transformation is being driven by a coordinated institutional framework led by the Council for Economic Development Affairs, with implementation undertaken by the Saudi Central Bank and the Public Investment Fund. Together, these entities have enabled policy rollout, mobilised capital and implemented far-reaching regulatory reform across key areas of the economy. Continued progress on economic diversification, privatisation and international investment targets is expected to drive foreign capital inflows, while sovereign ratings upgrades and affirmations will reinforce international confidence in the Kingdom’s policy direction.

This chapter contains interviews with Stephen Groff, Governor, National Development Fund and Mohamed El Samman, CEO, Rajhi Invest.

Banking

The Saudi banking sector sits at the core of Vision 2030. Saudi banks are playing a growing role in supplying credit for headline-grabbing giga-projects while also rapidly expanding support for small and medium-sized enterprises, which are important vehicles for Saudi Arabia’s economic diversification and bring more women into the labour market. Thanks to well-organised roadmaps, most notably the Financial Sector Development Programme, governmental entities and private commercial banks have managed to successfully execute several economic and political priorities – asset growth is stable and positive, Saudiisation rates are above the private sector average and private sector lending is now the main driver for banking sector growth. The outlook of the sector is positive. Foreign interest in the Kingdom remains high, with more funding becoming available for sectors such as energy and tourism where the return on investment is certain in both the short and medium-terms.

This chapter contains interviews with Ayman Al Sayari, Governor, Saudi Central Bank; Mana bin Mohamed Al Khamsan, CEO, The Financial Academy; Ibrahim bin Hamad Al Rashid, CEO, SME Bank; and Tony Cripps, CEO and Managing Director, SAB.

Capital Markets

With initial public offerings, bond and sukuk (Islamic bond) issuances surging and further build-out by the Kingdom’s non-oil economy, Saudi Arabia’s capital markets are currently going through an expansionary period. This change is a key pillar in the Kingdom’s long-term development plan, Vision 2030, which seeks to make the country a regional and international financial centre as part of its broader economic diversification strategy. The full weight of the Kingdom is therefore now behind this drive, which will see the completion in 2026 of the 2024-26 phase of Saudi Arabia’s Capital Market Authority Strategic Plan, stimulating growth. The next phase will see capital markets open further to international investors, alongside continued regulatory and supervisory strengthening.

This chapter contains interviews with Mohammed Al Rumaih, CEO, Saudi Exchange; Faris AlGhannam, CEO, HSBC Saudi Arabia; and Khalid Al Sharif, CEO, Abdul Latif Jameel Finance.

Insurance

Saudi Arabia’s insurance sector has shown strong premium, revenue, asset and equity growth. With a new insurance law on the way as of January 2026, the sector continues to both widen and deepen. At the same time, Saudi Arabia is home to the world’s largest sharia-compliant insurance, or takaful (Islamic insurance) market. The Financial Sector Development Programme sets targets for further expansion of mandatory coverages, health care reform, the use of new technologies, and localisation in insurance and reinsurance issuers. Industries such as tourism are growing rapidly, as is the adoption of new technologies. All of these steps bode well for future expansion, as well as efficiency and security.

This chapter contains interviews with Shabab bin Saad Al Ghamdi, Secretary General, Council of Health Insurance and Tal Hisham Nazer, CEO, BUPA Arabia.

Energy & Utilities

The Saudi energy industry is entering a period of change. Multiple gigawatts of renewable electricity are coming online each year, helping to replace oil in domestic power generation and lower the carbon intensity of the energy mix. Carbon capture, utilisation and storage supports emissions mitigation across the power and utilities sector as part of the Kingdom’s multi-pathway approach. Together, these shifts align with national efforts to reduce domestic crude burn, increasing flexibility over how hydrocarbon production is allocated between domestic use and export markets. The utilities sector has seen major developments: water companies have been restructured and are being prepared for partial privatisation, and electricity companies are facing an expanding number of independent power producers, especially in renewables.

This chapter contains interviews with Marco Arcelli, CEO, ACWA and Omar Al Daweesh, CEO, EDF.

Industry & Mining

The horizon for the industrial and mining sectors is defined by a transition from rapid, volume-based expansion to strategic consolidation and resilience. While the fourth Future Minerals Forum held in January 2025 demonstrated momentum – yielding SR107bn ($28.5bn) in deals, the Kingdom is actively recalibrating its approach to address emerging global trends. The trajectory faces pressure from elevated global interest rates, which has prompted a shift in the Public Investment Fund’s investment strategy towards greater fiscal discipline and a prioritisation of sectors offering quicker returns. However, the mining sector’s long-term growth is sustained by its competitive advantage in pursuing green energy feedstock and strong institutional support for a variety of industrial projects, as it continues to attract high-value capital commitments.

This chapter contains an interview with Khalid Al Amoudi, CEO, Saudi Red Bricks Company.

ICT & AI

The ICT and artificial intelligence (AI) sectors have emerged as central pillars of the Kingdom’s economic transformation agenda, reflecting the growing strategic importance of digital infrastructure, advanced technologies and data-driven growth under Vision 2030. Public investment and regulatory reform as well as e-government initiatives over the last decade have laid the foundations for a rapidly expanding digital ecosystem that now spans telecommunications, cloud computing, data centres and AI. universal internet penetration, high mobile usage and strong network performance have created favourable conditions for digital services and innovation. As a result, ICT increasingly contributes to GDP and AI is transitioning from a policy ambition to a deployment phase, supported by rising adoption across businesses, government entities and consumers alike.

This chapter contains interviews with Ahmed Al Suwaiyan, Governor, Digital Government Authority; Ahmed Al Alola, CEO, THIQAH; and Tareq Amin, CEO, HUMAIN.

Transport & Logistics

Saudi Arabia’s transport and logistics industry continues to experience robust expansion and is a pillar of Vision 2030, the national blueprint for economic diversification. Sector growth is driven by the roadmap’s aims to position the Kingdom as a global logistics, aviation and trading centre. Giga-projects, including port and airport upgrades and the construction of large-scale new cities, coupled with rising tourism and population growth, are driving development in the sector backed by significant public funding and growing public-private partnerships. Ongoing metro and high-speed rail construction and expanded bus networks are enhancing urban and intercity connectivity, particularly in Riyadh, Makkah and Jeddah. The Kingdom’s nascent electric vehicle industry is poised to flourish in the coming years. Underpinning Saudi Arabia’s transport networks and logistics industry is a focus on renewable energy use, technological innovation and digital infrastructure as the Kingdom seeks sustainable economic growth beyond oil.

This chapter contains an interview with Saleh bin Nasser Al Jasser, Minister of Transport and Logistics Services; Gabriel Semelas, President, Airbus Africa and Middle East; and Anef Abanomi, President, Saudi Post and Logistics Services Company.

Construction & Real Estate

Saudi Arabia’s Vision 2030, a national roadmap for economic diversification, remains the backbone of the country’s construction and real estate sectors. Under Vision 2030, ongoing giga-projects involve the building of entire new cities, large-scale residential housing developments, luxury resorts and restored heritage sites, ensuring a substantial pipeline of construction activity and real estate development over the medium and the longer term. Within this framework, Saudi Arabia’s hosting of major sporting and global events such as the 2034 FIFA World Cup and Expo 2030, coupled with the rising numbers of tourists visiting the Kingdom, is providing further impetus to develop infrastructure, hospitality and entertainment centres.

This chapter contains interviews with Majid Al Hogail, Minister of Municipalities and Housing; Mohammad Al Suliman, CEO, Real Estate Registry; and Abdullah Al Habib, CEO, Mohammed Al Habib Real Estate.

Education & Training

The education and training sectors play a vital role in building a future workforce equipped to succeed in a knowledge-based, digital economy as the Kingdom pursues Vision 2030, the national programme for economic diversification. With the government’s strong focus on expanding access to quality education from early childhood to adult learning, Saudi Arabia is expected to build on gains made on improving women’s enrolment rates in higher education, translating into increased labour force participation for women and¬¬ increased uptake of technical and vocational education and training. The education sector, at all levels, is poised for expansion backed by rising demand, population growth in a young demographic and robust government spending.

This chapter contains an interview with Majed Bingirnas Almutairi, CEO, Almasar Education.

Health & Life Sciences

Health care in Saudi Arabia is undergoing a period of rapid transformation, driven by demographic shifts and the ambitions of the Saudi Vision 2030 national development strategy. Government spending to modernise infrastructure, diversify services and improve quality has risen, while a comprehensive health care reform programme is expanding access across the country and introducing international standards. The sector is also opening to private investment, creating an increasing number of opportunities for growth as the state seeks to share financial responsibility. Health indicators continue to improve as a result of stronger preventive care and diagnosis with the help of technological advancements, while access to specialist services is also expanding.

This chapter contains interviews with Hisham bin Saad Aljadhey, CEO, Saudi Food and Drug Authority; Nasser Al Huqbani, CEO, Health Holding Company; and Faisal Al Nassar, CEO, Dr Sulaiman Al Habib Medical Group.

Tourism & Culture

The tourism sector in Saudi Arabia has undergone a significant transformation since the launch of the government’s Vision 2030 national development strategy. Updated policies and higher investment in tourist infrastructure have driven the increase in visitor numbers. Meanwhile, the diversification of the tourism sector through the development of strong business, resort and sports tourism offerings, has helped to attract new market entrants to the Kingdom. The industry will likely continue to grow with the opening of various new luxury resorts and the hosting of several major sporting events in the next decade. The tourism sector has expanded at a significant rate since the launch of the Vision 2030 development strategy. The creation of a national tourism law and regulatory frameworks has provided the Ministry of Tourism and other government agencies with a clear roadmap to develop the sector.

This chapter contains interviews with Majed Abdulmohsen Al Hugail, CEO, Cultural Development Fund and Abdulaziz Musaed AlSulaim, Group CEO, Cultural Assets Group.

Philanthropy

Philanthropy has been a long-standing tradition in Saudi culture, and a wide range of non-profit organisations have emerged across the Kingdom. Traditionally, the approach to giving was informal and fragmented, both in terms of voluntary time and monetary donations. However, since the government included the non-profit sector in its Vision 2030 national development strategy, the sector has become gradually more institutionalised. This sector is undergoing a transformation supported by new national policies and regulations, the creation of oversight agencies and the digitalisation of services. A greater openness to a more structured approach to philanthropy by younger generations is also supporting the change. In addition, the alignment of various Vision 2030 aims with several UN Sustainable Development Goals means that the transformation of the philanthropy sector reflects the broad shift in global sectoral trends.

This chapter contains interviews with HRH Princess Lamia bint Majed Al Saud, Secretary-General, Alwaleed Philanthropies; HH Princess Nouf bint Muhammad bin Abdullah Al Saud, CEO, King Khalid Foundation; and Sarah Essam Al Muhaidib, Executive Director, Al Muhaidib Foundation.

Legal Framework

Saudi Arabia’s legal sector has undergone significant reform in recent years, reflecting the broader economic and institutional transformation under way as part of Vision 2030. The reform programme has focused on strengthening legal certainty, improving enforcement mechanisms and modernising institutions to support investment, commercial activity and long-term economic diversification. A central element of this process has been the codification of private law. The introduction of the Civil Transactions Law marked a major step towards establishing a unified framework governing contractual and civil relationships, providing clearer guidance on rights, obligations and remedies across commercial activity. Alongside this, the Evidence Law clarified evidentiary standards and procedures, contributing to greater consistency and predictability in dispute resolution. These reforms have strengthened confidence in contractual enforcement and reduced reliance on fragmented or discretionary interpretation.

This chapter contains a viewpoint with Abdulmohsen Aljamhor, Managing Partner, Aljamhor Law Company.

The 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, safety and health considerations, business etiquette and public and private transport options.

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