Saudi banks shift focus to debt markets during sukuk surge

Saudi banks shift focus to debt markets during sukuk surge
Saudi Arabia was the world’s largest sukuk issuer in 2024. Shutterstock
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Updated 21 March 2025
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Saudi banks shift focus to debt markets during sukuk surge

Saudi banks shift focus to debt markets during sukuk surge

RIYADH: As Saudi Arabia’s financial system turns increasingly to debt markets for funding, it will face new opportunities and increased risk in relation to its stability and resilience, experts told Arab News.

The growth of sukuk issuance and other debt market activities are essential to the Kingdom’s economic diversification targets and objectives set out in the Vision 2030 initiative.

Saudi Arabia raised SR2.64 billion ($704 million) through sukuk issuances in March, following the SR3.07 billion secured in February and SR3.72 billion in January. 

A report by Fitch Ratings in February showed that the Kingdom holds the largest share of the Gulf Cooperation Council’s debt capital market — which itself surpassed the $1 trillion milestone at the end of January.

This represented a 10 percent year-on-year growth across all currencies. 

Another report by Fitch earlier this year showed that Saudi Arabia became the largest dollar-denominated debt issuer in emerging markets  — outside China — and the world’s largest sukuk issuer in 2024. 

The Kingdom’s debt capital market grew by 20 percent year on year in 2024, reaching $432.5 billion in outstanding debt.

Funding uses

Saudi Arabia uses sukuk issuance as a mechanism to finance giga-projects such as NEOM, the Red Sea, and Qiddiya, which collectively require hundreds of billions of dollars in funding.

Ian Khan, a technology futurist and author, said this highlights the Kingdom’s commitment to Islamic finance as a driver of sustainable development.

“Sukuk aligns with Vision 2030 by attracting both domestic and international ethical investors, particularly from markets in Southeast Asia, the Middle East, and North Africa. Additionally, sukuk’s structure, which ties returns to tangible assets, ensures that funds are channeled into real economic activities such as renewable energy, infrastructure, and technology, all of which are cornerstones of Saudi Arabia’s diversification agenda,” Khan said.




Ian Khan, a technology futurist and author. Supplied

“Furthermore, by developing its domestic sukuk market, the Kingdom reduces its dependence on oil revenues, which currently account for over 50 percent of GDP,” he said.

Khan emphasized that sukuk also supports green finance initiatives, with Saudi entities already issuing green sukuk to fund renewable projects such as the 300 MW Sakaka Solar Project.

Risks and rewards

According to Mohammad Nikkar, principal at Arthur D. Little Middle East, reports published by the Kingdom’s central bank highlight the capitalization strength of the Saudi banking system.

“However, an overreliance on external funding such as debt markets could potentially weaken the credit quality of the banking system, highlighting the need for more prudent risk management,” he said.

There is no doubt that as the focus shifts toward debt markets, new dynamics and opportunities emerge.

“As the sector progresses toward 2030 and beyond, the increasing reliance on debt markets necessitates continued regulatory vigilance and the implementation of robust risk management practices to maintain overall stability and resilience,” Nikkar said.




Mohammad Nikkar, principal at Arthur D. Little Middle East. Supplied

Khan said that the Kingdom’s sovereign bond issuances have been met with strong global demand, with oversubscriptions often exceeding several billion dollars, reflecting investor confidence in the country’s economic reforms.

“However, the increasing exposure to external debt introduces risks, particularly if global interest rates rise or oil revenues fluctuate significantly,” he said.

The author went on to emphasize that to address these challenges, the Saudi Central Bank is likely to strengthen regulatory frameworks and risk buffers, ensuring that banks maintain adequate capital and manage foreign currency risks effectively.

According to Edmond Christou and Basel Al-Waqayan, analysts at Bloomberg Intelligence, the increasing reliance on debt markets will improve the resilience of Saudi Arabia’s banking sector by diversifying funding sources and providing more stable capital to support long-term project financing.

“With banks managing significant duration and liquidity risks, stable funding is critical for driving growth in key sectors aligned with Vision 2030. Senior unsecured paper, for instance, are issued at an average spread of 90 basis points above benchmark treasuries, while subordinated AT1 bonds range between 150–200 basis points,” the analysts told Arab News in a joint statement.

“In 2024, Saudi banks raised approximately $11.5 billion in debt markets, and they are on track to exceed that figure as they continue to finance major projects,” they added.

Martin Blechta, partner at Boston Consulting Group, explained that some of the largest and most recent issuances were done by AlRajhi Bank, Riyad Bank, and Banque Saudi Fransi, as well as Arab National Bank, Saudi Investment Bank, and Gulf International Bank, among others. For some, this was a first-time issuance.

“The increasing reliance on the debt market is an expected progression of the banking sector overall and very much on the strategic agenda of the Saudi Capital Market Authority aiming to expand the debt instrument market,” Blechta said. 

“Additional Tier 1 capital plays an important role in the capital structure of leading international banks and the recent developments in the Saudi banking sector are very much in line with that.” 

Vision 2030 alignment

From ADL’s point of view, Nikkar explained that by fostering a robust debt capital market, the Kingdom enables growth of alternative sources of funding — a pillar of its National Investment Strategy and aligned with Pillar 1 of the Financial Services Development Program.

The ADL partner added: “This expansion not only opens the country to more investments from international investors but also provides new opportunities for domestic investors to participate in the investment drive fueled by the country’s unprecedented infrastructure and flagship projects within Vision 2030.”

Christou and Al-Waqayan from Bloomberg Intelligence argued that growing focus on sukuk issuance and debt market activities is pivotal to support Saudi Vision 2030’s objectives of economic diversification and sustainable growth.

“A deeper and more developed local capital market attracts foreign investment flows, which are critical to supporting the Kingdom’s expanding economy. Initiatives such as last year’s Saudi ETF listing in Hong Kong and China, as well as the Lenovo deal are key to attract international capital,” the analysts said.

Blechta from BCG noted that banks are diversifying funding sources to match the changing nature of government and large corporate financing needs.

“The majority of large-scale projects are in need of very long-term debt that is typically USD-denominated, to increase international investor demand. Banks are accordingly matching this demand on their funding side. Interestingly, most recent Saudi bank debt issuances were heavily oversubscribed, which shows strong investor confidence in the Saudi banking sector overall,” the partner said.

“However, most demand for the SAR denomination was still domestic, while the USD titles have seen more international investor uptake,” he added.




Martin Blechta, partner at Boston Consulting Group. Supplied

Transformative effects on the Kingdom’s financial landscape 

The accelerating trend of Saudi banks looking toward debt markets is set to transform the Kingdom’s financial landscape,

From ADL’s perspective, Nikkar believes that this shift is likely to deepen the capital markets, enhance liquidity, and introduce a wider array of financial instruments to market participants, thereby attracting a more diverse group of investors.

“The Saudi debt capital market is poised to exceed SR2 trillion outstanding over the next few years, driven by government projects under Vision 2030, deficit funding, diversification efforts, and ongoing reforms,” he said.

“This substantial growth indicates a maturing financial market capable of supporting large-scale economic initiatives. Collectively these developments will foster a more dynamic and diversified financial services ecosystem in Saudi Arabia,” the ADL representative added.

Additionally, the accelerated shift of Saudi banks toward debt markets will fundamentally transform the Kingdom’s financial landscape by enabling greater sophistication, resilience, and competitiveness.

From Khan’s point of view, Saudi banks hold an average capital adequacy ratio that provides a strong foundation for leveraging debt markets without compromising financial stability.

The shift coincides with the Kingdom’s efforts to develop the domestic capital markets, as evidenced by initiatives such as the Saudi Stock Exchange reforms and the Financial Sector Development Program.

Khan believes this trend is likely to have a transformative effect on the expansion of debt market instruments.

“Saudi banks are increasingly involved in issuing corporate bonds, sukuk, and hybrid instruments to diversify their funding sources. This diversification reduces reliance on short-term deposits, thereby enhancing long-term stability,” Khan said.

The trend will also lead to greater integration with global markets, technology and innovation in finance, and enhanced environmental, social and governance alignment.

On integration with global markets, Khan said: “Participation in international debt markets has already attracted significant foreign investments. For instance, Saudi Arabia’s $10 billion green bond issued in 2023 was oversubscribed threefold, reflecting investor confidence. This global integration will help Saudi banks build stronger partnerships and access lower-cost capital.”

With regards to technology and innovation in finance, he believes the way debt instruments are issued and traded will be transformed, saying: “The Kingdom is embracing fintech to streamline debt market activities. For example, digital sukuk issuance platforms and blockchain-based systems are being explored to enhance transparency and efficiency.” 

Khan added: “The rise of ESG-focused investments, particularly green bonds and sukuk, will push Saudi banks to prioritize sustainable finance. This aligns with Vision 2030 goals of achieving net-zero emissions by 2060 and attracting investors who prioritize sustainability.” 

Bhavya Kumar, managing director and partner at BCG, believes that an increasing reliance on debt markets presents opportunities and risks for the Kingdom’s banking sector.

“While it supports Saudi’s broader economic goals under Vision 2030 by diversifying funding sources — reducing dependency on deposits, improving risk management practices required to meet international investor expectations, and fostering financial market development — it also introduces vulnerabilities related to market volatility, leverage, and systemic risks,” Kumar said.


Saudi crude output hits 8.95m bpd: JODI data 

Saudi crude output hits 8.95m bpd: JODI data 
Updated 6 sec ago
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Saudi crude output hits 8.95m bpd: JODI data 

Saudi crude output hits 8.95m bpd: JODI data 

RIYADH: Saudi Arabia’s crude oil production rose to 8.95 million barrels per day in February, marking a 0.34 percent monthly increase, according to the latest release from the Joint Organizations Data Initiative. 

Crude exports also climbed during the same period, rising 7.81 percent to reach 6.55 million bpd, the report showed.  

Refinery crude exports rose by 5.39 percent month on month in February to 1.41 million bpd, reflecting a 1.29 percent increase compared to the same period last year. The uptick was driven primarily by diesel shipments, which jumped 24.4 percent from the previous month to 668,000 bpd. 

Key refined products included diesel, motor gasoline, aviation gasoline, and fuel oil. Diesel accounted for the largest share of refined product exports at 47 percent, followed by motor and aviation gasoline at 18 percent, and fuel oil at 14 percent. 

Total refinery output reached 2.62 million bpd in February, a 6.6 percent monthly increase, with diesel comprising 40 percent of refined products, motor and aviation gasoline 24 percent, and fuel oil 14 percent. 

Domestic demand for refined petroleum products fell by 69,000 bpd in February compared to the previous month, reaching 1.71 million bpd. On an annual basis, demand dropped by 22.09 percent, equivalent to a decline of 485,000 bpd.  

On April 3, eight OPEC+ countries — including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman — reaffirmed their commitment to supporting oil market stability amid a positive demand outlook. 

In a virtual meeting, the group agreed to implement a production increase of 411,000 bpd in May 2025, representing a front-loaded adjustment equivalent to three months of scheduled increments. The move marks the beginning of a phased and flexible reversal of the 2.2 million bpd in voluntary cuts introduced in 2023, in line with the decision reaffirmed in March. 

OPEC+ emphasized that the pace of future increases may be paused or reversed depending on market conditions, with monthly meetings scheduled to assess conformity and decide on subsequent production levels. According to the latest schedule, Saudi Arabia’s required production for May is set at 9.2 million bpd. 

Direct crude usage 

Saudi Arabia’s direct crude oil burn rose to 283,000 bpd in February, reflecting a 2.9 percent increase from January, but showing a 21 percent decline compared to the same month last year. 

The reduction in direct crude oil use for power generation is influenced by multiple strategic and economic factors. 

According to the US Energy Information Administration’s 2024 report, 62 percent of Saudi Arabia’s electricity was generated from natural gas in 2023, up from previous years — a shift that has significantly reduced the country’s reliance on crude oil for power generation. The expansion of gas-fired capacity has played a central role in this transition. 

The International Energy Agency’s 2024 Oil Market Report also highlighted that Saudi Arabia is actively expanding its electricity generation capacity through both natural gas and renewable energy sources, in alignment with Vision 2030. 

Supporting this trend, the Saudi Power Procurement Co. awarded bids in 2023 for four gas-fired power plants, each with a capacity of 1.8 gigawatts, and began accepting bids for four additional projects in early 2024. As of mid-2024, the Kingdom has more than 21 GW of planned renewable energy projects, the majority of which are focused on solar power. 


Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 

Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 
Updated 20 min 33 sec ago
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Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 

Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 

RIYADH: Saudi Arabia has overtaken Singapore as the premier destination for venture capital funds across emerging markets after it secured $391 million in the first quarter of 2025.

The 53 percent year-on-year rise helped propel the Kingdom to becoming the highest-performing country across the Middle East, Africa, Pakistan, Turkiye, and Southeast Asia in terms of total funding during the three-month period, as revealed in the latest analysis by venture data platform MAGNiTT. 

While the standout $160 million series E round by fintech unicorn Tabby contributed significantly to the overall figure, the broader investment ecosystem showed resilience with non-MEGA deal funding, which are transactions below $100 million, rising 9 percent quarter-on-quarter. 

“This consistency signals a strengthening pipeline backed by sovereign LPs (limited partners) like SVC (Saudi Venture Capital), a growing cohort of accelerators, and successful exits like Rasan’s IPO (initial public offering),” according to MAGNiTT’s report. 

Saudi Arabia leads MENA funding and deal activity 

Saudi Arabia led the EVMs and continued its dominance in the Middle East and North Africa region. 

The Kingdom captured 58 percent of all MENA venture funding and accounted for 41 percent of transactions, far outpacing regional peers. 

According to MAGNiTT, the Kingdom achieved an 87 percent year-on-year increase in non-mega deal funding and a 437 percent rise in series A and B rounds, supported by sizable transactions such as those by Ula.me and Merit Incentives, each raising $28 million. 

The rise in Saudi venture capital investment comes amid a broader rebound in the MENA region. 

Total funding across MENA reached $678 million in the first quarter of 2025, a 58 percent increase year on year, despite a 21 percent decline in deal count to 133 transactions. 

The surge was supported by improved investor sentiment following late 2024 interest rate cuts across the Gulf, along with sustained sovereign fund activity and flagship ecosystem initiatives such as LEAP 2025. 

In terms of historical share, Saudi Arabia’s ascent has been significant. It expanded its share of MENA venture funding to 58 percent in the first quarter of the year, up from 39 percent in 2024 and 51 percent in 2023. 

This upward trajectory has positioned the Kingdom as the central engine of regional VC activity, reversing a period during which the UAE held the lead. 

The ecosystem shift also reflects a structural change in capital allocation. The first quarter saw non-mega deals rise for the fourth consecutive quarter, and early-stage investments in series A and B rounds increased by 50 percent quarter-on-quarter. 

In contrast, Southeast Asia reported its weakest early-stage quarter in seven years, with Singapore’s funding falling by 61 percent year on year to $377 million. 

The gap signals a shift in global investor preference as capital increasingly flows toward markets like Saudi Arabia, where macroeconomic stability, proactive policy, and institutional backing provide a conducive environment for venture growth. 

With 54 deals completed, the Kingdom reported the smallest year-on-year decline in deal count among the region’s top three markets, supported by a robust early-stage pipeline. 

Fintech dominates sector activity 

Fintech remained the most active and well-funded sector across MENA, particularly in Saudi Arabia, contributing 30 percent of all deals and capturing 57 percent of total regional funding. 

The sector saw a 362 percent year-on-year increase in funding, totaling $384 million, driven by Tabby’s $160 million MEGA round and strong underlying demand for digital finance solutions. 

Notably, 35 percent of all fintech deals in the first quarter of 2025 were in the $5 million to $20 million range, up 24 percentage points from the same period last year, demonstrating increasing maturity and scalability across the sector. 

Enterprise Software was the second most transacted and funded vertical, propelled by activity in Saudi Arabia and the UAE, accounting for 75 percent of all sector deals. 

Within this segment, the productivity apps sub-sector achieved record performance with six deals, including Merit Incentives’ $28 million and Qeen.ai’s $10 million rounds. The enterprise category posted a 112 percent annual growth in funding to reach $61 million. 

Saudi Arabia drives top-tier transactions and investor participation 

While deal volume across MENA dropped 21 percent year on year to just 133 transactions — one of the lowest quarterly figures in five years — Saudi Arabia defied the trend, maintaining strong early-stage momentum.

MAGNiTT noted that deal activity in the up to $1 million bracket declined 8 percentage points year on year to just 31 percent, while deals in the $5 million to $20 million and over $20 million brackets saw increases of 4 percentage points and 3 percentage points, respectively. 

This reallocation of capital reflects investors’ growing appetite for scale-ready startups in more advanced funding stages. 

Pre-seed to pre-series A activity in the Kingdom saw a 14 percent increase, highlighting the nation’s strengthening foundation for long-term growth. 

The shift in capital allocation patterns also reinforced Saudi Arabia’s strategic focus. 

The share of deals in the $1 million to $5 million range rose to 46 percent, the highest proportion in five years, mirroring a broader pivot across MENA toward larger, more scalable investment opportunities. 

Simultaneously, the lowest-value ticket size, $0 to $1 million, fell to 31 percent of deals, down 8 percentage points from the previous year. 

Five of the region’s 10 largest deals originated from the Kingdom, including Tabby’s round, the sole mega deal of the quarter, alongside significant rounds by Zension, with $30 million and Merit Incentives. 

According to MAGNiTT, this concentration of large-ticket transactions underscores the depth of investor confidence in the Saudi startup ecosystem.

Investor engagement in the Kingdom was also evident in the breakdown of top deals. The nation hosted more top-10 deals than any other MENA country, with fintech leading as the most represented industry. 

Blue Pool Capital and Hassana Investment Co. emerged as the most prominent backers, jointly deploying an estimated $53.3 million across key transactions, with fintech accounting for four of the top 10 deals. 

Exit environment strengthens on record M&A activity 

Saudi Arabia’s momentum was further underscored by a robust exit environment, with the MENA region recording 21 exits, up 163 percent year on year, marking the strongest quarter for mergers and acquisitions since MAGNiTT began tracking. 

The Kingdom’s IPO pipeline also improved, adding another layer of attractiveness to its startup ecosystem. 

While the regional rebound was attributed to easing inflation, improved liquidity, and pre-US tariff optimism, MAGNiTT emphasized that: “Saudi Arabia’s IPO and M&A momentum are now integral to the region’s exit environment.” 

Despite this surge, the median time to exit via M&A lengthened to six years, up from five in 2024, reflecting continued challenges for early-stage startup liquidity. 

Geopolitical risks introduce uncertainty to venture outlook 

Despite strong regional performance, MAGNiTT highlighted emerging risks that could disrupt momentum. 

“While Q1 2025 was a positive start to the year … that momentum is now under threat,” said Philip Bahoshy, CEO of MAGNiTT. 

He added that the new US tariff policies have created uncertainty in both the public and private markets over the last couple of weeks, which can create a challenge for decision-makers who are likely to be in a risk-off mindset.

“In venture capital, this uncertainty is likely to impact three areas: the deployment of capital from LPs to VCs, VCs’ willingness to make decisions in uncertain times, and finally, startups’ ability to raise funds,” said Bahoshy.

He noted that while global volatility persists, long-term fundamentals in EVMs remain strong. 

“Despite global headwinds, emerging venture markets continue to present compelling long-term opportunities. MENA, in particular, is uniquely positioned for sustained growth thanks to deep pools of local capital, pro-entrepreneurship policy, and active sovereign support,” Bahoshy added. 

“As global investors diversify beyond traditional markets, regions like MENA and Southeast Asia are poised to attract fresh capital — particularly in tech-led sectors that are strategically positioned and less exposed to tariff volatility,” the CEO said.


Real estate demand in Saudi Arabia’s two holy cities hits $2bn

Real estate demand in Saudi Arabia’s two holy cities hits $2bn
Updated 22 April 2025
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Real estate demand in Saudi Arabia’s two holy cities hits $2bn

Real estate demand in Saudi Arabia’s two holy cities hits $2bn
  • High-net-worth individuals eye real estate in Makkah and Madinah as Saudi property sector gains momentum

RIYADH: Saudi Arabia’s real estate sector continues to draw international attention, with high-net-worth individuals from nine Muslim-majority countries preparing to commit $2 billion toward property purchases in Makkah and Madinah, according to a new survey. 

The findings, part of Knight Frank’s latest Private Capital Report, show that 84 percent of global HNWIs surveyed expressed interest in acquiring property in Saudi Arabia — with a clear preference for its two holy cities. 

Nearly half, or 48 percent, of those respondents said they plan to use homes in Makkah as their main residence, pointing to a shift toward long-term occupancy rather than seasonal or purely investment-driven holdings. 

The trend comes as Saudi Arabia overhauls its property sector to position itself as a global tourism and business hub by the decade’s end, in line with its Vision 2030 diversification strategy. 

Faisal Durrani, partner and head of research for the Middle East and North Africa at Knight Frank, said: “The region’s sustained economic growth, underpinned by ambitious national visions and strategic policy reforms, has reinforced its position as a global investment hub.” 

Durrani added that real estate remains a preferred investment vehicle for ultra-high-net-worth individuals seeking to preserve wealth. “Across the MENA region, demand for prime and super-prime homes has reached unprecedented levels, fueled by both local and international buyers seeking security, stability and long-term growth,” he said. 

Earlier this month, S&P Global said the outlook for Saudi Arabia’s property sector remains positive in the near term, driven by population growth, rising tourism, and Vision 2030-led initiatives. The Real Estate General Authority projects the market to reach $101.62 billion by 2029, with a compound annual growth rate of 8 percent starting in 2024. 

UAE draws global wealth 

Regionally, the UAE continues to attract high-net-worth migration. Knight Frank noted that 7,200 millionaires relocated to the country in 2024, boosting its total resident population of affluent individuals to 134,000. 

The report also found the number of dollar millionaires in the UAE stood at 130,500 as of December 2024, ranking it the 14th largest wealth market globally. The emirates also host 325 centi-millionaires — those with liquid wealth exceeding $100 million — and 28 billionaires. 

According to Knight Frank, 31 percent of the millionaires who moved to the UAE over the past decade came from India, followed by 20 percent from the Middle East and 14 percent from Russia and the Commonwealth of Independent States. 

“With a record-breaking 142,000 millionaires forecast to change their domicile globally in 2025, the UAE stands poised to capture a significant share of this wealth migration wave, strengthening its status as a wealth hub that has successfully transitioned from regional player to global force,” said Dominic Volek, group head of private clients at Henley & Partners, in a statement.  

Luxury sales surge in Dubai 

Wealth migration is translating into a property boom in Dubai, now the world’s most active market for $10 million-plus home sales for two consecutive years, ahead of London and New York. 

In 2024, the city recorded 435 ultra-luxury home transactions, compared to 434 the previous year. A record 153 such deals were closed in the fourth quarter of 2024 alone, while the first quarter of 2025 saw another 111, up 5.7 percent from the same period last year. 

“Dubai’s luxury residential market continues to defy gravity. Demand, particularly from international buyers, remains unrivaled on the global stage,” said Durrani. “In 2024 alone, Dubai not only led the world in the number of $10 million-plus home sales, but also topped total transaction value, with 435 deals worth $7.1 billion.” 

“Dubai has firmly established itself as the global epicenter for ultra-luxury real estate – surpassing legacy markets like New York, London and Hong Kong. It’s a staggering achievement for a market that, until recently, was considered relatively young,” he added. 

Palm Jumeirah retained its position as Dubai’s premier ultra-prime location, recording 34 transactions worth more than $10 million in the first quarter of 2025, with a combined value of $562.8 million. 

Emirates Hills followed, with 15 deals totaling $356.7 million. 

“Dubai has cemented its position as a premier destination for HNWI seeking real estate for personal use or for investment purposes, with a distinct focus by the global elite on making the city a permanent base or a second home,” said Nicholas Spencer, Knight Frank’s partner- Private Capital and Family Enterprises, MENA.  

Broader MENA trends  

In the wider region, Knight Frank said Qatar’s residential market is also drawing interest from GCC nationals and GCC-based expatriates. 

The firm identified $537.5 million in private capital globally that is actively seeking residential real estate in Qatar. 

Meanwhile, Egypt’s real estate market remains a key area of interest for GCC investors. 

“GCC investors’ interest in Egypt’s second homes market underscores the country’s appeal as a prime real estate destination. The combination of lifestyle benefits, potential for high rental yields, affordability and strong strategic ties to the GCC all add to the country’s allure,” added Knight Frank. 


Key tourism roles to be localized in Saudi Arabia as part of national employment push 

Key tourism roles to be localized in Saudi Arabia as part of national employment push 
Updated 22 April 2025
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Key tourism roles to be localized in Saudi Arabia as part of national employment push 

Key tourism roles to be localized in Saudi Arabia as part of national employment push 

JEDDAH: Hotel managers, travel agency directors, and tour guides are among 41 tourism roles set to be reserved for Saudi nationals under plans to boost local employment and reduce reliance on foreign labor. 

In coordination with the Ministry of Tourism, the Ministry of Human Resources and Social Development announced the decision, highlighting that the move targets leadership and specialist jobs in the private sector. 

Other roles earmarked for this localization designation include planning and development supervisors, tourism development specialists, procurement and sales professionals, and hotel receptionists.

The initiative is part of a broader labor market strategy to boost Saudization, a program launched in 2011 to increase domestic employment in the private sector through industry-specific quotas. 

It has helped reduce Saudi unemployment from 12.8 percent in 2018 to 7.1 percent by mid-2024, surpassing the Vision 2030 goal of 8 percent. The Kingdom has set a new target of 5 percent unemployment by 2030.

In a post on his X account, Tourism Minister Ahmed Al-Khateeb reaffirmed his ministry’s commitment to job localization in partnership with the private sector. He also emphasized ongoing efforts to train and equip national talent through top local and international institutions to ensure a world-class tourism experience.

He said: “We are proud that our young men and women have become the frontlines of the tourism sector, conveying our culture and embodying the values of warmth, generosity, and authentic Saudi hospitality in their interactions with the Kingdom’s guests.”

This program will launch in three phases, starting on April 22, 2026 with the full Saudization of four tourism roles, 70 percent localization for 12 positions, and 50 percent for another 12. 

The second stage, set to begin on Jan. 3, 2027, will implement a 30 percent localization rate for one specific role.

Starting Jan. 2, 2028, the final step will focus on localizing 50 percent of leadership positions within the sector. 

In a post on his X account, Human Resources and Social Development Minister Ahmed Al-Rajhi said: “This move comes as part of the continued efforts by the Ministry of Human Resources and Social Development to support national talent and enhance their participation in the labor market, in line with the objectives of Saudi Vision 2030.”

The most recent localization push came in January, when the Ministry of Human Resources and Social Development, in coordination with the Ministry of Health, announced new Saudization targets for the pharmaceutical sector. 

Starting July 27, community pharmacies and medical complexes must reach a 35 percent Saudization rate, hospitals 65 percent, and other pharmacy-related businesses 55 percent. The regulations will apply to companies with five or more pharmacy professionals.


Oil Updates — prices rise on short-covering, but tariff worries linger 

Oil Updates — prices rise on short-covering, but tariff worries linger 
Updated 22 April 2025
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Oil Updates — prices rise on short-covering, but tariff worries linger 

Oil Updates — prices rise on short-covering, but tariff worries linger 

SINGAPORE: Oil prices climbed on Tuesday as investors took advantage of the previous day’s losses to cover short positions, although concerns persisted over economic headwinds from tariffs and US monetary policy that could dampen fuel demand, according to Reuters. 

Brent crude futures rose 42 cents, or 0.6 percent, to $66.68 a barrel at 09:20 a.m. Saudi time. The US West Texas Intermediate crude contract for May, which expires on Tuesday, was at $63.53 a barrel, up 45 cents, or 0.7 percent. 

The more actively traded WTI June contract was up 0.7 percent, or 45 cents, at $62.86 a barrel. 

Both benchmarks dropped more than 2 percent on Monday, as signs of progress in nuclear deal talks between the US and Iran helped ease supply concerns. 

“Some short-covering emerged after Monday’s sharp sell-off,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities. 

“However, concerns about a potential recession driven by the tariff war persist,” he said, predicting that WTI will likely trade in the $55–$65 range for the time being given ongoing uncertainty related to tariffs. 

On Monday, US President Donald Trump repeated his criticism of Federal Reserve Chair Jerome Powell and said the US economy could slow unless interest rates were lowered immediately. 

His comments about Powell fuelled worries about the Fed’s independence in setting monetary policy and the outlook for US assets. Major US stock indexes dropped and the dollar index slid to a three-year low on Monday. 

“The growing uncertainty surrounding US monetary policy is expected to negatively impact financial markets and the broader economy, raising fears that it could lead to a decline in crude oil demand,” Kikukawa said. 

A Reuters poll on April 17 showed investors believe the tariff policy will trigger a significant slowdown in the US economy this year and next, with the median probability of recession in the next 12 months approaching 50 percent. 

The US is the world’s biggest oil consumer. 

Progress in talks between the US and Iran, which on Saturday agreed to begin drawing up a framework for a potential nuclear deal, could also weigh on oil prices and reduce supply concerns as the Middle Eastern country is a major producer. 

“Our view that Iran’s oil exports face imminent downside risks due to the enforcement of US sanctions has eased given ongoing talks between US and Iran,” Vivek Dhar, an analyst at Commonwealth Bank of Australia, said in a note, adding that US sanctions relief was potentially on the table. 

Meanwhile, Russia’s economy ministry has cut its forecast for the average price of Brent crude in 2025 by nearly 17 percent from what it saw in its September calculations, according to documents obtained by Reuters. 

US crude oil and gasoline stockpiles were expected to have fallen last week, while distillate inventories likely rose, a preliminary Reuters poll showed on Monday, ahead of weekly reports from the American Petroleum Institute and the Energy Information Administration.