Saudi GDP to receive $3bn boost after raft of deals at Local Content Forum
Updated 21 November 2024
MIGUEL HADCHITY
RIYADH: Saudi Arabia launched initiatives and signed 15 agreements at the Local Content Forum, boosting domestic industries with an estimated SR12.4 billion ($3.3 billion) impact on gross domestic product.
The deals, signed on the first day of the three-day event in Riyadh, span multiple strategic sectors, including manufacturing, technology, and transportation.
The Local Content and Government Procurement Authority launched several initiatives aimed at driving the localization of key industries, aligning with broader economic goals.
The agreements include partnerships designed to localize manufacturing, transfer knowledge, and foster innovation, the Saudi Press Agency reported.
Key deals included:
Two agreements with Saudi National Automotive Manufacturing Co. to localize and transfer knowledge for multi-purpose vehicles and light transport vehicles.
Five agreements with NAFFCO for the localization of firefighting products, including dry powder extinguishers, trailer-mounted pumps, complete personal breathing devices, various types of fire extinguishers, and fire hoses.
Agreements with Alfanar and Hewlett Packard Enterprise to localize and transfer knowledge for data center servers.
A deal with InnovEra to localize manufacturing and knowledge transfer of directional devices.
An agreement with Al-Salah Arabia to localize the manufacturing of bridge expansion joints.
A partnership with Saffen Co. for the localization of oxygen sensor production.
A deal with SAJA Pharmaceutical Co. for the production of “Empagliflozin.”
An agreement with Coastal Co. to localize stadium seat manufacturing.
Wattenha program
Sadara Chemical Co. launched its “Wattenha” program, highlighting its contribution to Saudi Arabia’s localization efforts. The program aims to support domestic suppliers, develop human capital, and enhance manufacturing capabilities.
In the first half of 2024, Sadara reported a local content rate of 50.25 percent, surpassing industry benchmarks, with SR3 billion spent on Saudi procurement.
Locally manufactured products made up 43 percent of its offerings, and Saudization reached 77.8 percent, according to a press release.
A notable achievement is Sadara’s pipeline system connecting its facilities to the PlasChem complex, which supplies critical raw materials like ethylene oxide and propylene oxide, reducing costs and reliance on imports.
Logistics and transportation
Saudi Arabia Railways, in partnership with LCGPA, launched a SR15 billion Saudization program in the sector. This initiative, unveiled by Minister of Transport and Logistics Saleh Al-Jasser, aims to localize manufacturing, boost operational efficiency, and create up to 3,000 jobs by 2030.
The minister emphasized that this program reflects the partnership between SAR and the private sector, in collaboration with the LCGPA, according to SPA.
Automotive manufacturing
The forum also highlighted the Kingdom’s plans for the automotive industry, including the goal to produce 500,000 vehicles annually by 2030.
Ongoing negotiations with Hyundai underline Saudi Arabia’s commitment to becoming a hub for automobile manufacturing.
The Global Supply Chain Resilience Initiative, valued at SR100 billion, is driving 95 strategic projects, with a focus on value chain development and export promotion. Additionally, three automotive manufacturing complexes were announced, furthering the localization of this critical sector.
Diverse initiatives
The forum featured discussions on the future of local content in industries such as agriculture, energy, and industrial services. Programs introduced by the LCGPA aim to reduce reliance on imports, enhance local supply chain resilience, and foster innovation.
The “Golden Category” of the Made in Saudi program was also launched, aimed at integrating local suppliers into global supply chains and highlighting Saudi-made products on the world stage.
The initiative, overseen by the Saudi Export Development Authority, promotes local products and supports exports.
Minister of Investment Khalid Al-Falih emphasized that local content is a crucial driver of the economy, impacting key industries such as energy, industry, and tourism, among others.
He highlighted that achieving growth targets requires a highly competitive investment climate, with the private sector playing a vital role in boosting the Kingdom’s exports while meeting the demands of its growing economy.
Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef further emphasized the importance of locally produced products that offer high quality and competitive advantages as a key requirement for achieving local content goals and maximizing its economic impact.
During his remarks at the forum, Alkhorayef stated that local content is one of the central pillars for achieving Saudi Arabia’s Vision 2030, as its development directly influences the execution of the initiative’s programs.
Alkhorayef also discussed the significant role of the private sector in advancing local content development, noting that the LCGPA implements local content through fostering strategic partnerships and facilitating the Local Content Coordination Council.
This council includes several major national companies, which have worked closely with the authority to increase local content in their operations and procurements.
GAMI localization on the up
Governor of the General Authority for Military Industries, Ahmed bin Abdulaziz Al-Ohaily revealed that the localization of military spending has reached 19.35 percent, compared to just 4 percent in 2018.
GAMI aims to localize over 50 percent of government spending on military equipment and services by 2030. Additionally, the number of licensed and authorized establishments in the military industries sector has increased to 296 by the third quarter of 2024.
Al-Ohaily highlighted the authority’s initiatives to establish supply chains in the sector, bolster military procurements from local companies valued at SR13 billion, and support the manufacturing of locally produced unmanned aerial vehicles, defensive systems, and fast attack boats.
This announcement came on the second day of the Riyadh event during GAMI’s top official’s participation in a panel discussion titled “Government Efforts in Enhancing Local Content,” part of the forum in Riyadh.
Al-Ohaily emphasized that local content development is a key priority under Saudi Arabia’s Vision 2030, with GAMI contributing to the growth of the sector.
The local content percentage in companies operating within the military industries sector has reached 38 percent, contributing SR5 billion to GDP.
To improve governance and attract investor confidence, GAMI has launched 11 policies and regulations for the sector. These efforts aim to boost local content, build new manufacturing and service capabilities, and create high-quality employment opportunities.
Further supporting local content development, the authority has signed over four framework agreements covering 70 product categories, including approximately 80 percent of military apparel, equipment, arms, and ammunition.
The total value of these contracts is estimated at SR1 billion, achieving a 20 percent cost savings. It is expected that the value of these agreements will grow to SR1.6 billion, all of which will be spent within the local market.
Additionally, domestic manufacturers have been supported through streamlined licensing processes and attractive investment environments for both national and international companies.
The initiatives include applying a zero VAT rate on locally manufactured military goods, providing financial incentives, and establishing industrial zones.
GAMI has signed more than 53 industrial participation programs valued at nearly SR35 billion with both local and international companies, including SR13 billion in local purchase orders.
Al-Ohaily also highlighted the GAMI’s investment in digital transformation technologies to develop local products that meet military market demands.
This includes the launch of a unified platform for military industries, integrating all services provided to beneficiaries, automating processes, and leveraging data science and artificial intelligence to forecast demand for military products and services.
Additionally, GAMI collaborates with the General Authority for Defense Development’s “JADD” platform on research and development programs for defense products, utilizing the latest digital transformation techniques and reverse engineering.
In 2022, GAMI launched a human resources strategy for the military industries sector, establishing the National Military Industries Academy, which annually accommodates 2,000 students in technical and engineering disciplines.
Moreover, an expatriation and scholarship program, along with educational and training initiatives, has benefited more than 850 employees working in the private sector.
‘We believe stability and peace are a prerequisite to prosperity,’ says Saudi minister of economy ahead of WEF
Global economy needs a more stable Middle East, Faisal Alibrahim said ahead of World Economic Forum annual meeting in Davos
The Saudi minister of economy and planning discussed FDI inflow, giga-projects and need for “common ground”
Updated 22 min 25 sec ago
Reina Takla
RIYADH: A stable Middle East is crucial for global prosperity, according to the Saudi minister of economy and planning, who also underlined the Kingdom’s commitment to being a reliable partner for economic growth.
Speaking to Arab News ahead of the World Economic Forum annual meeting in Davos, Switzerland, Faisal Alibrahim said: “We believe in stability and peace as a prerequisite for prosperity, and we believe in the global economies’ need for a more stable Middle East.”
He emphasized that the Kingdom’s own transformative journey plays a significant role in fostering regional stability and prosperity.
“We see our role internally, in unlocking our potential as an economy and society. (We also see) its clear and direct impact on the region’s stability and prosperity,” he said.
Alibrahim conveyed a message of confidence and reassurance. “The message that I would share on top of that is that the Kingdom is a long-term, reliable partner, and will always work toward shaping a prosperous future,” he said.
“If you keep that in mind, and then you keep in mind the opportunities that are being created in the Kingdom with this transformation, you’ll see that there is no better place to invest for results, both commercially and financially but also from an impact point of view, than the Kingdom today.”
He encouraged investors to recognize the significant opportunities that the Kingdom’s transformative journey presents.
Attracting foreign investment
Alibrahim emphasized the Kingdom’s commitment to attracting $100 billion in foreign direct investment (FDI) by 2030, but stressed that the focus is on attracting high-quality, long-term, value-creating investments that contribute significantly to the Kingdom’s economic growth and development.
“Our target is still 5.7 percent of GDP in 2030, which amounts roughly to $100 billion of inflow in 2030. That’s why the National Investment Strategy was launched, and since it was launched, we’ve been exceeding our yearly targets, consistently,” he said.
While acknowledging the challenges, Alibrahim expressed confidence in achieving this target, saying: “This is a long-term journey and we need to continue working with our partners, continue working intra-governmentally to figure out more ways where we can make sure that the momentum we have in attracting foreign capital will continue.”
He highlighted the importance of continuous policy refinement and a proactive approach to identifying and addressing potential roadblocks.
Acknowledging the recent trends in FDI inflows, Alibrahim noted that while 2023 saw figures exceeding initial targets, the first three quarters of 2024 showed a slight decline to around SR17 billion. “We’ll continue to monitor how it progresses, and see what the latest numbers are,” he said.
However, he emphasized that these figures should be viewed within the context of a long-term trajectory. He pointed out that many of the transformative projects undertaken as part of Vision 2030 have long lead times, and their impact on FDI inflows will become increasingly evident in the coming years.
Reiterating the Kingdom’s commitment to creating a conducive environment for foreign investment, he said: “The Kingdom’s approach to unlocking its potential, involves really rewriting the economic playbook.”
He added: “This is not just about investments or the government spending money. This is about creating an environment that’s vibrant, that attracts capital, attracts minds to the opportunities that are being created in the Kingdom led today by the government. Tomorrow, ultimately, we want the private sector to lead it.”
This vision necessitates a continuous process of reform and adaptation, Alibrahim said, adding: “This means that reform is a daily exercise.”
The Kingdom is actively working to enhance its competitiveness by streamlining regulations, improving the ease of doing business, and fostering a more conducive environment for both domestic and international enterprises.
Emphasizing the importance of private-sector engagement, Alibrahim said: “Many laws are being revised. Many laws are being taken to public consultation, and at the heart of all of this is engagement with the private sector and with investors to understand that these laws and the reforms and the regulations, as they evolve, are exactly, what is needed.”
Faisal Alibrahim discussed attracting investment into the Kingdom and how the economy can be shielded from shocks with Arab News ahead of the World Economic Forum annual meeting in Davos. (AN Photo)
Shielding economy from shocks
Alibrahim acknowledged the inherent challenges posed by the interconnected nature of the global economy. “It’s important to keep in mind that we are shifting the structure of the Saudi economy,” he said. “We’re shifting from an economic structure that relied heavily on oil inflows for its economic activity, to one where we will continue to rely on inflows, but not in the same manner.”
This fundamental shift, according to him, is crucial for mitigating the impact of external shocks and building a more resilient economy.
Highlighting the encouraging growth of the non-oil sector as evidence of this ongoing transformation, he said: “Non-oil activities today represent 52 percent of our total real GDP. Non-oil growth for the last three years on average is 6 percent.
“Our ambition is to take it even further. We are closing 2024 with non-oil growth at 3.9 percent. (In) 2025, we project it to be 4.8 percent. (In) 2026, the Ministry of Economy and Planning projects it to be 6.2 percent.”
He said these figures demonstrated the Kingdom’s progress in restructuring its economy in the right direction.
According to Alibrahim, however, navigating the complexities of the global economy requires a proactive and adaptable approach. “As we shift, whatever plays into our risk assessment is shifting as well,” he said. “In the past, anything that affected the oil market will directly affect our ability to operate as an economy. Today that is shifting.”
He emphasized the importance of continuous monitoring and proactive risk assessment to anticipate and mitigate potential challenges. “The name of the game, in our view, is agile policymaking, more engagement and more institutional capabilities, engaging with all constituents, being agile in decision-making and continuously investing in your institutional capabilities so that you can have better quality policy responses,” he said.
Of ambition and prudence
Acknowledging the ambitious nature of the Kingdom’s giga-projects, Alibrahim emphasized the need for a balanced approach. “What’s critical is to keep in mind that to achieve vision 2030, we started the planning with confidence like you said, but also delivering with optimism, and we believe optimism is a choice,” he said.
“It’s a decision. It’s a design input. It’s not just a gut or emotional reaction or a feeling, but more importantly, managing with prudence.”
He cited the impressive growth of the tourism sector, exceeding initial targets, as a testament to the Kingdom’s ability to effectively plan and execute ambitious initiatives.
“We had the target of 100 million visitors in 2030. We reached 100 million seven years early. Today, that number has been increased to 150 million.”
This remarkable achievement demonstrates the Kingdom’s capacity to successfully plan, implement and even surpass ambitious goals, according to Alibrahim.
Still, he reiterated the need for evaluation and adjustments. “On top of that, we wanted to make sure as we got more knowledgeable and are aware of how to manage the economy and economic management, we don’t want to create value leakage like what happened before in the 1980s,” he said.
“We also don’t want to overheat the economy and create an inflation environment that might hurt the private sector, the existing private sector or other players outside of these projects, so a decision to revisit how fast we go without really affecting the pace and scale of overall Vision 2030 was looked at.”
These adjustments reflect a commitment to responsible and sustainable development, according to Alibrahim.
He recognized that while the tourism sector has exceeded expectations, other factors, such as the emergence of new projects, necessitate a careful review of timelines and resource allocation.
“In parallel, new inputs came in. We won hosting the Asian Cup for 2027, Asian Winter games in Trojena 2029, World Expo 2030, World Cup 2034. We’re hosting the world twice in four years very soon,” he said.
These new opportunities, while exciting, require careful consideration and integration into the overall development plan, according to Alibrahim.
“We just concluded for the first time a long-term fiscal exercise,” he said. “We decided to shift things. There is agility in decision making, there is prudence in management, and we’re not ashamed to talk about that.”
To ensure the successful and sustainable execution of these ambitious projects, Alibrahim stressed the importance of quality and sustainability. “We need to make sure that the optimal value creation for the local economy (and) minimizing the impact of creating an inflationary environment on the economy as well as in the private sector and then using innovation and using these opportunities to invite quality investors and quality partners that can come in and set up shop,” he said.
He also underscored the need for clarity and transparency in these large-scale projects. “For the first time in a long time, we do have clarity on the types of projects that we will have and what kind of partners we need, which is clarity that the private sector always seeks,” he said.
This clarity, in his opinion, creates an opportunity to attract international partners with the expertise and resources to deliver high-quality infrastructure projects while maximizing knowledge transfer and minimizing risks. “Infrastructure in general is a sector that we see will be witnessing a lot of investment in the Kingdom,” he said.
Saudi Arabia heads to Davos
Saudi Arabia’s delegation to the WEF annual meeting in Davos this year will feature for the first time a “Saudi House.” This centralized hub will serve as a meeting point for government officials, business leaders and other stakeholders participating in the forum.
Saudi House was designed to bring together all the government entities that are participating in Davos in one convenient location, Alibrahim said.
Using this opportunity to create a positive impact on the global economy, he will champion a key call in Davos for global leadership to move beyond tepid economic growth and embrace a more ambitious, “intrepid leadership-led” approach.
Rewriting the economic playbook: A new era of growth
Alibrahim spoke of the importance of realizing that the Kingdom’s approach to unlocking its potential involves “rewriting the economic playbook.”
This ambitious undertaking extends beyond attracting investment; it’s about cultivating a dynamic and vibrant ecosystem that attracts both capital and talent, according to him.
“This is not just about investments or the government spending money,” he said, elaborating the point. “This is about creating an environment that’s vibrant, that attracts capital, attracts minds to the opportunities that are being created in the Kingdom led today by the government.”
This vision necessitates a continuous process of reform and adaptation, Alibrahim said, adding: “This means that reform is a daily exercise.”
He said the Kingdom is actively working to enhance its competitiveness by streamlining regulations, improving the ease of doing business, and fostering a more conducive environment for both domestic and international enterprises.
A global growth platform
Alibrahim asserted that Saudi Arabia has emerged as a leading global growth platform. “What’s critical for us is the strengths that the Kingdom has in the past,” he said.
He highlighted a key differentiator, saying: “Every country has its strengths, and we need to build on these strengths to transform.”
He explained that while many countries rely primarily on either natural resources or human capital, the Kingdom possesses a unique advantage by leveraging both. This unique combination of abundant natural resources and a dynamic human capital base sets the Kingdom apart from many other emerging markets.
Furthermore, he emphasized the Kingdom’s strategic advantages. “We have a large land area that can be leveraged for (diverse) projects, including AI. We have access to natural resources, specifically cleanest hydrocarbon energy globally, but also renewable energy of the cheapest wind and solar globally delivered by the private sector.
“We also have green hydrogen investments working on blue hydrogen, working on many other sources,” said. These abundant and diverse energy resources provide a strong foundation for sustainable economic growth and attract significant investment in clean energy technologies.
Alibrahim also highlighted the Kingdom’s human capital as a key driver of growth. “We also have access to a talent pool that is today Saudi based,” he said. “Sixty-three percent of the population is below the age of 30, a young and dynamic population full of optimism and full of energy.”
He drew attention to the Kingdom’s strategic location and its growing global influence. “Keep in mind the Kingdom’s location connecting three continents and the Kingdom’s leadership role in the global issues, also connecting the world and helping the world to shape a more prosperous future,” he said.
During the interview with Arab News, the minister underlined the Kingdom’s commitment to being a reliable partner for economic growth. (AN Photo)
Strategic partnerships
The growing significance of strategic partnerships with leading global financial institutions is an important aspect to consider, according to Alibraim. “The Kingdom today is a global investment powerhouse that’s leveraging on its diplomatic determination, economic potential, resources with natural and human,” he said.
While the Kingdom has long-standing relationships with many global financial institutions, the nature of these partnerships is evolving.
“What’s different today is that we’re seeing a lot of these firms when we talk about investment firms, we’re looking at the Kingdom as not just a source of capital, but as a capital of opportunities,” he said.
He maintained that leading global financial institutions are increasingly recognizing the Kingdom not just as a destination for investment, but as a partner in growth and development. “They want to invest in the Kingdom,” he said.
He also mentioned the growing confidence of international investors in the Kingdom’s economic transformation. “Almost 571, if I’m not mistaken, multinational companies, investment and otherwise, have signed to re-establish their or establish the region headquarters in the Kingdom well beyond our targets for 2030, six seven years ahead (of schedule).”
This significant influx of multinational companies serves as a powerful testament to the growing attractiveness of the Kingdom as a business and investment hub, he added.
Alibrahim reiterated the long-term nature of these partnerships and the Kingdom’s commitment to fostering mutually beneficial collaborations. “But more importantly, the Kingdom has always been and will continue to be a long-term, reliable partner, so what’s happening in the Kingdom is going to create a lot of opportunities for anyone who wants to come and truly shape what the future looks like,” he said.
Saudi leadership imperatives
When asked about successful leadership, Alibrahim outlined three key imperatives: a long-term vision, unwavering optimism, and a commitment to building strong institutions.
He spoke of the importance of a long-term perspective, saying: “In the Kingdom, when we started with Vision 2030, it came from a long-term view, and I’m going to always refer to the vision as an evidence and example because we’re living it, so the first thing is having a long-term horizon and continuously thinking with a long-term view,” he said.
According to him, this long-term vision serves as a guiding principle, ensuring that all decisions and initiatives are aligned with the Kingdom’s overarching goals and aspirations.
Furthermore, Alibrahim pointed to the importance of clarity in the planning and effective communication in driving progress. “This is a day-in, day-out exercise that we need to continue living in order to be in a better position to achieve our ambitions,” he said.
“Today in the Kingdom, Vision 2030 has been going on for eight years, and it still feels like the same energy momentum as when it was launched. In fact, maybe some people say it’s even more energy and more momentum.”
Finally, Alibrahim highlighted the crucial role of strong institutions in supporting sustainable development and long-term prosperity. “To continue investing in building institutional capabilities. This is a long-term investment. This is something that will serve the generations to come. Stronger institutions mean better economic performance,” he said.
A common ground
The importance of finding and fostering common ground in an increasingly interconnected yet fragmented world was pointed out by Alibrahim.
“We were in Berlin a few months ago. The theme was Common Ground. We talked about it in Davos two or three years ago. In the blog post, we pushed the common ground is what keeps people at the table, and we need to make sure we maintain that common ground and fight for protecting that common ground, but also work constructively to grow it,” he said.
According to Alibrahim, the global landscape is evolving with increasing trade fragmentation and a shift away from hyper-globalization. “The world is shifting,” he said. “There is more trade fragmentation. Hyper globalization has ended. Today we have a new kind of globalization.”
This new reality necessitates a renewed focus on dialogue and collaboration, he said, adding: “All this means that dialogue is going to be essential, and at the heart of the dialogue is keeping our mind on what we have in common and how we can grow that as we move forward.”
Saudi Arabia to showcase $100bn aviation investment opportunities at WEF
Updated 19 January 2025
Reem Walid
RIYADH: Saudi Arabia’s General Authority of Civil Aviation is set to present over $100 billion in investment opportunities at the World Economic Forum in Davos, taking place from Jan. 20 to 24.
The Saudi House Pavilion will serve as the venue for showcasing critical aviation projects, encompassing airports, airlines, cargo logistics, and ground services, according to GACA statement.
These initiatives are central to the Kingdom’s ambitious strategy to establish itself as a global aviation hub.
According to the statement, at the heart of the presentation will be the allocation of $50 billion for the expansion and modernization of major airports. An additional $40 billion will be dedicated to new aircraft acquisitions, while $10 billion will be directed toward creating advanced logistics hubs at key airports in Riyadh, Jeddah, and Dammam.
Mohammed Al-Khurais, GACA’s executive vice president of strategy and business intelligence, underscored the scope of the investments.
“Saudi Arabia is offering aviation opportunities on an unprecedented scale. Through our ambitious Saudi Aviation Strategy, we aim to triple passenger traffic, expand to 250 destinations, and handle 330 million passengers and 4.5 million tonnes of cargo annually.”
The pavilion, organized by the Ministry of Economy and Planning, will host high-level discussions and key announcements. Among the speakers will be Abdullah Al-Dubaikhi, Saudi Arabia’s assistant minister of investment, as well as executives from major aviation players, including Archer Aviation and Jeddah Airport.
The GACA statement said panel discussions will focus on high-profile projects such as the King Salman International Airport in Riyadh, a sprawling mega-hub featuring six runways. There will also be dialogue surrounding public-private partnerships aimed at upgrading regional airports.
Beyond traditional infrastructure, the showcase will explore emerging sectors within aviation, such as cargo and logistics, Advanced Air Mobility, and business aviation.
This forward-thinking approach highlights Saudi Arabia’s commitment to not only modernizing its air transport network but also shaping the future of global aviation.
The Saudi pavilion will serve as a dynamic platform to present the Kingdom’s economic vision, fostering collaboration between global leaders, innovators, and investors, the statement said.
Aviation, positioned as a cornerstone of Saudi Arabia’s Vision 2030, is expected to play a pivotal role in transforming the Kingdom into a leading force in the global aviation industry.
Kingdom’s ‘Saudi House’ to showcase transformation in Davos
Saudi Minister of Economy and Planning Faisal Alibrahim sees WEF annual meeting as a platform for dialogue and collaboration
Says centralized hub to serve as meeting point for Saudi government officials, business leaders and other stakeholders
Updated 49 min 45 sec ago
Reina Takla
RIYADH: This year, the Saudi delegation to the annual meeting of the World Economic Forum in Davos, Switzerland, will feature, for the first time, a “Saudi House.”
The centralized hub will serve as a meeting point for government officials, business leaders, and other stakeholders participating in the forum.
“Saudi House was designed to facilitate the participation of all the (Saudi) government entities taking part in Davos in one location,” Faisal Alibrahim, the Saudi minister of economy and planning, said in an interview with Arab News.
“We think putting everyone in one place will create the vibrancy that can demonstrate and echo the vibrancy we are seeing here in the Kingdom.”
Speaking ahead of the trip, he spoke of the importance of the Davos summit as a platform for dialogue and collaboration.
“We’re going there because the Kingdom today is a more integrated player,” Alibrahim said.
“We’ve learned more about what we need to do and what we need to achieve, but we also learned more about what we can offer to our partners, to people from all around the world,” he added.
Using this opportunity to create a positive impact on the global economy, Alibrahim will champion a key call in Davos for global leadership to move beyond tepid economic growth and embrace a more ambitious, “intrepid leadership-led” approach.
“Today, the world is looking at two things that sometimes can be seen as in conflicting directions,” he said. “One, we’re at this tepid growth trajectory today, between 2.7 percent and 3.2 percent, according to the World Bank or the IMF, and we’ve been in this economic stalemate for a few years for various reasons.”
He highlighted the stark contrast between this sluggish economic growth and the immense potential unlocked by technological advancements and innovation.
Alibrahim argued that a new era of “intrepid leadership-led” growth is essential to bridge this gap. “We need bold leadership,” he said. “We need to move from tepid growth to intrepid leadership-led growth that can really bring the two together and unlock the potential of the globe. That’s the wider theme.”
This is part of a full interview with Alibrahim, which discussed the importance of a stable Middle East for global prosperity, attracting foreign investment, how the Kingdom is shielded from external shocks and geopolitics, and balancing ambitious giga-projects with prudence, among other topics.
Saudi Arabia issues nearly 522K commercial records in 2024
2024 saw 368,038 registrations from establishments and 153,931 from companies
Number of commercial records granted in 2023 was 368,038
Updated 19 January 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia experienced a 60 percent increase in commercial records in 2024, with a total of 521,969 issued, compared to the previous year, according to the Ministry of Commerce.
The number of commercial records granted in 2023 was 368,038, the ministry said in a statement outlining its achievements for 2024.
Last year, there were 368,038 registrations from establishments and 153,931 from companies, bringing the total number of active commercial records in the Kingdom to 1,606,169.
This comes as Saudi Arabia is driving economic diversification to reduce reliance on oil, aiming to boost the private sector’s share of gross domestic product from 40 percent to 65 percent by 2030.
Central to this transformation is cultivating an economy fueled by entrepreneurship and innovation, with small and medium enterprises expected to increase their contribution from 20 percent to 35 percent by the end of the decade.
The ministry said the 2024 registrations encompassed a wide range of economic activities, with wholesale and retail trade, construction, accommodation, food services, and manufacturing industries, dominating the list.
Over the past three months, the Kingdom’s commercial records have experienced remarkable growth, driven by the implementation of the New Companies Law, which came into effect in early 2023. The rule introduced significant reforms to facilitate business processes and foster a more dynamic corporate environment.
By the end of the third quarter of 2024, commercial records surged to 389,413, up from 230,762 before the law’s enactment, according to the ministry.
Key reforms under the rule include streamlined procedures for establishing joint-stock companies, remote participation for shareholders, and enhanced financing options, such as allowing limited liability companies to issue debt instruments.
The changes have simplified company formation and introduced flexible financing avenues, reshaping the corporate landscape.
The law also promotes broader ownership by easing the purchase of shares and equity stakes. Notable innovations include the introduction of a simplified joint-stock company model and provisions accommodating non-profit organizations. Additionally, reforms enable sole proprietorships to transition into any company type, modernize rules for mergers and transformations, and allow for company splits.
Small and micro enterprises benefit from reduced compliance burdens, as they are exempt from the requirement of an external auditor.
The law also enhances digital services, facilitating remote shareholder meetings and decision-making. Furthermore, it removes restrictions across all stages of company formation, operation, and dissolution.
Closing Bell: Saudi main index rises to close at 12,331
Updated 19 January 2025
Reem Walid
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 75.81 points, or 0.62 percent, to close at 12,331.87.
The total trading turnover of the benchmark index was SR5.39 billion ($1.43 billion), as 148 of the stocks advanced and 78 retreated.
Similarly, the Kingdom’s parallel market Nomu gained 101.41 points, or 0.32 percent, to close at 31,600.12. This comes as 49 of the listed stocks advanced, while 38 retreated.
The MSCI Tadawul Index gained 10.75 points, or 0.70 percent, to close at 1,546.53.
The best-performing stock of the day was Saudi Cable Co., which debuted on the main market on Sunday, with its share price surging 9.85 percent to SR113.80.
Other top performers included Middle East Specialized Cables Co., with its share price rising 6.43 percent to SR45.50, and Zamil Industrial Investment Co., which saw its share price surge 5.65 percent to SR36.45.
Saudi Reinsurance Co. recorded the biggest drop, with its share price falling 2.27 percent to SR56.00.
Almoosa Health Co. saw its stock price decline by 2.60 percent to SR138.20, while Wataniya Insurance Co.'s share price dropped 1.75 percent to SR25.20.
On the announcements front, Almarai Co. reported its consolidated financial results for the year ended Dec. 31. According to a Tadawul statement, the company posted a net profit of SR2.3 billion in 2024, marking a 12.8 percent increase compared to 2023. This growth was driven by higher revenue, disciplined cost control, and a favorable product mix.
Despite the positive results, Almarai Co.’s share price ended the session at SR58.50, down 1.72 percent.
City Cement Co. has signed a natural gas supply agreement with Saudi Aramco under the supervision of the Liquid Fuel Displacement Program. According to a bourse filing, the agreement aligns with efforts by the Ministry of Energy and the Ministry of Industry and Mineral Resources to achieve the program's objectives.
The filing also noted that the shift from liquid fuel to natural gas is expected to reduce emissions from the company’s production processes and enhance operational reliability. The financial impact of the agreement will be disclosed at a later date.
City Cement Co.’s share price closed the session at SR18.80, up 1.17 percent.
Saudi Arabian Mining Co., or Ma’aden, has provided an update on the development of its third phosphate fertilizer manufacturing project. According to a Tadawul statement, none of the associated contracts involve related parties, and the financial impact of these contracts remains unclear and will be disclosed once available.
Ma’aden’s share price closed the session at SR48.60, up 1.66 percent.
