Saudi Arabia gaming consumption expected to hit $6.8bn by 2030: BCG report
Updated 26 January 2022
Arab News
RIYADH: Saudi Arabia is poised to take a leading role in the gaming and Esports industry as consumption is projected to reach $6.8 billion by 2030, up from $959 million in 2020, according to a Boston Consulting Group report.
The report expected an average annual compounded growth rate of 22 percent for the Saudi gaming consumption.
“Despite the Kingdom being a relatively recent entrant to this space, the industry is vibrant and fast-growing, nevertheless,” Povilas Joniskis, a partner at BCG, said.
“Passionate gamers are primarily powering its growth and popularity at present, and it is more than feasible for them to embark on full-time careers and become involved on the international stage,” he added.
Saudi Arabia accommodates 23.5 million gaming enthusiasts, amounting to 67 percent of the national population, the report showed.
Despite the growth potential of the Kingdom, challenges await due to the landscape being in an early development stage compared to other international markets.
The report also revealed that lack of funding to compete full-time, scarcity of local competition, no clear pathway for gamers to become professional, and social stigma associated with choosing a career in gaming and Esports, constitute key barriers to the industry.
Saudi Arabia doubles funding to Union of Arab Chambers
Updated 5 sec ago
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia has doubled its financial contribution to the Union of Arab Chambers, a decisive move aimed at reinforcing regional economic integration and boosting private sector cooperation across the Arab world.
The Federation of Saudi Chambers announced the increase on Tuesday, stating that the expanded support will significantly enhance the UAC’s capacity to deliver programs and initiatives that empower the Arab private sector and foster closer economic ties among member states.
The decision underscores the Kingdom’s growing leadership role in regional economic affairs and comes at a time when calls for deeper intra-Arab collaboration are intensifying. A 2023 report from the UN Economic and Social Commission for Western Asia warned of declining exports and over-reliance on limited markets, urging Arab countries to diversify and strengthen intra-regional trade.
Despite shared economic interests, intra-Arab trade made up just 13.8 percent of the region’s total foreign trade by late 2024—a figure FSC President Moejeb Al-Hwaizy described as “modest” in comparison to other global economic blocs. Al-Hwaizy was elected first vice president of the UAC during its 135th session in Qatar.
The FSC noted that Saudi Arabia’s enhanced contribution reflects its “strategic responsibility” as the UAC’s largest financial backer and soon-to-be president. “This is an extension of the federation’s role in supporting the private sector at the local, regional, and international levels,” it said.
The Kingdom’s leadership in the UAC, founded in 1951 and comprising chambers from all Arab League member states, highlights its broader ambition to promote joint Arab economic action, unlock cross-border investment, and facilitate closer coordination among private sector leaders.
With several joint initiatives already underway, the FSC and UAC are working to boost intra-Arab trade and expand access to third markets through business partnerships and strategic cooperation.
As the only Arab country in the G20 and the region’s largest economy, Saudi Arabia’s growing influence in Arab economic institutions signals its continued commitment to fostering unity and resilience in a rapidly evolving global trade environment.
Saudi Arabia’s Matarat, Thales sign deal to transform air travel experience
Updated 19 min 15 sec ago
Arab News
RIYADH: Matarat Holding, the state-owned company responsible for managing Saudi Arabia’s airports, has signed a strategic agreement with French aerospace and defense giant Thales to advance the Kingdom’s aviation sector through cutting-edge digital technologies.
The agreement, formalized during the Passenger Terminal Expo 2025 in Madrid, Spain, focuses on enhancing innovation, operational efficiency, and the overall passenger experience across the Kingdom’s 27 airports.
According to a statement by Matarat, the partnership will leverage Thales’ expertise in artificial intelligence, biometrics, automation, and data-driven systems to develop safer, smarter, and more efficient travel journeys.
As part of the collaboration, advanced digital platforms and next-generation infrastructure will be deployed throughout Saudi Arabia’s airport network.
“This collaboration with Matarat Holding represents a revolutionary step in reimagining the future of the Saudi aviation sector,” said Bernard Roux, CEO of Thales in Saudi Arabia and Central Asia.
“By combining Thales’ digital transformation capabilities with Matarat’s operational excellence, we aim to build a smart and secure aviation ecosystem.”
Roux emphasized that the integration of AI, cybersecurity solutions, and connected systems will not only improve passenger experience and boost efficiency, but also enhance national security— contributing directly to the Kingdom’s Vision 2030 goal of becoming a global aviation leader.
In addition to technology deployment, the agreement includes knowledge-sharing initiatives, operational streamlining, and joint innovation efforts aimed at future-proofing the Kingdom’s aviation infrastructure.
Cairo plans economic independence as IMF program nears end
Updated 46 min 51 sec ago
Nour El-Shaeri
RIYADH: Egypt is preparing to transition away from its current economic reform program with the International Monetary Fund, which is scheduled to conclude by late 2026 or early 2027, according to the country’s prime minister.
Speaking during his weekly press conference, Mostafa Madbouly stated that the government is developing a long-term national economic strategy that will extend to 2030 and focus on sustaining growth without relying on international institutions, according to an official release.
The comments come as Egypt attempts to stabilize an economy that has struggled with record inflation, a depreciating currency, and mounting debt. Over the past few years, authorities have pushed through reforms to unlock external funding, including a major IMF deal, Gulf-backed investments, and a record sale of state assets.
In a release on its official social media handle, the Egyptian Cabinet quoted the prime minister as saying: “We are aiming to develop a national program for the Egyptian state without relying on other international institutions. This will be linked to submitting, for the first time next year, a three-year budget.”
In response to a question about the government’s vision beyond the current IMF program and its efforts to preserve the gains reflected in recent positive economic indicators, the release added: “Madbouly confirmed that the government is drafting a detailed plan extending to 2030. This reflects a broader outlook beyond the IMF program, which ends by late 2026 or early 2027.”
Egypt’s current $8 billion program with the IMF began as a $3 billion agreement in late 2022 and was expanded by $5 billion in March 2024.
The deal includes major reforms such as currency devaluation, sharp interest rate hikes, tighter fiscal policy, and privatization of state-owned assets.
So far, Egypt has received about $3.3 billion, with a fifth program review conducted in early May 2025.
The IMF continues to stress the importance of accelerating structural reforms and managing debt levels.
In the release, Madbouly emphasized that the government is prioritizing macroeconomic stability and social development.
He pointed to the growing importance of social support programs, saying they would continue to expand annually.
He also underlined the importance of technological advancement, industrial development, and greater reliance on digital transformation and artificial intelligence in the country’s future economic model.
Regarding Egypt’s ongoing IMF program, Madbouly clarified that the reform agenda was created and implemented by the Egyptian government itself, with the IMF acting in a supportive role.
He said the presence of the IMF and similar institutions in Egypt serves as a confidence signal to foreign investors and the global financial community, and that the IMF’s involvement does not entail new conditions or burdens on citizens.
Madbouly also addressed developments in the Future of Egypt agricultural project, which he said is designed to rely on modern, mechanized farming and industrial methods.
Unlike traditional high-density agricultural zones in the Nile Delta, the new areas will be less labor-intensive and structured to attract large-scale private sector participation.
He said the aim is to preserve agricultural productivity by avoiding the fragmentation of land that has affected other regions.
On technical education reform, Madbouly announced that the government is reviewing plans to convert outdated commercial diploma schools into modern technological schools that align with labor market needs.
This reform will also involve private sector partnerships and follow successful models such as the WE School for ICT Education.
He noted that graduates from current vocational tracks will be eligible to join digital transformation initiatives like the state-supported Digital Pioneers Program.
In the health sector, the prime minister confirmed that the second phase of Egypt’s universal health insurance scheme will expand to five additional governorates.
He added that one densely populated governorate might also be included in this phase, bringing the total number of covered regions to 12.
Madbouly said the system’s financial viability has been reassessed and extended to ensure it can remain sustainable for up to 50 years.
He also spoke about the government’s plan to support the local production of infant formula, describing it as a capital-intensive industry that requires significant investment.
The state is encouraging private sector participation in this strategic initiative and is ready to act as a partner to ensure long-term success and stability in production.
Savings deposits hit highest share in 16 years as Saudi money supply climbs to $815bn
Shift reflects changing behavior among depositors, increasingly favoring interest-bearing accounts
Currency outside banks rose by 10.57% to SR251.53 billion
Updated 4 min 38 sec ago
Dayan Abou Tine
RIYADH: Saudi banks’ money supply rose 8.22 percent year on year to SR3.06 trillion ($815 billion) in March, driven by a sharp surge in time and savings deposits, recent data showed.
According to figures by the Saudi Central Bank, also known as SAMA, this category increased by 27.55 percent during the period to reach SR1.07 trillion, the greatest growth rate in over 14 months. It now accounts for 35.2 percent of the total money supply, marking its highest share in 16 years.
The notable shift reflects changing behavior among depositors, increasingly favoring interest-bearing accounts amid ongoing global monetary tightening.
While the US Federal Reserve kept rates steady in recent months following 100 basis points of cuts last year, the risk of renewed inflation, partly due to rising import tariffs, may have delayed further easing.
S&P Global Ratings revised Saudi Arabia’s outlook to positive in September. Shutterstock
Given that SAMA typically mirrors Fed rate decisions to maintain the riyal’s dollar peg, this has reinforced the appeal of yield-generating instruments like term deposits among Saudi savers.
Term deposits, which offer higher returns than conventional bank accounts in exchange for holding funds over a fixed period, have become more attractive to Saudi savers seeking to lock in interest income amid volatile economic signals.
Despite this surge, demand deposits, accounts that allow immediate access to funds, still hold the largest share at 47.84 percent, or SR1.46 trillion. However, this marks their lowest proportion in nearly five years.
Growth in this category slowed to 3.9 percent year on year, reflecting a broader migration toward savings products.
Meanwhile, quasi-money deposits, which include foreign currency deposits and marginally liquid instruments, declined by 22.85 percent to SR266.87 billion, representing 8.73 percent of the total.
Currency outside banks rose by 10.57 percent to SR251.53 billion.
Efforts to diversify beyond its oil economy would mitigate the Kingdom’s vulnerability to oil market fluctuations. File/Reuters
Credit to businesses in the Kingdom has witnessed robust growth in recent quarters, underpinned by increased demand from key sectors such as real estate, construction, manufacturing, and broader non-oil economic activities.
According to data from SAMA, corporate lending grew by over 22 percent year on year in March, reflecting the banking sector’s critical role in financing Vision 2030-linked projects and supporting economic diversification.
This strong lending momentum has contributed to a tightening liquidity environment. As loans continue to grow at a faster pace than deposits, reflected in the rising loan-to-money supply ratio, which climbed from 95 percent in March 2024 to 101.51 percent in March 2025, banks have increasingly turned to capital markets to maintain liquidity.
In particular, Saudi banks have ramped up their sukuk issuances and other debt instruments to meet financing demand while preserving balance sheet stability.
For example, several major financial institutions, including Al Rajhi Bank and Saudi National Bank, have recently raised multibillion-riyal sukuk to bolster their funding base.
Saudi Arabia’s expanding reliance on debt markets to fund its ambitious development agenda has been met with continued confidence from major credit rating agencies, reflecting the Kingdom’s robust fiscal position and commitment to economic diversification.
Saudi banks have ramped up their sukuk issuances and other debt instruments to meet financing demand. Shutterstock
In 2024, the total value of listed sukuk and debt instruments in the Kingdom rose by more than 20 percent year-on-year, reaching SR663.5 billion, up from SR549.8 billion in 2023, according to data from the Capital Market Authority. This marks a significant acceleration in domestic debt issuance, underscoring the sector’s growing dependence on capital markets to maintain liquidity amid sustained loan expansion.
Moody’s Investors Service upgraded Saudi Arabia’s credit rating to “Aa3” from “A1” in November, citing the country’s efforts to diversify beyond its oil economy.
The agency noted that these diversification efforts would mitigate the Kingdom’s vulnerability to oil market fluctuations and the global carbon transition over time.
Similarly, S&P Global Ratings revised Saudi Arabia’s outlook to positive in September, affirming its “A/A-1” ratings.
The agency highlighted the Kingdom’s strong non-oil growth outlook and economic resilience, expecting an acceleration of investments to develop newer industries, such as tourism, and diversify the economy away from its primary reliance on the upstream hydrocarbon sector.
These affirmations by major credit rating agencies underscore the nation’s solid creditworthiness and the effectiveness of its economic reforms under Vision 2030, even as it increases borrowing to finance its transformative projects.
Saudi Arabia, Spain sign MoU to boost SME sectors and deepen economic ties
Deal to back SMEs through partnerships and initiatives
Saudi-Spanish Joint Commission meeting focused on focused on strengthening economic, social, and cultural ties
Updated 22 May 2025
Nadin Hassan
RIYADH: Saudi Arabia and Spain are set to strengthen cooperation between small- and medium-sized enterprises thanks to a wide-ranging agreement across key sectors.
The memorandum of understanding, signed by Saudi Minister of Economy and Planning Faisal Alibrahim and Spanish Minister of Economy, Trade and Business Carlos Cuerpo in Riyadh, outlines joint efforts in economic modeling and policy-making.
It aims to back SMEs through partnerships and initiatives, as well as facilitating joint projects and bilateral participation in economic events, according to a statement by the Ministry of Economy and Planning.
The agreement comes as the Kingdom’s Vision 2030 plan aims to further elevate the SME sector’s contribution to 35 percent of the gross domestic product by the end of the decade as part of its economic diversification initiative.
معالي وزير الاقتصاد والتخطيط يجتمع مع معالي وزير الاقتصاد والتجارة والأعمال الإسباني السيد كارلوس كويربو، لاستعراض جدول أعمال الدورة الرابعة للجنة السعودية-الإسبانية المشتركة، إلى جانب مناقشة آخر التطورات الاقتصادية الإقليمية والعالمية ذات الاهتمام المشترك
— وزارة الاقتصاد والتخطيط (@MEPSaudi) May 21, 2025
The signing of the agreement coincided with the fourth session of the Saudi-Spanish Joint Commission, which convened in Riyadh. The meeting was co-chaired by Al-Ibrahim and Cuerpo, with senior officials from both countries in attendance.
“Officials from both sides joined the session to discuss ongoing and future initiatives aimed at enhancing economic, social, and cultural collaboration between the two countries,” the Ministry of Economy and Planning said on X.
The session focused on strengthening economic, social, and cultural ties, reflecting the deep-rooted partnership and shared ambitions between the Kingdom and Spain.
The MoU also includes the exchange of information and statistics related to industry, technology and innovation to achieve sustainable development goals within the framework of Saudi Vision 2030.
Ministry of Economy and Planning of Saudi Arabia signs a Memorandum of Understanding with the Ministry of Economy, Trade, and Business of Spain, on the sidelines of the fourth session of the Saudi-Spanish Joint Commission in Riyadh.
— وزارة الاقتصاد والتخطيط (@MEPSaudi) May 21, 2025
In an interview with Al Arabiya, Cuerpo described the relationship between Saudi Arabia and Spain as a strong and deepening economic partnership, highlighting the Kingdom’s central role as the European country’s primary trade partner in the region and noting the steady growth in bilateral trade in recent years.
“I say over the past three years, it’s grown by 13 percent. Investment has grown, also, heavily over the past few years. But there is still room for us to grow, for us to further collaborate and further diversify our relations, particularly in terms of investment, and particularly also in terms of the presence of Spanish companies here and also of Saudi companies in Spain,” Cuerpo said.
He continued: “Just look at the presence of Spanish companies in the Kingdom, it has grown by 60 percent over the past three years, and in particular in key sectors for the Vision 2030 like energy, infrastructure or others — water, for example.”
In October, Bandar Alkhorayef, minister of industry and mineral resources, discussed ways to develop economic relations with Cuerpo and increase Spain’s investments in Saudi Arabia.
Alkhorayef highlighted the goals of Saudi Vision 2030 to diversify the Kingdom’s economy and, through various incentives, attract foreign investment in the industrial and mining sectors.
