Saudi Arabia launches incentives package to attract FDI in mining sector
Updated 25 March 2025
Nirmal Narayanan
RIYADH: Saudi Arabia has launched a new incentive package to attract foreign direct investments into the nation’s mining sector as the Kingdom steadily continues its economic diversification efforts.
According to a Saudi Press Agency report, the Ministry of Investment is collaborating closely with the Ministry of Industry and Mineral Resources through an exploration enablement program aimed at simplifying investments in the mineral exploration industry.
This initiative is also part of the Kingdom’s efforts to enhance exploration and create an attractive investment environment for local and international mining companies.
Speaking at the Future Minerals Forum in Riyadh in January, Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef said that the nation seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the country’s broader plans to establish mining as the third pillar of its industrial economy.
During the same event, Abdulrahman Al-Belushi, deputy minister for mining development at the Ministry of Industry and Mineral Resources, said that the Kingdom is projected to invest SR120 million ($32 million) in 2025 as mining incentives aimed at supporting companies with the right technical expertise.
Attracting international investments in the mining sector also aligns with Saudi Arabia’s ambitious goal to secure $100 billion a year in FDI by the end of this decade.
The latest collaboration between both ministries follows the granting of exploration licenses for multi-mineral sites in Jabal Sayid and Al-Hajjlah.
The licenses cover a total area of 4,788 sq. km. and companies are expected to spend approximately SR366 million ($97.6 million) on exploration over the next three years.
In 2024, Saudi Arabia revised upward estimates for its untapped mineral resources to $2.5 trillion from a 2016 forecast of $1.3 trillion.
In January, the Saudi Cabinet also authorized the Kingdom’s Ministry of Industry and Mineral Resources to sign a cooperation agreement with the World Economic Forum to implement a project aimed at securing critical minerals for development.
In the same month, Saudi Arabia also allocated five sites for establishing mining complexes in the Makkah and Asir regions as part of the Kingdom’s strategy to attract quality investments, enhance transparency, and support local communities.
Oman’s Islamic banking assets surge 17% to $22.3bn in 2024
Updated 4 sec ago
MIGUEL HADCHITY
RIYADH: Islamic banking in Oman continued its rapid expansion in 2024, with total assets reaching 8.6 billion Omani rials ($22.3 billion) by December — marking a 16.6 percent increase from the previous year, official data showed.
The segment now accounts for 19.2 percent of Oman’s total banking assets, according to data released by the Central Bank of Oman.
Financing extended by Islamic financial institutions grew by 14.2 percent to approximately 7 billion rials. Additionally, deposits at Islamic banks and windows jumped 21.3 percent, reaching nearly 6.7 billion rials by the end of December.
The steady growth of Oman’s Islamic banking sector reflects the rising demand for Shariah-compliant financial services and its expanding contribution to the country’s banking industry, CBO added.
Oman’s banking system comprises both conventional and Islamic banking services. Islamic banking is offered through standalone financial institutions and dedicated windows within conventional banks, which can be local or foreign entities licensed in Oman.
In May 2011, the CBO issued preliminary licensing guidelines to introduce Islamic banking in the Sultanate. This framework enabled full-fledged Islamic banks and Islamic windows to operate alongside conventional financial institutions.
The initiative was formally established in December 2012 through a Royal Decree that amended the Banking Law, mandating Islamic banks and windows to form their own Shariah supervisory boards. It also authorized the CBO to create a central High Shariah Supervisory Authority.
Following these developments, the CBO introduced the Islamic Banking Regulatory Framework in December 2012, alongside regulations governing the Hawala Settlement and Safeguard Account.
This initiative aligned with Oman’s broader economic strategy, promoting financial inclusion, economic diversification, and responsible financial practices.
Since its inception, Islamic banking in Oman has played a key role in advancing the objectives of Oman Vision 2040.
“This sector has played a vital role in augmenting national savings and investment, contributing to the development of a more diversified investment base and availability of wider range of financial products and services for consumers and businesses,” CBO said.
In November, Fitch Ratings forecasted continued growth in Oman’s Islamic finance sector, driven by increasing consumer demand, expanding distribution networks, greater use of sukuk for public funding, and ongoing regulatory advancements.
A key development in October was the CBO’s introduction of the Bank Deposit Protection Law, extending deposit protection to Islamic financial institutions — an essential step in bolstering confidence in the sector.
The agency added that strong economic conditions, improved asset quality, stable profitability, and solid capitalization position Islamic banks to withstand moderate financial shocks, despite regional geopolitical risks.
Saudi Arabia’s non-oil exports to UAE surge 10% in January: GASTAT
Updated 13 min 13 sec ago
Nirmal Narayanan
RIYADH: Saudi Arabia’s non-oil exports to the UAE rose to SR7.10 billion ($1.89 billion) in January, a nearly 10 percent monthly increase, highlighting the Kingdom’s push to diversify beyond oil revenues.
Machinery and mechanical equipment led the non-oil shipments at SR3.46 billion, followed by transport parts at SR1.74 billion, according to the General Authority for Statistics.
In December, Saudi Arabia’s non-oil shipments to the UAE totaled SR6.46 billion, down from SR7.17 billion in November and SR5.86 billion in October.
The rise in non-oil exports underscores the Kingdom’s progress in economic diversification, as it moves to reduce its decades-long reliance on crude revenues.
Affirming the non-oil private sector’s growth, Saudi Arabia’s Purchasing Managers’ Index reached 58.4 in February, according to the Riyad Bank Saudi Arabia PMI survey compiled by S&P Global.
In January, the Kingdom’s PMI stood at 60.5, its highest level in 10 years.
In the UAE, the PMI was 55 in February, while Qatar and Kuwait recorded 51 and 51.6, respectively.
At the World Economic Forum in Davos in January, Saudi Finance Minister Mohammed Al-Jadaan reiterated the Kingdom’s commitment to economic diversification under Vision 2030, emphasizing that growing non-oil gross domestic product remains a priority over traditional oil revenues.
According to the GASTAT report, Saudi Arabia also exported plastic goods worth SR307 million in January, followed by base metals at SR288.2 million and chemical products at SR266.2 million.
China was another major destination for the Kingdom’s non-oil goods, receiving SR2.22 billion worth of products.
Saudi Arabia exported plastic goods worth SR990.9 million to China, followed by chemical products at SR703.2 million.
India ranked third among non-oil export destinations, importing Saudi products worth SR2.00 billion in January, a 7.52 percent increase from the previous month.
Other top destinations for the Kingdom’s non-hydrocarbon goods in January were Turkiye, with a value of SR1.10 billion; the US at SR1.02 billion; and Qatar at SR763.6 million.
Egypt received non-oil goods valued at SR751.7 million in January, while exports to Kuwait and Belgium totaled SR646.9 million and SR632.2 million, respectively.
Overall non-oil exports
Saudi Arabia’s total non-oil exports in January reached SR26.48 billion, reflecting a 10.7 percent year-on-year increase.
In November, Saudi Arabia's Minister of Economy and Planning, Faisal Al-Ibrahim, stated that non-oil activities now account for 52 percent of GDP, with the sector growing at 20 percent annually since Vision 2030’s launch.
GASTAT noted that national non-oil exports, excluding re-exports, rose by 13.1 percent over the same period.
A December report by Mastercard Economics highlighted Saudi Arabia’s strong non-oil sector growth, forecasting a 3.7 percent GDP expansion in 2025 driven by further non-oil advancements.
Jeddah Islamic Sea Port was the primary exit point for non-oil goods in January, handling SR3.12 billion worth of shipments.
King Fahad Industrial Sea Port in Jubail and King Abdulaziz Sea Port in Dammam managed SR3.23 billion and SR2.50 billion in outbound goods, respectively.
Jubail Sea Port was the exit point for goods worth SR2.49 billion, followed by Ras Tanura Sea Port at SR1.65 billion and Ras Al Khair Sea Port at SR1.41 billion.
Via land, Al Batha Port processed SR1.89 billion in exports, while Al Hadithah Port handled SR706.5 million.
Among airports, King Khalid International Airport in Riyadh saw outbound shipments worth SR2.67 billion, followed by King Abdulaziz International Airport at SR2.26 billion.
King Fahd International Airport in Dammam handled SR286.9 million in exports.
Overall merchandise exports
Saudi Arabia’s total merchandise exports in January stood at SR97.18 billion, marking a 2.4 percent year-on-year rise.
The ratio of non-oil exports, including re-exports, to imports, increased to 36.5 percent in January from 35.7 percent in 2024.
However, oil exports declined by 0.4 percent year on year in January, reducing oil’s share of total exports from 74.8 percent in 2024 to 72.7 percent in 2025.
Saudi Arabia’s merchandise exports to Asia totaled SR75.43 billion in January, a 6.01 percent increase from the previous month.
Exports to Europe reached SR10.17 billion, followed by Africa at SR7.28 billion and North America at SR3.95 billion.
China was the top recipient of Saudi exports, receiving SR14.74 billion in January, a 20.32 percent increase from the previous month.
Other key destinations included India at SR10.60 billion, Japan at SR9.90 billion, and South Korea at SR9.05 billion.
Saudi Arabia’s exports to the UAE totaled SR8.44 billion, while outbound shipments to Egypt stood at SR2.84 billion.
Imports in January
Saudi Arabia’s imports rose 8.3 percent year on year in January 2025, reaching SR72.62 billion.
China remained the Kingdom’s top import source, supplying SR19.16 billion worth of goods, led by mechanical appliances and electrical equipment at SR7.95 billion.
The Kingdom imported transport products worth SR2.78 billion from China, followed by base metals at SR1.96 billion and textiles at SR1.19 billion.
Imports from the US totaled SR6.04 billion, while inbound shipments from the UAE and India stood at SR3.96 billion and SR3.80 billion, respectively.
Saudi Arabia also imported goods worth SR3.00 billion from Germany and SR2.48 billion from Egypt.
Japan supplied SR3.44 billion in imports, followed by Italy at SR2.41 billion and France at SR1.85 billion.
Sea shipments accounted for SR44.72 billion of total imports, while land and air imports stood at SR8.62 billion and SR19.27 billion, respectively.
King Abdulaziz Sea Port in Dammam was the leading entry point, handling SR20.92 billion in imports, or 28.8 percent of total inbound shipments.
Jeddah Islamic Sea Port followed with SR16.75 billion, while Ras Tanura Sea Port and King Abdullah Sea Port processed SR1.70 billion and SR1.11 billion, respectively.
On land, Al Batha Port and Riyadh Dry Port handled SR3.82 billion and SR2.52 billion in incoming goods, respectively.
Among airports, King Khalid International Airport in Riyadh received SR9.01 billion in imports, followed by King Abdulaziz International Airport at SR6.24 billion and King Fahd International Airport at SR4.00 billion.
Saudi maritime industry spurring global trade shift
Saudi Arabia advancing its shipbuilding and maritime technology through strategic partnerships
Updated 29 March 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia’s investment in its maritime sector could see a shift in global trade logistics that helps reduce reliance on traditional routes, leading industry figures have told Arab News.
With its strategic location at the crossroads of global trade, the Kingdom is positioning itself as an international logistics hub, enhancing its maritime infrastructure and embracing sustainability.
This drive is a key part of Saudi Arabia’s economic diversification initiative under Vision 2030, which seeks to reduce the Kingdom’s reliance on oil revenues.
In August, Omar Hariri, president of the Saudi Ports Authority, revealed that investments in the Kingdom’s maritime sector have exceeded SR25 billion ($6.66 billion) thanks to successful collaborations between his organization and private sector partners.
Hariri said that significant investments have been made over the past four years through partnerships with both national and international companies.
Speaking to Arab News, Pierroberto Folgiero, CEO of Fincantieri, one of the world’s largest shipbuilding companies, highlighted how Saudi Arabia’s investment in maritime infrastructure is influencing the future of global trade routes.
“By expanding its shipbuilding capacity and enhancing its logistics infrastructure, the Kingdom can address global supply chain bottlenecks, strengthen its maritime influence, and foster resilience in international trade flows,” he said.
Folgiero noted that Saudi investments in advanced maritime infrastructure could create alternative trade routes, reducing reliance on chokepoints like the Suez Canal, adding that his company sees this as an opportunity to apply its shipbuilding and maritime technology expertise.
“Investments in shipbuilding, ports, logistics, and shipping services have allowed the Kingdom to capitalize on its geographic advantages. Notable projects include the development of the King Salman International Maritime Industries Complex in Ras Al-Khair, set to become one of the world’s largest shipyards, and modernizing key ports such as the Jeddah Islamic Port and King Abdulaziz Port,” he said.
The CEO added that Saudi Arabia is also advancing its shipbuilding and maritime technology through strategic partnerships with global industry leaders.
We are leveraging the adoption of digitization, automation, and AI-driven solutions to optimize port operations and streamline the logistics chain.
Poul Hestbaek, Folk Maritime CEO
“These collaborations focus on transferring expertise and technology, accelerating the Kingdom’s evolution into an influential player in the international maritime and shipping sectors,” he said.
He pointed out that Saudi Arabia’s focus on smart ports, using automation, IoT, and AI, is central to its maritime strategy. These technologies will streamline trade, improve turnaround times, reduce costs, and boost transparency, making the Kingdom an attractive hub for global shipping and logistics companies.
In May, Fincantieri launched Fincantieri Arabia, a subsidiary with a focus on shipbuilding, maritime equipment and systems, and naval logistic support services, including training and simulation.
Folgiero said this expansion will contribute to localizing technology, creating jobs, and boosting Saudi Arabia’s global maritime presence.
National developments
It is not just established international companies that will benefit from Saudi Arabia’s growing maritime sector.
In 2024, the Public Investment Fund-backed Folk Maritime was launched, initially operating two routes, but that number has since doubled.
Poul Hestbaek, the former CEO of Hamburg Sud, has been tasked to lead the company.
Speaking to Arab News, he highlighted the Saudi government’s proactive steps to adapt its regulatory framework and attract global investors to the industry, noting that his company is fully aligned with these efforts to drive innovation in maritime trade.
“As Saudi Arabia modernizes its regulatory framework, we are leveraging the adoption of digitization, automation, and AI-driven solutions to optimize port operations and streamline the logistics chain. This transformation is enhancing Saudi Arabia’s position as an attractive destination for international investors,” he said. Hestbaek said that his company is playing a vital role in this transformation, particularly through its expanding fleet and direct liner services along strategic routes, including those connecting India to the Red Sea and the Gulf.
M/V Folk Jeddah was Folk Maritime Services Co. first vessel. (Supplied)
He also highlighted Folk Maritime’s role in improving cargo efficiency across key trade routes, including the Red Sea and the Gulf.
“As we increase regional shipping capabilities and expand our fleet, key economic indicators to watch include the growth in port throughput, the development of new shipping routes, and the rise in non-oil exports,” said the CEO.
Sustainable maritime operations
Achieving growth in the sector is not the only goal for Saudi Arabia. As Hestbaek emphasized, expansion has to be done in a sustainable manner.
Explaining how sustainability is at the core of his company’s operations, he said: “We are aligned with Saudi Arabia’s net zero carbon by 2060 goals, incorporating advanced green technologies into our fleet, using energy-efficient technologies to reduce emissions and optimize fuel consumption.”
Hestbaek noted the Folk Maritime’s commitment to decarbonization by adhering to international standards, prioritizing International Maritime Organization regulations, adopting alternative fuels, and replacing older vessels with eco-friendly ones like the M/V Folk Jeddah. The company also recently purchased 5,600 recyclable containers.
Ensuring secure, resilient operations
As the Houthi-led attacks in the Red Sea have demonstrated, security is an ever-present concern for the maritime industry.
Hestbaek highlighted Saudi Arabia’s multi-faceted approach to ensuring secure shipping lanes, addressing both physical and cyberthreats.
“The Kingdom works closely with international and regional partners to counter piracy and maintain secure sea routes in the Arabian Gulf, Red Sea, and beyond. Saudi Arabia has invested in state-of-the-art naval and coast guard assets, as well as enhancing port security to safeguard ships and cargo,” he said.
The CEO added that his company has a strategy to safeguard operations and collaborates with local and international authorities, adding that cybersecurity is a top priority for both Saudi Arabia and Folk Maritime.
“We are committed to safeguarding our fleet and digital infrastructure from emerging cyberthreats, implementing cybersecurity measures, such as secure communication channels, real-time monitoring systems, and advanced protocols for data protection and cargo tracking,” he said.
Maritime tourism
The maritime industry is more than just transferring goods from port to port.
As Fincantieri’s Folgiero said, Saudi giga-projects such as NEOM and the Red Sea are transforming the Kingdom’s cruise ship industry, aligning with Vision 2030’s goal of making Saudi Arabia an international tourism hub.
“Futuristic cities like The Line and Sindalah Island, alongside the eco-tourism focus of the Red Sea Project, offer bespoke and sustainable experiences that cater to the high-end travel market, sharpening Saudi Arabia’s competitive edge in the global tourism landscape,” he said.
Ensuring the Kingdom capitalizes on this, the PIF-backed Cruise Saudi was created in 2021, with an aim to attract 1.3 million passengers annually by 2035.
It also plans to generate 50,000 direct and indirect jobs in the cruise sector by 2035.
Cruise Saudi’s first ship, Aroya, which features 19 decks, 1,678 cabins and suites, and can accommodate up to 3,362 passengers, was launched in December at Jeddah Islamic Port.
RIYADH: The Middle East and North Africa’s startup ecosystem is ending the first quarter of 2025 with significant momentum, marked by high-value deals, strategic acquisitions, and international expansion plans across multiple industries.
From fintech innovation to food and beverage consolidation and media sector growth, these developments underscore the region’s evolving startup landscape and its increasing global influence.
Nayla Finance secures $4 million to transform SME lending in Saudi Arabia
Riyadh-based fintech startup Nayla Finance has raised $4 million in a seed funding round led by Sanabil Venture Studio by Stryber. The investment will support the company’s mission to address Saudi Arabia’s substantial small and medium-sized enterprises financing gap, estimated at $30 billion.
The funding includes $2.7 million allocated for micro-business debt financing.
Nayla Finance is deploying artificial intelligence and alternative data sources to develop credit scoring for small businesses, with particular emphasis on the food and beverage, e-commerce, and retail sectors.
The firm’s co-founder and CEO, Shaqran Alyahya, emphasized the company’s distinctive approach, saying: “We are building what others hesitate to — empowering important drivers of the Saudi economy with financial solutions designed for their reality.”
The startup’s digital-first platform eliminates traditional banking hurdles by offering streamlined applications, real-time risk assessment, and sector-specific financial products.
Nayla Finance leverages data-driven credit evaluation and a fully digital platform to streamline financing access for small businesses. (Supplied)
Nayla’s co-founder and chief risk officer, Khalid Naili, added: “By leveraging technology, alternative data, and advanced risk models, we are redefining creditworthiness and unlocking financing for businesses that drive the economy.”
The firm leverages data-driven credit evaluation and a fully digital platform to streamline financing access for small businesses, eliminating the bureaucratic hurdles associated with conventional banking systems.
Epik Foods acquires Sauce Capital in $15 million deal
UAE-based Epik Foods has made a strategic move to strengthen its position in the Gulf Cooperation Council’s food and beverage sector by acquiring Abu Dhabi’s Sauce Capital. The transaction was supported by $15 million in fresh funding from Ruya Private Capital. The acquisition creates one of MENA’s largest F&B operators, combining 75 brands under a single umbrella. It significantly enhances Epik’s presence in Saudi Arabia through Sauce Capital’s established operations in the Kingdom.
The expanded group now operates across 50 locations in the UAE, Saudi Arabia, and Oman, encompassing quick-service restaurants, digital food brands, meal kits, and catering services.
NKN Media secures $9.5 million for global growth
Dubai-based NKN Media has announced a significant funding milestone, having secured 35 million Emirati dirhams ($9.5 million) with plans to raise an additional 50 million dirhams.
This capital injection will fuel the company’s ambitious international expansion strategy, reflecting the growing influence of MENA-based media enterprises.
NKN Media is extending its successful Dubai Property Expo to leading global markets, including London, Turkiye, New York, and Moscow.
It is also launching several new intellectual properties, including the Ultimate Realty Awards in May, the third season of Icons of the UAE in September, and the Majlis Premium startup fundraising forum in October.
Growing at an excellent pace, our expansion reflects the demand for high-quality media experiences.
Abdul Majid Khan, Group CEO of NKN Media
Additionally, the company is expanding its presence in the inflight media sector, building on the success of its Spice Route magazine to capture premium travel audiences worldwide.
Group CEO of NKN Media, Abdul Majid Khan, said that the company was at a “defining moment in its journey.”
He added: “Growing at an excellent pace, our expansion reflects the demand for high-quality media experiences. With our recent success, we are not only scaling our flagship events but also venturing into new markets and media verticals.”
According to the CEO, the firm’s focus remains on “delivering impactful content and world-class events that drive business growth.”
He further noted that the next phase of NKN Media expansion would be about scale, innovation, and global reach.
The company benefits from partnerships with major networks, including India Today, Republic TV, and NDTV, along with operations in seven countries across the Middle East, Asia, and North America.
EHC Investment acquires Al-Fanar Gas Group
In a notable deal for the UAE’s energy sector, EHC Investment, through its energy arm Emirates International Gas, has completed the full acquisition of Al-Fanar Gas Group, Abu Dhabi’s largest gas distributor and maintenance provider. This strategic move significantly strengthens EHC’s position in the UAE’s evolving energy landscape.
The acquisition combines Al-Fanar Gas Group’s 30 years of market experience with EIG’s resources and vision, creating a powerhouse in gas distribution and infrastructure services.
Ali Al-Gebely, managing director and board member of EHC Investment, said: “This acquisition will allow us to strengthen that commitment while unlocking new avenues for growth and innovation.”
He added: “Together, we can utilize our combined capabilities to expand our reach and to pioneer next-generation solutions that meet the dynamic demands of our clients and contribute to the nation’s energy ambitions.”
The deal aligns with the UAE Energy Strategy’s goals of infrastructure modernization and operational efficiency enhancement.
Saudi Crown Prince issues directives to curb rising land prices and rents in Riyadh
Decision followed study carried out by Royal Commission for Riyadh City and Council of Economic and Development Affairs
Updated 29 March 2025
Arab News
RIYADH: In response to the rising land prices and rental costs in Riyadh, Crown Prince Mohammed bin Salman on Saturday directed a series of measures aimed at achieving stability in the real estate sector, the Saudi Press Agency reported.
The decision followed a study carried out by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, which assessed the challenges facing the market in the Saudi capital.
A key aspect of the directive will be the lifting of restrictions on land transactions and development in northern Riyadh.
The move will allow for the sale, purchase, division, and subdivision of land in designated areas, as well as the issuance of building permits, SPA reported.
The areas affected include a 17-square-kilometer section north of Riyadh, bordered by King Khalid Road to the west and Prince Saud bin Abdullah bin Jalawi Road to the south, as well as a 16.2-square-kilometer area north of King Salman Road, extending to Abu Bakr Al-Siddiq Road and Al-Qayrawan District.
These additions, combined with previously lifted suspensions covering 48.28 square kilometers, bring the total area now available for development in Riyadh to 81.48 square kilometers.
To increase housing accessibility, the RCRC has been tasked with providing planned and developed residential lands for citizens.
Between 10,000 and 40,000 plots will be made available annually over the next five years, at a capped price of 1,500 riyals per square meter. These plots will be offered to married citizens or individuals over the age of 25, provided they do not own any existing real estate.
Strict regulations will govern the issuance of this land, preventing resale, rental, or mortgage for 10 years, except when used to finance construction. If the land remains undeveloped within this period, ownership will revert to the government, with the buyer reimbursed.
To further stimulate real estate supply, amendments to the white land fees system — a policy designed to encourage the development of vacant land — will be introduced within 60 days.
Additionally, regulatory measures will be implemented within 90 days to ensure a fair balance between landlords and tenants.
Finally, the General Authority for Real Estate and RCRC have been assigned the task of monitoring and controlling property prices in Riyadh.
They will submit periodic reports to assess the effectiveness of these measures and ensure that the real estate market remains stable and accessible.
