JEDDAH: Saudi Minister of Energy, Industry and Mineral Resources Khalid Al-Falih discussed economic opportunities in a meeting with visiting Iraqi Oil Minister Jabar Al-Luaibi.
Al-Falih told Arab News that they discussed Iraq’s huge mineral reserves, which have yet to be explored or invested in.
They also discussed the country’s fertile agricultural land as Iraq is rich with water, he added.
Al-Falih said Al-Luaibi, who was accompanied by a high-level delegation, affirmed Iraq’s commitment to reducing oil exports to shore up prices. Al-Falih said they agreed to open offices for big Saudi corporations in Iraq to assess the market, with the aim of exporting high-quality Saudi products directly rather than via third parties.
This will be facilitated by the opening of border crossings between the two countries, the Saudi minister said.
Companies that stand a good chance of entering the Iraqi market include the Saudi Basic Industry Corp. (SABIC), the Saudi Arabia Mining Co. (Maaden) and Saudi Aramco.
Al-Luaibi told Arab News that his visit to the Kingdom was successful.
He expressed delight at the projects he saw during his visits to SABIC, Aramco and the Royal Commission for Jubail and Yabu.
He said he highly valued the chance to meet Crown Prince Mohammed bin Salman, who stressed the Kingdom’s keenness in Iraq’s security and welfare, and highlighted the importance of bilateral cooperation in the fields of investment, trade, industry and agriculture.
Al-Luaibi said anticipated bilateral investments may exceed tens of billions of dollars, adding that this is a strategic objective for Iraq.
He said his country’s oil policy matches the Kingdom’s in terms of reducing exports, adding that Iraq’s exports currently stand at 195,000 barrels per day.
Saudi Arabia, Iraq discuss economic opportunities in Jeddah meeting
Saudi Arabia, Iraq discuss economic opportunities in Jeddah meeting
Saudi Arabia looks to non-oil growth for a stronger, more stable future
RIYADH: Saudi Arabia is focused on achieving high-quality growth through sustainable non-oil activities, aiming to boost private sector dynamism and productivity, while ensuring continued economic progress that goes beyond short-term expenditures, a minister stated.
Speaking during a panel discussion at the Budget Forum 2025 in Riyadh, Minister of Economy and Planning Faisal Al-Ibrahim highlighted that Saudi Arabia's growth rate has consistently ranged from 4 percent to 6 percent in recent years and is expected to continue at a similar pace in the years ahead.
“We aspire for more than just numbers. We also aim for high-quality growth — growth that is based on sustainable non-oil activities, not dependent on temporary expenditures that stop when the spending stops,” Al-Ibrahim said.
He further added: “The growth we expect for non-oil activities by the end of this year is approximately 3.9 percent, and for next year, it is projected to be 4.8 percent. These figures will be adjusted as estimates improve.”
Saudi Finance Minister Mohammed Al-Jadaan also emphasized that Vision 2030 is focused on establishing stable, sustainable public finances by reducing reliance on volatile revenue sources like oil.
“This is to guarantee the sustainability of funding for sectors that require a long-term horizon to achieve stability,” he said.
Al-Jadaan continued: “The difference between then and now is that spending is now sustainable and continuous because we have diversified the economy, diversified income sources, and utilized major fiscal policies.”
Al-Ibrahim stressed the importance of economic diversification in Saudi Arabia, pointing to tourism as a key example. He explained that without the deliberate focus on expanding the tourism sector and related industries, the country’s economic performance today would be significantly weaker.
“The growth we’re seeing in other sectors would not have compensated for the global changes affecting traditional sectors we used to rely on, such as the voluntary oil production cuts,” Al-Ibrahim said.
He added: “The role of tourism in the economy’s composition today is a testament to the strength and value of economic diversification.”
The minister also discussed the prioritization of economic transformation, with diversification at the top of the agenda.
“However, we’ve highlighted two key sectors: tourism and industry, along with their sub-sectors. Tourism helps us achieve rapid diversification and creates swift job opportunities. It also establishes a soft infrastructure for long-term investments, ideas, visitors, and industries,” Al-Ibrahim explained.
Al-Ibrahim emphasized that Saudi Arabia views the defense sector as a strategic priority and will continue investing in it for both national security and economic reasons.
“We have spent on defense and will continue to invest in it for several reasons, and its returns are strategic. Local content in the sector was at 4 percent, and today it has reached approximately 13 percent to 20 percent, with a target of 50 percent by 2030,” the minister said.
This focus on local content will prioritize complexity, as “many countries are now reinvesting in military sectors to meet strategic needs,” and the Kingdom is part of this global trend, focusing on peaceful objectives and long-term economic returns.
Al-Jadaan further explained that sustainable economic growth in Saudi Arabia heavily relies on maintaining stable and responsible public finances. To achieve consistent economic growth, the government must manage its financial resources effectively and direct them toward sectors that drive economic development and diversification, such as non-oil industries.
“Enabling public finance to support economic diversification is crucial. If public finance fails to allocate resources to the targeted sectors, or if it lacks commitment and consistency, the efforts may falter,” Al-Jadaan said.
He continued: “Fiscal policies consist of two components: government spending and the tax burden on the economy. These two policies are used to control and support the economy.”
Al-Jadaan acknowledged the importance of the structural reforms introduced at the start of Vision 2030, recognizing the challenges involved.
“Some of these reforms were considered painful,” he said, referring to difficult decisions such as reducing subsidies, introducing taxes like the value-added tax and excise tax, and imposing specific fees.
“These measures could have caused significant shocks in other economies, but the Saudi economy managed to overcome them,” he noted.
Al-Jadaan clarified that these reforms were not about imposing taxes and fees for their own sake, but about ensuring public finances could sustainably support the economy.
Reflecting on Saudi Arabia’s economic history, Al-Jadaan acknowledged that during the decades when oil dominated the economy, the country experienced rapid growth.
“The past 40-50 years were not wasted; we built a very strong infrastructure. However, this growth was not sustainable,” he said.
He explained that in the past, spending would rise and projects would be launched during periods of high oil revenue, but spending would stop, and projects would face delays when revenues fell.
Al-Jadaan also highlighted the evolution of Saudi Arabia’s fiscal policies. “We did not previously use debt instruments as we do today. Now, we use them to balance revenues and ensure continuous and sustainable expenditures. This allows for proper planning—not just for government entities and targeted sectors, but also for the private sector,” he said.
The shift toward sustainable spending has had significant benefits, Al-Jadaan emphasized, including improved services for citizens across various sectors such as health, education, and transportation.
“Sustainable spending supports a sustainable economy, which translates into better services for our citizens,” he said.
25 companies compete for six Saudi sports clubs in privatization push, says minister
RIYADH: Saudi Arabia’s ongoing sports privatization initiative has sparked significant interest from both local and international investors. A total of 25 companies are now actively pursuing investment opportunities in six of the 14 sports clubs proposed for privatization in the first phase.
During the Budget Forum 2025, Sports Minister Prince Abdulaziz bin Turki Al-Faisal discussed the economic potential of the privatization drive, estimating that these investments could amount to SR500 million ($133 million).
“There is also interest from foreign companies in investing and acquiring local sports clubs, which we will announce soon,” the minister said.
Prince Abdulaziz noted that the Saudi Pro League’s international profile is on the rise, with broadcasts now reaching over 160 countries. Revenues from the league have increased by 33 percent this year, reflecting growing participation and interest in the Kingdom’s sports sector.
The expansion of sports is part of Saudi Arabia’s broader Vision 2030 reforms, which seek to diversify the country’s economy. To facilitate investment in the sector, the privatization process has been streamlined with the launch of a platform that licenses academies and clubs, making it easier for individuals and businesses to invest.
“In 2018, no one was allowed to establish a club except through the hassle of regulatory processes. Now, through the platform, anyone can open their club or academy and invest easily in the sector,” he explained.
Saudi Arabia has also made notable progress in sports tourism, hosting around 80 sports events over the past four years, attracting 2.5 million visitors. Major events such as the Formula One race in Jeddah have brought substantial economic benefits. The 2023 edition, for instance, generated over 20,000 job opportunities and attracted attendees from 160 different countries.
The minister further highlighted improvements in sports sector administration, including a reduction in contract termination penalties among clubs from SR616 million to SR30 million last year. He also pointed to the shift from part-time or voluntary staffing to a full-time workforce of 5,000 employees, with a target of creating 130,000 direct and indirect jobs by 2030.
In another session at the conference, Saudi Tourism Minister Ahmed Al-Khateeb shared that tourism’s contribution to the Kingdom’s gross domestic product had increased from 3 percent in 2018 to 5 percent in 2023, with a target of 10 percent by 2030.
“In the recent G20 meeting in Brazil, they presented the tourism growth of the nations in the first seven months of this year compared to the same period in 2019. Saudi Arabia was the highest with 70 percent, followed by Turkiye with 5 percent — a huge growth gap between the first and the second,” Al-Khateeb remarked.
Domestic travel in Saudi Arabia has also seen a surge, with the average number of flights per Saudi citizen or resident rising from 1.4 in 2018 to 2.5 in 2023. This compares favorably with leading global tourism destinations such as France (3.5) and Spain (2.8).
Saudi Arabia’s focus on cultural, sports, and historical events has positioned the Kingdom to capture a share of the 1.6 billion travelers expected to grow to 3.8 billion by 2032. Al-Khateeb emphasized that Vision 2030 initiatives have been central to this growth, driving both job creation and economic diversification.
In a separate panel, Ibrahim Al-Mubarak, assistant minister of Investment, highlighted the role of monetary policies in fostering sustainability and building trust with investors.
“There is no other spot in the world that has seen the transformation witnessed in the Kingdom at such an unprecedented speed since the launch of Vision 2030,” Al-Mubarak said.
He also praised the upcoming launch of a new investment system, set to replace the current foreign investment system in early 2025. This new framework aims to offer equal support to both domestic and international investors, consolidating investor rights and freedoms into a more transparent and business-friendly environment.
Al-Mubarak further celebrated the Kingdom’s success in the regional headquarters program, which has already surpassed its Vision 2030 target of attracting 500 regional headquarters by 2030.
“We are now hosting 540 companies by 2024,” he added, emphasizing Saudi Arabia’s growing position as a regional business hub.
Prince Sultan International Airport drives Tabuk’s growth with 25% surge in flights
JEDDAH: Prince Sultan International Airport in Tabuk is playing a key role in Saudi Arabia’s transportation expansion, with a 25 percent increase in flight operations.
This surge highlights the region’s alignment with Vision 2030, focusing on enhanced logistics, connectivity, and sustainability.
During a recent visit to the region, Saudi Minister of Transport and Logistics Services Saleh Al-Jasser affirmed that Tabuk is experiencing substantial growth, which supports the broader objectives of the National Transport and Logistics Strategy.
The minister emphasized that the rise in airport operations — including both the number of flights and the diversity of domestic and international routes — signals further development in the coming years.
Launched in 2021, Saudi Arabia’s transport and logistics strategy aims to transform the country into a global logistics hub connecting three continents.
The strategy seeks to elevate all transport services and is a central element of Vision 2030. The plan includes an investment of over $266.7 billion by 2030, with $53.3 billion already deployed.
Al-Jasser also highlighted the region’s advanced road infrastructure, built to international standards, which is designed to accommodate the growing population and economic activity while ensuring safety and efficiency for travelers.
Noting the significant progress in Tabuk’s transport sector, the minister expressed his gratitude to the Kingdom’s leadership for its ongoing commitment to improving services across all sectors, particularly in transportation.
He emphasized that these initiatives not only address current demands but are also geared towards future goals, particularly in enhancing supply chain efficiency and supporting both domestic and international logistics networks.
The minister further underscored the importance of environmental sustainability in transportation, advocating for eco-friendly solutions and the integration of cutting-edge technologies into transport operations.
Al-Jasser also acknowledged the leadership of Tabuk Gov. Prince Fahd bin Sultan, praising his steadfast support for the region’s development projects and his role in enhancing transport services for residents and visitors alike.
He commended the strong partnership between regional authorities and the Ministry of Transport, which has been instrumental in achieving shared goals.
During his visit, the minister held discussions with members of the Tabuk Chamber of Commerce, exploring opportunities for further collaboration with the private sector to advance the goals of the NTLS. He also met with local residents to hear their insights, suggestions, and priorities regarding the region’s transport and logistics infrastructure.
Moody’s upgrades 6 Saudi GRIs to Aa3, citing strong sovereign support
RIYADH: Moody’s has upgraded the ratings of six major government-related institutions in Saudi Arabia, including the Public Investment Fund, to Aa3 from A1.
The move reflects strong sovereign backing and stable credit linkages to the government.
The agency also assigned the Aa3 rating to Saudi Aramco, Saudi Basic Industries Corp., and Saudi Electricity Co., as well as Saudi Power Procurement Co., and Saudi Telecom Co.
Moody’s assigns an Aa3 rating to companies with high quality, low credit risk, and strong ability to repay short-term debts, providing an assessment of the creditworthiness of borrowers, including governments, corporations, and other entities that issue debt.
“The rating action is a direct consequence of the sovereign rating action and reflects the credit linkages between the Government of Saudi Arabia and each of the six entities,” said Moody’s.
It added: “While several of these corporates benefit to varying degrees from international assets and cash flows, they all have significant credit linkages to the Saudi Arabia sovereign and are exposed to the domestic environment including political, economic, regulatory and social factors.”
The strong ratings received by these firms is an indication of Saudi Arabia’s robust economic stability, following Moody’s upgrade of the Kingdom’s credit rating to Aa3 with a stable outlook in November.
In May, Fitch Ratings upgraded Saudi Arabia’s credit rating to A+ with a stable outlook.
PIF
The upgrade of PIF’s long-term issuer rating to Aa3 from A1 aligns with the Saudi government’s rating action and reflects the strong credit linkage between the sovereign wealth fund and the Kingdom, according to Moody’s.
The report also noted that PIF is expected to receive strong and extraordinary support from the Saudi government whenever needed.
“PIF is closely interlinked with the Kingdom because it is one of the main vehicles of the Kingdom to execute its Vision 2030; PIF continues to receive contributions from the Kingdom via asset transfers; and given the fund’s investment focus and concentration in domestic markets,” added the US-based agency.
According to the analysis, PIF’s rating is in line with that of the Saudi government, meaning the fund’s rating could be downgraded if the sovereign rating declines.
In July, PIF’s consolidated financial statement revealed that the fund generated SR331 billion ($88.3 billion) in revenue in 2023 from its diverse investment portfolio, reflecting over 100 percent growth compared to 2022.
Saudi Aramco
The report indicated that Aramco’s rating upgrade reflects the high likelihood of extraordinary support from the government if needed.
The US-based agency also noted that the energy company has access to nearly all of Saudi Arabia’s vast hydrocarbon resources and significant petrochemical operations.
Earlier in November, Aramco reported a net profit of SR103.37 billion for the third quarter of 2024, surpassing analyst expectations, which had projected a median net income of SR101.06 billion.
SABIC
According to Moody’s, SABIC’s rating upgrade is due to its strong reliance on the government and the high probability of receiving government support in the event of financial distress.
The report also highlighted the company’s strong global position in the petrochemical and fertilizer markets as another key factor behind the credit rating upgrade.
In the third quarter of this year, SABIC reported a net profit of SR1 billion, a turnaround from the net loss of SR2.87 billion in the same period last year.
SEC
Describing SEC as the “dominant vertically integrated electricity utility in Saudi Arabia,” Moody’s stated that the company served over 11.23 million customers as of Sept. 30, 2024.
“SEC’s rating reflects the significant credit linkages between SEC and its ultimate shareholder, the Government of Saudi Arabia. All of SEC’s assets are in Saudi Arabia and the company benefits from supportive government policies,” said the US-based agency.
In the third quarter of this year, SEC reported a net profit of SR4.7 billion, a 19.8 percent increase compared to the same period last year.
SPPC
Moody’s stated that SPPC has a clear public policy mandate that aligns its interests and objectives with those of the government.
As the sole licensed principal buyer of electricity in Saudi Arabia, the company has significant credit linkages with the government, which played a crucial role in the latest rating action.
Moody’s also noted that the rating reflects SPPC’s low business risk profile, its monopoly position in the Kingdom, and its ability to maintain a strong liquidity profile despite high working capital seasonality.
stc
According to the report, the rating upgrade of stc – the leading integrated telecommunications and ICT operator in Saudi Arabia – reflects the company’s strategic importance to the government, as well as the state’s high level of control through PIF.
Moody’s added that stc generates over 90 percent of its revenue in the Kingdom and plays a key role in supporting the government’s technological and digital ambitions, a crucial goal outlined in Vision 2030.
Affirming stc’s dominance in the Saudi market, the company reported a net profit of SR11.23 billion in the first nine months of this year, a 2 percent increase compared to the same period in 2023.
Eyewa raises $100m in Series C to boost expansion across GCC
RIYADH: Eyewa, a Riyadh-based eyewear retailer, secured $100 million in a series C funding round led by General Atlantic, with participation from Badwa Capital and Turmeric Capital.
The funding will fuel eyewa’s ambitions to expand its regional footprint, enhance its supply chain, and drive innovation in the eyewear sector.
The company plans to open at least 100 new stores in 2025, adding to its existing network of over 150 locations across the Gulf Cooperation Council region, including Saudi Arabia, the UAE, Kuwait, Bahrain, and Oman.
“We are proud of and feel even more emboldened by the remarkable trust placed in us by top global and regional investors,” said Anass Boumediene, co-founder and co-CEO of eyewa.
“In a sector that had not seen much disruption in the past decade, our success in this funding round reflects not only the strength of our business model, but also the spirit of innovation across the region’s startups as we continue to dream big and break new ground in our respective industries,” he added.
The capital will also support investments in research and development and talent acquisition as eyewa strengthens its position as a leader in the eyewear market, the company said in a press release.
As part of its growth strategy, eyewa plans to establish a “state-of-the-art” production hub in Riyadh in the first quarter of 2025.
The facility will include a warehouse, a fulfillment center, and a lens manufacturing unit, designed to improve the efficiency and speed of product delivery.
Owned and operated by eyewa, the center will provide a supply chain advantage that aligns with the company’s goal of delivering affordable and accessible eyewear to customers across the region.
Co-founder and co-CEO Mehdi Oudghiri emphasized the company’s customer-centric approach: “This accomplishment is a testament to the hard work of our team, our strong track record as an omnichannel retailer, and our commitment to challenging convention.”
“The additional capital will allow us to pursue the development of innovative products tailored to our customers, and continue pushing the boundaries of customer experience in our region,” Oudghiri added.
Based in both Riyadh and Dubai, eyewa was founded in 2017 and has grown into a prominent omnichannel retailer, combining e-commerce with physical stores to cater to rising consumer demand. The company also runs The Optical Club, a brand focused on providing accessible and affordable eyewear options.
“As part of our mission to make eyewear accessible to everyone, everywhere, we will leverage the support of our new partners and continue our retail expansion to all corners of the GCC,” said Abdullah Al-Rugaib, co-founder and managing director of eyewa.
He added that their extensive network and premier app, along with a tech-enabled supply chain, make eyewa the preferred retail platform for customers across the region.
Ziyad Baeshen, vice president at General Atlantic and a board member at eyewa, said: “The company’s impressive growth trajectory thus far is a testament to the vision of the leadership team and consumer appetite for authentic, direct-to-consumer brands in the Middle East.”
Additional investor support came from Badwa Capital and Turmeric Capital, both of whom lauded eyewa’s leadership and vision.
“Since first investing in eyewa, we have been impressed by the team’s clear vision and strong execution capabilities,” said Abdulaziz Al-Falih, partner at Badwa and board member at eyewa.
Fabio Andreottola, partner at Turmeric Capital, added: “eyewa represents the very essence of innovation and ambition in the Middle East’s retail landscape. As a business that has continually pushed boundaries in eyewear, we are proud to support eyewa’s team in this pivotal growth phase.”
