GCC prioritizes economic diversification for sustainable growth, says official 

During the Gulf Creatives Conference, organized by the Diwan at Harvard University in Cambridge, Massachusetts, Al-Budaiwi outlined a vision that embraces diverse sectoral reforms. SPA
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Updated 12 May 2024
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GCC prioritizes economic diversification for sustainable growth, says official 

RIYADH: The Gulf Cooperation Council aims to reduce reliance on oil revenues by implementing a comprehensive vision for economic diversification, as emphasized by its Secretary-General, Jasem Al-Budaiwi. 

During the Gulf Creatives Conference, organized by the Diwan at Harvard University in Cambridge, Massachusetts, Al-Budaiwi outlined a vision that embraces diverse sectoral reforms. These initiatives are aimed at strengthening economic resilience and attracting foreign investments, the Saudi Press Agency reported. 

He noted GCC countries have positioned themselves as competitive digital hubs on the global map, supported by their favorable geographic location and young population. 

“The strategic location, coupled with robust infrastructure, paves the way for the council member states to attract international partnerships that support their long-term development goals,” Al-Budaiwi said. 

He added: “This dynamic approach is vital for sustaining economic growth and ensuring the resilience of Gulf economies in the face of global economic fluctuations and regional challenges.” 

Additionally, Al-Budaiwi emphasized the numbers and data supporting these plans and showcased the advancements made by GCC nations, including the establishment of the Customs Union, the GCC Common Market, and the Unified Economic Agreement. He cited Saudi Arabia’s NEOM project as an example of urban development initiatives within GCC nations. 

He explained that smart cities are designed to reduce waste, enhance energy efficiency, and streamline urban management by leveraging artificial intelligence and the Internet of Things. 

He continued by stating that this further underscores the GCC nations’ commitment to technologically advanced and environmentally friendly urban design, as well as the increased emphasis on cybersecurity to mitigate growing risks and maintain confidence in the digital economy. 

Moreover, Al-Budaiwi emphasized the transition from oil-dependent to diversified economies and expressed satisfaction with the outstanding economic and integration achievements of the GCC countries. 

In February, he held a series of meetings in Riyadh with foreign ambassadors to Saudi Arabia. 

Al-Budaiwi met with the South Korean Ambassador to Saudi Arabia, Choi Byung Hyuk, at the general secretariat headquarters in Riyadh. 

During the meeting, the secretary-general discussed the developments in the free trade agreement between the GCC countries and South Korea, which was signed in December 2023. 

Both sides expressed their desire to enhance cooperation between nations and increase focus on mutual interests such as education, health, investment, and pharmaceuticals. 

The meeting also reviewed relations between the GCC and South Korea, emphasizing the importance of enhancing strategic dialogue through the areas of cooperation outlined in the joint action plan.


Oman’s GDP grows 4.7% as non-oil sectors expand

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Oman’s GDP grows 4.7% as non-oil sectors expand

  • Agriculture, services, and construction exports lead economic growth

RIYADH: Oman’s gross domestic product at current prices grew by 4.7 percent year on year in the first quarter of 2025, reaching 10.53 billion Omani rials ($27.3 billion), compared with 10.06 billion rials during the same period in 2024.

Preliminary data released by Oman’s National Centre for Statistics and Information attributed the increase primarily to stronger performance in non-oil activities, which grew 4.1 percent to 7.13 billion rials compared to 6.85 billion rials a year earlier.

Across economic sectors, agriculture and fisheries posted the highest growth rate, expanding 11.1 percent to 326.6 million rials. 

Industrial activities rose 2.8 percent to 1.97 billion rials, while services activities grew 4.2 percent with a total contribution of 4.84 billion rials to GDP.

Oil activities also contributed to the overall expansion, recording a 6.8 percent increase in value-added, reaching 3.71 billion rials by the end of the first quarter of 2025, up from 3.47 billion rials in the same period of 2024.

While crude oil activities declined 7.5 percent to 2.74 billion rials, natural gas activities saw a marked increase of 89 percent, with value-added rising to 970.8 million rials.

This performance comes as Oman continues to strengthen non-oil sectors and diversify its economy. 

Earlier in June, Credit Oman reported that insured non-oil exports reached 61.2 million rials in the first quarter, a 6 percent increase from the same period last year, driven by higher shipments of construction materials, petrochemicals, mining products, and agricultural goods.

Overall, the sultanate’s broader non-oil exports rose 8.6 percent to 1.61 billion rials, accounting for 28.6 percent of total exports.

The government is also pursuing fiscal reforms to support long-term growth. Under a royal decree, Oman will become the first Gulf country to introduce personal income tax, imposing a 5 percent levy on taxable income exceeding 42,000 rials per year starting in 2028. 

The measure is expected to apply to about 1 percent of the population.

Earlier in June, the country’s residential property market was reported to have shown renewed strength. 

Official data from Oman’s National Centre for Statistics and Information indicated that residential property prices rose 7.3 percent year over year in the first quarter, led by a 6.5 percent increase in residential land values, which form the largest component of the real estate index.

Apartment prices rose 17 percent in May, while villas gained 6.4 percent, and other residential units increased 2.2 percent. The overall residential real estate price index advanced 5.5 percent quarter over quarter.

The gains reflect a broader regional upswing in property activity during early 2025. 


Saudi FDI net inflows jump 44% in Q1 to $5.9bn

Updated 55 min 20 sec ago
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Saudi FDI net inflows jump 44% in Q1 to $5.9bn

RIYADH: Saudi Arabia attracted SR22.2 billion ($5.9 billion) in net foreign direct investment in the first quarter of 2025, up 44 percent year on year, driven by rising inflows and sharply lower capital outflows. 

According to figures released by the General Authority for Statistics, this compares to SR15.5 billion during the same period last year. The figure, however, marked a 7 percent drop from the final quarter of 2024, when inflows totaled SR24.0 billion. 

Gross inflows — the total foreign capital entering the Kingdom — stood at SR24 billion, up 24 percent from SR19.4 billion in the first quarter of 2024, but down 6 percent from the SR25.6 billion recorded in the preceding quarter.

Net FDI reflects the actual retained investment after subtracting outflows such as dividends, loan repayments, or capital exits — making it a more accurate indicator of lasting foreign capital in the economy. 

The FDI boost coincides with Saudi Arabia’s growing appeal among global investors. In April, the Kingdom climbed to a record 13th place in Kearney’s 2025 Foreign Direct Investment Confidence Index while maintaining its rank as the third most attractive emerging market, underscoring strong investor confidence. 

In its latest release, GASTAT stated: “The volume of outflows amounted to about SAR 1.8 billion during Q1 of 2025. It achieved a decrease of 54% compared to Q1 of 2024, where the volume of outflows reached SAR 3.9 billion.” 

The report noted that this represented a 7 percent increase from the fourth quarter of 2024, when outflows stood at SR1.7 billion. 

The narrowing gap between inbound and outbound foreign capital underscores the resilience of the Kingdom’s investment environment amid ongoing economic transformation efforts. 

It also reflects a growing trend of multinational companies establishing regional headquarters in the Kingdom. Under new localization rules linked to government contracts, several global firms have set up or expanded their presence in Riyadh. 

In March, Dell Technologies became one of the latest tech giants to open a regional office in the Saudi capital, joining companies such as PepsiCo, Schneider Electric, Morgan Stanley, PwC, and Deloitte — all of which have ramped up operations to tap into the Kingdom’s rapidly evolving market and $1.1 trillion giga-project pipeline. 

The Kingdom’s performance comes against a backdrop of global declines in foreign direct investment.  

According to the UN Conference on Trade and Development, inward FDI inflows in Saudi Arabia fell 31 percent in 2024 to $15.73 billion, while outflows rose 27.1 percent to $22.04 billion.  

The report attributed the downturn to persistent trade tensions, geopolitical uncertainty, and weakening investor sentiment worldwide.  

Earlier this month, S&P Global said it expects FDI into Gulf Cooperation Council countries to slow further in 2025, citing lower oil prices and a more gradual rollout of economic diversification plans across the region. 


Saudi unemployment rate hits historic low of 2.8% in Q1: GASTAT

Updated 17 min 48 sec ago
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Saudi unemployment rate hits historic low of 2.8% in Q1: GASTAT

RIYADH: Saudi Arabia’s overall unemployment rate fell to a record low of 2.8 percent in the first quarter of 2025, down 0.7 percentage points from the previous quarter, official data showed.

According to figures released by the General Authority for Statistics, the jobless rate also declined by 0.7 points year on year. The labor force participation rate for both Saudis and non-Saudis increased to 68.2 percent, marking a rise of 1.8 points from the previous quarter and 2.2 points from the same period last year. 

The Kingdom’s strengthening labor market aligns with Vision 2030, the nation’s strategic roadmap focused on creating job opportunities for citizens and driving economic growth. Curbing joblessness remains a core pillar of the broader socio-economic reform agenda. 

In its latest release, GASTAT stated: “The employment-to-population ratio for Saudis increased by 0.5 percentage points compared to the fourth quarter of 2024, reaching 48.0 percent, and increased by 0.5 percentage points compared to the first quarter of 2024.” 

Among Saudi nationals, the jobless rate fell to 6.3 percent in the first quarter — a 0.7-point drop from the earlier quarter and 1.3 points lower year on year. Participation in the workforce among Saudis edged up to 51.3 percent, a quarterly improvement of 0.2 points. 

To support job seekers and streamline employment efforts, the Kingdom continues to promote digital platforms such as Jadarat, a unified national system for connecting Saudis to job opportunities. 

The share of Saudi women engaged in the labor force rose to 36.3 percent in the first quarter, up 0.3 percentage points from the preceding quarter.

“Additionally, the employment to population ratio of Saudi females increased by 0.7 percentage points, reaching 32.5 percent. At the same time, the unemployment rate of Saudi females decreased by 1.4 percentage points, recording 10.5 percent, compared to the previous quarter of 2024,” GASTAT added.

Among Saudi men, participation in economic activity increased slightly to 66.4 percent, while their unemployment rate declined by 0.3 percentage points to 4.0 percent. 

GASTAT’s report also revealed that 94.8 percent of unemployed Saudis are open to working in the private sector. Of these, 76.1 percent of women and 86.3 percent of men expressed willingness to work at least eight hours a day. 

Additionally, 58.7 percent of Saudi women seeking employment and 40.4 percent of their male counterparts expressed willingness to commute for one hour or more to reach their workplace. 

Alongside the survey findings, GASTAT also published register-based labor market statistics for the same timeframe. 

The number of Saudis registered with the General Organization for Social Insurance and the Civil Service rose to 2.92 million in the first quarter of 2025, up from 2.89 million in the previous quarter. Of these, 2.42 million were employed in the private sector and 492,620 in the public sector. 

Meanwhile, the total number of registered workers in the Kingdom — including Saudis and non-Saudis — increased to 12.8 million, compared to 12.4 million in the fourth quarter of 2024. 


Saudi Arabia eyes untapped opportunities in Mauritania, Morocco

Updated 29 June 2025
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Saudi Arabia eyes untapped opportunities in Mauritania, Morocco

JEDDAH: Saudi Arabia is strengthening its trade and investment ties with Africa as more than 30 top investors and officials visit Mauritania and Morocco to explore opportunities across multiple sectors.

The delegation, led by the Federation of Saudi Chambers, began an official visit to Northwest Africa on June 29. The agenda includes meetings to highlight investment incentives, assess the business climate, and identify partnership opportunities in key economic sectors, according to the Saudi Press Agency.

The mission aims to promote the Kingdom’s investment prospects and foster collaboration between Saudi companies and their African counterparts, thereby advancing trade and economic cooperation.

This initiative is part of the FSC’s broader efforts to enhance international economic ties and align with Saudi Arabia’s Vision 2030 strategy, which focuses on diversifying the Kingdom’s economic base and expanding global partnerships. It also reflects Riyadh’s growing interest in deepening commercial engagement with African nations.

“Both sides hope that this visit will open new horizons for trade and investment relations,” SPA reported, noting that trade with Mauritania reached SR119 million ($32.13 million), with Saudi exports accounting for 99 percent.

Trade with Morocco totaled SR5 billion, with 13 percent of this amount representing imports, signaling untapped investment opportunities that the visit aims to uncover.

Led by FSC Chairman Hassan Moejeb Al-Huwaizi, the delegation will hold talks with Mauritanian officials and business leaders in Nouakchott. The two-day mission aims to strengthen bilateral economic ties and foster strategic partnerships across various sectors.

A joint Saudi-Mauritanian business forum will be held to explore cooperation opportunities, featuring participation from the Ministry of Industry and Mineral Resources, the Ministry of Investment, the General Authority of Foreign Trade, and the Saudi Fund for Development.

Saudi exports currently dominate the trade balance with Mauritania, while imports remain limited at around SR100,000. Mauritania is Saudi Arabia’s 88th largest export destination and 196th in terms of imports.

Key Saudi exports to Mauritania include metals, rubber products, dairy and animal-based goods, and machinery. Imports from the West African country primarily consist of fish and shellfish, tea and spices, textiles and unstitched garments, as well as medical and optical instruments.

Trade volume with Morocco stands at SR5 billion, with imports making up 13 percent.

In 2024, Riyadh and Rabat signed a cooperation agreement between their chambers of commerce aimed at deepening economic ties. The pact facilitates financial collaboration, information exchange, joint events, trade delegations, and dispute resolution, all designed to promote stronger business partnerships.

With this African outreach, the FSC continues its international expansion efforts, having recently completed trade missions to 17 countries as part of its Vision 2030-driven strategy to open new markets and boost trade and investment.


Growing Saudi film industry driving job creation, economic growth

Updated 28 June 2025
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Growing Saudi film industry driving job creation, economic growth

  • Over 630 cinema screens opened across 60 locations in 2024, with ambitions to exceed 1,000 by 2030

RIYADH: Since lifting the cinema ban in 2018, Saudi Arabia has rapidly transformed its film industry into a key engine of job creation and economic diversification.

By 2024, the Kingdom had opened over 630 cinema screens across 60 locations, with ambitions to exceed 1,000 by 2030.

This expansion is expected to create over 7,000 direct and indirect jobs, contributing to a broader entertainment ecosystem projected to generate around 450,000 employment opportunities and push the sector’s gross domestic product contribution to 4.2 percent by the end of the decade. 

Building an industry

To date, more than SR3.5 billion ($933 million) has been invested in cinema infrastructure, content services, and technology by local and international players. 

According to Shahid Khan, partner and global head of media, entertainment, sports, and culture at Arthur D. Little Middle East, these investments have extended beyond major cities into developing regions, promoting more inclusive economic growth.

“A notable example is Muvi Cinemas, the first Saudi-owned cinema brand and current market leader, which has rapidly expanded to establish itself as the market leader. It has employed hundreds of Saudis and actively invested in workforce localization through training programs aimed at building local capabilities in cinema operations and management,” Khan said.

He added that box office revenues have held steady at SR900 million annually for the past three years, with food and beverage sales contributing over SR500 million each year — strengthening the sector’s role in Saudi Arabia’s non-oil revenue diversification. Khan also pointed to the positive spillover into local film production, supported by regulatory incentives from the Film Commission, which is laying the groundwork for sustainable, locally driven industry growth. 

Films produced in these locations help showcase the Kingdom’s unique natural and historical assets, sparking interest among global audiences and encouraging tourism.

Abeer Al-Husseini, partner at Fragomen

According to Abeer Al-Husseini, partner at Fragomen, the establishment of entities like the Film Commission and the General Entertainment Authority, alongside the development of advanced studios, has opened up new opportunities in creative, technical, and support roles. She noted that this momentum is also fueling demand for film and media education.

“Event management, hospitality and cultural tourism have similarly benefited, particularly around major film festivals and heritage venues. Incentives like the Cash Rebate Incentive Program, which offers up to 40 percent in non-refundable grants, draw in international productions and further drive job creation,” Al-Husseini said.

She added that Saudization is making steady progress, with full nationalization in cinema sales and supervisory roles and 50 percent in technical jobs, placing Saudi talent at the center of the sector’s growth.

Al-Husseini also emphasized the broader impact of cultural initiatives such as the Red Sea International Film Festival, which supports global filmmakers while boosting local tourism and ancillary sectors including entertainment, food, media, and digital content. 

Vision 2030 and a cinematic future

Saudi Arabia is positioning itself as an international production hub by capitalizing on a combination of geographic diversity, government incentives, and growing infrastructure. 

From Arthur D. Little’s standpoint, initiatives such as Film AlUla have played a crucial role since 2020, attracting over 120 productions to the region, including international titles like Kandahar and Norah.

“Meanwhile, NEOM has become a cornerstone of Saudi Arabia’s emerging media industry. Over the past two years, the region has reportedly produced more than 35 projects spanning various formats, genres, and production scales,” said Khan, adding: T”his includes high-profile projects like the Apple TV+ series Foundation and the international blockbuster Desert Warrior, which employed hundreds of Saudis in areas such as set design, catering, security, and logistics.” 

He noted that these projects are helping build a skilled local workforce, with government cash rebates and infrastructure investment creating the foundations for a world-class production ecosystem. The country’s target of producing 100 feature films by 2030 is also expected to unlock opportunities across tourism and hospitality. 

FASTFACTS

• This expansion is expected to create over 7,000 direct and indirect jobs, contributing to a broader entertainment ecosystem projected to generate around 450,000 employment opportunities and push the sector’s gross domestic product contribution to 4.2 percent by the end of the decade.

• While meeting Saudization requirements will remain a key challenge as demand for skilled workers rises, the influx of international talent presents valuable opportunities for collaboration, training, and upskilling the local workforce.

“A compelling example of this potential can be seen in Australia, where Mission Impossible: 2 significantly boosted tourism — contributing to approximately 200 percent increase in visitors to the film location within a few years. Similarly, Saudi Arabia’s cinematic exposure is poised to elevate the Kingdom’s profile on the global stage, attracting tourists, stimulating local economies, and advancing the goals of Vision 2030,” he said.

Al-Husseini underscored the role of AlUla and NEOM in promoting the Kingdom’s unique cultural and futuristic offerings, both critical to advancing Vision 2030.  “Films produced in these locations help showcase the Kingdom’s unique natural and historical assets, sparking interest among global audiences and encouraging tourism. This boost in tourism supports local businesses in hospitality, retail and transport,” she said.

Looking ahead, Arthur D. Little’s Khan said that by 2025, the Saudi film sector is expected to create thousands of new jobs across related industries, supported by generous incentives such as a 40 percent production rebate and dedicated funding programs. University-level film and media programs are also helping nurture the next generation of local talent.

“Tourism will see strong gains as well. AlUla and NEOM’s media zone is expected to draw hundreds of thousands of creative professionals and visitors annually once fully operational,” he said.

Khan highlighted key opportunities in developing Arabic-language content, forming public-private partnerships to support talent pipelines and infrastructure, and exporting Saudi films to neighboring Gulf Cooperation Council, African, and Asian markets. However, he noted the need to address challenges such as building a skilled workforce, navigating cultural sensitivities, and adapting to shifts toward digital streaming platforms.

Al-Husseini emphasized that Saudi Arabia’s film industry is on course to boost employment and growth, with infrastructure investments — like AlHisn Studios — strengthening its capacity for large-scale productions.

“Partnerships with global production companies are on the rise, as seen in the MBS Group’s recent agreement to manage and operate AlUla Studios. At the same time, training programs and workshops are being rolled out to develop local talent while attracting international professionals, supporting long-term industry sustainability,” she said.

She concluded that while meeting Saudization requirements will remain a key challenge as demand for skilled workers rises, the influx of international talent presents valuable opportunities for collaboration, training, and upskilling the local workforce.