Saudi Arabia’s cosmic aspirations fueling economic prosperity beyond earth

Saudi Arabia’s cosmic aspirations fueling economic prosperity beyond earth
Strategic partnerships with leading space agencies and organizations propel the Kingdom’s space aspirations to new heights. (Shutterstock)
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Updated 10 June 2024
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Saudi Arabia’s cosmic aspirations fueling economic prosperity beyond earth

Saudi Arabia’s cosmic aspirations fueling economic prosperity beyond earth
  • Vision 2030 envisions the Kingdom as a formidable player in space exploration and technology

RIYADH: Space exploration has transitioned from being solely government-driven to becoming an essential element of our everyday lives, significantly enhancing our quality of life. 

Saudi Arabia is charting a course toward the stars, propelled by an audacious vision that extends far beyond terrestrial boundaries. Vision 2030 envisions the Kingdom as a formidable player in the global arena of space exploration and technology. 

In an interview with Arab News, Amar Vora, head of space at Serco Middle East, noted that the genesis of Saudi Arabia’s cosmic aspirations can be traced back to 1985, with the historic journey of Saudi Prince Sultan bin Salman Al-Saud and the launch of Arabsat-1A. 

“Let’s not forget the impressive achievements of the King Abdulaziz City for Science and Technology, which has been helping to shape the national vision in space, building up knowledge, capacity, and infrastructure for over 20 years,” he said. 

Vora highlighted the 17 satellites launched by KACST since 2000, along with the Saudi Space Agency’s formation from the Saudi Space Commission.  

He added: “Space endeavors are no longer an exclusive playground for government; it is increasingly becoming a key component of our day-to-day lives, positively impacting our quality of life.”

Pioneering achievements 

Saudi Arabia’s journey into space began decades ago, and since then, the Kingdom has achieved remarkable milestones. 

Notably, the landmark partnership with Axiom Space marked a significant milestone, as astronauts Rayyanah Barnawi and Ali Al-Qarni embarked on the Ax-2 mission to the International Space Station in 2023.  

Barnawi became the first Saudi woman to journey into space, symbolizing Saudi Arabia’s commitment to gender equality and inclusivity in the realm of space exploration. 

Commenting on this endeavor, Vora said: “Of course, the Ax-2 mission provided the space community with a flavor of what’s to come from KSA’s space ambitions, becoming one of only a few countries to have achieved human spaceflight, and that in record time since the Saudi space decree was ratified!” 

He went on saying that partnerships with companies like Axiom Space “that are transforming and democratizing access to human spaceflight, highlight the ability of CST and SSA to capitalize on innovative solutions and services in the market.” 

Vora commended Barnawi’s efforts and said that this “is what we should come to expect from the Saudi and the global space sector. This is a sector that provides equitable representation and inspires and encourages engagement from people of all backgrounds and genders.”

Saudi Space Agency 

The Saudi Space Agency oversees the formulation and execution of the National Space Strategy, aimed at positioning the Kingdom as a leading spacefaring nation. 

Vora explained: “In doing so, SSA will be required to develop national capabilities in space, across the space value chain, from upstream (satellite systems and technologies), midstream (ground systems and operations), to downstream (data management and value-added services). The agency will also be responsible for promoting the uptake of space data across government and industries.” 

According to the top official, these advancements necessitate industry support for design, delivery, and operation, giving the agency a mandate to foster private sector expansion. 

This entails partnerships and investments with companies of varying sizes and backgrounds, both domestic and international, facilitated by the establishment of the National Space Co. 

“In implementing the strategic vision, SSA also has a key role to collaborate with international partners, leveraging international and long-standing experience and capabilities, with mutual interests in achieving scientific excellence,” Vora said.

Ambitions beyond earth 

Yet, Saudi Arabia’s cosmic ambitions extend far beyond the confines of earth’s atmosphere. 

With plans to develop a robust astronaut corps, participate in lunar exploration missions, and foster a thriving commercial space sector, the Kingdom is poised to carve out a formidable presence in the cosmos. 

Saudi Arabia is set to play a crucial role in the entire space value chain, focusing on localizing satellite technology production, enhancing space situational awareness, and utilizing space data for various sectors, including climate-related initiatives, according to Serco. 

A new report by the World Economic Forum predicts that the global space economy could reach $1.8 trillion by 2035, rivaling the semiconductor industry.  

Space technologies, like communications and earth observation, are expected to become as integral to daily life as semiconductors. 

The report emphasized that space will increasingly connect people and goods across industries, with benefits extending beyond financial gains to include addressing global challenges. 

Space endeavors are no longer an exclusive playground for government; it is increasingly becoming a key component of our day-to-day lives.

Amar Vora, head of space at Serco Middle East

“Intensified collaboration between diverse stakeholders from the public and private sectors will be key to unlocking and maximizing the industry’s exponential potential for years to come,” it added. 

From satellite manufacturing to space tourism, the Kingdom is primed to capitalize on the burgeoning space industry, diversifying its economy and driving innovation. 

Abdullah Al-Dawsari, who is an aerospace and defense project manager, told Arab News that “Saudi Arabia has the opportunity to leapfrog in key emerging areas of the space economy.” 

He said that this could be done through “strategically investing in next-generation capabilities by developing advanced satellite manufacturing using robotics, 3D printing, modular designs, offering low-cost launch services and rocket manufacturing by innovating in materials, propulsion, and reusability.” 

He added: “Providing innovative incentives like grants, tax benefits, and funding opportunities for research and development in the space sector and removing bureaucratic barriers can further stimulate the industry.” 

“Ultimately, space is becoming a cornerstone for economic growth, and this is exactly the vision and direction we are seeing from Saudi’s recent strides in space,” Serco’s top official said. 

The economic benefits of space exploration are manifold, according to Vora. Space technologies and data are critical assets for numerous industries, including agriculture, mobility, environment, defense, and many others.  

“We are seeing that space-enabled services have a role in the Saudi giga projects; for example, we see increased awareness, interest, and uptake from NEOM, Red Sea Global, and others,” he said. 

Economist and policy adviser, Mahmoud Khairy, said in an interview with Arab News that Saudi Arabia’s endeavors in space “isn’t just about reaching for the stars; it’s about building a smarter economy.” 

He added: “By venturing into space, Saudi Arabia aims to not only boost its global standing but also inspire young Saudis to pursue careers in science and tech. It’s all part of a bigger plan to transform the economy, putting the Kingdom on the map as a leader in space exploration while paving the way for a brighter, more sustainable future.”

Regulatory framework  

The Communications and Space Technology Commission has recently released regulations and a permit application to encourage private sector involvement in the earth observation services market. This initiative aims to boost GDP through value-added products. 

The initiative will grant permits to entities establishing EO platforms, facilitating data collection and processing. The documents outline requirements for applicants and emphasize user rights and data security. Interested parties are encouraged to review and apply for the permit.   

Key initiatives, such as the Center of Excellence for Earth and Space Science and the Center of Excellence for Aeronautics and Astronautics, underscore Saudi Arabia’s commitment to fostering world-class capabilities in space technology and research.  

Moreover, strategic partnerships with leading space agencies and organizations propel the Kingdom’s space aspirations to new heights. 

Vora emphasized that “strategic partnerships are essential in realizing the vision of the space sector in Saudi Arabia.” 

Saudi Arabia’s endeavors in space isn’t just about reaching for the stars; it’s about building a smarter economy.

Mahmoud Khairy, economist and policy adviser

He added: “For an emerging space-faring nation, partnerships enable effective knowledge transfer and opportunities to learn from past successes and failures. It allows the ability to share resources, risk, and infrastructure, advance scientific and technological research, and gain access to state-of-the-art innovations from a global ecosystem.” 

Vora explained that the most famous and widely referenced example of international partnerships and collaboration is the International Space Station, where it showcases the benefits of national collaboration. 

He went to say: “Private space companies providing both B2G (business to government) and B2B (business to business) services are now the norm, along with the utilization of space data-driven solutions across adjacent industries.” 

He went on explaining that this can be done by “introducing advanced technologies and services such as high-resolution imaging, data analytics for climate monitoring, urban planning solutions, and defense and security applications.” 

Al-Dawsari added: “Private companies, with their flexibility and innovative approaches, can significantly contribute to the space industry.” 

Private sector involvement in Saudi Arabia’s space industry has key implications for economic growth. It drives innovation, creates jobs, and attracts foreign investment, enhancing the Kingdom’s global competitiveness, according to Khairy.

A unique cosmic identity 

Beyond scientific and economic gains, Saudi Arabia’s cosmic journey holds profound societal implications.  

By inspiring the next generation of scientists, engineers, and explorers, the Kingdom is cultivating a legacy of innovation and discovery that transcends borders.  

“Beyond the clear economic benefits of Saudi’s endeavors in space, it undoubtedly has an impact on society,” Vora noted. 

National space endeavors along with international collaboration provides a catalyst for engagement in STEM fields through inspiration and integration into education, he highlighted. 

Vora added: “It’s great to see the mandate imposed by KSA last year to integrate space and earth sciences into secondary education curricula.” 

As Saudi Arabia ventures into space, the Kingdom remains committed to promoting sustainability and responsible stewardship of the cosmos.  

Sustainability comes in various forms in relation to Saudi’s space policy, according to Vora. 

“First, it’s KSA’s vision to create a sustainable, localized space industry and ecosystem — this requires support from the government in establishing an industry with long-term market opportunities,” he explained.  

Vora went on saying: “It’s how the national space program contributes toward Saudi’s vision to be a leader in environmental and climate sustainability. It’s what I call sustainability from space.”  

As space access becomes easier and launches more frequent, our space environment faces congestion and the risk of debris colliding with satellites. Improved technologies, regulations, and in-orbit solutions are needed to monitor and mitigate space debris.  

“Saudi space policy demonstrates leadership in this domain, enhancing the Kingdom’s role in the sustainability of space through investment in technologies to track and monitor space debris,” Vora emphasized. 

Khairy highlighted that space exploration requires a “whole army” of experts, from scientists and engineers to technicians and support staff.  

“As the space industry grows, so does the need for all sorts of services, from manufacturing to transportation. That means more jobs for Saudis across the board,” he added.

Sovereign wealth funds 

The pivotal role of sovereign wealth funds has become increasingly apparent in recent times, particularly in the Middle East.  

They have spearheaded economic diversification efforts, as reported by Euroconsult, a consulting firm specializing in the space sector. 

The report added: “Prominent funds like the UAE-based Mubadala Investment Company, the Saudi Public Investment Fund (PIF), and the Oman Investment Authority (OIA) have allocated substantial resources to finance local, regional and international space projects and companies.” 

Notable examples include partnerships like the one between Saudi Telecom Co. and PIF to establish IoT Squared, a technology firm specializing in the Internet of Things, as well as OIA’s acquisition of an equity stake in SpaceX. 

These investments not only support local, regional, and international space projects and companies but also bring tangible benefits to the countries involved, the report added. 

Economist Khairy said that the PIF is “already planning to invest heavily in the space sector and could be a major player in funding the Kingdom’s space dreams.” 

He added: “With its hefty financial resources and focus on long-term investments, it could provide the cash needed to launch satellites, conduct research, and build space infrastructure. Plus, investing in space could boost Saudi Arabia’s global reputation and competitiveness, drawing in even more investment and talent.” 

“When Saudi Arabia aims for the stars, it’s not just about the thrill of discovery; it’s about building a brighter economic future right here at home,” Khairy concluded. 


Closing Bell: Saudi main index rises to close at 12,126

Closing Bell: Saudi main index rises to close at 12,126
Updated 12 January 2025
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Closing Bell: Saudi main index rises to close at 12,126

Closing Bell: Saudi main index rises to close at 12,126
  • Parallel market Nomu gained 12.14 points, or 0.04%, to close at 31,039.53
  • MSCI Tadawul Index gained 1.87 points, or 0.12%, to close at 1,512.01

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 29.22 points, or 0.24 percent, to close at 12,126.97. 

The total trading turnover of the benchmark index was SR4.26 billion ($1.13 billion), as 140 of the stocks advanced and 91 retreated. 

The Kingdom’s parallel market Nomu gained 12.14 points, or 0.04 percent, to close at 31,039.53. This comes as 47 of the listed stocks advanced, while 34 retreated. 

The MSCI Tadawul Index gained 1.87 points, or 0.12 percent, to close at 1,512.01. 

The best-performing stock of the day was Fitaihi Holding Group, which debuted on the main market on Sunday, with its share price surging 6.15 percent to SR4.66. 

Other top performers included Saudi Industrial Investment Group, which saw its share price rise 5.59 percent to SR17.00, and Fawaz Abdulaziz Alhokair Co., whose share price surged 4.88 percent to SR15.46. 

Arabian Pipes Co. recorded the biggest decline, with its share price falling 3.62 percent to SR12.24. 

Maharah Human Resources Co. followed, with its stock price decreasing 2.75 percent to SR6.73. 

Takween Advanced Industries Co. also experienced a drop, with its share price slipping 2.39 percent to SR10.62. 

On the announcements front, Banan Real Estate Co. completed the acquisition of a 45 percent stake in Qimam Noshz Real Estate Development Co., with a total capital of SR71 million. 

According to a Tadawul statement, the stake is to be divided with Banan Real Estate Co. holding 23 percent, while its subsidiary, Al-Aziziah Investment and Real Estate Development Co., holding 22 percent.

Banan Real Estate Co. closed the session at SR6.80, down 0.88 percent. 

Al-Etihad Cooperative Insurance Co. has signed an agreement with AlRajhi Bank to provide bancassurance services and quotations for leased vehicle comprehensive insurance. 

A bourse filing revealed that this partnership is part of the “Lease with a Promise to Own” program. The one-year contract’s revenues are projected to exceed 5 percent of the company’s gross written premiums reported in its 2023 annual financial statements. The financial impact of this agreement is expected to reflect in the firm’s performance starting from the first quarter of 2025. 

Al-Etihad Cooperative Insurance Co. closed the session at SR17.86, up 0.57 percent.

Scientific and Medical Equipment House Co. announced it has been awarded a project tender by the General Directorate of Health Affairs in Najran Region valued at SR99 million. 

According to a Tadawul statement, the project covers the maintenance and repair of medical devices and equipment for several hospitals in the area. The financial impact of the project is anticipated to begin in the second quarter of 2025. 

The firm ended the session at SR51.60, marking a 51.60 percent increase. 


Saudi Arabia ranks 7th globally in IPO proceeds, leads GCC region

Saudi Arabia ranks 7th globally in IPO proceeds, leads GCC region
Updated 12 January 2025
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Saudi Arabia ranks 7th globally in IPO proceeds, leads GCC region

Saudi Arabia ranks 7th globally in IPO proceeds, leads GCC region
  • Kingdom accounted for 42 of the 53 IPOs in the GCC in 2024
  • UAE led in terms of proceeds with $6.2 billion

RIYADH: Saudi Arabia led the Gulf Cooperation Council’s initial public offerings market in 2024, earning a global ranking of seventh in total IPO proceeds, according to the latest report from Kamco Invest. 

The Kingdom accounted for 42 of the 53 IPOs in the GCC last year, significantly outpacing its regional peers and aligning with expectations to maintain its leadership in the coming year.

The surge in listings highlights Saudi Arabia’s dominant position in the regional capital markets and its role as a key driver of IPO activity across the GCC. 

The figure represents a sharp increase from 46 IPOs across the GCC in 2023, underscoring continued investor interest and market dynamism. 

 

GCC issuers collectively raised $12.9 billion in 2024, a 19.8 percent increase from $10.8 billion in 2023, despite global IPO markets experiencing their weakest performance since 2009. 

Within the GCC, Saudi companies contributed $4.1 billion, amounting to 31.6 percent of total regional proceeds. 

While the UAE led in terms of proceeds with $6.2 billion, its share of GCC IPO proceeds dropped from 56.3 percent in 2023 to 47.8 percent in 2024. 

Oman ranked third, with state-backed privatizations raising $2.5 billion, or 19.3 percent of total GCC proceeds. 

 

The majority of Saudi IPOs occurred on the Nomu–Parallel Market, which hosted 28 of the Kingdom’s listings. 

The main market recorded 14 IPOs, including standout listings such as Dr. Soliman Abdel Kader Fakeeh Hospital, which was oversubscribed 119 times and garnered orders worth $91 billion.

Other notable listings included Almoosa Health, Miahona Utilities, and Nice One Beauty Digital Marketing. 

The strong demand was driven by a local investor base and underscored the resilience of Saudi capital markets despite challenges such as declining oil prices and geopolitical tensions. 

 

The report said that sectors such as health care, materials, and professional services were among the most active in Saudi IPOs, reflecting strong fundamentals and investor confidence in these industries. 

Globally, the GCC ranked fourth in IPO proceeds, trailing China, the US, and Japan, demonstrating its growing importance as a financial hub. 

Looking ahead to 2025, Saudi Arabia is expected to further dominate, with 31 IPOs in the pipeline, according to Kuwait-based asset management company Kamco Invest. 

The Kingdom’s Public Investment Fund is set to play a pivotal role with upcoming listings of Saudi Global Ports, Nupco, and Tabreed District Cooling, among others. Several private companies, including flynas, Tabby, and Ejada Systems, are also preparing IPOs. 

 

Oman plans to privatize up to 30 assets in the coming years, with Asyad Group and Oman Electricity Transmission Co. expected to go public in 2025. 

In the UAE, major listings are anticipated from hotel operator FIVE and real estate companies under Dubai Holding, alongside Dubizzle Group and Alpha Data. 

Despite external headwinds like geopolitical tensions and rising economic pressures, the GCC IPO market has proven resilient, with a robust pipeline of offerings across various sectors. 


Oman’s import price index up 1.1% in Q3 2024

Oman’s import price index up 1.1% in Q3 2024
Updated 12 January 2025
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Oman’s import price index up 1.1% in Q3 2024

Oman’s import price index up 1.1% in Q3 2024
  • Largest price hike was recorded in miscellaneous manufactured goods category, which rose by 11%
  • Mineral fuels and related materials saw a significant decrease of 22.2%

RIYADH: Oman’s general index of import prices saw an increase of 1.1 percent in the third quarter of 2024 compared to the same period in 2023, according to data from the National Center for Statistics and Information.

The largest price hike was observed in the miscellaneous manufactured goods category, which rose by 11 percent. This was followed by beverages and tobacco (up 6.7 percent), and food and live animals (up 5.7 percent).

Other notable increases included machinery and transport equipment (5.3 percent), chemicals and related materials (4.3 percent), raw materials (4.3 percent), manufactured goods primarily categorized by material (1.6 percent), and vegetable and animal oils, fats, and waxes (0.9 percent).

In contrast, the category of mineral fuels and related materials saw a significant decrease of 22.2 percent.

This increase in import prices aligns with Oman’s overall rise in imports, which grew by 10.8 percent, reaching 8 billion Omani rials ($20.8 billion) by June 2024, up from 7.2 billion rials in the same period of 2023.

Additionally, the general index of import prices declined by 4.8 percent when compared to the second quarter of 2024. This drop was largely due to decreases in the prices of beverages and tobacco (-22.4 percent), mineral fuels and related materials (-11.6 percent), and chemicals and related materials (-10.8 percent).

The miscellaneous manufactured goods category also saw a reduction of 10.2 percent, while machinery and transport equipment dropped by 3.9 percent. However, the raw materials category saw a 32 percent increase, vegetable and animal oils, fats, and waxes rose by 9.2 percent, and food and live animals increased by 3.5 percent.

Lending trend

Oman’s banking sector experienced a 4.2 percent year-on-year growth in the total balance of credit granted by the end of November 2024, reaching 32.2 billion rials.

According to the Central Bank of Oman, credit to the private sector grew by 5.1 percent, totaling 26.8 billion rials during the same period. This growth reflects the central role of the banking sector in providing credit within the Omani economy, especially given the limited access the private sector has to debt capital markets. In 2022, private sector credit represented 55.4 percent of the country’s gross domestic product, a trend consistent with data from the International Monetary Fund.

Further breakdowns of the credit data revealed that the largest share (45.3 percent) of the private sector credit went to individuals, followed closely by non-financial companies at 45.1 percent. The remaining 9.6 percent was divided between financial firms (6.1 percent) and other sectors (3.5 percent).

In terms of deposits, the total balance in Omani banks grew by 10.8 percent, reaching 31.5 billion rials by the end of November. Of this, private sector deposits increased by 9.2 percent, amounting to 20.6 billion rials.

The breakdown of private sector deposits revealed that the individual sector held the largest share at 49.7 percent, followed by the non-financial corporate sector at 30.6 percent, and the financial corporate sector at 17.1 percent. Other sectors accounted for 2.6 percent.


Saudi entertainment authority launches 3rd startup accelerator to drive innovation 

Saudi entertainment authority launches 3rd startup accelerator to drive innovation 
Updated 12 January 2025
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Saudi entertainment authority launches 3rd startup accelerator to drive innovation 

Saudi entertainment authority launches 3rd startup accelerator to drive innovation 
  • Program offers consulting, mentorship, and international exposure to participating startups
  • Initiative runs for 10 months and is designed to foster entrepreneurship

RIYADH: Saudi Arabia’s entertainment sector is set for growth as the General Entertainment Authority launches the third edition of its accelerator program, which will support 32 startups.

The initiative is designed to drive innovation, foster entrepreneurship, and help shape the future of the Kingdom’s entertainment industry, according to the Saudi Press Agency.

The 10-month accelerator program offers participating startups a comprehensive suite of benefits, including mentorship, consulting, co-working spaces, and international exposure.

Each cohort, consisting of 16 companies, will receive 192 hours of expert guidance and two international trips to explore global market trends.

Aligned with Saudi Arabia’s Vision 2030 objectives of economic diversification, the program is set to play a key role in strengthening the entertainment ecosystem. With projections indicating that the sector will generate 450,000 jobs and contribute 4.2 percent to the country’s gross domestic product by 2030, the initiative aims to enhance innovation, attract investment, and position Saudi Arabia as a regional entertainment hub.

The program builds on the success of its previous editions. The first accelerator, launched in 2023, reviewed 260 project registrations and selected 14 startups after a rigorous vetting process. Entrepreneurs benefited from weekly workshops, personalized consulting, and opportunities to connect with investors.

In the second edition, which launched in mid-2023, the GEA expanded its efforts to help startups overcome market challenges and achieve sustainable growth. Tailored programs helped participants navigate the unique obstacles of the entertainment sector, increasing their chances of success.

The GEA’s initiative is part of a broader strategy to support the Kingdom's growing entertainment industry. Through this accelerator, the GEA aims to foster an environment where innovation thrives, businesses grow, and global partnerships are forged.

In addition to the extensive mentorship and training, participants also had access to 56 hours of expert counseling in June 2023, with speakers and consultants from Saudi Arabia’s leading entrepreneurs sharing valuable insights.

The success of the first two accelerators laid the foundation for the third edition, which is expected to continue driving momentum in the entertainment sector as it evolves into a major contributor to Saudi Arabia’s economic transformation.


Saudi SME job growth hits 10-month high amid expansion plans 

Saudi SME job growth hits 10-month high amid expansion plans 
Updated 12 January 2025
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Saudi SME job growth hits 10-month high amid expansion plans 

Saudi SME job growth hits 10-month high amid expansion plans 
  • SMEs doubled over past seven years, with 45% led by women entrepreneurs, says finance minister
  • Riyad Bank Saudi Arabia SME Purchasing Managers’ Index stood at 56.9 in December

RIYADH: Saudi Arabia’s small and medium enterprises recorded their strongest employment growth in 10 months during December, fueled by long-term expansion plans and robust domestic demand, according to a new report. 

The Riyad Bank Saudi Arabia SME Purchasing Managers’ Index stood at 56.9 in December, slightly lower than November’s 57.1 but well above the neutral 50 mark, indicating sustained growth in the sector. 

Strengthening the SME segment is a cornerstone of the Kingdom’s economic diversification strategy under Vision 2030, aimed at reducing dependence on oil revenues. 

Finance Minister Mohammed Al-Jadaan highlighted the sector’s rapid growth in October, noting that the number of SMEs in Saudi Arabia had doubled over the past seven years, with 45 percent now led by women entrepreneurs. 

“The Riyad Bank Saudi Arabia SME PMI concluded the year on a high note, reflecting a robust performance of the SME sector. The fourth quarter of the year showcased a marked improvement over the third quarter, with the average PMI hitting 56.8, the highest quarterly reading since the end of 2023,” said Naif Al-Ghaith, chief economist at Riyad Bank.  

He added: “This upturn in the SME sector is a testament to the thriving economic environment, characterized by increasing output levels and a surge in incoming new work.”  

The report attributed December’s employment surge to sharp increases in output and incoming new work, supported by stronger business and consumer spending. 

The analysis said that SMEs widely reported strong demand conditions, fueled by increased business and consumer spending, alongside a supportive economic environment. 

S&P Global said job creation rose in December, with staffing levels and growth rates accelerating at their fastest pace since February. 

“This surge in employment is fueled by long-term business expansion plans and upcoming new projects, reflecting a positive outlook among SMEs,” said Al-Ghaith.  

Despite higher input costs, including salary increases and rising raw material prices, inflation pressures eased slightly in December compared to the previous month. 

Business confidence among SMEs reached its highest level since March, marking three consecutive months of improved expectations. 

He added: “This optimistic trajectory aligns with Saudi Arabia’s Vision 2030.”  “The strong performance of SMEs, as evidenced by the Riyad Bank Saudi Arabia SME PMI, underscores the ongoing efforts to bolster economic diversification and support the growth of this sector.”  

He said that SMEs’ resilience and expansion are pivotal for achieving Vision 2030’s goals of creating sustainable employment and promoting inclusive economic growth. 

The positive SME performance aligns with broader economic trends. A separate S&P Global report showed that Saudi Arabia’s overall PMI for December reached 58.4, signaling robust growth in the non-oil economy. 

“By fostering a vibrant SME sector, Saudi Arabia can enhance its economic resilience, create sustainable employment opportunities, and promote inclusive growth, all key components of a diversified and dynamic economy,” concluded Al-Ghaith.  

The employment growth reflects the Kingdom’s ongoing commitment to transforming its economy into a global hub for innovation, entrepreneurship, and investment.