Saudi construction sector issues 3,800 new licenses amid regulatory reforms 

Fahad Al-Hashem, assistant deputy minister at the Ministry of Investment, speaking at the Public Investment Fund Private Sector Forum. Screenshot
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Updated 13 February 2025
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Saudi construction sector issues 3,800 new licenses amid regulatory reforms 

RIYADH: Saudi Arabia’s construction sector saw significant growth in 2024, with 3,800 new licenses added in just one year to bring the total to 8,900, according to a top official. 

During a panel discussion at the Public Investment Fund Private Sector Forum in Riyadh, Fahad Al-Hashem, assistant deputy minister at the Ministry of Investment, stated that the surge reflects increasing foreign investment and regulatory reforms aimed at streamlining market entry. 

His comments came as figures released by the Ministry of Investment showed a 59 percent annual increase in licenses for construction activity in the fourth quarter of 2024 alone.

The data also showed that 14,303 permits were awarded across the entire economy last year, excluding those related to the anti-concealment law. 

“In the number of licenses, we had 8,900 construction companies licensed in the Kingdom, last year alone we had 3,800 companies licensed in the Kingdom,” Al-Hashem stated.

The deputy minister highlighted the broader impact of these reforms, noting that real estate developers also saw a rise in licenses — adding 244 in 2024 to the 446 already issued. 

 “This is just to showcase the uptake from foreign investors into the market, and we hope to see an increase with these upcoming reforms,” he said. 

Al-Hashem emphasized the Kingdom’s efforts to enhance its regulatory framework, with 800 improvements identified since the launch of Vision 2030, 80 percent of which have already been implemented. 

One major shift was the replacement of the licensing regime with a registration system to simplify market entry. 

“We are working continuously with our colleagues across the government to really reduce the timeframe from being really interested to entering the market to being fully operational,” he added. 

Addressing cost challenges in the sector, Al-Hashem pointed to initiatives such as the establishment of an international contractor office within the ministry. 

“We collaborate with stakeholders to streamline such service-wide journey into the market, to ensure ample supply comes into the market, in order to also add competition and ensure that project owners and investors have good returns with their capital,” he said. 

He underscored the government’s commitment to fostering a dynamic and competitive market, stating: “I can go on and on and on about many examples that we’re seeking to liberate, add supply into the market, and constantly develop value chains to ensure that the Kingdom, as it has high ambitions, has the most conducive, the most dynamic, and most competitive market out there.” 

Saud Al-Sulaimani, country head of Saudi Arabia at JLL, highlighted the dual nature of the Kingdom’s construction boom. 

“What makes the Saudi market interesting is that there are two things happening at the same time: the redevelopment of projects as well as the development of new cities and projects,” he said.

Construction leading the way

The figures from the Ministry of Investment showed that 1,358 licenses were issued to the construction sector in the fourth quarter of 2024 – making it the leading recipient of such permits.

Manufacturing ranked second with 676 licenses, representing a 39 percent annual increase during the quarter. 

Wholesale and retail trade followed with 527 licenses, posting a188 percent surge. Together, these three sectors accounted for 55.7 percent of total approvals. 

The ministry’s data also showed that accommodation and food services, along with the information and communication sector, each received 390 approvals, collectively making up 17 percent of total licenses. 

Professional, scientific, and technical activities secured 364 licenses, accounting for an 8 percent share. 

The Kingdom’s cumulative Gross Fixed Capital Formation and foreign direct investment exceeded targets for 2021–2024, with GFCF reaching SR3.83 trillion by the third quarter of 2024 — 19 percent above the SR3.22 trillion goal, according to the ministry. 

Likewise, cumulative FDI inflows totaled SR391 billion including the Aramco deal, exceeding the SR295 billion target by 33 percent. 

These achievements highlight the Kingdom’s success in fostering a dynamic investment climate, driven by regulatory reforms, enhanced investor confidence, and key initiatives under Vision 2030, which aims to position Saudi Arabia as a premier global investment hub.

Saudi Arabia also ranked first in the Middle East and North Africa region for total venture investment and topped global rankings for ease of starting a business, according to the ministry’s report. 

Regional HQ program continues to thrive

The Ministry of Investment continued its efforts to enhance the business environment, issuing 46 new licenses for regional headquarters, further solidifying the Kingdom’s position as a hub for multinational corporations. 

The regional headquarters program, a key component of this strategy, incentivizes multinational firms to establish their bases in Saudi Arabia by offering regulatory advantages, tax benefits, and streamlined business operations. 

This initiative not only supports the Kingdom’s economic diversification goals but also drives employment, knowledge transfer, and investment inflows across various sectors. 


Gulf shares rise as Iran-Israel ceasefire holds

Updated 26 June 2025
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Gulf shares rise as Iran-Israel ceasefire holds

  • Saudi Arabia’s benchmark stock index extended its gains to a fourth straight session, rising 0.2%
  • Abu Dhabi benchmark index rose 0.4%

LONDON: Stock markets in the Gulf rose in early trade on Thursday, extending gains from the previous sessions amid rising oil prices as a ceasefire between Israel and Iran appeared to be holding.

US President Donald Trump hailed the swift end to the air war between Iran and Israel and said Washington would likely seek a commitment from Tehran to end its nuclear ambitions at talks with Iranian officials next week.

Saudi Arabia’s benchmark stock index extended its gains to a fourth straight session, rising 0.2 percent, with most sectors in the green. Oil major Saudi Aramco added 0.3 percent and Red Sea International climbed 3 percent.

Modular house manufacturer Red Sea said on Wednesday it planned to float its mechanical, electrical and plumbing subsidiary on the Saudi market.

Oil prices, a catalyst for the Gulf’s financial markets, were up 0.2 percent as a larger-than-expected draw in US crude stocks signalled firm demand. Brent crude was trading at $67.83 a barrel by 10:05 a.m. Saudi time.

The Abu Dhabi benchmark index rose 0.4 percent, aided by a 5.3 percent advance in RAK Properties and a 0.6 percent gain in Borouge.

Petrochemical company Borouge said on Wednesday it would collaborate with Honeywell on a project to deliver the petrochemical industry’s first AI-driven control room.

Dubai’s benchmark stock index was up for a fifth straight session, advancing 0.6 percent, pushed up by the materials, industry and finance sectors.

Tolls operator Salik gained 1.8 percent and Emirates NBD, the emirate’s largest lender, added 0.6 percent.

The Qatari benchmark index was marginally up, propped up by gains in the materials, utilities and communications sectors.

Vodafone Qatar advanced 1.2 percent while Qatar National Bank, the region’s largest lender, shed 0.3 percent.

Qatar Investment Authority and Canadian asset manager Fiera Capital have launched a $200 million fund to boost foreign and local investment into the Gulf state’s stock market, QIA said on Wednesday.


Health, military spending lift Saudi ICT contracts to $10bn

Updated 26 June 2025
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Health, military spending lift Saudi ICT contracts to $10bn

  • Military sector received SR5.16 billion across 1,125 contracts
  • Infrastructure and transport saw investments totaling SR5.26 billion

RIYADH: Saudi Arabia’s health, military, and infrastructure sectors led an 18.75 percent rise in government information and communications technology contracts in 2024, reaching SR38 billion ($10.13 billion), official data showed. 

According to the Government Spending Report 2024, published by the Digital Government Authority, the value of contracts climbed from SR32 billion in 2023, with the health and social development sector receiving SR6.54 billion through 1,085 contracts. 

The report said that 2024 spending priorities focused on artificial intelligence, emerging technologies, and cloud computing, positioning these areas as central to enhancing operational performance across public sector entities. 

The government’s sustained push to bolster digital services underscores Riyadh’s growing investment in digital infrastructure, part of its Vision 2030 strategy to diversify the economy and modernize public services. 

The report added that activating national framework agreements significantly contributed to these outcomes, enabling improved negotiation capabilities and more effective financial planning. 

“These tools have enabled government entities to obtain goods and services more quickly, efficiently, and at lower cost,” the report said. 

“They also highlight the added value achieved by enhancing supply chains and improving the quality of procurement, which in turn raises the efficiency of government entities in managing expenditures in contracts and agreements,” it also said. 

Among other sectors, the military received SR5.16 billion across 1,125 contracts, while infrastructure and transport saw investments totaling SR5.26 billion. The education sector was allocated SR4.37 billion, followed by economic resources at SR3.42 billion, and public administration at SR2.39 billion. 

There was a 157 percent increase in purchase orders through national framework agreements, amounting to SR4.47 billion through 9,457 orders. The report said these tools helped accelerate service delivery and improve procurement quality. 

Government agencies achieved an estimated SR1 billion in savings during 2024 by improving spending efficiency and optimizing procurement and budgeting practices. 

Saudi Arabia also continued to demonstrate global leadership in digital government performance. It ranked sixth globally and first regionally in the 2024 UN E-Government Development Index, climbing 25 places from 2022. 

It also topped the Government Electronic and Mobile Services Maturity Index for the third consecutive year, achieving a score of 96 percent. 

According to the report, and based on data from global research firm Gartner, Saudi Arabia led all countries in government ICT spending as a share of total ICT expenditure in 2024, reaching 34.1 percent. 


Oil Updates — crude steady as investors watch Iran-Israel ceasefire, demand signals

Updated 26 June 2025
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Oil Updates — crude steady as investors watch Iran-Israel ceasefire, demand signals

  • Market focus switching to fundamentals, analysts say
  • Data shows US ‘driving season is in full swing’, ANZ says

LONDON: Oil prices were steady on Thursday after erasing earlier gains as investors remained cautious about the Iran-Israel ceasefire while also shifting focus to market fundamentals.

Brent crude futures fell 6 cents, or 0.09 percent, to $67.62 a barrel by 12:45 p.m. Saudi time. US West Texas Intermediate crude fell 2 cents, or 0.03 percent, to $64.90 a barrel.

Both benchmarks climbed nearly 1 percent on Wednesday, recovering from early-week losses after data showed resilient US demand.

Investors will shift their focus back to macroeconomics and oil balances while also watching the Israel-Iran truce, said PVM analyst Tamas Varga.

Oil prices likely followed equity markets lower this morning, UBS analyst Giovanni Staunovo said.

“US government data showed the US driving season is in full swing after a slow start,” ANZ analysts said in a note.

US crude oil and fuel inventories fell in the week to June 20 as refining activity and demand rose, the Energy Information Administration said on Wednesday.

Crude inventories fell by 5.8 million barrels, the EIA said, exceeding analysts’ expectations in a Reuters poll for a 797,000-barrel draw.

Gasoline stocks unexpectedly fell by 2.1 million barrels, compared with forecasts for a 381,000-barrel build as gasoline supplied, a proxy for demand, rose to its highest level since December 2021.

On Saturday, Igor Sechin, the head of Russia’s largest oil producer Rosneft, said OPEC+, which groups together the Organization of the Petroleum Exporting Countries and allies including Russia, could bring forward its output hikes by around a year from an initial plan.

Meanwhile, US President Donald Trump hailed the swift end to war between Iran and Israel and said Washington would likely seek a commitment from Tehran to end its nuclear ambitions at talks with Iranian officials next week.

Trump also said on Wednesday that the US has not given up its maximum pressure on Iran — including restrictions on sales of Iranian oil — but signalled a potential easing in enforcement to help the country rebuild. 


IMF approves $834m resilience support package for Jordan

Updated 15 min 18 sec ago
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IMF approves $834m resilience support package for Jordan

  • Jordan’s economy has faced mounting pressures in recent years
  • IMF and World Bank have stepped up their support

RIYADH: The International Monetary Fund has approved a $834 million support package for Jordan’s economy which includes a $700 million loan and a $134 million disbursement from a previously agreed fund.

The institution’s executive board has completed the third review of Jordan’s Extended Fund Facility, allowing for an immediate distribution of the $134 million, according to a press release. This brings total disbursements so far under the four-year, $1.3 billion program, approved in January 2024, to $595 million.

Additionally, the new 30-month Resilience and Sustainability Facility arrangement will grant Jordan access to $700 million to address structural challenges in the water and electricity sectors and strengthen preparedness for public health emergencies, including future pandemics.

Jordan’s economy has faced mounting pressures in recent years, intensified by regional instability, including the ongoing war in Gaza and the prolonged hosting of large numbers of refugees from neighboring conflicts. These challenges have strained public finances, increased unemployment, and disrupted trade and tourism, key sectors for the Jordanian economy.

Jordan’s economy has shown steady growth, reaching 2.5 percent in 2024. File/Reuters

The IMF and World Bank have stepped up their support, backing reforms aimed at stabilizing finances and spurring growth under Jordan’s Economic Modernization Vision.

Kenji Okamura, IMF deputy managing director, praised Jordan’s “steadfast pursuit of sound policies” and urged continued reforms to boost private investment and job creation.

“Monetary policy remains appropriately focused on safeguarding monetary and financial stability and supporting the exchange rate peg that has served Jordan well and helped keeping inflation low,” the deputy managing director said.

Okamura observed that Jordan’s banking sector remains robust, with the central bank bolstering risk analysis, oversight, and crisis response.

The IMF emphasized the need to boost revenue, streamline spending, and implement contingency measures to reduce public debt while safeguarding key social and capital expenditures. It also stressed improving public utilities’ efficiency and viability to ensure fiscal sustainability and better service delivery.

“The authorities continue to make progress with a gradual fiscal consolidation and strengthening fiscal sustainability, thanks to fiscal reforms that have improved revenue administration and expenditure efficiency,” the organization said.

The Central Bank of Jordan has maintained strong foreign reserves of over $20 billion and a stable exchange rate peg. Central Bank of Jordan

Economic resilience amid regional challenges

Despite external pressures from regional conflicts and global uncertainty, Jordan’s economy has shown steady growth, reaching 2.5 percent in 2024, with inflation remaining low, according to the IMF.

The Central Bank of Jordan has maintained strong foreign reserves of over $20 billion and a stable exchange rate peg. 

The Extended Fund Facility program has supported fiscal reforms, helping Jordan reduce public debt while protecting social spending. The new Resilience and Sustainability Facility loan will focus on improving energy and water sector sustainability, strengthening financial resilience, and enhancing pandemic preparedness.

In February, the IMF commended Jordan for effectively managing economic headwinds from the Gaza war through prudent fiscal measures, though the institution did revise down the country’s 2024 growth forecast to 2.6 percent due to regional spillovers. 

In April, the World Bank bolstered Jordan’s economic development efforts with $1.1 billion in new financing to expand social protections and drive private-sector growth, targeting the country’s 22.3 percent unemployment rate and 117 percent debt-to-gross domestic product ratio. 

Both institutions emphasized the need to sustain reforms to address structural challenges exacerbated by refugee inflows, the pandemic, and regional conflicts.


Closing Bell: Saudi benchmark index edges higher to close at 10,974

Updated 25 June 2025
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Closing Bell: Saudi benchmark index edges higher to close at 10,974

  • MSCI Tadawul 30 Index rose 0.06% to 1,407.47
  • Parallel market Nomu lost 0.05% to close at 26,837.30

RIYADH: Saudi Arabia’s main stock index closed slightly higher on Wednesday, as gains in select industrial and infrastructure stocks offset broader market weakness.

The Tadawul All Share Index added 9.7 points, or 0.09 percent, finishing the session at 10,973.98. Total trading turnover was SR6.10 billion ($1.62 billion), with 180 stocks advancing while 66 declined.

The MSCI Tadawul 30 Index also recorded a modest gain, rising 0.06 percent to 1,407.47.

In contrast, the parallel market Nomu dipped slightly, losing 13.49 points, or 0.05 percent, to close at 26,837.30. A total of 35 stocks posted gains on Nomu, while 45 ended in the red.

Sustained Infrastructure Holding Co. led the market with a sharp 9.89 percent increase to SR30.55, followed by Saudi Printing and Packaging Co., which rose 9.83 percent to SR11.84. Saudi Arabia Refineries Co. also saw strong momentum, climbing 5.48 percent to a new yearly high of SR63.50.

Among the session’s notable losers, Specialized Medical Co. dropped 3.36 percent to SR24.16, Zamil Industrial Investment Co. slipped 2.29 percent to SR40.60, and Arabian Contracting Services Co. fell 2.12 percent to SR96.90.

Meanwhile, Saudi Arabian Mining Co., known as Ma’aden, received shareholder approval to raise its capital from SR38.03 billion to SR38.89 billion during its extraordinary general assembly meeting held on June 24. The 2.26 percent increase will lift the number of issued ordinary shares from 3.80 billion to 3.89 billion.

According to a company disclosure on the Saudi Exchange, the capital hike will be carried out through the issuance of 85.98 million new ordinary shares at a par value of SR10. These shares will be allocated as part of an acquisition agreement to purchase full ownership of two subsidiaries: Ma’aden Bauxite and Alumina Co. and Ma’aden Aluminium Co.

Under the transaction, Ma’aden will acquire all 128.01 million shares held by AWA Saudi in the bauxite firm, representing 25.1 percent of its capital, along with 165 million shares held by Alcoa Saudi in the aluminum unit—also a 25.1 percent stake.

Shares of Ma’aden rose 0.2 percent to end the day at SR50.70.

Red Sea International Co. also announced plans to publicly list its subsidiary, Fundamental Installation for Electric Work Co. Ltd., subject to regulatory and shareholder approval. The decision was approved by the board in a resolution passed on June 23 and implemented the following day.

While Red Sea International will not offer any of its own shares in the IPO, the move is considered a significant transaction due to the subsidiary’s strategic role in the group’s operations. The company’s stock rose 0.12 percent to close at SR42.50.