Saudi Arabia’s startup ecosystem kicks off 2025 on a strong note

Saudi Arabia’s startup ecosystem kicks off 2025 on a strong note
Zension Technologies specializes in providing warranties, device buy-back services, and subscription-based technology upgrades. (Supplied)
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Updated 12 January 2025
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Saudi Arabia’s startup ecosystem kicks off 2025 on a strong note

Saudi Arabia’s startup ecosystem kicks off 2025 on a strong note
  • Zension Technologies raises $30 million in a series A funding round

RIYADH: Saudi Arabia’s venture capital and startup ecosystem kicked off 2025 with fresh funding rounds as the Kingdom continues its regional dominance.

Zension Technologies raised $30 million in a series A funding round led by Wa’ed Ventures, the venture capital arm of Saudi Aramco.

The round also saw participation from Japan’s Sumitomo Corporation and regional investor Global Ventures.

Founded in 2018 by Khalid Saiduddin and Nikos Anastasiadis, Zension provides protection, extended warranty, and guaranteed buyback services for mobile devices and consumer electronics.

These services are integrated into major retailers, telecommunications companies, and original equipment manufacturers operating in the Saudi and UAE markets.

With the fresh funding, Zension aims to launch its new service, Zaam, which is set to debut in the first quarter of the year across Saudi Arabia and the UAE.

SVC backs $150m tech fund by Global Ventures

Saudi Venture Capital has announced its investment in Global Ventures III, an early-stage fund exceeding $150 million in size.

Managed by UAE-based Global Ventures, it will focus on investments in technology and tech-enabled sectors across Saudi Arabia, the Middle East and North Africa, and Sub-Saharan Africa.

Target industries include supply chain technology, agritech, enterprise software as a service, and emerging technologies such as artificial intelligence and deep tech.

“Our investment in the venture capital fund by Global Ventures is part of SVC’s Investment in Funds Program, in alignment with our strategy to catalyze venture investments by fund managers investing in Saudi-based startups, especially during their early stages,” said Nabeel Koshak, CEO and board member at SVC. 

The market opportunity continues to be immense, with emerging technologies across platforms being built by exceptional founders continuing to shine through.

Noor Sweid, founder and managing partner at Global Ventures

Noor Sweid, founder and managing partner at Global Ventures, emphasized the importance of the collaboration, saying: “We are proud of our deep and continued partnership with SVC, and the investment underscores our continued deep commitment to enabling and building the Saudi Arabian VC and startup ecosystem. 

“The market opportunity continues to be immense, with emerging technologies across platforms being built by exceptional founders continuing to shine through.”

SVC, a subsidiary of SME Bank under Saudi Arabia’s National Development Fund, was established in 2018 to stimulate and sustain financing for startups and SMEs across their growth stages, from pre-seed to pre-initial public offering, through investments in funds and direct investments.

Interior design platform Revie raises $2.5m seed round

Saudi Arabia-based interior design and renovation platform Revie has raised $2.5 million in a seed funding round led by Sanabil Venture Studio by Stryber.

Established in 2024 by Ibrahim Abu Khadra, Revie provides an end-to-end solution for residential and commercial renovations.

The platform connects customers with vetted service providers and offers a seamless experience from design to execution. With the new funding, the company plans to invest in its technology and build a scalable foundation to support long-term growth.

Vreal secures pre-seed investment for AR/VR innovations

Saudi augmented and virtual reality technology provider Vreal has raised an undisclosed pre-seed investment round from the numu Angels Investment Community.

Founded in 2022, Vreal offers e-commerce businesses the ability to convert their products into 3D models in as little as 30 seconds using its advanced scanning technology.

The startup is exploring opportunities to expand its applications to other industries, including interior design, real estate, tourism, and heritage preservation. Vreal aims to strengthen its position in Saudi Arabia and tap into broader markets with its innovative technology.

MilkStraw AI raises $600k pre-seed funding to expand in MENA

UAE-headquartered artificial intelligence startup MilkStraw AI has raised $600,000 in pre-seed funding. The round was led by Flat6Labs, with participation from Angel Spark, Beyond Capital, and a group of angel investors.

MilkStraw, founded by Jawad Shreim in 2024 in the US, specializes in software solutions that automate and optimize cloud infrastructure costs for businesses.

The company intends to use the funding to expand its operations across the MENA region, focusing on providing cost-saving AI tools to enterprises in the region.

Mintiply Capital partners with Fuel Venture Capital for GCC-focused SPV

UAE-based Mintiply Capital, an advisory and investment banking firm specializing in mergers and acquisitions and alternative investments, has announced an exclusive partnership with US-based venture capital firm Fuel Venture Capital.

The collaboration aims to launch a Special Purpose Vehicle targeting high-potential early-stage startups across the Gulf Cooperation Council region, with a particular focus on the UAE.

This initiative is aligned with the UAE’s strategic goal of fostering a robust startup ecosystem and driving innovation as a key pillar of economic growth.

The SPV will provide targeted funding and resources to emerging startups, supporting the development of the UAE’s entrepreneurial ecosystem and promoting sustainable economic growth.

ReNile raises $450k for agritech solutions

Egypt-based agritech startup ReNile has secured $450,000 in funding from undisclosed investors.

Founded in 2017 by Hazem El-Tawab, ReNile offers a full-stack solution for farmers that includes monitoring systems, emergency alerts, control systems, and analytics to enhance farming practices.

The company’s platform supports data-driven farming, helping users implement best-practice models to improve efficiency and yield.

MSME lending in Saudi Arabia grows by 22.6 percent in Q3 2024

Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia reached SR329.23 billion ($87.8 billion) in the third quarter of 2024, marking a 22.6 percent year-on-year increase, according to data from the Saudi Central Bank.

Of the total, 94.7 percent of loans were provided by Saudi banks, while finance companies contributed the remaining 5.3 percent.

MSME lending accounted for 9.1 percent of banks’ total loan portfolios and 18.8 percent of finance companies’ portfolios.

The Saudi government has set an ambitious target for financial institutions to allocate at least 20 percent of their lending portfolios to this critical sector, as part of its Vision 2030 strategy to foster economic diversification and support business growth.

Saudi Arabia tops MENA venture capital rankings for second year

Saudi Arabia retained its position as the leading destination for venture capital in the MENA region in 2024, raising $750 million, according to a report from regional venture platform MAGNiTT.

This marks the second consecutive year the Kingdom has led regional VC rankings. Saudi Arabia accounted for 40 percent of the total venture capital deployed in MENA, closing 178 deals — the most of any nation in the region.

While total venture capital raised in MENA declined 29 percent year-on-year to $1.9 billion in 2024, MAGNiTT noted that funding levels remained above pre-boom levels from 2020, indicating resilience in the ecosystem.

The Middle East alone accounted for $1.5 billion of this funding, spread across 461 deals, a 10 percent annual increase.

Investor participation in the region grew 14 percent to 392 investors, and the year saw 24 exits.

However, emerging venture markets — including the Middle East, Africa, and Southeast Asia, as well as Pakistan and Turkiye — faced a sharp slowdown, with total venture funding dropping 40 percent and deal volumes falling 20 percent compared to 2023.

Both metrics also fell below 2020 levels, reflecting broader challenges in the global venture landscape.


Global Markets — stocks fall, gold gains after Trump sets tariff sights on Canada

Global Markets — stocks fall, gold gains after Trump sets tariff sights on Canada
Updated 16 sec ago
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Global Markets — stocks fall, gold gains after Trump sets tariff sights on Canada

Global Markets — stocks fall, gold gains after Trump sets tariff sights on Canada

SYDNEY/LONDON: Global stocks fell on Friday after US President Donald Trump ramped up his tariff war against Canada, leaving Europe squarely in the firing line, sparking a modest investor push into safe havens like gold, while bitcoin hit a new record high.

The Canadian dollar fell after Trump issued a letter late on Thursday that stated a 35 percent tariff rate on all imports from Canada would apply from August 1, adding the EU would receive a letter by Friday.

The US president, whose global wave of tariffs has upended businesses and policymaking, floated a blanket 15 percent or 20 percent tariff rate on other countries, a step up from the current 10 percent baseline rate.

This week he surprised Brazil, which has a trade surplus with the US, with duties of 50 percent, and hit copper, pharmaceuticals and semiconductor chips.

Aside from pockets of volatility in target currencies, stocks or commodities, markets have offered little in the way of reaction to the onslaught, leaving the VIX volatility index at its lowest since late February.

In Europe, the STOXX 600, which has risen 2.2 percent this week, fell 0.7 percent. Futures on the S&P 500 and the Nasdaq fell 0.6 percent, pointing to a retreat from this week’s record highs at the open later.

“The market is becoming a bit numb to these (tariff) announcements, and perhaps it’s not until we see hard data showing an impact that we (will) start to see the market reacting,” City Index strategist Fiona Cincotta said.

“Obviously, we’re getting more information through that does bring with it an element of clarity. Because there is so much uncertainty, there is still this idea that Trump could be open to negotiation, nothing feels ‘final’ still,” she said.

The dollar rose 0.3 percent against the Canadian dollar to $1.3695. The euro, which has lost nearly 1 percent in value since the start of July, was down 0.2 percent at $1.1683.

Earlier in the week, Trump pushed back his tariff deadline of July 9 to August 1 for many trading partners to allow more time for negotiations, but broadened his trade war, setting new rates for a number of countries, including allies Japan and South Korea, along with a 50 percent tariff on copper.

Joseph Capurso, head of international economics at the Commonwealth Bank of Australia, said the tariff rate of 35 percent on Canada was not as bad as feared because most of the imports are still subject to exemptions under the US-Mexico-Canada Agreement.

“Now the tariff rate on imports from the EU ... That’s what we don’t know as yet,” Capurso said. “If you get something similar to (the US-China trade war in April), that’s going to be very destabilising.”

Wall Street indexes posted record closing highs on Thursday as AI chip maker Nvidia made history, bagging a market valuation above $4 trillion.

Gold rose for a third day in a row, up 0.6 percent to $3,342 an ounce, bringing gains for July so far to 1.2 percent. Treasuries got less of a safe-haven boost, as investor concern about the fragility of long-term US government finances prompted a selloff that pushed yields up.

Benchmark 10-year yields rose 3 basis points to 4.38 percent, adding to Thursday’s rise on the back of data that showed jobless claims unexpectedly fell last week.

The yen, which also typically behaves like a safe-haven, has been steadily weakening as the prospects dim for a US-Japan trade deal. The dollar was up 0.4 percent on Friday at 146.76 yen , set for a weekly gain of 1.6 percent, the biggest this year.

Bitcoin jumped 3.8 percent to $117,880, the highest on record.

Investors will be watching second-quarter corporate earnings next week to gauge the impact of Trump’s tariffs from April 2. JPMorgan Chase is due to release results on Tuesday, essentially kicking off the reporting period.


World oil market may be tighter than it looks, IEA says

World oil market may be tighter than it looks, IEA says
Updated 13 min 39 sec ago
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World oil market may be tighter than it looks, IEA says

World oil market may be tighter than it looks, IEA says

VIENNA: The world oil market may be tighter than it appears despite a supply and demand balance pointing to a surplus, the International Energy Agency said on Friday, as refineries ramp up processing to meet summer travel demand.

The IEA, which advises industrialized countries, expects global supply to rise by 2.1 million barrels per day this year, up 300,000 bpd from the previous forecast. World demand will rise by just 700,000 bpd, it said, implying a sizeable surplus.

Despite making those changes, the IEA said that rising refinery processing rates aimed at meeting summer travel and power-generation demand were tightening the market and the latest supply hike from OPEC+ announced on Saturday had not had much effect.

“The decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals,” the agency said in a monthly report.

“Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances.”

Earlier this week, ministers and executives from OPEC nations and bosses of Western oil majors said the output increases are not leading to higher inventories, showing that markets are thirsty for more oil.

Next year, the IEA sees demand growth averaging 720,000 bpd, some 20,000 bpd lower than previously thought, with supply growth rising by 1.3 million bpd, also implying a surplus.


Saudi Arabia’s road to 30% EVs by 2030 — will Tesla be the game-changer?

Saudi Arabia’s road to 30% EVs by 2030 — will Tesla be the game-changer?
Updated 44 min 31 sec ago
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Saudi Arabia’s road to 30% EVs by 2030 — will Tesla be the game-changer?

Saudi Arabia’s road to 30% EVs by 2030 — will Tesla be the game-changer?

RIYADH: Tesla’s arrival in Saudi Arabia signals a turning point in the Kingdom’s ambitious electric mobility strategy, with close to half of its citizens now open to purchasing an electric vehicle.

With a target of 30 percent EV adoption by 2030 under Vision 2030, Saudi Arabia has gained a powerful ally in Tesla — one that could accelerate progress through competitive pricing, charging infrastructure investments, and potential local manufacturing deals.

This move not only brings one of the world’s most recognizable EV brands to Saudi consumers but also supports the nation’s broader push toward sustainable mobility.

This is also set to be boosted with the launch of the Kingdom’s first homegrown EV brand, Ceer, with production set to begin in 2026.

In an interview with Arab News, Alessandro Tricamo, partner at Oliver Wyman’s transportation and services practice, noted that while EVs currently make up just over 1 percent of vehicle sales, consumer interest is rising. “Nearly half of Saudi citizens say they are considering an EV purchase in the coming years,” he said.

A win-win proposition 

Tesla’s arrival comes at a critical time for the company and the Kingdom alike. The American automaker, facing increasing competition from Chinese rivals like BYD and declining sales in traditional markets, sees Saudi Arabia as a promising new frontier. 

Tricamo explained: “Tesla’s entry into the Saudi market is potentially a significant win-win situation. With its leadership position increasingly challenged by BYD and other manufacturers — and with sales declining in the US and Europe — Tesla is looking to open up new markets.”

He added: “Saudi Arabia, while investing heavily in public transport and mass transit, remains a car-centric country where Tesla’s brand is resonant. This makes the Kingdom a promising growth opportunity for the OEM (Original Equipment Manufacturer).”

Tesla’s Riyadh showroom and service center, along with pop-up stores in Jeddah and Dammam, introduce Saudi drivers to the Model 3, Model Y, and Cybertruck — a clear signal of the company’s long-term commitment to the region.

Alessandro Tricamo, partner at Oliver Wyman’s transportation and services practice. Supplied

Fixing infrastructure gap

One of the biggest roadblocks to mass EV adoption is Saudi Arabia’s underdeveloped charging network. With just 101 public charging stations in 2024 — behind the UAE’s 261 — range anxiety remains a major deterrent for potential buyers.

Oliver Wyman’s Tricamo underscored the urgency of infrastructure expansion, saying: “Expanding the Kingdom’s charging infrastructure is arguably the single most critical factor in accelerating EV adoption. As of 2024, Saudi Arabia has around 100 public charging stations, primarily concentrated in Riyadh.”

He added: “For comparison, the UAE has nearly three times as many, despite having only a third of Saudi Arabia’s population.”

To address this, Saudi authorities are rolling out high-speed charging stations along key routes, including the 900 km Riyadh-Makkah corridor, which currently lacks any charging points. Tesla’s planned Supercharger network — open to other brands — could be a game changer if deployed swiftly.

However, rapid infrastructure expansion brings its own risks. Taline Vahanian, placement leader at Marsh UAE, an insurance broker and risk adviser, warned that high-speed charging stations, by their nature, handle significant electrical loads and integrate advanced digital control systems.

“This exposure brings a range of liability risks — from electrical malfunctions that might result in fires or physical injuries to property damage caused by system failures or cyberattacks,” she told Arab News, adding: “Additionally, integrating an array of new charging stations into an evolving power grid presents operational challenges such as voltage fluctuations, grid stability issues, and the necessity for specialized, regular maintenance.” 

A new EV manufacturing hub?

Lucid is majority owned by the Public Investment Fund. Getty

While Tesla makes its retail debut, Lucid Motors — backed by Saudi Arabia’s Public Investment Fund — is already establishing local production, with a Jeddah factory set to manufacture thousands of EVs annually. This positions the Kingdom as a potential regional EV production hub, reducing reliance on imports. 

Vahanian highlighted the challenges of local production, saying: “On the supply chain front, vulnerabilities arise as the industry remains heavily dependent on imported components and critical raw materials. These dependencies are susceptible to international trade disruptions or logistical bottlenecks.”

She added: “Harmonizing standards and streamlining certification processes on the regulatory front will be crucial; any delays or misalignments with international standards could disrupt production schedules and cause cascading delays.”

Can EVs survive Saudi summers? 

Extreme temperatures pose another major challenge for EV adoption. Lithium-ion batteries degrade faster in heat, raising concerns about long-term durability. 

Tesla and Lucid are countering this with advanced liquid cooling systems and heat-resistant materials, while Saudi researchers are exploring solid-state batteries for better performance.

Vahanian emphasized the risks, saying: “In Saudi Arabia’s harsh desert climate, battery safety is a paramount concern. EV batteries rely on sophisticated thermal management systems, yet extreme ambient temperatures can accelerate degradation and — even in rare cases — trigger thermal runaway or fire incidents.”

She added that compounding this risk is the “nascent state” of the charging infrastructure, which must contend with sand, dust, and persistent heat stress — all of which elevates the possibility of technical failures and unexpected downtime.

Taline Vahanian, placement leader at Marsh UAE. Supplied

Tricamo offered a more optimistic view: “I believe the impact of extreme heat on EV performance is often overstated. While high temperatures can pose challenges for batteries, such conditions are limited to certain periods, and battery technology is improving rapidly to support performance across a wide temperature range.”

He added: “EVs have been operating in the region for several years with virtually no performance issues. A more relevant environmental concern may be sand and dust, which can affect charging stations and equipment. But even here, mitigation measures are relatively straightforward and already well understood.”

Insurance and cost

Another hurdle is the higher cost of insuring EVs compared to traditional vehicles.

Vahanian explained that unlike traditional cars powered by internal combustion engines, EVs rely on sophisticated battery systems, state-of-the-art electronics, and specialized components that require expert handling.

“When collisions or mishaps occur, repairing these systems can be significantly pricier than conventional repairs. Limited availability of repair facilities and trained technicians — particularly in emerging markets like KSA — exacerbates these costs,” she said.

The Marsh UAE official added that insurers are adapting but warns of potential premium hikes: “Insurance companies, which traditionally set premiums based on anticipated claim payouts and repair costs, are therefore likely to face higher liabilities. In anticipation, we can expect a recalibration of premiums, reflecting a more accurate risk profile and the amplified repair costs associated with EVs.”

Vahanian went on to say: “Higher repair costs inevitably feed into the economics of risk assessment for insurers. As claims tend to rise with the complexity and expense of EV repairs, premium rates may correspondingly increase to maintain the insurers’ financial stability.”

She noted that higher EV insurance premiums could have a dual effect — while buyers are attracted by lower fuel costs and environmental benefits, steep insurance rates might weaken their appeal, particularly given the already high upfront costs.

The road to 2030

Despite these challenges, Saudi Arabia’s EV revolution is undeniably gaining momentum. Tricamo stressed that government intervention will be crucial. “To accelerate the transition, targeted government intervention will be essential — both to level the playing field and to fast-track the decarbonization of mobility,” he said.

Tricamo added that petrol vehicles remain significantly cheaper to operate in the region due to low fuel prices and a lack of EV incentives, while limited charging infrastructure further hinders widespread adoption.

Vahanian echoed this sentiment, calling for collaboration between policymakers and insurers, saying: “By collaborating with insurance providers, policymakers can create schemes that provide favorable premium rates or bundled services, thereby alleviating consumer concerns and accelerating market penetration.”

Full speed ahead 

With Tesla’s market entry, Lucid’s local production, and government-backed infrastructure investments, Saudi Arabia is fast-tracking its EV transition. Yet hurdles like charging deserts, affordability, battery resilience, and insurance costs must be overcome to reach the 30 percent adoption goal.


Oil Updates — prices steady as investors weigh duller market outlook and tariffs’ impact

Oil Updates — prices steady as investors weigh duller market outlook and tariffs’ impact
Updated 10 min 30 sec ago
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Oil Updates — prices steady as investors weigh duller market outlook and tariffs’ impact

Oil Updates — prices steady as investors weigh duller market outlook and tariffs’ impact

LONDON: Oil prices were stable on Friday, as investors weighed a weaker market outlook for this year by the International Energy Agency despite tightness in the prompt market, in addition to tariff concerns and possible further sanctions on Russia.

Brent crude futures were up 19 cents, or 0.28 percent, at $68.83 a barrel as of 11:07 a.m. Saudi time. US West Texas Intermediate crude ticked up 25 cents, or 0.38 percent, to $66.82 a barrel.

Both contracts were little changed on the week, with Brent headed for a 0.8 percent gain against last Friday’s close, and WTI for a 0.3 percent loss against last Thursday’s close as markets were closed on July 4.

The IEA on Friday boosted its forecast for supply growth this year, while also trimming its outlook for growth in demand.

That notwithstanding, the IEA said peak summer refinery runs to meet travel and power-generation demand were keeping the market tight for now.

Front-month September Brent contracts were trading at a $1.11 premium to October futures at 11:07 a.m. Saudi time.

“Despite a market-wide expectation of an oil glut at the back end of this year, the current spate of drivers is lacking anything that might send prices back to the lows seen in April and May. Civilians, be they in the air on the road, are showing a healthy willingness to travel,” PVM analyst John Evans said.

One other sign of robust prompt oil demand was the prospect of Saudi Arabia shipping about 51 million barrels of crude oil in August to China, the biggest such shipment in over two years.

Longer term, however, rival forecasting agency OPEC cut its forecasts for global oil demand in 2026 to 2029 because of slowing Chinese demand, the group said in its 2025 World Oil Outlook published on Thursday.

Both benchmark futures contracts lost more than 2 percent on Thursday as investors worried about the impact of Trump’s evolving tariff policy on global economic growth and oil demand.

“Prices have recouped some of this decline after President Trump said he plans to make a ‘major’ statement on Russia on Monday. This could leave the market nervous over the potential for further sanctions on Russia,” ING analysts wrote in a client note.

Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress on peace with Ukraine and Russia’s intensifying bombardment of Ukrainian cities.

The European Commission is set to propose a floating Russian oil price cap this week as part of a new draft sanctions package.


Saudi non-oil trade surplus with GCC jumps over 200% in April

Saudi non-oil trade surplus with GCC jumps over 200% in April
Updated 10 July 2025
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Saudi non-oil trade surplus with GCC jumps over 200% in April

Saudi non-oil trade surplus with GCC jumps over 200% in April

JEDDAH: Saudi Arabia’s non-oil trade surplus with fellow Gulf Cooperation Council countries jumped by more than 200 percent in April 2025, driven by a sharp rise in re-exports and strengthening regional economic ties.

According to the latest figures released by the General Authority for Statistics, the Kingdom posted a trade surplus of SR3.51 billion ($935 million) with GCC nations during the month, compared to just SR1.16 billion in April 2024 — a year-on-year increase of 203.2 percent.

The total value of non-oil trade, which includes re-exports, between Saudi Arabia and the GCC bloc reached SR18.03 billion in April, reflecting a robust 41.3 percent growth from SR12.76 billion in the same month last year.

This momentum is attributed to the accelerated pace of regional economic integration, supported by strategic initiatives such as Saudi Arabia’s Vision 2030 and similar diversification programs across the Gulf. These frameworks aim to reduce dependence on hydrocarbons by fostering growth in sectors like logistics, finance, tourism, and manufacturing.

Non-oil exports — encompassing both national products and re-exported goods — saw a notable rise of 55 percent year on year to SR10.77 billion. Within this category, re-exports surged by 81 percent to SR7.74 billion, highlighting Saudi Arabia’s growing role as a regional re-export hub. National-origin exports also rose by 13.3 percent, totaling SR3.03 billion.

Imports from GCC countries also registered an increase, climbing to SR7.26 billion in April — a 25.2 percent rise compared to SR5.80 billion in the previous year.

Among individual member states, the UAE continued to dominate Saudi Arabia’s regional trade portfolio, accounting for SR13.53 billion — or 75.1 percent — of the Kingdom’s total non-oil trade with the GCC. Bahrain followed with SR1.8 billion (10 percent), while Oman recorded SR1.45 billion (8.1 percent). Kuwait and Qatar contributed SR819.9 million (4.5 percent) and SR422.1 million (2.3 percent), respectively.

The data reflects not only Saudi Arabia’s growing non-oil export capacity but also a broader regional shift toward more diversified, interconnected Gulf economies.