PIF-backed Lucid to export Saudi-made EVs regionally, globally, official reveals

At the EV Auto Show in Riyadh, Ali Rizvi, director of Business Operations at Lucid Middle East, revealed that the company—supported by Saudi Arabia’s Public Investment Fund—is increasing its production efforts within the Kingdom. AN photo
At the EV Auto Show in Riyadh, Ali Rizvi, director of Business Operations at Lucid Middle East, revealed that the company—supported by Saudi Arabia’s Public Investment Fund—is increasing its production efforts within the Kingdom. AN photo
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Updated 17 September 2024
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PIF-backed Lucid to export Saudi-made EVs regionally, globally, official reveals

PIF-backed Lucid to export Saudi-made EVs regionally, globally, official reveals
  • Initiative supports Kingdom’s ambition to convert 30% of Riyadh’s vehicles to electric by 2030
  • Goal is part of a larger strategy to reduce emissions in Riyadh by 50% by 2060

RIYADH: US electric carmaker Lucid Motors plans to export a significant share of its vehicles produced in Saudi Arabia to both regional and global markets, according to a senior official.

At the EV Auto Show in Riyadh, Ali Rizvi, director of Business Operations at Lucid Middle East, revealed that the company—supported by Saudi Arabia’s Public Investment Fund—is increasing its production efforts within the Kingdom.

This initiative supports Saudi Arabia’s ambition to convert 30 percent of Riyadh’s vehicles to electric by 2030. This goal is part of a larger strategy to reduce emissions in the capital by 50 percent, contributing to the country’s broader aim of achieving carbon neutrality by 2060.

“We are producing vehicles in the Kingdom, (and) a large part of those will be exported within the region and to the rest of the world as well,” Rizvi said. 

At the same panel, Mohammed Abuazzah, chief public relations officer at Saudi EV brand Ceer, discussed the company’s strategy. “We have a portfolio — a Saudi-inspired portfolio — that is innovative, inspirational, and can answer what the people of Saudi Arabia and the Gulf Cooperation Council, and hopefully globally, expect from an EV,” Abuazzah said. 

He emphasized the importance of engaging with customers and expanding the company’s sales network in Saudi Arabia and the GCC. 

Ulf Schulte, chief operating officer at Electric Vehicle Infrastructure Co., announced plans to expand the company’s charging network. “So, there are a lot of building blocks we are working on, and eventually now ramping up the number of sites. Our first site in Jeddah is going live today or tomorrow,” Schulte said.  

“Our focus this year is on Riyadh, Jeddah, and Dammam, but we’re working to build a Kingdom-wide network to enable a long-distance EV ecosystem,” he added. 

Andreas Flourou, group head of mobility at Red Sea Global, outlined the company’s commitment to sustainability. “We’re opening new hotels every quarter at the moment, and mobility is one of the foundations of our ethos based around sustainability and protecting the environment,” Flourou said. 

“We’re opening a new hotel, Amaala, by the end of next year. This will mean hundreds of additional vehicles, guest vehicles, staff transportation, buses, sea planes, and marine vessels. We need an increase in chargers within our destinations,” he added.  

Gary Flom, CEO of National Transport Solutions Co., emphasized the role of EVs in transforming Saudi Arabia’s infrastructure. 

“Today, we are witnessing a revolution, a revolution that is driving toward a future where electric vehicles are not merely an option but a cornerstone of our nation’s transportation infrastructure,” Flom said. 

“The rise of Saudi Arabia’s electric vehicle sector reflects a broader shift toward sustainability, innovation, and resilience. This transformation, catalyzed by the visionary leadership of His Royal Highness, Crown Prince Mohammed bin Salman, is positioning the Kingdom at the forefront of the global transition to clean energy,” the CEO added. 

He added that National Transportation Solutions Co. is proud to be a key player in the ongoing transformation, which began three years ago. “NTSC was born with a clear and ambitious mission to provide Saudi fleet operators with the same or better tools, data, and operational efficiencies long enjoyed by their colleagues in the US and Europe.” 

Also present in a separate session at the event, Omaimah Bamasag, deputy of transport enablement at the Transportation General Authority, highlighted that the event showcases the collaboration between the public and private sectors in advancing new technology skills, aligning with the goals of Vision 2030 and the National Strategy. 

Hosted at the Riyadh International Convention and Exhibition Center from Sept. 17 to 19, this three-day event highlights Saudi Arabia’s commitment to EVs and sustainable technology, in line with Vision 2030. 

The exhibition is a key event for the Kingdom’s growing EV ecosystem, gathering automotive manufacturers, charging solution providers, policymakers, and consumers to discuss the future of mobility in the region. 

Attendees will explore various EVs, charging solutions, and green technologies. The event will feature interactive seminars and panel discussions, offering opportunities to engage with industry experts and innovators. 


Startup Wrap – Saudi firms continue to lead regional activity

Startup Wrap – Saudi firms continue to lead regional activity
Updated 26 October 2024
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Startup Wrap – Saudi firms continue to lead regional activity

Startup Wrap – Saudi firms continue to lead regional activity

RIYADH: Saudi Arabia’s startup ecosystem is gaining momentum, with several firms securing significant investments and partnerships as they scale their operations.

Backed by both local and international venture capital, several startups are positioning themselves as key players in the region’s digital transformation, supporting Saudi Vision 2030’s goals of fostering innovation and economic diversification.

Saudi Arabia-headquartered mobility startup invygo has raised an $8 million series A extension, led by STV’s newly launched NICE Fund.

The round also saw participation from existing investors, including Al Rajhi Partners, Arab Bank Ventures, and SPV, as well as MEVP, and C5.

Founded in the UAE in 2019 by Eslam Hussein and Pulkit Ganjoo, invygo is an app-based service that offers users the ability to choose, drive, swap, and own cars. The company currently operates in Saudi Arabia, the UAE, and Qatar.

To date, invygo has secured over $22 million in funding from regional and global investors. The company is nearing profitability, which is expected by the end of 2024, according to its founders.

“This round comes after 24 months without external capital, a testament to our commitment to building a financially sustainable business that is reshaping mobility. Our focus remains on driving meaningful impact in customer experience and the broader global mobility landscape from the Middle East,” Hussein said.

The recent investment will help further scale its operations in the region as it continues to grow its customer base.

Saudi fintech startup Mala closes $7m pre-seed round

Saudi Arabia-based fintech Mala has closed a $7 million pre-seed funding round, led by VentureSouq and Shorooq Partners.

Other participants in the round include M Capital, BECO Capital, and Access Bridge Ventures, as well as Waad Investment, Palm Ventures, and Silicon Valley-based D Global Ventures.

Mala, founded in 2024 by Musaab Hakami, is a business-to-business platform that offers a procure now, pay later solution for small and medium-sized enterprises, enabling them to access flexible credit terms while ensuring that suppliers receive immediate cash payments.

“Suppliers in Saudi Arabia often struggle to extend adequate credit to buyers, as the traditional system relies more on established relationships than comprehensive credit risk evaluations,” Hakami said.

“Mala harnesses data-driven insights to reshape this dynamic, enabling suppliers to be paid upfront while offering buyers flexible payment options tailored to their needs,” he added.

The funds raised will enable Mala to officially launch its services in Saudi Arabia in the fourth quarter of the year, positioning itself as a key player in the SME financing landscape within the region.

HALA Payments joins Saudi Unicorns Programme

Saudi fintech company HALA Payments has been selected to join the Saudi Unicorns Programme, a government-led initiative aimed at fostering high-growth companies.

Through the program, HALA will benefit from opportunities to attract top talent, expand into new markets, and build strategic partnerships with government entities and global leaders in the fintech sector.

Founded in 2018 by Esam Al-Nahdi and Maher Loubieh, HALA offers banking solutions for SMEs and freelancers, enabling them to seamlessly manage and grow their businesses.

The Saudi Unicorns Programme, part of Saudi Vision 2030, is run by the Ministry of Communications and Information Technology in collaboration with the Mohammed bin Salman Foundation, supporting the country’s efforts to drive economic diversification and digital transformation.

“HALA’s inclusion in this prestigious program reflects our deep commitment to Saudi Vision 2030. As we continue our global expansion, we are not only scaling our business but also contributing to Saudi Arabia’s position as a leader in fintech innovation,” Al-Nahdi said.

“Our mission aligns with the Kingdom’s goals of economic diversification and digital transformation, and we are excited to expand our impact across the MENA region and beyond,” he added.

The program has already seen a few unicorns, which are startups with over $1 billion valuations, graduate. In the fourth quarter of last year, the initiative saw Tabby and Tamara, both buy now, pay later companies, reach unicorn status.

Ronaldo invests in UK-based Bioniq

Football sensation Cristiano Ronaldo has invested an undisclosed amount in personalized nutritional supplements provider Bioniq, boosting its valuation to $82 million.

Founded in 2019 by Vadim Fedotov, Bioniq has recently expanded to Saudi Arabia through a local partnership and now operates in over 70 markets. The company also closed its $15 million series B earlier in July.

“Backing Bioniq goes beyond just an investment opportunity for me— it’s about aligning with a shared vision for health, performance, and longevity,” said Ronaldo.

Prypco raises $10m in seed round

UAE-based proptech startup Prypco has raised $10 million in a seed funding round led by Shorooq Partners, with participation from Apparel Group and other investors.

Founded in 2022 by Amira Sajwani, Prypco offers real estate services through its four verticals, Prypco Blocks, Prypco Mortgage, Prypco Exclusives, and Prypco Golden Visa.

Prypco Mortgage claims it has facilitated home loans totaling over $136 million. The latest $10 million investment will support the company’s growth, focusing on organic expansion across its various product offerings.

“In mortgages, we are currently the second-largest mortgage broker in the UAE,” said Sajwani.

“For fractional ownership, even though we started just three months ago, we are already the third largest in the UAE. When it comes to Golden Visas, we are the largest provider at scale with 600 plus visas, as there are few service providers offering this at our level,” she added.

Best Kept Shared acquires fashion resale platform BAZAARA

UAE-based e-commerce platform Best Kept Shared has acquired peer-to-peer fashion resale platform BAZAARA for an undisclosed amount.

Best Kept Shared, founded in 2023 by Kelly Power and Sophie Kjoller, is a P2P platform for fashion rental and resale, while BAZAARA, founded in 2021 by Alyssa Mariano, focuses on enabling users to buy and sell pre-owned clothing and accessories.

The acquisition will integrate BAZAARA’s existing network with Best Kept Shared’s infrastructure, providing customers with a wider range of options for buying, selling, and renting fashion items.

“This acquisition is a significant milestone in our journey to revolutionize the luxury fashion industry, expanding our market reach and helping more women to access luxury fashion without the designer price tag or environmental impact,” Best Kept Shared founders said in a statement.

The move signals continued consolidation in the region’s fashion tech sector, with platforms looking to expand their reach through strategic acquisitions.

“We are thrilled to be joining Best Kept Shared in this exciting venture. Our shared vision for promoting sustainable fashion and empowering our communities aligns perfectly,” Mariano said.

UK-based Proximie partners with Olympus Corp.

UK-based healthtech provider Proximie has partnered with Japanese surgical tools and endoscopy systems giant Olympus Corp.

The partnership will allow Olympus to offer Proximie’s technology to its customers. The Japanese giant is estimated to have captured 70 percent of the global endoscopy market.

Proximie, founded in 2016, offers a device-agnostic platform which allows for real-time collaboration, to schedule secure training sessions as well as the ability to capture video from any source.


UAE the top destination for Saudi Arabia’s non-oil goods: GASTAT

UAE the top destination for Saudi Arabia’s non-oil goods: GASTAT
Updated 26 October 2024
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UAE the top destination for Saudi Arabia’s non-oil goods: GASTAT

UAE the top destination for Saudi Arabia’s non-oil goods: GASTAT

RIYADH: Saudi Arabia’s neighbor UAE was the favorite destination for the Kingdom’s non-oil goods in August, with exports seeing a monthly rise of 10.42 percent to reach SR6.78 billion ($1.81 billion).

According to the General Authority for Statistics, Saudi Arabia exported mechanical and electrical equipment amounting to SR2.78 billion to the country, representing a 16.80 percent increase from the previous month.

Outbound shipments of transport equipment to the UAE reached SR2.17 billion in August, marking a month-on-month rise of 57.24 percent.

Bolstering the non-oil private sector is a crucial part of the Kingdom’s Vision 2030 agenda, as it steadily pursues economic diversification by reducing its dependence on crude revenues.

Other major shipments to the UAE in August were chemical products valued at SR448.2 million, and plastic and rubber items amounting to SR359.1 million.

Affirming the growth of Saudi Arabia’s non-oil private sector, the Kingdom’s Purchasing Managers’ Index reached 54.8 in August, and later accelerated to 56.3 in September.

According to the Riyad Bank PMI report, compiled by S&P Global, Saudi Arabia’s growth in the non-oil private sector was driven by improved sales momentum and rising new orders in August and September.

The report also emphasized the significance of non-oil sector growth, given current crude production cuts and declining global oil prices, and added that the Kingdom is better positioned to navigate the challenges of market fluctuations for the commodity.

Other top destinations for Saudi Arabia’s non-oil goods

According to GASTAT, China was another major destination for Saudi Arabia’s non-oil goods, with exports to the Asian giant amounting to SR2.27 billion, representing a marginal decline from SR2.38 billion in July.

The authority revealed that China imported chemical and allied products worth SR1.11 billion in August, followed by plastic and rubber products amounting to SR786.3 million.

In August, Saudi Arabia also exported mineral products amounting to SR176.6 million to China, while outbound shipments of base metals totaled SR78.7 million.

India was another major destination for the Kingdom’s non-oil products, with outbound shipments to the Asian nation in August totaling SR2.08 billion.

According to GASTAT, India imported chemical products worth SR1.55 billion, while the outbound shipment value of plastic products and base metals to the Asian nation stood at SR497.1 million and SR366.1 million, respectively.

Other top destinations for Saudi Arabia’s non-oil goods in August were Singapore, Belgium, and Egypt, which imported goods valued at SR1.22 billion, SR896.8 million, and SR842.9 million, respectively.

In August, Bahrain imported non-oil goods worth SR816.8 million from Saudi Arabia, followed by Turkiye and Jordan at 797.6 million and SR787.9 million, respectively.

Overall, Saudi Arabia’s non-oil exports – including re-exports – in August reached SR27.52 billion, representing a 7.5 percent rise compared to the same month in the previous year.

Compared to July, the Kingdom’s non-oil outbound shipments witnessed a rise of 8.13 percent in August.

An outlook of overall merchandise exports

GASTAT revealed that Saudi Arabia’s overall merchandise exports, however, declined by 9.8 percent in August compared to the same month of the previous year, driven by a 15.5 percent decline in oil sales.

As a result, the percentage of oil out of total exports decreased to 70.3 percent in August, from 75.1 percent in the same month in the previous year.

To stabilize the market, Saudi Arabia cut its oil production by 500,000 barrels per day in April 2023, a reduction now extended until December 2024.

According to the authority, Saudi Arabia sent overall merchandise exports worth SR14.83 billion to China in August, followed by South Korea at SR8.94 billion and India at SR8.82 billion, respectively.

The strong flow of Saudi exports to China signifies strong bilateral relations between the nations. The Kingdom has been the largest trading partner of the Asian powerhouse in the Middle East since 2001, and bilateral trade between the nations reached $107.23 billion in 2023.

China and Saudi Arabia are strategic partners in various sectors, including energy and finance, as well as the Belt and Road Initiative.

According to GASTAT, exports worth SR17.71 billion were sent to other countries through sea by Saudi Arabia in August, while outbound shipments via land and air totaled SR5.03 billion and SR4.78 billion, respectively.

King Fahad Industrial Sea Port in Jubail was the main exit point for Saudi Arabia’s exports with goods valued at SR3.67 billion.

Al-Batha Port handled outbound goods worth SR1.78 billion, while exports worth SR881.9 million passed through Al-Hadithah Port.

Among airports, King Khalid International Airport and King Abdulaziz International Airport handled export goods worth SR2.38 billion and SR1.84 billion, respectively.

Saudi Arabia’s imports in August

According to the GASTAT report, the Kingdom’s overall imports decreased by 3.93 percent in August compared to the same month of the previous year, reaching SR64.78 billion.

The Kingdom imported goods worth SR14.37 billion from China, led by mechanical appliances and electrical equipment valued at SR6.22 billion.

Official data added that Chinese imports of transport equipment and base metal products amounted to SR1.61 billion and SR1.24 billion respectively.

In August, Saudi Arabia also imported plastic and rubber products worth SR862.5 million from the Asian giant, while inbound shipment value of textiles and work of arts stood at SR838.9 million and SR799.4 million, respectively.

On the import side, China was closely followed by the US and India, with incoming shipments from these nations to the Kingdom valued at SR6.22 billion, and SR4.02 billion respectively.

German imports to Saudi Arabia amounted to SR3.05 billion in August, while inbound shipments from the UAE and Italy were worth SR2.63 billion, and SR2.51 billion, respectively.

According to the report, inbound shipments worth SR39.60 billion came to Saudi Arabia via the sea, while imports valued at SR16.87 billion, and SR8.31 billion came via air and land, respectively.

King Abdulaziz Port in Dammam was the primary entry point for goods in August through sea, with imports valued at SR18.48 billion, representing 28.5 percent of the total inbound shipments.

Jeddah Islamic Port handled inbound shipments worth SR13.65 billion, while King Abdullah Sea Port and King Fahd Industrial Sea Port were entry points to goods valued at SR1.24 billion and SR1.02 billion, respectively.

The report revealed that King Khalid International Airport in Riyadh welcomed inbound shipments worth SR8.57 billion in August, followed by King Fahad International Airport and King Abdulaziz International Airport, which handled imports valued at SR4.02 billion, and SR3.99 billion, respectively.

Al-Batha Port handled incoming shipments coming through land valued at SR3.54 billion, while Riyadh Dry Port was the entry point to imports worth SR2.77 billion.


GCC sovereign wealth funds lead global dealmaking with $55bn in transactions

GCC sovereign wealth funds lead global dealmaking with $55bn in transactions
Updated 26 October 2024
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GCC sovereign wealth funds lead global dealmaking with $55bn in transactions

GCC sovereign wealth funds lead global dealmaking with $55bn in transactions

RIYADH: Sovereign wealth funds across the Gulf Cooperation Council signed off $55 billion across 126 transactions in the first nine months of 2024, accounting for 40 percent of global deals, a new report showed.

US-based organization Global SWF, which monitors the activities of these bodies, identified the region’s “Oil Five”— Abu Dhabi’s ADIA, ADQ, and Mubadala, along with Saudi Arabia’s Public Investment Fund and Qatar’s Qatar Investment Authority — as leading this robust investment wave.

Currently managing $4.9 trillion in assets, GCC sovereign wealth funds are projected to surpass $5 trillion by early 2025 and could reach $7 trillion by 2030, the report said.

Additionally, central banks in the region are seeing significant increases in foreign reserves that may be funneled into these funds.

Traditional markets, such as the US and UK, remain primary targets for GCC investments, attracting $18.9 billion and $9.5 billion, respectively, over the past year.

China is rapidly rising in prominence, drawing $9.5 billion from GCC investors during the same timeframe.

GCC SWFs have rapidly ascended as dominant players on the global investment stage, capitalizing on a unique mix of high oil revenues, strategic reforms, and market-savvy investment approaches.

Elevated oil prices in recent years have bolstered these funds, allowing them to expand organically — through robust market performance — and through governments channeling excess capital and state-owned assets into SWFs.

Additionally, low debt levels across GCC governments mean they can issue debt selectively, safeguarding fiscal sustainability even when oil prices dip.

Tax reforms, like VAT and corporate levies, further contribute to a more resilient financial foundation, fortifying regional economies against volatility.

A deepening focus on diversifying revenue sources also fosters resilience, seen through investments in sectors including technology, infrastructure, and renewables.

Adding to this is the expansion of GCC financial markets, now home to seven active stock exchanges and over 877 listed companies with a combined market capitalization of $4.3 trillion.

Altogether, these factors position GCC sovereign investors as influential, stable forces capable of shaping financial landscapes both regionally and globally.

Global SWF noted that GCC sovereign wealth funds hold a unique geopolitical edge, maintaining solid relationships with both Western and Eastern powers, which enhances their strategic agility in global investments.

Furthermore, these funds command substantial influence domestically, controlling 70 percent of equity markets within the GCC— a clear testament to their significant impact on both local economies and international financial landscapes.

Saudi Arabia is intensifying its focus on domestic investment, with the Kingdom’s PIF driving major growth in local projects.

The fund’s assets surged 29 percent to reach $765.2 billion in 2023, largely through directing money into Saudi infrastructure and real estate, which grew 15 percent to SR233 billion.

PIF’s assets are expected to exceed $1 trillion by 2025, making it a global heavyweight.

The report said that Saudi Arabia stands out as the largest economy in the GCC, contributing half of the region’s $2.2 trillion activity. By 2029, the Kingdom’s GDP is expected to hit $1.43 trillion, making up 51 percent of the GCC’s projected GDP of $2.8 trillion.

This growth is being driven by non-hydrocarbon sectors, reflecting Saudi Arabia’s ambitious Vision 2030 plan aimed at reducing its reliance on oil and gas while boosting sectors like tourism, entertainment, and renewable energy.

PIF plays a critical role in this transformation by strategically deploying capital across various industries to diversify the economy.

Emerging trends in FDI, debt Issuance, and partnerships

Most GCC countries have crafted long-term strategic plans aimed at fostering economic growth and reducing oil dependency, with a focus on attracting foreign direct investment for sustainability and resilience.

According to the report, over the past six years, approximately 84 percent of FDI inflows into the GCC have been directed toward Saudi Arabia and the UAE, with significant increases noted between 2021 and 2023.

The region now accounts for 4.2 percent of global FDI inflows, up from 1.3 percent in 2019.

According to the Saudi Ministry of Investment’s latest report, the Kingdom’s money from foreign investment hit $25.6 billion in 2023, exceeding the National Investment Strategy target by 16 percent.

Saudi Arabia aims to increase FDI to 5.7 percent of its nominal GDP by 2030, a significant rise from the current 2.4 percent, with a goal of attracting $100 billion annually.

GCC SWFs are also increasingly raising third-party capital as part of their strategic plans, enhancing risk management and ensuring long-term sustainability.

According to the report, Mubadala stands out as the most successful fund in this area, having issued 36 bond tranches totaling $29.2 billion since its inaugural $1.8 billion dual-tranche bond in 2009.

Additionally, Mubadala has secured $18 billion in equity from both domestic and international investors. Other funds in Abu Dhabi, like ADQ, have also entered the bond market, with ADQ issuing a $2.5 billion bond in May 2024.

Saudi Arabia’s PIF has raised $21.9 billion through 15 bond tranches, and is preparing to issue a 3-year sukuk and an 8-year green bond.

According to S&P Global, Saudi Arabia and the UAE are set to continue leading the Middle East’s sustainable bond market, having issued $16.7 billion in the first nine months of 2024.

The agency predicted ongoing strong activity in this sector, spurred by banks and the rising importance of green bonds.

PIF has been at the forefront, raising $3 billion in 2022 and $5 billion in 2023 through these tools, with $5.2 billion allocated to environmentally focused projects as of June 2024.

Green sukuk, which fund renewable energy initiatives, are gaining momentum, now accounting for 35-40 percent of sustainable bond issuances in the region, up from 25-30 percent at the end of 2023.

Global SWF also said that the region’s funds have actively pursued bilateral investment agreements, often exceeding $5 billion, particularly as the COVID-19 pandemic subsided.

PIF has established subsidiaries in countries like Egypt and Iraq, while Mubadala has launched Country Investment Programs to strengthen economic ties with nations such as France and the UK.

Collaboration with local sovereign funds has been prevalent, especially in Egypt, where PIF pledged $10 billion to stabilize the economy.

Turkiye has also attracted attention, with ADQ launching a $300 million technology fund and making significant earthquake relief pledges.

The UK remains a key focus for Gulf SWFs, with substantial post-Brexit investment commitments.

While actual investments may not always meet lofty targets, these agreements lay important groundwork for future capital deployment.


Saudi Central Bank’s governor highlights global, domestic economic resilience at IMF meeting

Saudi Central Bank’s governor highlights global, domestic economic resilience at IMF meeting
Updated 25 October 2024
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Saudi Central Bank’s governor highlights global, domestic economic resilience at IMF meeting

Saudi Central Bank’s governor highlights global, domestic economic resilience at IMF meeting
  • Al-Sayari speaks of organization’s critical role

WASHINGTON DC: Ayman Al-Sayari, the governor of the Saudi Central Bank, emphasized on Friday the resilience of the global economy despite ongoing challenges.

Speaking at the International Monetary and Financial Committee during the IMF and World Bank Group annual meeting, he noted positive signs of growth and a gradual decrease in inflation, but cautioned about rising global sovereign debt, calling for credible fiscal and debt management reforms to sustain financial stability.

Al-Sayari highlighted the International Monetary Fund’s critical role in fostering consensus and supporting international trade by countering protectionist practices.

He praised the body’s policy advice and technical assistance as essential for countries seeking economic resilience.

Al-Sayari also spoke of the Kingdom’s robust non-oil growth, low inflation, record-low unemployment, and solid banking sector as outcomes of Vision 2030’s economic transformation agenda.

Since the beginning of the COVID-19 pandemic Saudi Arabia has provided over $36 billion in development assistance and contributed more than $200 million to the IMF’s Poverty Reduction and Growth Trust’s Subsidy Account, he added.

He concluded by stressing the importance of multilateral cooperation to tackle rising debt and economic vulnerability in low-income nations, warning that inaction risked a global debt crisis that could destabilize the financial system.


Riyadh’s population to hit 9.6m by 2030, driving demand for 305k new homes: Knight Frank

Riyadh’s population to hit 9.6m by 2030, driving demand for 305k new homes: Knight Frank
Updated 25 October 2024
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Riyadh’s population to hit 9.6m by 2030, driving demand for 305k new homes: Knight Frank

Riyadh’s population to hit 9.6m by 2030, driving demand for 305k new homes: Knight Frank

RIYADH: Saudi Arabia’s capital Riyadh is poised for significant population growth, with the number of residents projected to rise from 7 million in 2022 to 9.6 million by 2030, according to a new report.

London-based real estate consultancy Knight Frank projects that the city’s population will comprise 4.1 million Saudis and 5.5 million expatriates by the end of the decade, marking a 38 percent increase driven by a compound annual growth rate of 4.1 percent.

This will drive a need for 305,000 additional housing units for Saudi nationals between 2024 and 2034, driven by household formation, increased homeownership, and internal migration from other regions.

The forecast predicts greater growth than envisaged by World Population Review, which in April used UN figures to put Riyadh’s 2030 population at 8.5 million.

The Knight Frank report anticipates a significant rise in the expat population in Riyadh, which on current figures makes up approximately 52.3 percent of the city’s total population. 

It projects an increase of 1.85 million expats by 2030, followed by an additional 2.3 million by 2034. As a result, the ratio of Saudi nationals to non-Saudis is expected to decline from 0.92 in 2022 to 0.75 by 2030.

This shift is primarily driven by the rising demand for expat workers needed to support the construction of large-scale developments and manage the new facilities in Riyadh.

Estimating housing demand from this group is challenging due to variations in household sizes, according to Knight Frank, but 77 percent of expats indicated a desire to own their homes in a previous survey conducted by the firm.

Riyadh’s growth is underpinned by Saudi Arabia’s Vision 2030, which aims to diversify the economy and increase global investments. Currently, Riyadh makes up 21.8 percent of the Kingdom’s total population, with 17.8 percent of Saudi nationals living in the capital.

With the Regional Headquarters Program encouraging multinational companies to relocate their regional operations to Saudi Arabia, Riyadh has naturally become the focal point for economic activity.

This initiative, combined with significant infrastructure and urban development projects, is driving both the expatriate and Saudi populations to rise.

Major projects, such as the New Murabba and Diriyah Gate, are further establishing Riyadh as the center of Saudi Arabia’s transformation.

Riyadh is also gearing up for Expo 2030 and World Cup 2034, which will see the construction of eight out of 11 new stadiums. To support this growth, the King Salman International Airport will be established, along with Riyadh Air, connecting the capital to 100 global cities.

According to the Ministry of Investment’s latest report, the capital led foreign direct investment inflows in 2023, attracting SR33 billion — positioning Riyadh as the leading administrative region.

This growth reflects the city’s role as both the Kingdom’s political and economic powerhouse, where investor confidence is bolstered by large-scale developments and strategic government initiatives.

With 62 percent of the population under 30 according to Knight Frank, the city is focused on providing new housing, employment opportunities, and recreational options to meet the demands of its young and rapidly growing demographic.

Riyadh’s workforce to expand by 39 percent by 2034

Knight Frank forecasts the number of working-age Saudi nationals in Riyadh will increase by about 1 million over the next decade, reaching 4.2 million, which corresponds to a compound annual growth rate of 2.8 percent.

If internal migrants relocate to Riyadh for work, this could add another 275,000, resulting in a total workforce growth of 36 percent.

As of the first quarter of 2024, the employment-to-population ratio for working-age Saudi nationals is 54.3 percent, suggesting that around 510,000 new local employees may enter the workforce by 2034.

With an estimated existing workforce of 1.7 million Saudis in the region, overall growth could yield an increase of 16 percent to 23 percent by 2030 and 29 percent to 39 percent by 2034, depending on the scale of internal migration.

During this recent period, new workforce entrants were primarily absorbed by the private sector and government-related entities, while employment in the civil service has remained stable, the report said.

According to latest figures from the World Bank, female labor force participation has reached 34.5 percent, exceeding the Vision 2030 target of 30 percent and prompting a new goal of 40 percent by 2030.

Both government and private sectors are implementing legal reforms and initiatives to empower women, with programs focusing on women’s roles in economic development.

Companies such as Red Sea Global are prioritizing gender diversity, with women occupying significant positions across various departments.

Meeting future demand

Riyadh’s new housing supply comes from four main sources, including the Ministry of Housing, which oversees affordable projects through the National Housing Company and private firms.

There are also government developments led by the Public Investment Fund and Roshn, private sector initiatives from real estate companies, and self-development by families purchasing land for construction.

Currently, about 330,000 housing units have been announced by government-related entities.

The projected demand from Saudi nationals is estimated at 220,000 units from 2024 to 2030 and 305,000 units from 2024 to 2034, suggesting that current construction efforts align with expected housing needs.

Knight Frank reported that significant commercial real estate development is underway in Riyadh to support a projected 32 percent increase in office space and a 24 percent rise in retail space by 2030, driven by an expanding workforce and a growing expat population.

The urgency for new projects across sectors like financial services, transport, storage, and ICT is underscored by tight market conditions.

Riyadh accounts for 30 percent of Saudi Arabia’s financial and business services output and 39 percent of transport, storage, and ICT output, reinforcing its status as a key hub for innovation and economic activity.