JEDDAH: Saudi Arabia’s Vision 2030 and National Transformation Program (NTP) 2020 have generated tremendous interest among investors and the private sector.
The programs are being looked upon as a great opportunity for boosting the inflow of foreign direct investment as also for the private sector to play a contributory role in the Kingdom’s long-term goal of becoming the world’ major powerhouse.
“In fact, the programs are a golden opportunity for us to contribute to realizing the long-term goals of the Vision document and the NTP plan,” an investor and head of a major Saudi business entity, said echoing the sentiments of fellow businessmen.
Other business leaders are of opinion that both Vision 2030 and the NTP 2020 have unfolded tremendous potential for boosting the inflow of both local and foreign investors, and also for the thriving private sector to play a significant role in realizing the set goals.
The private sector in general has already swung into swift action with a view to making their contribution in the success of Vision 2030 announced by Deputy Crown Prince Mohammed bin Salman in recent months.
One of the major private sector entities is E.A. Juffali & Brothers Co. whose Managing Partner and Vice Chairman Khaled bin Ahmed Juffali affirmed at a recent roundtable discussion that the company was looking at localizing much more in the Kingdom than before, specifically by training young Saudis and students.
The roundtable on "The future of mobility and the development of the automotive aftermarket in Saudi Arabia" was hosted by Uwe Thomas, chairman of the automotive aftermarket divisional board at Robert Bosch GmbH, Khaled Juffali and Andreas Bodemer, vice president of the Middle East and Africa Region in celebration of Bosch’s longstanding presence in the Kingdom, and 50 years of partnership with Juffali Auto Parts Co.
Thomas gave a presentation on the aftermarket sector in the region and the Bosch’s solutions at the roundtable.
Juffali said: “What the company is doing now is to further intensify its efforts toward realizing the goals of Vision 2030. The capacity of the training center on Makkah Road has been raised to 800 students. We are training Saudi employees to bring them into the system. We are training young Saudis as mechanics and electricians.”
Juffali added that the company is depending on Bosch’s knowledge and entrepreneurial skills to assist training of young Saudis.
Thomas said Saudi Arabia with a population of over 30 million inhabitants and a GDP of $752 billion is the largest economy in the Middle East. “Saudi Arabia will continue to be the most important consumption market in Middle East and remain strategically the most important market in the region,” he added.
Bosch AA & Juffali will continue to invest in Saudi Arabia with the objective of increasing their market share. Juffali plans to have 23 branches to serve 2020 parts outlets by 2020. Bosch will setup a representative office in the fourth quarter of 2016 in support of local partners.
Thomas mentioned that the Middle East continues to be a key market for Bosch, although the current geopolitical situation and low oil price have a challenging impact on the economic development.
“We are however confident that the momentum created by mega events like the Jeddah Metro, Dubai Expo 2020, and the World Cup in Qatar 2022 will contribute toward positive business developments and a continued demand for our products and services. Vision 2030 will also promote continued positive developments,” Thomas added,
There are three mega trends ringing in this new era. They will shape and change mobility permanently: Increase in efficiency of combustion engines and electric powertrains, highly automated driving and connected driving, which is closely linked to the other two, according to Thomas.
The future holds good for connected mobility, and it will change the automotive aftermarket, said Thomas who heads the aftermarket in Bosch division.
"The Internet of Things (IoT) and the increasing digitalization have impacted and changed the way we live permanently. Today, we use our phones for a variety of things without even thinking about it; it has become normal,” he added.
Bosch has strong growth plans across the Kingdom as it is looking to have 46 Bosch car service centers by 2020 while maintaining quality service, reasonable price of original equipment and products with specification, and standardized look and feel in-service offerings across Saudi Arabia.
“Also, fleets are among the target customer segments for our connected solutions in the Kingdom. We would soon initiate discussions with private and government run fleets in order to introduce these solutions to the market,” Thomas said.
According to the vehicle type, the Kingdom remains the biggest market for automotive parts and services in the Middle East.
“Currently, we are supplying complete units; product portfolio expansion planned during the course of 2017-2018 to ensure supply of spare parts as well as service solutions,” he said.
“We have strong growth plans reflecting a strong signal for the Saudi market. We had 23 Bosch car service centers in Saudi Arabia in 2015. By 2020, we will have 46 Bosch car service centers across the Kingdom,” Thomas added.
Bosch AA is represented in the Kingdom by Juffali group since 1965. Diesel Electric Co. was the first Bosch sales and workshop office in Jeddah in 1966.
Since then, there have been lots of developments in infrastructure and organization. Business partnership in AA & Power tools has grown successfully over the last 50 years.
At present, Juffali Auto Parts Co. is serving 755 outlets through 13 JAPCO-owned branches. Bosch eXtra, which is the company’s online loyalty program and considered unique in the region’s automotive sector, is running successfully since 2014 with 400 enrolled customers.
Bosch AA maintains strong market shares in diesel and auto electricals in the commercial vehicle segment. A focused approach will help grow market shares in trade goods like braking, batteries, wipers, etc.
Vision 2030, NTP 2020 offer big hope for private sector, investors
Vision 2030, NTP 2020 offer big hope for private sector, investors
Oman’s sovereign fund nets $4.1bn profit with disciplined, future-focused strategy: Report
- OIA ranked 35th globally by assets under management among sovereign wealth funds
- Around 61.3% of its portfolio is invested locally
RIYADH: Oman’s sovereign wealth fund posted a record 2024 profit of 1.59 billion Omani rials ($4.1 billion) and grew assets above 20 billion rials, Global SWF reported.
The windfall enabled the Oman Investment Authority to transfer 800 million rials into the national budget, according to the report, providing a vital fiscal cushion and underscoring the fund’s expanding dual role as both an economic engine and a diplomatic asset.
Beyond headline profits, OIA is executing a strategic shift, prioritizing domestic investments to generate local value while forming global partnerships to secure future-ready capabilities in areas such as artificial intelligence, clean energy, logistics, and manufacturing.
Ranked 35th globally by assets under management among sovereign wealth funds, the OIA is increasingly being viewed as a nimble but ambitious player.
According to Global SWF, its disciplined portfolio strategy, increased transparency, and joint fund architecture are transforming the fund into a networked sovereign investor with a growing international footprint.
At home, OIA’s economic impact is significant. Around 61.3 percent of its portfolio is invested locally, mainly through its National Development Fund, which exceeded its 2024 target by deploying 2.1 billion riyals in strategic projects, according to Global SWF.
These include infrastructure ventures such as the Duqm Refinery, new mining operations in Lasil and Al Baydha, and solar energy plants in Manah.
Over the past year, the fund has inked a $300 million joint investment platform with Algeria and expanded its Vietnam-Oman Investment Fund.
These investments signal a shift in Gulf sovereign wealth funds— from passive holdings to active, technology-driven deal-making aligned with national objectives.
In parallel, OIA has launched the Future Fund Oman with an allocation of $5.2 billion, targeting large-scale domestic projects, small and medium-sized enterprises, and startups, according to a separate May report by Global SWF.
In its first year, the fund approved over $2 billion in deals, with 75 percent of capital coming from foreign investors, underlining investor confidence in Oman’s diversification agenda.
Investing for Vision 2040
OIA’s 2024 performance also reflected its focus on human capital and job creation, with nearly 1,400 new roles generated and the Omanization rate across OIA-linked entities reaching 77.7 percent.
Through programs like Jadarah, Nomou, and Eidaad, the fund is aligning education, training, and employment with Vision 2040’s long-term growth objectives.
Meanwhile, the fund is moving from asset accumulation toward strategic exits. Since 2022, it has divested 19 assets, including three major IPOs: Abraj Energy Services, OQ Gas Networks, and Pearl REIF— raising over $2.5 billion, according to the release.
The October listing of 25 percent of OQ Exploration & Production marked Oman’s largest-ever IPO, signaling deepening liquidity in Muscat’s capital markets, according to the Global SWF May report.
OIA’s roadmap includes 30 more divestments through 2029 across sectors, including logistics, utilities, and aquaculture, aiming to crowd in private capital and raise governance standards. These IPOs are structural tools to deepen Oman’s market while supporting the transition to a knowledge-based economy.
Global investment, local value
Even as it expands abroad, OIA insists every foreign investment must deliver back home— whether in skills, supply chain resilience, or technology transfer. Recent deals illustrate this ethos.
In the US, OIA invested in Tidal Vision, a company developing climate-smart biopolymers. In Singapore, it joined a $100 million venture capital fund with Golden Gate Ventures and helped establish a Muscat-based venture office to incubate deep-tech startups.
In one of its most high-profile moves, OIA took a stake in Elon Musk’s xAI, joining fellow Gulf players like Saudi’s Kingdom Holding and Qatar Investment Authority.
The move links Omani capital to frontier technology while reinforcing the fund’s mandate to back high-potential sectors shaping the global economy.
The OIA’s operational discipline has not gone unnoticed. It reduced its subsidiary debt by nearly $5.6 billion since 2021 and refused to issue any new government guarantees in 2024, according to Global SWF, boosting investor confidence. Ratings agency S&P cited OIA’s reforms and transparency in reaffirming Oman’s BBB- rating with a positive outlook.
Mawani names Al-Mazroua as new president
JEDDAH: Saudi Ports Authority has appointed Suliman bin Khalid Al-Mazroua as its new president, effective June 29, as part of its push to strengthen leadership and advance key strategic goals.
Al-Mazroua succeeds Mazen bin Ahmed Al-Turki, who had been serving as acting president and played a key role in several initiatives aimed at developing logistics zones and parks across the Kingdom.
Al-Turki’s most recent contribution included overseeing the signing of a series of new build-operate-transfer contracts valued at more than SR2.2 billion ($586.6 million) to develop multi-purpose cargo terminals at eight Saudi ports.
The appointment of Al-Mazroua, announced by Mawani’s board of directors, underscores the authority’s commitment to supporting the National Transport and Logistics Strategy and Saudi Vision 2030. Both initiatives aim to position the Kingdom as a global logistics hub and a leading industrial power.
In a post on his X account, Al-Mazroua expressed his appreciation for the board’s trust and pledged to further the authority’s strategic goals.
“I extend my sincere thanks and appreciation to His Excellency the Minister of Transport and Logistics Services and Chairman of the Board of the Saudi Ports Authority, Eng. Saleh bin Nasser Al-Jasser, as well as to their Excellencies and distinguished members of the board for this generous trust,” he said.
Al-Mazroua added: “I pray to God for success in serving our blessed country and fulfilling the aspirations of our visionary leadership. I am also very pleased to work alongside my colleagues at the Saudi Ports Authority.”
In a statement, the authority said that Al-Mazroua “affirmed his commitment to advancing Mawani’s strategic objectives and enhancing its performance in line with its development plans and transformation programs.”
Before assuming his new role, Al-Mazroua served as CEO of the National Industrial Development and Logistics Program, where he played a key role in driving economic diversification and enhancing infrastructure in key sectors, including industry, mining, energy, and logistics.
“He also played a key role in stimulating investment in these sectors with the aim of increasing their contribution to the Kingdom’s gross domestic product, promoting innovation, enhancing local content, and advancing the Fourth Industrial Revolution,” the statement added.
With more than two decades of professional experience, Al-Mazroua has held several senior leadership positions, including at Saudi Aramco from 2001 to 2017.
Over the years, he progressed from technical roles to executive leadership, contributing to the establishment of research and development centers, strengthening cybersecurity frameworks, and advancing health care sector initiatives.
He also worked at US-based Aruba Networks from November 2006 to July 2007 and previously served as a quality assurance engineer at California-based Caspian Networks.
In addition, Al-Mazroua led the National Transformation Program and the Delivery and Rapid Intervention Center, where he contributed to planning, monitoring, and accelerating the implementation of development initiatives in support of Vision 2030.
He is also a member of several boards, including the Center for the Fourth Industrial Revolution in Saudi Arabia and Marafiq Co.
Saudi Arabia, Bahrain launch 2nd phase of industrial integration
RIYADH: Saudi Arabia and Bahrain have launched the second phase of their industrial integration initiative, aiming to boost bilateral trade, investment, and cross-border supply chain cooperation.
Announced on the sidelines of the Saudi Industry Forum 2025 in Dhahran, Khalil Ibn Salamah, the Kingdom’s deputy minister for industrial affairs, emphasized that the new phase would build on prior successes between the two countries.
This comes amid strengthening economic ties between the countries, with the Saudi Arabia’s direct investments in Bahrain reaching SR35 billion ($9.33 billion) in 2023 — representing approximately 20 percent of total foreign investments — and 1,550 Saudi-registered companies operating in the country, as revealed by the Kingdom’s Minister of Investment, Khalid Al-Falih, during a business forum earlier this year.
In an official statement marking the latest announcement, the Saudi Ministry of Industry and Mineral Resources stated: “The second phase of industrial integration between the two countries focused on setting specific targets, including enhancing intra-trade in industrial goods, attracting industrial investments.”
It added that this will help “integration in the field of industrial infrastructure and supply chain integration,” as well as identifying a list of export opportunities for non-oil goods and facilitating procedures for exporters and investors.
The initiative is part of broader efforts under the Gulf Cooperation Council Economic Agreement, which aims to increase the industrial sector’s contribution to regional GDP and foster industrial coordination among member states “on an integrated basis,” according to the ministry.
The second phase builds on earlier efforts, including the Future Factories Program, which helped shift production in both countries from labor-intensive to advanced manufacturing, along with aligning policies to treat local products as national goods and streamline customs processes.
As part of the second-phase launch, Ibn Salamah inaugurated the Bahraini Investors Services Office in Dammam’s Third Industrial City. The event was attended by Bahrain’s Minister of Industry and Commerce, Abdullah bin Adel Fakhro.
“The office aims to attract quality industrial investments and provide all industrial investment services to investors,” the ministry noted.
Positioned strategically near Bahrain, approximately 130 km away, Dammam’s Third Industrial City offers a robust industrial ecosystem.
Spanning 48 million sq. meters, the site features extensive infrastructure including a modern road network, energy and water supply systems, and logistical connectivity through its proximity to King Fahd Port, King Fahd International Airport, and the dry port in the city of SPARK.
The Saudi Industry Forum also highlighted how the new office will offer a “package of services and enablers from the industrial and mining system to facilitate the journey of Bahraini investors,” further underscoring both countries’ commitment to deepening industrial and economic ties.
Petcare and snacking support Saudi consumer spending resilience: NielsenIQ
RIYADH: Consumer spending in Saudi Arabia remained resilient in the year to March, with outlays on low-cost goods rising 3.3 percent, according to a new report by NielsenIQ.
The analysis by the consumer intelligence company showed that spending on tech and durables also rose by 0.2 percent.
The findings are in line with data recently released by the Saudi Central Bank, which showed that Saudi consumer spending hit an all-time high in March, surging 17 percent to SR148 billion ($39.45 billion) — the highest monthly figure since May 2021 — before easing to SR113.9 billion in April.
The trend is further supported by the increased use of digital point-of-sale transactions and rising e-commerce activity through Mada card payments.
In NielsenIQ’s report, Andrey Dvoychenkov, general manager at the firm, credited the strategic visions and initiatives across the region for helping to drive continued economic momentum.
“We’re seeing strong growth in both premium and value segments, and a rapid evolution in retail channels — especially online. For brands, success hinges on relevance, agility, and a deep understanding of consumer expectations,” Dvoychenkov added.
The report also revealed that in the UAE spending on so-called fast-moving consumer goods climbed 7 percent, while tech and durables outlays reached $5.3 billion — up 2 percent year on year.
Top product trends
In Saudi Arabia, category performance pointed to changing consumption priorities. Petcare saw the strongest growth at 10 percent, followed by snacking at 9 percent, while paper products and home care posted declines.
The UAE’s fast-moving consumer goods growth was driven by higher spending on snacking, beverages, dairy, and frozen foods, with personal care up 6 percent.
Growth in tech and durables was led by smartphones, media tablets, vacuum cleaners, and headsets.
Retail formats are evolving, with traditional trade channels in the UAE posting 10 percent growth in fast-moving consumer goods — outpacing organized retail at 3.2 percent — while tech and durables growth remained evenly distributed across formats.
E-commerce continues to expand, accounting for 30 percent of sales of tech and durables and 11 percent of fast-moving consumer goods in the UAE — up from 9 percent a year ago.
In Saudi Arabia, tech and durables e-commerce sales rose 7.7 percent, and fast-moving consumer goods’ online share increased by 1.4 percentage points.
More choice for consumers
NielsenIQ’s latest report showed that Saudi Arabia is now home to over 10,500 active brands, up 5 percent year over year, and nearly 100,000 stock keeping units, or SKUs.
In the UAE, brand count rose 6 percent to 13,000, with SKUs reaching 130,000. In tech and durables, brand activity expanded 18 percent in the UAE and 21 percent in Saudi Arabia, with both markets seeing SKU growth of more than 50 percent.
Consumer spending is increasingly polarized between value and premium segments. Both Saudi Arabia and the UAE recorded double-digit growth in these areas within fast-moving consumer goods.
In tech and durables, value-focused categories grew 6 percent in Saudi Arabia and 3 percent in the UAE, underscoring a heightened sensitivity to price and increased availability of cost-effective options.
The NielsenIQ’s findings backup a 2024 joint report by UAE-based gifting marketplace Flowwow and partner marketing platform Admitad which showed that online order volumes rose by 9 percent in Saudi Arabia and 7 percent in the UAE, highlighting the foundational strength of digital consumer activity in both markets.
An analysis of over 6.8 million transactions across the Middle East and North Africa placed Saudi Arabia, the UAE, and Kuwait among the top contributors by gross merchandise value, reflecting high levels of consumer engagement and sustained investment in digital channels.
Consumer confidence high
Saudi Arabia’s growth aligns with continued positive readings in consumer sentiment. The May 2025 Primary Consumer Sentiment Index, released by Ipsos, recorded a score of 72.2, marginally down from 72.4 in April.
The Kingdom remains among the top-performing countries globally on key economic indicators, with 64 percent of respondents rating the current economy as strong.
Additionally, 40 percent said their personal financial situation is strong, and 77 percent felt more confident about their ability to invest in the future compared to six months ago.
Looking ahead, 84 percent expect their local economy to strengthen over the next six months, though confidence in job security has softened slightly, particularly among resident Arab and Asian expatriates.
The region’s growing economic appeal has intensified competition, particularly in the fast-moving consumer goods sector.
As economic growth in the Gulf continues to outpace the global average — 3 percent for Saudi Arabia and 4 percent for the UAE in 2025, compared to 3.2 percent globally — brands face a growing need to adapt strategies to navigate a digitally connected, value-conscious, and increasingly competitive consumer environment.
Fitch affirms Abu Dhabi rating at ‘AA’ with stable outlook
RIYADH: Abu Dhabi’s long-term foreign-currency rating has been affirmed at “AA” with a stable outlook by Fitch, supported by the emirate’s robust fiscal surpluses, vast sovereign assets, and low debt levels.
The US-based rating agency noted that while Abu Dhabi maintains a strong fiscal position, factors such as its dependence on hydrocarbon revenues, a still-evolving policy framework, and governance metrics that lag behind some of its counterparts present ongoing considerations.
This follows S&P Global’s recent assignment of a “AA/A‑1+” with a stable outlook for its foreign and local currency sovereign credit ratings to the UAE, citing the country’s strong fiscal and external positions. The agency also noted that the UAE’s sizable asset cushion would help shield it from oil price volatility and regional geopolitical tensions.
Despite these structural limitations, Abu Dhabi’s fiscal position remains one of the strongest among Fitch-rated sovereigns. At the end of 2024, government debt stood at 17.4 percent of gross domestic product, well below the peer median of 48.8 percent, and is expected to rise only marginally to 18.2 percent by 2026 due to local currency issuance aimed at supporting domestic debt market development.
In its latest report, Fitch stated: “We project a budget surplus of 7.0 percent of GDP in 2025 (3.1 percent excluding investment income) based on Fitch’s oil price (Brent USD65/b) and production (3.2m b/d) forecasts, and some spending under-execution, down from 9.9 percent in 2024.
It added: “For 2026, higher oil production, modest spending growth and the start of corporate income tax receipts will widen the surplus to 8 percent (4.3 percent excluding investment income).”
The report noted that Abu Dhabi’s fiscal breakeven oil price is estimated at $42.60 per barrel in 2025, or $54.30 excluding investment income, highlighting the emirate’s resilience to oil market fluctuations.
If oil prices decline, the government can maintain economic stability by adjusting spending or drawing on dividends from Abu Dhabi National Oil Co.
According to Fitch, sovereign net foreign assets are estimated to have reached 255 percent of GDP at the end of 2024, with a substantial portion of surpluses allocated to government-related entities such as Abu Dhabi Developmental Holding Co. and Mubadala. Some funds are also expected to support MGX, a joint venture focused on artificial intelligence investments.
Fitch added that contingent liabilities stemming from government-related entities debt, estimated at 48.3 percent of GDP in 2023, remain manageable given their asset bases, profitability, and the state’s fiscal strength.
Borrowing by government-related entities is anticipated to rise gradually as Abu Dhabi accelerates investment in non-oil sectors.
The agency also highlighted strong non-oil growth, which reached 6.2 percent in 2024. Overall GDP growth stood at 3.8 percent last year, tempered by lower oil output in line with OPEC+ quotas.
Fitch forecasts headline growth to rise to 6.3 percent in 2025 and 4 percent in 2026, driven by easing oil production constraints and increasing population levels.
The ratings agency warned that elevated geopolitical risks, particularly regional tensions involving Iran, Israel, and the US, pose a downside risk.
“A regional conflagration would pose a risk to Abu Dhabi’s hydrocarbon infrastructure and to Dubai as a trade, tourism and financial hub. Gulf maritime trade is a vital interest of the UAE,” the report said, though it added that the emirate’s large reserves provide protection against short-term disruptions.
Fitch’s sovereign rating model assigned Abu Dhabi a score equivalent to “AA+.” However, the agency applied a negative qualitative adjustment of one notch due to the emirate’s high dependence on oil revenues and geopolitical vulnerability.
The UAE’s country ceiling was affirmed at “AA+,” two notches above the sovereign rating, supported by strong constraints against capital controls, a dollarized financial system, and ample external buffers.
The agency stated that a downgrade could be triggered by a significant erosion of fiscal and external positions or a geopolitical shock that undermines macroeconomic stability. Conversely, an upgrade would require structural improvements such as reduced oil dependence and enhanced governance metrics.
