Saudi FDI reforms poised to deliver transformative impact

Reforms to the Kingdom’s economy are not new, with a World Bank report in 2020 noting the significance of measures primarily concentrated on starting a business, dealing with construction permits, and facilitating trade. (SPA)
Short Url
Updated 10 December 2023
Follow

Saudi FDI reforms poised to deliver transformative impact

  • Main contributors to investment surge include France, Japan, Kuwait, Malaysia, Singapore, the UAE, and the US

RIYADH: Saudi Arabia continues to vigorously pursue its reform agenda, with a focus on bolstering foreign direct investment inflows and diversifying investment strategies despite a recent deceleration in its financial account as reported by the Saudi Central Bank and the Ministry of Finance.

In the second quarter of 2023, FDI inflows experienced a 21 percent decline compared to the same period last year, amounting to SR6.2 billion ($1.65 billion).

FDI outflows, which encompass the capital invested by Saudi entities in foreign countries, reached SR18.34 billion, a 53 percent decrease from the corresponding quarter of the previous year.

Albara’a Al-Wazir, an economist at the US-Saudi Business Council, said: “Despite the recent decline in FDI to SR6.2 billion, the number of investment licenses issued by the Ministry of Investment … reached 1,819 in Q2, marking a 94 percent increase compared to the previous year.”

He added: “Saudi Arabia has implemented significant legal, economic, and social changes to attract higher levels of foreign direct investment since the launch of Vision 2030.”

Al-Wazir highlighted that the Ministry of Investment granted licenses to 180 companies to establish regional headquarters in the Kingdom ahead of the January 2024 deadline.

The economist anticipates that the regional headquarters program will expedite FDI in Saudi Arabia.

“As companies seeking government projects will need to relocate, the full impact of this program is expected to manifest in the medium term, albeit with a potential lag,” he said.

Saudi Arabia has also announced tax incentives for foreign companies establishing their regional headquarters in the Kingdom, including a 30-year exemption from corporate income tax.

These measures also encompass zero income tax for foreign entities relocating their regional headquarters, effective from the issuance date of the license, as outlined by the Ministry of Investment. 




Riyadh has announced tax incentives for foreign companies establishing their regional headquarters in the Kingdom, including a 30-year exemption from corporate income tax. (SPA)

Al-Wazir said the newly introduced NEOM Investment Fund is strategically positioned to draw investors and play a role in the development of the new city.

Despite the decline in FDI in the second quarter of 2023, he emphasized that the Kingdom achieved the second-highest amount in the Middle East and Africa region during this period.

As per information disclosed by the Ministry of Investment, the FDI stock, representing the cumulative FDI in Saudi Arabia, saw a 2.89 percent increase during this period.

The ministry highlighted that this rise signifies the growing confidence of foreign investors in the Saudi investment ecosystem.

Reforms to the Kingdom’s economy are not new, with a report from the World Bank issued in 2020 noting the significance of a series of measures primarily concentrated on starting a business, dealing with construction permits, and facilitating international trade.

Additionally, the report noted that protections for minority investors were strengthened, a value-added tax was introduced, and notable improvements in trading and contract enforcement were implemented.

These reforms collectively demonstrate Saudi Arabia’s commitment to creating a more efficient and investor-friendly business environment.

According to the International Bar Association report on the Kingdom’s FDI legal framework and outlook in April 2023, Saudi Arabia is witnessing an increasing flow of FDI across various sectors. The main contributors to this investment surge include France, Japan, Kuwait, as well as Malaysia, Singapore, the UAE, and the US.

As outlined in the report, key sectors drawing substantial FDI include the chemical industry, real estate, fossil fuels, as  well as automobiles, tourism, plastics, and machinery. This diversification indicates a growing interest and confidence from international investors in Saudi Arabia’s economic landscape.

Data from the Ministry of Investment indicated a 135.4 percent annual increase in the number of investment licenses issued, reaching 2,192 in the third quarter of this year.

According to the ministry, this surge underscores Saudi Arabia’s appeal as an attractive investment destination, offering competitive advantages within a stable and supportive business environment. 

FASTFACT

Data from the Ministry of Investment indicated a 135.4 percent annual increase in the number of investment licenses issued, reaching 2,192 in the third quarter of this year.

Gross Fixed Capital Formation, reflecting investment in tangible assets like buildings, machinery, equipment, and infrastructure for production, saw a notable 7 percent increase during this period totaling SR278.9 billion, as reported by the ministry.

Within this, non-government GFCF accounted for approximately 85 percent of the total, reaching SR236.6 billion. This marked a 7.6 percent growth compared to the corresponding period last year.

In contrast, government GFCF held a 15 percent share during this quarter, with a 3.5 percent increase, reaching a total of SR42.3 billion. This data underscores the significant role of both non-government and government sectors in driving capital formation within Saudi Arabia’s economy.

The Kingdom’s financial account, which includes net values for direct investment, portfolio investment, and reserve assets, amounted to SR42.97 billion. This figure represents a 70 percent decline compared to the corresponding period last year, according to the report from the Kingdom’s central bank.

Portfolio investment, the second component of Saudi Arabia’s financial account, experienced a 66 percent decrease, primarily attributed to the Kingdom’s increased borrowings.

Meanwhile, the net acquisition of financial assets showed a robust 25 percent annual growth in the second quarter, totaling SR50.14 billion. However, this increase was countered by a rise in the portfolio’s liability section, with debt securities increasing from -SR18.53 billion to SR25.69 billion during the same period.

According to Al-Wazir: “The Kingdom signaled that it would utilize debt markets to raise liquidity to fund its projects. The increase in borrowing via debt securities underscores its commitment to achieve its desired diversification goals.”

He added: “The Kingdom has more recently issued both external and domestic debt, with domestic riyal-denominated debt accounting for approximately 63 percent of the total. In H1 2023, the government issued SR23 billion in domestic debt, while growing total domestic debt from SR615 billion to SR624 billion.”

Reserve assets, encompassing special drawing rights and currency, deposits, and securities, witnessed a 70 percent decrease. This decline is attributed to the devaluation of securities within this category.

“The topic of drawing down reserves, in this case securities, is a strategic move to decrease SAMA’s reserve holdings and redirect cash across a diversified set of vehicles,” explained Al-Wazir.

“Saudi has been adjusting its investment strategy in recent years whereby it is allocating money to national funds like the Public Investment Fund and National Development Fund. An example of this is when SAMA transferred SR150 billion from its foreign reserves to PIF in 2020,” he added.

The economist concluded by asserting that public debt remains sustainable, comfortably staying below the 50 percent debt to gross domestic product ceiling, and the fiscal capacity is substantial. He emphasized that the government’s borrowing strategy primarily aims to lengthen maturities, reduce refinancing costs, and establish a yield curve.


Human-centered travel takes priority in Saudi Arabia’s tourism vision

Updated 6 sec ago
Follow

Human-centered travel takes priority in Saudi Arabia’s tourism vision

  • Al-Khateeb says the Kingdom’s tourism future lies in authentic human experiences, not just infrastructure

RIYADH: Saudi Arabia is placing human-centered travel at the forefront of its tourism strategy, focusing on authentic cultural experiences, meaningful interactions, and community engagement as it reshapes its global tourism identity.

Tourism Minister Ahmed Al-Khateeb emphasized that this people-first approach is designed to balance the Kingdom’s rapid infrastructure development with heritage preservation and stronger community connections. The strategy, he said, forms a cornerstone of Saudi Arabia’s broader ambition to become a leading international tourism destination.

Al-Khateeb’s remarks come amid the launch of TOURISE, a new platform introduced by the Kingdom to unite global leaders across tourism, technology, investment, and sustainability. The initiative aims to foster innovation and collaboration as Saudi Arabia accelerates its tourism growth while maintaining a focus on sustainable and inclusive development.

In an interview with CNN,  Al-Khateeb emphasized the importance of human connection in travel, stating: “We want the experience in travel and tourism to be human.”

While acknowledging the role of innovation, Al-Khateeb stressed that technology should enhance — not replace — personal interaction. “We will definitely always use technology, but we will encourage and protect” human interaction because travel is all about people, he said.

The recently launched TOURISE platform, unveiled in late May, is designed to serve as a global forum bringing together key players in the tourism industry. According to Al-Khateeb, the initiative will unite regulators, operators, investors, and nongovernmental organizations to shape the future of a sector that accounts for “10 percent of global GDP and 10 percent of global jobs.”

He described the initiative as “unique” in its ability to bridge government and business to foster innovation and sustainable development in tourism.  

The Kingdom welcomed 30 million international visitors in 2024, a 9.5 percent increase from the previous year.  This influx is part of the kingdom’s broader strategy to diversify its economy beyond oil. 

Riyadh is a focal point of the Kingdom’s destination development plans. “Riyadh is top priority. Riyadh winter is the most beautiful winter in the world,” said Al-Khateeb, referencing attractions like Diriyah, King Salman Park, and the entertainment hub Qiddiya, which he described as “the largest-ever built sport, entertainment and culture city.”  

Al-Khateeb pointed to the Red Sea as a top priority, noting the launch of new resorts under Red Sea Global.   

“People love to visit the Red Sea, to explore the Red Sea,” he said, highlighting the region’s appeal alongside heritage tourism and Arabian hospitality.  

Despite geopolitical challenges, Al-Khateeb maintained that Saudi Arabia is moving forward with confidence.  

“We’re happy to see that it’s de-escalation in many areas in the region. And I think what is happening in Syria is a very positive thing, and I hope the rest of the region will follow,” he said.   

“It is very normal you have some huge investment, upload investment in a country like Saudi Arabia this investment is exposed to, sometimes, risk — capacity, availability risk, financial risk and so on.”   

“However, we know this. We have all the mitigation in place,” he added.  

Looking to the future, Al-Khateeb emphasized the Kingdom’s preparations for hosting the FIFA World Cup 2034 across multiple cities, including the mountainous south.   

“We are holding the World Cup in many cities in Saudi Arabia that will give the chance for the fans to explore the nature and the topography,” he said.  

Among the projects is the new Mohammed bin Salman Stadium in Qiddiya, which he described as “out of this world” and offering a “different experience for fans and for the players.”  

This strategic focus on human-centered tourism aligns with Saudi Arabia's Vision 2030, aiming to position the Kingdom as a leading global tourism destination. 


Riyadh airport tops Saudi on-time performance rankings in April: GACA data 

Updated 14 min 53 sec ago
Follow

Riyadh airport tops Saudi on-time performance rankings in April: GACA data 

  • Saudia reported an 89% on-time rate for arrivals and departures
  • Riyadh–Amman route recorded the highest on-time performance at 97%

JEDDAH: Saudi Arabia’s King Khalid International Airport recorded the highest on-time departure rate among the Kingdom’s international airports in April, achieving 90 percent punctuality, official data showed.  

According to the monthly report published by the General Authority of Civil Aviation, the Riyadh-based hub outperformed larger airports such as Jeddah’s King Abdulaziz International, the Saudi Press Agency reported. 

The report comes as Saudi Arabia continues to push operational upgrades under its National Aviation Strategy, part of the broader Vision 2030 plan to position the Kingdom as a regional air transit hub. 

“The report issued in April 2025 indicated that King Khalid International Airport in Riyadh, King Fahd International Airport in Dammam, Abha International Airport, Neom International Airport, Turaif Airport, and Wadi Al-Dawasir Airport topped the advanced positions in the report,” the SPA report stated. 

The rankings are based on data compiled by Matarat Holding Co. and exclude canceled flights. Performance is measured by flights departing or arriving within 15 minutes of their scheduled times. 

In the category of international airports handling more than 15 million passengers annually, the Jeddah-based King Abdulaziz International Airport recorded a punctuality rate of 78 percent, according to the study.  

For international airports serving between 5 million and 15 million passengers annually, King Fahd International Airport in Dammam secured the highest ranking with an on-time performance of 87 percent. Prince Mohammad bin Abdulaziz International Airport in Madinah, which also falls under this category, recorded a 72 percent rate. 

In the segment of international airports accommodating between 2 million and 5 million passengers annually, Abha International Airport posted the highest punctuality rate at 91 percent. This was followed by King Abdullah bin Abdulaziz Airport in Jizan with 90 percent, and Tabuk Airport with 82 percent. 

NEOM Bay International Airport led among international airports with fewer than 2 million passengers annually, achieving a 95 percent on-time departure rate. Other strong performers in this category included Al-Ahsa International Airport at 93 percent and Najran Airport at 89 percent. 

Turaif and Wadi Al-Dawasir airports recorded perfect performance among domestic flight hubs, achieving 100 percent on-time departures. King Saud bin Abdulaziz Airport in Al-Baha followed closely with 99 percent, while Bisha Airport posted 94 percent. 

At the airline level, national flag carrier Saudia reported an 89 percent on-time rate for arrivals and departures. Meanwhile, flynas achieved 86 percent for arrivals and 91 percent for departures, while flyadeal recorded 87 percent and 91 percent, respectively. 

Regarding specific flight routes, the Riyadh–Abha domestic passage maintained a strong on-time departure rate of 96 percent. Other high-performing domestic routes included Riyadh–Tabuk and Riyadh–Dammam, both at 96 percent, while the Jizan–Riyadh route sustained its previous month’s rate of 95 percent. 

Internationally, the Riyadh–Amman route recorded the highest on-time performance at 97 percent, followed by Riyadh–Bahrain at 94 percent, Riyadh–Dubai at 93 percent, and Riyadh–Kuwait at 92 percent. The Jeddah–Amman route also achieved a 94 percent punctuality rate.


Kuwait authorizes Investment Authority to borrow abroad, central bank to borrow domestically

Updated 25 May 2025
Follow

Kuwait authorizes Investment Authority to borrow abroad, central bank to borrow domestically

  • Law allows the government to issue financial instruments with maturities of up to 50 years

KUWAIT CITY: Kuwait’s minister of finance has authorized the country’s Investment Authority to carry out foreign borrowing operations and the Central Bank of Kuwait to conduct domestic borrowing operations on behalf of the ministry.

In March, Kuwait issued a decree law on public debt that outlined a framework for managing public borrowing, as the country prepares to return to global debt markets for the first time in eight years.

The law allows the government to issue financial instruments with maturities of up to 50 years and sets a ceiling for public debt at 30 billion Kuwaiti dinars ($97.9 billion), or its equivalent, in major convertible foreign currencies, said a statement on the official gazette.

Article 1 of the decision, signed by Finance Minister Noura Al-Fusam, authorizes the Central Bank of Kuwait, on behalf of the Ministry of Finance and “in coordination and consultation” with it, to carry out borrowing operations in Kuwaiti dinars or major convertible foreign currencies within the state “in accordance with recognized financial instruments and methods.”

Article 2 authorizes the Kuwait Investment Authority, on behalf of the Ministry of Finance and “in coordination and consultation” with it, to carry out borrowing operations in major convertible foreign currencies in global markets “in accordance with recognized financial instruments and methods.”

The last time Kuwait issued bonds was in 2017. 


Pakistan allocates 2,000MW to bitcoin mining, AI data centers in digital transformation push

Updated 25 May 2025
Follow

Pakistan allocates 2,000MW to bitcoin mining, AI data centers in digital transformation push

  • Pakistan offers a strategic location in the world for data flow and digital infrastructure as a digital bridge between Asia, Europe, and the Middle East
  • The country is positioning itself as a sovereign economy that can accumulate digital assets, export digital services, and lead in technological transformation

KARACHI: The Pakistani government has allocated 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power bitcoin mining and Artificial Intelligence (AI) data centers, the finance ministry announced on Sunday, in a push to transform Pakistan into a global leader in digital innovation.

The initiative is spearheaded by the Pakistan Crypto Council (PCC), a government-backed body under the Ministry of Finance, as part of a broader strategy to monetize surplus electricity, create high-tech jobs, attract billions of dollars in foreign direct investment.

Pakistan is uniquely positioned, both geographically and economically, to become a global hub for data centers, and offers the most strategic location in the world for data flow and digital infrastructure as a bridge between Asia, Europe, and the Middle East.

Pakistan’s combination of surplus power, geographic advantage, advanced subsea cable connectivity, renewable energy potential, and a large, digitally engaged population creates a compelling case for becoming a regional epicenter of Web3, AI, and digital innovation.

“This strategic allocation marks a pivotal moment in Pakistan’s digital transformation journey, unlocking economic potential by turning excess energy into innovation, investment, and international revenue,” Finance Minister Muhammad Aurangzeb was quoted as saying by his ministry.

Since the inception of the PCC, there has been tremendous interest from global bitcoin miners and data infrastructure companies, and several international firms have already visited Pakistan for exploratory discussions, according to the finance ministry. Following this landmark announcement, more global players are expected to visit in the coming weeks.

It said Pakistan’s underutilized power generation capacity is now being repurposed into a high-value digital asset.

“AI data centers and Bitcoin mining operations, known for their consistent and heavy energy usage, provide an ideal use case for this surplus,” the ministry said. ‘Redirecting idle energy, especially from plants operating below capacity, allows Pakistan to convert a long-standing financial liability into a sustainable, revenue-generating opportunity.”

PCC CEO Bilal bin Saqib emphasized the transformative nature of this initiative, saying Pakistan could become a global crypto and AI powerhouse with proper regulation, transparency, and international collaboration.
“This energy-backed digital transformation not only unlocks high-value investment but enables the government to generate foreign exchange in USD through bitcoin mining,” he said.

“Additionally, as regulations evolve, Pakistan can accumulate bitcoin directly into a national wallet, marking a monumental shift from selling power in Pakistani Rupees (PKR) to leveraging digital assets for economic stability.”

In April, Pakistan introduced its first-ever policy framework to regulate virtual assets and service providers, aligning with compliance and financial integrity guidelines of the global Financial Action Task Force (FATF). The move followed the establishment of the PCC in March to create a legal framework for cryptocurrency trading in a bid to lure international investment.

With the right incentives, strategic investments, and collaborative partnerships, Pakistan is positioning itself not only as a destination for global digital infrastructure but also as a sovereign economy that can accumulate digital assets, export digital services, and lead in the next generation of technological transformation.

“By offering stable and affordable energy, Pakistan presents a highly competitive environment compared to regional counterparts like India and Singapore, where rising power costs and land scarcity limit scalability,” the finance ministry said.

“Pakistan’s strategic advantage is further underscored by the global context: while AI data center demand has soared to over 100GW, global supply remains around 15GW. This massive shortfall creates an unprecedented opportunity for countries like Pakistan with surplus power, land, and an emerging regulatory framework.”

Pakistan’s digital connectivity has also been significantly strengthened by the landing of the world’s largest submarine Internet cable. The Africa-2 Cable Project, a 45,000-kilometer global network connecting 33 countries through 46 landing stations, has now landed in Pakistan. This milestone enhances Pakistan’s Internet bandwidth, latency, and resilience through redundant fiber routes — key for ensuring high availability and operational continuity for AI data centers.

With a population of over 250 million and more than 40 million crypto users, Pakistan holds immense potential as a regional leader in digital services, according to the finance ministry.

Establishing local AI data centers will not only address growing concerns around data sovereignty but will also enhance cybersecurity, improve digital service delivery, and empower national capabilities in AI and cloud infrastructure. These centers are expected to create thousands of direct and indirect jobs, catalyzing the development of a skilled workforce in engineering, IT, and data sciences.

“This announcement marks only the first phase of a broader, multi-stage digital infrastructure rollout. Future developments are expected to include renewable energy-powered facilities — leveraging Pakistan’s immense wind (50,000 MW potential in the Gharo-Keti Bandar corridor), solar, and hydropower resources — strategic international partnerships with leading blockchain and AI companies, and the establishment of fintech and innovation hubs,” the ministry said.

“These efforts will be complemented by proposed incentives such as tax holidays, customs duty exemptions on equipment, and reduced taxes for AI infrastructure developers.”


Riyadh positions itself as a global arbitration hub

Updated 24 May 2025
Follow

Riyadh positions itself as a global arbitration hub

  • The Saudi Center for Commercial Arbitration, established in 2016, plays a pivotal role in this transformation

RIYADH: Saudi Arabia is rapidly positioning Riyadh as a global hub for arbitration, leveraging comprehensive legal reforms, technological advancements, and strategic initiatives aligned with its Vision 2030 economic diversification agenda.

The Kingdom’s concerted efforts to modernize its arbitration infrastructure have resulted in a notable increase in the enforcement of arbitral awards. 

Since the enactment of the Arbitration Law in 2012, Saudi enforcement courts have processed approximately 35,000 enforcement applications, with the total value of awards exceeding $6.16 billion. 

In 2023 alone, the value of locally enforced arbitral awards reached nearly $800 million, with rulings involving foreign stakeholders totaling around $400 million, as noted by Saudi Justice Minister Walid Al-Samaani at the Third Saudi Commercial Arbitration Conference, held last year.

Karim Youssef, founder and executive chairman of Youssef + Partners, emphasized the strategic nature of Riyadh’s emergence as an arbitration hub. Speaking to Arab News, he said: “Riyadh’s rise is closely tied to Saudi Vision 2030, which emphasizes legal reform, transparency, and modernization.” 

He added: “The government’s push for a more attractive business environment includes strengthening the rule of law and legal infrastructure, encouraging foreign direct investment, and creating confidence in dispute resolution systems for both local and international investors.”

The Saudi Center for Commercial Arbitration, established in 2016, plays a pivotal role in this transformation. “Saudi’s rise comes through a focused approach, involving strong judicial openness to arbitration and the regulator benchmarking its conduct against international minimum standards,” said Youssef.

He pointed out that the SCCA saw its caseload increase by a factor of 80 by 2021, a testament to the rapid development and effectiveness of the reforms.

The introduction of the 2023 SCCA Arbitration Rules further aligns Saudi Arabia’s arbitration framework with global best practices. These rules incorporate the use of technology to streamline proceedings, enhance speed, control costs, and facilitate more direct communication between parties and the arbitral tribunal. 

Notably, they allow parties to attend hearings remotely, particularly for preliminary and procedural hearings, and enable the engagement of foreign lawyers and counsels, reinforcing Saudi Arabia’s commitment to accommodating international legal practices.

Embracing digital tools

Speaking to Arab News, Beirut-based attorney Jihad Chidiac highlighted the significance of these reforms, stating that “notable changes include the 2023 rules of the Saudi Center for Commercial Arbitration, which introduce the use of technology to streamline proceedings, enhance speed, control costs, and facilitate more direct communication between parties and the arbitral tribunal.” 

He added that these rules allow arbitrations to be conducted in languages other than Arabic and permit the appointment of multinational arbitrators from any jurisdiction, crucial given Riyadh’s strategic position between Asia, Europe, and Africa. 

The Kingdom is positioning itself as a major arbitration hub, attracting global firms and experts seeking a modern, high-tech environment.

Jihad Chidiac, Beirut-based attorney

The Saudi government’s commitment to enhancing the arbitration infrastructure is further evidenced by the modernization of arbitration laws to align with international standards, such as the 2012 Arbitration Law based on the UN Commission on International Trade Law, or UNCITRAL Model Law. 

This comprehensive legal infrastructure, along with Alternative Dispute Resolution-friendly courts, makes Riyadh a credible and competitive venue for international dispute resolution, attracting global commercial and investment disputes.

Global partnerships 

Chidiac explained that “the establishment of the SCCA and the introduction of the 2023 SCCA Arbitration Rules further align with global best practices, drawing from renowned frameworks like the London Court of International Arbitration and the International Chamber of Commerce.” 

These reforms enhance Riyadh’s appeal as a trusted center for arbitration, fostering confidence among international businesses and institutions.

The Kingdom’s dedication to global dispute resolution is also demonstrated by its accession to international treaties like the New York Convention and the formation of strategic partnerships with major arbitration institutions.

In November 2022, the SCCA expanded its operations by opening its first office outside Saudi Arabia at the Dubai International Financial Center, operating under the name “SCCA Dubai” and providing arbitration and mediation services in the UAE, positioning Riyadh as a key player in global dispute resolution services.

Developing local expertise 

Looking ahead, continuous and systematic application of key initiatives is essential for Riyadh to solidify its position as a global arbitration hub. 

Youssef emphasized the importance of ongoing support from the Ministry of Justice and the government, continued integration and implementation of Vision 2030, and alignment with international legal norms. 

He added: “The SCCA is maturing into a competitive institution, with international standard rules and a growing caseload.”

Youssef suggested that this collective uniqueness can transform the region into a global hotspot for arbitration activity, enhancing its appeal and competitiveness on the international stage. 

FASTFACTS

Riyadh’s emergence as a leading arbitration hub represents a significant and transformative shift for legal professionals, businesses, and investors across the Middle East.

Since the enactment of the Arbitration Law in 2012, Saudi enforcement courts have processed approximately 35,000 enforcement applications, with the total value of awards exceeding $6.16 billion.

Chidiac pointed out that one of the major trends in international arbitration, which Saudi Arabia has already embraced, is the increasing use of digital tools like online dispute resolution platforms and AI-powered arbitration solutions. 

With initiatives like Saudi Vision 2030 driving tech-driven innovation, Chidiac added, “the Kingdom is positioning itself as a major arbitration hub, attracting global firms and experts seeking a modern, high-tech environment.” 

Riyadh’s emergence as a leading arbitration hub represents a significant and transformative shift for legal professionals, businesses, and investors across the Middle East. 

Youssef justified that with the establishment of the SCCA and the modernization of legislative infrastructure in line with international arbitration practices, Riyadh offers an efficient arbitral institution that incentivizes businesses and investors to select the city as the seat for their disputes. 

This, in turn, increases demand for legal practitioners skilled in handling cross-border disputes, creating high-value professional opportunities.

The growing volume of cases, particularly driven by ongoing reforms, reflects an expansion in legal services and professional development, fostering a more predictable and stable legal environment that is attractive to foreign investors.

Chidiac concluded by saying that Saudi Arabia’s hosting of major global events like the Future Investment Initiative and the Global Saudi Investment Forum boosts its international business profile, reinforcing its role as a key hub for arbitration, which ensures efficient and predictable resolution of business disputes.

As Saudi Arabia continues to implement its Vision 2030 objectives, Riyadh’s positioning as a global arbitration hub is expected to strengthen further, offering a robust and modern legal framework that appeals to international investors and legal professionals alike.