How Vision 2030 is transforming Saudi Arabia into a globally competitive economy

Special How Vision 2030 is transforming Saudi Arabia into a globally competitive economy
Investments for NEOM’s first phase could reach SR1.2 trillion by 2030. (Supplied)
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Updated 25 April 2024
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How Vision 2030 is transforming Saudi Arabia into a globally competitive economy

How Vision 2030 is transforming Saudi Arabia into a globally competitive economy
  • From efficiency and economic performance to infrastructure and cybersecurity, the Kingdom is a desirable place to do business
  • Strides in transport, logistics and financial markets have boosted the Kingdom’s global competitiveness

RIYADH: What extraordinary feats did Saudi Arabia accomplish to see itself ranked ahead of China, Germany and the UK on a global measure of economic competitiveness?

On its eighth anniversary, Saudi Vision 2030 has reached several remarkable milestones and made steady progress since its inception by Crown Prince Mohammed bin Salman, revealing a transformative journey that continues to reshape the Kingdom’s future.




Vision 2030 has crossed several milestones and made steady progress since its unveiling by Crown Prince Mohammed bin Salman in 2016. (SPA photo)

“It is an ambitious yet achievable blueprint, which expresses our long-term goals and expectations and reflects our country’s strengths and capabilities,” the crown prince said at Vision 2030’s launch in 2016. 

“All success stories start with a vision and successful visions are based on strong pillars.” 

According to a competitiveness report by the Swiss-based International Institute for Management Development, the Kingdom ranks third among G20 nations on this metric, and 17th among all countries.

Just what are the achievements the Kingdom has made to secure this high global ranking among competitive countries?

According to the latest annual Vision 2030 bulletin, Saudi Arabia achieved significant progress in four competitiveness factors evaluated in the report. 

It leaped to sixth place in economic performance, advanced to 11th in government efficiency and 13th in business efficiency, while holding steady at 34th in infrastructure ranking.

Other performances include that the Kingdom is third among G20 countries, fifth globally in the financial market index, and second in the cybersecurity indicator.

PIF: An investment powerhouse

As the most crucial driver of economic diversification and the revitalization of vital sectors, the Public Investment Fund possesses leading investment portfolios.

These are designed to direct investments toward diversifying the economy, developing infrastructure, stimulating innovation, and strengthening global economic ties.




The Oxagon, located on the Red Sea in the Kingdom's northwest province of Tabuk, is being built as a home to advanced and clean industries in NEOM. (Supplied)

The fund has broadened its portfolio to encompass promising sectors with significant growth potential, covering everything from tourism and entertainment to financial technology, gaming, and sports. 

Its investment competence has swiftly increased, positioning PIF as a global leader in capitalizing on economic opportunities at both national and international levels.

Strides in the logistics sector

Since the launch of Vision 2030, Saudi Arabia has been unlocking the potential of the logistics sector, capitalizing on its strategic location and unique capabilities to become a leading hub.

This focus has begun to bear fruit, with a series of achievements reinforcing the Kingdom's global status in the logistics arena. 

Progress in this arena was underlined when Saudi Arabia leapt 17 places in the World Bank’s Performance Index, advancing from 55 to 38.

Additionally, the Kingdom saw an eight-place advancement in Lloyd’s List Global Ranking for Container Handling Among the World's Top 100 Ports, from 24 to 16.

Furthermore, the Kingdom made its most significant jump in the International Air Connectivity Index, moving from 27th to 13th place, according to the report by the International Air Transport Association.

Business efficiency

Since March 2020, the Saudi Business Center has delivered 2.5 million services to the private sector through its 17 branches across the Kingdom.

These services aim to streamline business startup processes and offer various related services, following international best practices.

This approach helps attract investments and creates a supportive environment, with high-quality services provided efficiently to the business sector.

The Vision 2030 report noted that the Kingdom moved up in the National Entrepreneurship Context Index from fourth to second place, a result of achieving a top ranking in several sub-indicators, revealing continuous development and a competitive global position in the entrepreneurship sector.

Saudi Arabia also ranked first in several sub-indicators for 2023, including indexes which measure the ease of starting a business, fear of failure, and individuals’ skills and knowledge. The Kingdom was also top for metrics building great wealth, knowing someone who started a new business, and the availability of good opportunities to start one.

Saudi Arabia has made significant progress on the global stage, which means that it has already mastered the smaller-scale challenges.

It led the Middle East and North Africa in venture capital investment by value for 2023, according to a report from the startup investment data platform MAGNiTT.

This top ranking reflects the Kingdom's efforts over the past several years to create an encouraging and supportive environment for entrepreneurship and investment in startups, fostering the growth of the private sector and providing more economic opportunities.




Men walk at the campus of the King Abdullah University of Science and Technology in Thuwal. (Supplied)

Transport infrastructure

The transportation sector is crucial for sustainable development and plays a key role in improving safety by enhancing roads and implementing advanced transportation systems. 

These efforts help reduce road accidents, injuries, and fatalities, creating a safer environment and boosting overall quality of life — all part of the goals of the National Transport Strategy, within the framework of Vision 2030.

The report outlined traffic safety indicators and highlighted that the road fatality rate dropped from 28.8 per 100,000 people in 2016 to 13.3 by 2022.

It also noted that the injury rate fell to 71.67 injuries per 100,000 individuals in 2022.

Competitive financial market

Saudi Arabia’s financial market has experienced significant growth and activity since Vision 2030 was announced, demonstrating the strength and robustness of the Kingdom’s financial sector.

The Kingdom was ranked fifth globally — and third among G20 countries — in the Financial Markets Index, according to the 2023 International Competitiveness Yearbook by the World Competitiveness Center.

The number of financial technology entities in 2023 reached 216, far exceeding the target of 150. This indicates rapid growth and development in the financial technology sector.

Furthermore, the number of listings in the financial market for 2023 reached 43, surpassing the target of 24, indicating increased interest from companies to list on the market.

This growth is a positive sign of investor confidence and the attractiveness of the market for public offerings, as the total number of listed companies is now 310, indicating a diverse and extensive market.

A high percentage of micro and small enterprises listed on the market, at 76.7 percent compared to the target of 44 percent, demonstrates that even smaller businesses are finding opportunities to go public, according to the report.

Saudi Arabia’s story of transformation has many authors, including the government, Saudi citizens, the private sector, and international partners.

In 2023, their combined efforts made Saudi Arabia an even better place to live, work, and visit. 

Together, they are writing the next chapter in 2024 — a year of unrivaled opportunity for the Kingdom and anyone who wants to be part of the story.
 

 


China’s BYD starts delivering vehicle in Pakistan, aim to roll out 100 units in 48 hours

China’s BYD starts delivering vehicle in Pakistan, aim to roll out 100 units in 48 hours
Updated 28 February 2025
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China’s BYD starts delivering vehicle in Pakistan, aim to roll out 100 units in 48 hours

China’s BYD starts delivering vehicle in Pakistan, aim to roll out 100 units in 48 hours
  • BYD partnered with Mega Motor Company last year to introduce electric vehicles in Pakistan
  • Both companies plan to establish 15 experience and care centers across Pakistan this year

KARACHI: China’s BYD, the world’s largest New Energy Vehicle (NEV) manufacturer, and Pakistan’s Mega Motor Company (MMC) started delivering vehicles in Karachi, Lahore and Islamabad on Friday, with plans to roll out 100 units within the first 48 hours, confirmed their official statement.
The milestone comes after BYD and MMC partnered last year to introduce electric vehicles (EVs) in Pakistan, aiming to accelerate the country’s transition toward sustainable mobility.
BYD, a global leader in battery-electric and plug-in hybrid vehicles, has expanded aggressively in Asia, Europe and Latin America. Mega Motor, a subsidiary of Pakistan’s Hub Power Company (HUBCO), is spearheading the local manufacturing, distribution and sales of BYD-branded vehicles.
“It is an honor to embark on this crucial development chapter in Pakistan,” said Lei Jian, BYD country head in Pakistan.
“BYD has long been dedicated to fulfilling people’s aspirations for a better life through technological innovation,” he continued. “We firmly believe that BYD’s new energy vehicles and technologies are destined to make even greater contributions to Pakistan’s green development journey.”

This handout photo, released by China’s BYD auto company on February 28, 2025, shows BYD Experience and Care Centers in Islamabad. (BYD Pakistan/Handout)

The companies have launched BYD Experience and Care Centers in Islamabad, Lahore and Karachi, offering customers access to their advanced automobiles. 
he initial rollout includes models such as SEAL and ATTO 3, with plans to establish 15 centers across Pakistan this year to expand accessibility.
“We are thrilled to begin vehicle deliveries across Pakistan,” said Danish Khaliq, VP Sales and Strategy at MMC. “This marks the beginning of an exciting journey for BYD and our customers, as we introduce world-class NEV technology to drive Pakistan toward a cleaner and more sustainable future.”
NEVs refer to alternative-fuel vehicles that rely on electric, hybrid, hydrogen, or other non-traditional power sources instead of conventional gasoline or diesel engines.


Saudi Arabia’s non-oil exports to China surge 70% as trade ties deepen: GASTAT

Saudi Arabia’s non-oil exports to China surge 70% as trade ties deepen: GASTAT
Updated 28 February 2025
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Saudi Arabia’s non-oil exports to China surge 70% as trade ties deepen: GASTAT

Saudi Arabia’s non-oil exports to China surge 70% as trade ties deepen: GASTAT

RIYADH: Saudi Arabia’s non-oil exports to China reached SR3.68 billion ($980 million) in December, representing a rise of 69.58 percent compared to the previous month, the latest official data showed.

According to the General Authority for Statistics, the Kingdom exported plastic and rubber goods valued at SR1.12 billion, followed by chemical products at SR1.11 billion and transport parts at SR1.02 billion.

Non-oil shipments from Saudi Arabia to China amounted to SR2.17 billion in November, while the amount was SR2.35 billion in October and SR1.73 billion in September.

The strong flow of the Kingdom’s non-oil goods to the Asian country underlines the strengthening bilateral relations between both nations, with Saudi Arabia being the largest trading partner of China in the Middle East since 2001.

China and Saudi Arabia are strategic partners in various other sectors such as energy and finance, as well as the Belt and Road Initiative.

The rise in non-oil exports also signifies the progress of Saudi Arabia’s economic diversification journey, as the Kingdom is on a path to reduce its decades-long reliance on oil revenues.

Affirming the growth of Saudi Arabia’s non-oil private sector, the Kingdom’s Purchasing Managers’ Index reached 60.5 in January, the highest level in 10 years, and the top among the Middle East nations, according to the Riyad Bank Saudi Arabia PMI survey compiled by S&P Global.

In the UAE, the PMI stood at 55 in January, while it was 53.4 in Kuwait, 50.2 in Qatar and 50.7 in Egypt.

Any PMI readings above 50 indicate growth of the non-oil private sector, while readings below the number signal contraction.

Chinese President Xi Jinping with Saudi Arabia’s Crown Prince Mohammed bin Salman in December 2022. File

UAE the favorite destination for Saudi non-oil goods

According to the GASTAT report, Saudi Arabia’s Arab neighbor UAE was the top destination for the Kingdom’s non-oil exports, with outbound shipments to the Emirates reaching SR6.46 billion in December, representing a decline of 9.90 percent compared to the previous month.

The authority revealed that the Kingdom exported machinery and mechanical appliances worth SR3.15 billion in December, while outbound shipments of transport parts amounted to SR1.32 billion.

In December, Saudi Arabia also exported chemical products valued at SR426.8 million to the UAE, followed by plastic and rubber goods worth SR320.2 million.

India was the third favorite destination for Saudi Arabia’s non-oil goods in December, with exports to the Asian nation reaching SR1.86 billion, marking a decline of 26 percent compared to the previous month.

Other top destinations for Saudi Arabia’s non-energy goods were the US, with a value of SR1.64 billion, Bahrain at SR1.19 billion and Turkiye at SR902.7 million.

In December, the Kingdom also exported non-hydrocarbon products to Egypt valued at SR888 million, while outbound shipments to Belgium stood at SR826.7 million and Kuwait at SR703.7 million.

Overall, Saudi Arabia’s non-oil exports stood at SR29.45 billion in December, representing an 18.1 percent rise compared to the same month in 2023.

In November, Saudi Arabia’s Minister of Economy and Planning Faisal Al-Ibrahim revealed that non-oil activities account for 52 percent of the Kingdom’s gross domestic product.

The minister added that the Kingdom’s non-oil economy has been growing at 20 percent since the launch of the Vision 2030.

In December, Saudi Arabia exported non-energy goods worth SR19.33 million via sea, while outbound shipments through land and air totaled SR5.38 billion and SR4.73 billion, respectively.

According to GASTAT, Jeddah Islamic Sea Port was the main exit point for Saudi Arabia’s non-hydrocarbon products with goods valued at SR3.92 billion.

King Fahad Industrial Sea Port in Jubail handled goods worth SR3.65 billion, followed by Ras Tanura Sea Port, which processed outbound shipments amounting to SR2.03 billion.

In terms of exit points via land, Al-Batha Port handled goods valued at SR2.04 billion, while products worth SR671.5 million passed through Al-Hadithah Port.

Among airports, King Khalid International Airport in Riyadh handled outbound shipments worth SR2.46 billion in December, followed by King Abdulaziz International Airport at SR2.09 billion.

Overall merchandise exports

Despite the rise in non-oil outbound shipments, Saudi Arabia’s overall merchandise exports decreased by 2.8 percent to reach SR94.29 billion in December compared to the same month of the previous year, driven by oil production cuts as mandated by OPEC.

The share of oil exports from total outbound goods also decreased from 74.3 percent in December 2023 to 68.8 percent during the same month in 2024.

Saudi Arabia’s merchandise exports to the Gulf Cooperation Council countries amounted to SR13.68 billion in the final month of 2024, representing a rise of 6.04 percent compared to December 2023.

Exports to Asian non-Arab non-Islamic countries stood at SR49.39 billion in December, followed by outbound shipments to North America at SR4.73 billion, South America at SR1.47 billion and the EU at SR8.73 billion.

In December, Saudi Arabia’s overall merchandise exports to China amounted to SR12.25 billion, followed by South Korea at SR9.80 billion, Japan at SR9.71 billion and India at SR9.11 billion.

Imports up

According to GASTAT, Saudi Arabia’s overall imports witnessed a 27.1 percent year-on-year rise in December, reaching SR79.03 billion, while the surplus of trade balance decreased by 56.1 percent, reaching SR15.26 billion.

The authority revealed that the Kingdom welcomed goods valued at SR18.60 billion from China, led by mechanical appliances and electrical equipment valued at SR7.73 billion.

Saudi Arabia also imported transport products from China worth SR2.60 billion, followed by base metal products at SR2.04 billion and textiles valued at SR1.06 billion.

In December, imports from the US amounted to SR7.17 billion, while inbound shipments from the UAE and India were valued at SR4.30 billion and SR3.81 billion, respectively.

Saudi Arabia also imported goods worth SR3.75 billion from Germany and SR3.60 billion from Japan.

Italian imports to Saudi Arabia in December amounted to SR3.19 billion, while inbound shipments from the UK totaled SR3.03 billion.

GASTAT revealed that inbound shipments valued at SR45.72 billion reached the Kingdom via sea, while imports amounting to SR9.46 billion and SR23.85 billion came via land and air, respectively.

King Abdulaziz Sea Port in Dammam was the leading entry point for imports in December, with the facility handling goods valued at SR22.01 billion, or 27.8 percent of total inbound shipments.

According to the report, Jeddah Islamic Sea Port handled inbound shipments valued at SR15.41 billion, followed by the King Abdullah Sea Port at SR1.35 billion and King Fahd International Sea Port at SR1.20 billion.

Through land, Al-Batha Port and Riyadh Dry Port processed incoming goods valued at SR4.10 billion and SR2.84 billion, respectively.

Through air, King Khalid International Airport in Riyadh welcomed inbound shipments worth SR11.62 billion in December.

King Abdulaziz International Airport and King Fahad International Airport also handled imports valued at SR7.07 billion and SR4.55 billion, respectively.


Can Saudi Arabia conquer global uncertainty and become a financial giant?

Can Saudi Arabia conquer global uncertainty and become a financial giant?
Updated 28 February 2025
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Can Saudi Arabia conquer global uncertainty and become a financial giant?

Can Saudi Arabia conquer global uncertainty and become a financial giant?
  • Kingdom has to continue reform initiatives, experts tell Arab News
  • Expanding financial markets, diversification, digital transformation

RIYADH: Saudi Arabia’s financial markets are on a sharp upward trajectory despite challenging global economic trends, experts have told Arab News.

Market volatility across the world — as seen by the S&P 500 dropping below 6,000 on Wednesday — together with US President Donald Trump’s policies prompting oil market uncertainty, and continuing supply chain disruptions, are increasing investment risks.

However, the Kingdom’s economic resilience, backed by Vision 2030’s diversification efforts and strong regulatory reforms, has helped Saudi Arabia mitigate these challenges.

In 2024, the economy rebounded with a 1.3 percent growth, driven by a 4.6 percent increase in non-oil activities, despite a decline in oil activities.

Saudi Arabia’s financial ecosystem is poised for even greater growth, but the key question remains: Can it continue to solidify its position as a global financial hub in such an unpredictable environment?

Vikas Papriwal, leader of FTI Consulting Middle East and Africa, told Arab News the Kingdom is very much in charge of its own destiny in this regard.

“The key to future-proofing against oil market volatility and maintaining leadership in the global energy industry is for Saudi Arabia to continue to place significant emphasis on researching, developing, and innovating in the space of renewable and sustainable energy and be leaders in the global energy transition,” he said.

Vikas Papriwal, leader of FTI Consulting Middle East and Africa. Supplied

Saudi Arabia’s progress can also be seen in its extensive regulatory reforms. The country has worked hard to ensure that its financial markets align with international best practices, providing greater transparency, stability, and ease of access for investors.

“Reforms that can fortify the Kingdom’s position as a financial powerhouse include further easing processes for operating and starting businesses, particularly through legal and tax reforms,” said Papriwal.

Rezwan Shafique, principal of financial services at Arthur D. Little, told Arab News that those reforms are just the starting line, emphasizing that the path toward becoming a powerhouse is now underway.

“Government and regulatory reforms, such as Companies Law, CMA (Capital Market Authority) strategic plans, and MISA (Ministry of Investment) guidelines, have laid the groundwork by improving corporate transparency, stability, and predictability. The Kingdom is now in a phase to communicate opportunities to global players,” Shafique added.

He noted that Saudi Arabia has already made progress in this area, highlighting that the country’s share in the MSCI Emerging Markets Index has risen to 4 percent from 2.7 percent in 2019. He also pointed out that foreign ownership in the Saudi Exchange has increased 25-fold over the past five years, reaching $100 billion, signaling expanding opportunities for global investors.

“Gaining traction on new listings and becoming a multi-jurisdictional player should be a key focus. A number of factors will need to converge, including Saudi Arabia actively forging ties between itself, China, Singapore, and African nations through strategic partnerships,” he said.

Indeed, Saudi Arabia’s ambition to lead the region in financial services is evident. Over the past few years, its exchange, Tadawul, has made tremendous strides, earning a spot among the top 10 global stock markets.

Its market capitalization reached $2.9 trillion as of late 2024, with the Kingdom continuing to attract significant foreign investments, especially in light of the world’s largest initial public offering — Aramco’s listing in 2019, which raised over $25 billion.

“Tadawul’s inclusion in major global indices like MSCI and FTSE has increased foreign investor participation, while the size and scale of recent initial public offerings have showcased the Kingdom’s ability to attract significant global capital,” said Serkan Teker, financial services partner at Deloitte Middle East.

He added that to rival global giants such as Wall Street and London, Saudi Arabia must continue evolving its capital markets by enhancing liquidity, diversifying sector representation, and improving transparency.

Teker also highlighted how the banking sector has been a significant driver of the Kingdom’s non-oil gross domestic product expansion. It posted an “impressive annual growth of almost 11 percent between 2018 and the beginning of 2023, maintaining strong asset quality with non-performing loans gradually declining since the first shock waves of the COVID-19 pandemic.”

Beyond the financial sector, Saudi Arabia’s broader economic strategy also focuses on creating new business environments and fostering innovation to attract foreign investors.

Teker said: “The Kingdom could also look into creating new free zones and specialized economic zones for key areas of strategic focus, such as healthcare, biotech, and information and communications technology. Additionally, continued investment in transformative urban projects that allow KSA to act as a central hub for commerce and hospitality will further strengthen its position on the global stage.”

The Deloitte partner went on to explain that Saudi Arabia’s rapid advancements in artificial intelligence, fintech, and digital banking are transforming the country into a global innovation hub. And he cited regulatory initiatives including the FinTech Sandbox and the adoption of Open Banking as helping the Kingdom become a magnet for tech startups and international investors.

He added that initiatives such as digital-only banks and AI-driven solutions in finance and healthcare are positioning Saudi Arabia at the forefront of cutting-edge financial technology.

The Kingdom’s fintech market, in particular, has experienced exponential growth — up 25 percent in 2024 according to the Saudi Central Bank — reflecting the increasing importance of digital transformation to the economy.

“Saudi Arabia is making significant investments in AI and related infrastructure, including a $40 billion tech fund and targeted investments in AI companies and startups. The launch of the Saudi Artificial Intelligence Authority is expected to accelerate innovation across key industries such as healthcare, finance, and manufacturing,” FTI Consulting’s Papriwal added.

Tadawul, however, is not without its challenges. Geopolitical instability in the Middle East remains a persistent concern, and the volatility of global markets — particularly oil price fluctuations — continues to affect the broader economy.

“Tadawul needs to evolve in two ways: first, from a domestic exchange to multi-regional, and second, toward a technology company enabling financial services firms to develop and execute investment strategies,” said Arthur D. Little’s Shafique.

Looking ahead, Saudi Arabia’s ability to expand its financial markets, further diversify its economy, and continue its digital transformation will be crucial in maintaining its upward trajectory.

Rezwan Shafique, principal of financial services at Arthur D. Little. Supplied

The Kingdom is already focusing on innovation, sustainable finance, and digital platforms as part of its broader Vision 2030 agenda. This vision positions Saudi Arabia not only as a regional player but also as a leader in global financial markets.

Teker emphasized that Saudi Arabia can strengthen its claim as a global financial powerhouse by expanding digital and financial inclusion through digital banking solutions and financial literacy programs would help reach underserved segments of the population.

Additionally, he highlighted the importance of deepening capital market reforms, introducing advanced financial instruments, and attracting foreign participation to enhance liquidity and diversify investment options.

Teker also explained that by leveraging regulatory frameworks, fostering partnerships between banks and fintech firms, and attracting international digital players, Saudi Arabia can establish itself as a global fintech hub and strengthen its position in the rapidly evolving financial services sector.

“We believe some of these forward-looking actions, aligned with Vision 2030’s ambitious goals, can further propel Saudi Arabia into global financial leadership while driving inclusive and sustainable economic growth,” he said.


Oil Updates — crude on track for 1st monthly drop since November on Trump tariff concerns

Oil Updates — crude on track for 1st monthly drop since November on Trump tariff concerns
Updated 28 February 2025
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Oil Updates — crude on track for 1st monthly drop since November on Trump tariff concerns

Oil Updates — crude on track for 1st monthly drop since November on Trump tariff concerns

LONDON: Oil prices fell more than 1 percent on Friday and were headed for their first monthly drop since November, as markets braced for Washington’s tariff threats and Iraq’s decision to resume oil exports from the Kurdistan region.

Uncertainty surrounding OPEC’s production resumption plans in April and ongoing talks to end the war in Ukraine also weighed on investor sentiment.

The more active May Brent crude futures slipped 81 cents, or 1.1 percent, to $72.76 a barrel by 5:10 p.m. Saudi time. US West Texas Intermediate crude futures were at $69.55 a barrel, down 80 cents, also 1.1 percent.

Front-month Brent, which expires on Friday, traded at $73.10, down 94 cents.

Both benchmarks are on track to post their first monthly decline in three months.

Baghdad is set to announce the resumption of oil exports from the semi-autonomous Kurdistan region through the Iraq-Turkiye pipeline, according to an Iraqi oil ministry statement.

Iraq will export 185,000 barrels per day through state oil marketer SOMO, and that quantity will gradually increase, the ministry said.

Despite the expected announcement, eight international oil firms operating in the Kurdistan region said they would not be resuming exports on Friday as there was no clarity on commercial agreements and guarantees of payment for past and future exports.

“The resumption of exports raises questions about how Iraq will comply with its OPEC+ obligations, having already regularly produced above its quota,” said Harry Tchilinguirian, head of research at Onyx Capital Group.

“If OPEC+ delays a 120,000 bpd return of voluntary cut barrels starting in April, then the increase in Iraq will exceed that restraint,” he added.

OPEC+ is debating whether to raise oil output in April as planned or freeze it as its members struggle to read the global supply picture, eight OPEC+ sources said.

Economists at Fitch’s BMI research unit said market participants are struggling to gauge the impact of all the energy-related policy announcements made by the Trump administration this month.

US President Donald Trump on Thursday said his proposed 25 percent tariffs on Mexican and Canadian goods will take effect on March 4, along with an extra 10 percent duty on Chinese imports.

Traders are reducing risks amid rising volatility sparked by Trump stepping up the tariffs war, not least against China, significantly raising concerns about global demand, said Ole Hansen, head of commodity strategy at Saxo Bank.

A tariff war could slow global growth, spark inflation and, in turn, suppress crude demand.

A Reuters poll showed Brent would average $74.63 per barrel in 2025, while US crude is projected to average $70.66.

Still, oil prices climbed more than 2 percent on Thursday as supply concerns resurfaced after Trump revoked a license granted to US oil major Chevron to operate in Venezuela. 


Over 1,300 Saudi industrial licenses awarded in 2024, attracting $13.3bn investment, latest figures show

Over 1,300 Saudi industrial licenses awarded in 2024, attracting $13.3bn investment, latest figures show
Updated 27 February 2025
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Over 1,300 Saudi industrial licenses awarded in 2024, attracting $13.3bn investment, latest figures show

Over 1,300 Saudi industrial licenses awarded in 2024, attracting $13.3bn investment, latest figures show

JEDDAH: More than 44,000 new jobs are expected in Saudi Arabia after the Kingdom issued 1,346 industry licenses in 2024, an official report has revealed.

The Ministry of Industry and Mineral Resources announced that the permits have also helped attract investments worth over SR50 billion ($13.3 billion), driving economic growth and diversification.

The ministry added that the jobs figure is based on a report by its National Industrial and Mining Information Center, which analyzes key sector changes.

The issuance of the permits aligns with Saudi Arabia’s National Industrial Strategy, launched by Crown Prince Mohammed bin Salman in October 2022, that aims to drive sector growth and increase the number of factories in the Kingdom to about 36,000 by 2035.

The strategy focuses on 12 sub-sectors, targeting more than 800 investment opportunities worth SR1 trillion, striving toward tripling the industrial gross domestic product.

The analysis by the ministry also shows that 1,075 factories began production in 2024, with investments exceeding SR48 billion and a workforce of about 39,000 employees.

The issuance of permits aligns with the Kingdom’s National Industrial Development and Logistics Program, which was launched in 2019 to support the industrial sector and drive sustainable development. 

It also furthers the ministry’s goal of strengthening the industry and diversifying the economy under Vision 2030.

NIDLP aims to position Saudi Arabia as an international leader in energy, mining, logistics, and industry. Key components include improving regulations, investing in renewable energy, and boosting local content through initiatives like “Made in Saudi,” all supporting the goal of enhancing industrial capacity and global competitiveness.

In February 2024, the Ministry of Industry reported a 10 percent year-on-year increase in operational factories for 2023, totaling an investment of approximately SR1.5 trillion.

The body also revealed that 1,379 industrial licenses were issued in 2023, attracting investments exceeding SR81 billion. Additionally, production commenced in 1,058 factories during the same period, with total financial commitments reaching SR45 billion.