Saudi Arabia exceeds HQ target with 540 international firms in Riyadh, says Al-Falih

 Saudi Investment Minister Khalid Al-Falih speaks at a panel at the FII8 in Riyadh on Tuesday.
Saudi Investment Minister Khalid Al-Falih speaks at a panel at the FII8 in Riyadh on Tuesday.
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Updated 29 October 2024
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Saudi Arabia exceeds HQ target with 540 international firms in Riyadh, says Al-Falih

Saudi Arabia exceeds HQ target with 540 international firms in Riyadh, says Al-Falih

RIYADH: Saudi Arabia attracted 540 international companies to establish their regional headquarters in Riyadh, ahead of a 2030 target of 500, according to Khalid Al-Falih, the Kingdom’s minister of investment. 

Speaking at the eighth Future Investment Initiative summit in Riyadh on Oct. 29, Al-Falih said that Saudi Arabia’s economic growth and investment landscape continues to remain resilient amid geopolitical tensions in the region. 

“Investors are not only coming to Saudi Arabia for our vibrant market. They are coming to the Kingdom to explore the broader region. We have initiated a program aimed at targeting 500 regional headquarters by 2030. And I am glad to announce that we have reached 540 companies,” said Al-Falih. 

Through the regional HQ program, Saudi Arabia introduced new tax incentives for multinational companies moving their regional headquarters to the Kingdom. These incentives include a 30-year exemption on corporate income tax and withholding tax related to headquarters activities, alongside discounts and support services. 

Al-Falih added: “Our economy is in the middle of the Middle East. We are the center of the Middle East and we feel the pain that is happening at the human level. The economy of Saudi Arabia under Vision 2030 is navigating these geopolitical tensions, macroeconomic and global challenges including trade tensions and political conflicts extremely well.” 

According to the minister, Saudi Arabia’s gross domestic product has grown by 70 percent since the launch of Vision 2030, a program aimed at diversifying the Kingdom’s economy by reducing its dependence on oil. 

Affirming the progress of economic diversification, the investment minister said that Saudi Arabia’s non-oil economy has been growing at 4 percent to 5 percent consistently since 2016, when Vision 2030 was launched. 

The comments by Al-Falih come just a few days after the International Monetary Fund projected the Kingdom’s economy to grow by 1.5 percent in 2024 and 4.6 percent next year. According to IMF, the Kingdom’s projected growth for 2025 is the second highest among countries in the Gulf Cooperation Council. 

Earlier this month, the World Bank also projected the Saudi gross domestic product to grow by 1.6 percent this year and later accelerating to 4.9 percent in 2025. 

In September, another report by credit rating agency S&P Global said that Saudi Arabia’s economic growth will be driven by its diversification strategy aimed at strengthening the non-oil private sector and reducing dependence on crude revenues. 

The investment minister also added that Saudi Arabia is targeting $3.3 trillion of gross capital formation by 2030, and it is currently growing at a pace of 10 percent year on year. 

He added that the Saudi Arabia progressing in every sectors including tourism, with the Kingdom attracting more than 100 million tourists last year. 

Al-Falih said that economic conditions are getting stabilized globally, with inflation moderating and interest rates declining. 

“Inflation has now been crushed, and it is now back to target levels; 2.6 percent in developed countries. Interest rates have declined, and in many countries have started reducing interest rates and quantitative easing. There has been no massive recession in most G20 economies,” said Al-Falih. 

He added: “Investor confidence is 15 percent high compared to three years ago, as measured by IPSOS. Tourism is back to where it was before the pandemic.”

Geopolitical tensions

Al-Falih expressed his concerns about the growing geopolitical tensions in the Middle East, and said that Saudi Arabia is committed to bring peace and stability in the region. 

“Geopolitical situation is concerning. The human aspect of it is truly tragic, look at the region, look at Europe. What is happening should be not underestimated, and the Kingdom is doing all it can to bring peace and prosperity,” said the investment minister. 

Turkish Finance Minister Mehmet Şimşek said his country’s economy, with its diversified nature, is well equipped to combat the effects of tensions in the region. 

“We are concerned about the risk of escalation of the ongoing conflicts, even though I think the risk is small, but it is not completely ignorable. Typically that would be the worst case scenario because Turkiye is a highly diversified economy. We are more resilient,” said Şimşek. 

He added: “The good news is that we have free trade countries with 54 countries around the world, and that covers about 60 percent of our trade.” 

During the same panel discussion, UK’s Minister of State for Trade Douglas Alexander said that politics is making a come back to the business sector, which is creating challenges to the future of economy. 

“In the first 40 years of globalization, CEOs and capital allocators did not have to give much consideration to geopolitics, and they instead focussing on ensuring flows of capital, services and goods. However, in recent years, we are seeing politics making a comeback, politics domestically, and geopolitics internationally,” said Alexander. 

Technological shift

During the discussion, Al-Falih said that advanced technologies like artificial intelligence are expected to fuel optimism in the minds of investors, thus strengthening market conditions. 

“AI, by itself, is fueling not only capital markets, but it is fueling optimism. It is creating an opportunity for rebalancing global competitiveness, among companies, among countries, and even among families and people, who think technological infrastructure will create a greater future,” said the Saudi minister. 

Echoing similar view, Şimşek said that prolonged economic growth demands green transition and digital transformation. 

Al-Falih further added that Saudi Arabia is doing everything to ensure security and safety of data as AI takes the center stage. 

“What we are doing in Saudi Arabia is having a balanced framework on data privacy, data sovereignty and data security when it comes to AI,” said Al-Falih. 

He added: “AI has a huge demand here. Saudi Arabia is going to be the disruptor, it is going to be the maker of a different ecosystem for actually incubating AI, algorithms and data centers that will have everything.” 


Saudi Tadawul eyes strong growth amid rising listings and foreign investment

Saudi Tadawul eyes strong growth amid rising listings and foreign investment
Updated 10 min 36 sec ago
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Saudi Tadawul eyes strong growth amid rising listings and foreign investment

Saudi Tadawul eyes strong growth amid rising listings and foreign investment
  • Tadawul’s growth has been bolstered by a rising influx of qualified foreign investors
  • It is also expanding its footprint in data innovation and commodity markets

RIYADH: Saudi stock exchange operator Tadawul Group is poised to accelerate the growth of its fixed-income market in 2025, with a strong focus on sustainable finance, following a record year for the group. 

Speaking at the 5th Capital Markets Forum in Riyadh, Tadawul chairperson Sarah Al-Suhaimi highlighted 2024 as a transformative year for the exchange, with more than 50 listings across its main and parallel Nomu markets, reflecting a surge in market activity. 

Tadawul’s growth has been bolstered by a rising influx of qualified foreign investors, which now number nearly 4,200 and represent 25 percent of total equity capital market trades. This influx aligns with Saudi Arabia’s broader economic goals of diversifying its financial sector and attracting international capital. 

“A strong capital market extends beyond equities,” Al-Suhaimi said. “We are making significant strides in our diversification strategy. With over 45,000 investors, our fixed-income market is poised to gain further momentum in 2025, especially in sustainable finance.” 

Looking ahead, Al-Suhaimi forecasted continued momentum across multiple asset classes in 2025. “2024 was a milestone year for the group and its subsidiaries,” she said. “We saw greater interest from international investors than ever before, with nearly 4,200 QFIs, who account for 25 percent of our total ECM trades, and a more diverse range of sectors.” 

Tadawul is also expanding its footprint in data innovation and commodity markets. Through its acquisition of Direct FN and a stake in the Gulf Mercantile Exchange, the group aims to broaden its market offerings and enhance its competitive edge. 

“These strategic steps align with our diversification strategy, broadening opportunities and reinforcing our position across multiple financial segments,” Al-Suhaimi said. 

The CMF, as the world’s largest capital market event, continues to serve as a premier platform where Saudi Arabia’s rapidly evolving capital market intersects with global finance. 

Al-Suhaimi expressed confidence that the forum will spur new partnerships and innovations, paving the way for further collaboration and growth within the Kingdom’s financial ecosystem. 

“CMF is an opportunity to forge meaningful partnerships and spotlight potential venues through which we can leverage synergies for a long-lasting impact,” she said. 

With an eye on 2025, Tadawul is positioned to play a pivotal role in shaping the future of the Middle East’s capital markets. 


Pakistan eyes Gulf market as it aims to double exports in five years — finance minister

Pakistan eyes Gulf market as it aims to double exports in five years — finance minister
Updated 9 sec ago
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Pakistan eyes Gulf market as it aims to double exports in five years — finance minister

Pakistan eyes Gulf market as it aims to double exports in five years — finance minister
  • Pakistan has signed MoUs to ensure business-to-business collaborations with Gulf countries
  • Muhammad Aurangzeb Pakistan wants trade, investment to be the engines of economic growth

KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb has said Pakistan sees huge potential in the Gulf Cooperation Council (GCC) market, as the country plans to double its exports in the next three to five years, according to details of his media interviews shared on Tuesday officially.
The minister and the governor of Pakistan’s central bank, Jameel Ahmad, traveled to Saudi Arabia last Saturday to attend the two-day Alula Conference for Emerging Market Economies 2025, which brought together global financial leaders, including the managing director of the International Monetary Fund, Kristalina Georgieva.
Pakistan has already taken several steps to benefit from the Middle Eastern and Chinese markets, signing memorandums of understanding to ensure business-to-business collaborations and setting up special economic zones to attract foreign investment for greater employment and industrial development.
“Our ambition is that we are roughly about $30 billion plus in terms of exports, and we want to double in the next sort of three to five years,” Aurangzeb said in interviews with Asharq Business and Bloomberg on the sidelines of the Alula Conference in Saudi Arabia.
According to the Pakistan Bureau of Statistics, the country sold $30.7 billion worth of goods in the international market by the end of the last fiscal year in June 2024, showing an 11 percent growth over the $27.7 billion in exports made in 2023.
In the first seven months of the current fiscal year until January, Pakistan’s exports rose 10 percent to $19.6 billion compared with $17.8 billion in the corresponding period a year ago.
The finance minister said his country had progressed in terms of macroeconomic stability in the past 12 to 14 months, pointing out that it was now trying to turn trade and investment into the engines of its economic growth.
“Going forward, I see GCC [Gulf Cooperation Council], where we are sitting right now, we see huge export potential in these markets,” he continued.
The GCC is a regional organization comprising Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, Kuwait and Oman.
Pakistan’s fragile economy has shown signs of stability in the past year, with inflation easing to 2.41 percent in January, creating room for the central bank to reduce borrowing rates by a cumulative 1,000 basis points since June to 12 percent to spur growth.
The State Bank of Pakistan expects 2.5 to 3.5 percent growth in the current fiscal year ending in June.
“We want to now consolidate and use this and the fiscal space which is available to prioritize expenditures that can then help our trajectory as we move forward,” said the minister.


Saudi Arabia’s refinery output hits 2.54m bpd in December, marking 5% annual growth

Saudi Arabia’s refinery output hits 2.54m bpd in December, marking 5% annual growth
Updated 27 min 19 sec ago
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Saudi Arabia’s refinery output hits 2.54m bpd in December, marking 5% annual growth

Saudi Arabia’s refinery output hits 2.54m bpd in December, marking 5% annual growth

RIYADH: Saudi Arabia’s refinery output climbed to 2.54 million barrels per day in December, reflecting a 5 percent year-on-year increase, according to the latest data from the Joint Organizations Data Initiative.

Fuel oil, which accounted for 18.2 percent of total refinery output, rose 7 percent over the year to 464,000 bpd. Meanwhile, gas diesel — the largest component of the refinery mix at 40 percent — declined by 5 percent.

Motor and aviation fuel production, which represented 24.7 percent of total output, recorded a 5 percent increase during the same period.

At the same time, refined crude exports saw a slight 1 percent drop, falling to 1.13 million bpd in December. Diesel remained the primary refined product export, making up 36 percent of total shipments, while motor and aviation gasoline contributed 20 percent, and fuel oil accounted for 15 percent.

The report also revealed that the Kingdom’s crude oil production stood at 8.91 million bpd in December, marking a 0.44 percent annual decline. Meanwhile, crude exports fell by 2.57 percent to 6.15 million bpd.

Domestic demand for refinery products also recorded a slight dip, decreasing by 26,000 bpd year on year to 2.29 million bpd.

OPEC+ countries, which include the 13 members of the Organization of the Petroleum Exporting Countries and non-OPEC producers like Russia, have been coordinating output cuts to stabilize the global oil market and address fluctuations in oil prices.

The most recent OPEC+ decision in December was to delay increasing oil output by three months, pushing the start of monthly production hikes to April.

This decision, which extended the full unwinding of cuts until the end of 2026, was made in response to continued weak demand and high levels of production outside the group.

As a result, OPEC+ plans to increase output gradually starting in April, while maintaining the flexibility to adjust these plans if market conditions change dramatically. The group’s broader strategy remains focused on long-term market stability and achieving a balanced supply-demand scenario that supports fair oil prices.

Moving forward, OPEC+ has continued to emphasize its commitment to energy cooperation with other regions and its role in ensuring market stability. However, the exact pace of future output increases and cuts will depend on both the global economic situation and developments in oil demand, including the transition toward renewable energy sources and geopolitical considerations.

Direct crude usage

Saudi Arabia’s direct crude oil burn — the use of crude oil in power generation — declined by 24,000 bpd in December, falling to 279,000 bpd, an 8 percent year-on-year drop and a notable 27 percent decrease from November.

The monthly decline in direct crude burn in the Kingdom can be attributed to colder weather conditions, which typically reduce the demand for energy-intensive heating during the colder months.

On a yearly basis, the decline can likely be linked to the more efficient use of energy across various sectors. This aligns with the Kingdom’s ongoing efforts to enhance energy efficiency, as highlighted during the February Egypt Energy Show in Cairo.

During the event, Saudi Energy Minister Prince Abdulaziz bin Salman reaffirmed the nation’s commitment to energy cooperation with Egypt.

As part of the partnership, Saudi firms will develop five solar and wind projects in Egypt, with a total capacity of 1.696 gigawatts and an investment of SR6.2 billion ($1.65 billion).

Additionally, ACWA Power signed a deal for a 2GW wind project in South Hurghada, valued at SR8.6 billion, making it Egypt’s largest wind energy initiative.

The Saudi-Egypt Electricity Interconnection Project, an SR6.7 billion investment enabling 3,000 MW of electricity exchange, was also highlighted as a key step in regional energy cooperation.

These projects, alongside regulatory development and capacity-building initiatives, contribute to the Kingdom’s broader efforts to promote a more sustainable and efficient energy model.


Saudi Capital Market Forum expands globally with events in Hong Kong and New York

Saudi Capital Market Forum expands globally with events in Hong Kong and New York
Updated 45 min 8 sec ago
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Saudi Capital Market Forum expands globally with events in Hong Kong and New York

Saudi Capital Market Forum expands globally with events in Hong Kong and New York

RIYADH: The Capital Market Forum is expanding its global footprint with two events scheduled in Hong Kong in May and New York in October, marking a step forward in Saudi Arabia’s financial sector growth. 

The new events were announced by the CEO of the Saudi Tadawul Group at its latest edition, which is running from Feb. 18 to 20 in Riyadh and serves as a platform for fostering international investment and regulatory collaboration. 

In a panel discussion titled “Global Capital Markets: Enhancing Resilience and Connectivity,” Khalid Al-Hussan emphasized the conference’s role in strengthening the Kingdom’s position as a global financial hub.

“Our market has evolved significantly. Previously, we had a single equity market accessible only to locals and residents. Today, we have two equity markets open to local, regional, and foreign investors,” Al-Hussan said, adding that foreign investment participation in the equity market has reached nearly $100 billion.

“Any investor can access any market. Any issuer can access any market. So, we need to build all the necessary components around the stock exchange to compete effectively,” he added.

Bonnie Y Chan, CEO of Hong Kong Exchanges and Clearing Limited, echoed the sentiment, emphasizing the need for a compelling value proposition for both issuers and investors. “We want to ensure we offer a full suite of products,” she said, acknowledging 2025 as a year of continued uncertainty despite a positive start.

Roland Chai, president of European Market Services at Nasdaq, said: “When regulation works, it protects investors, ensures seamless markets, and upholds reliability and integrity. As technology evolves, we must align regulations with market development to maintain efficiency.”

CEO of the World Federation of Exchanges, Nandini Sukumar, praised Saudi Arabia’s market transformation, describing its development in the last five years as astonishing, striking, and visible.

Al-Hussan also outlined Saudi Tadawul Group’s strategic investments in financial infrastructure, particularly in data services. “We have heavily invested in data infrastructure, and our first cloud-based product is set to launch in April,” he revealed, emphasizing the importance of trading, clearing, and settlement solutions in capital market infrastructure.

With CMF facilitating over 600 scheduled meetings between investors and issuers globally, the forum is set to bolster international collaboration and solidify the Kingdom’s position as a key player in the financial sector.

The start of day one of the CMF highlighted key global economic trends for 2025, with experts emphasizing steady growth despite market volatility, with a focus on international resilience, inflation normalization, and market performance.


Riyadh, Seoul strengthen defense ties with quality assurance deal 

Riyadh, Seoul strengthen defense ties with quality assurance deal 
Updated 47 min 5 sec ago
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Riyadh, Seoul strengthen defense ties with quality assurance deal 

Riyadh, Seoul strengthen defense ties with quality assurance deal 

JEDDAH: Saudi Arabia and South Korea have signed a government quality assurance agreement to strengthen defense cooperation and boost their military capabilities and long-term industrial development. 

The deal, signed on Feb. 18 during the International Defense Exhibition and Conference in Abu Dhabi, underscores growing ties between the two nations in defense and technology. 

Saudi Arabia’s General Authority for Military Industries signed the deal with South Korea’s Defense Acquisition Program Administration in the presence of GAMI Gov. Ahmad bin Abdulaziz Al-Ohali and Korea’s Defense Minister Seok Jong-gun. 

The deal is part of an ongoing effort by both nations to bolster their respective defense industries, with an emphasis on mutual national interests. It also signals a commitment to expanding cooperation in the field of defense products and services, including the exchange of best practices and expertise. 

In a post on his X account, Al-Ohali said: “Today, as part of the Saudi pavilion’s participation in the International Defense Exhibition and Conference, I met with His Excellency the Minister of Defense Acquisition Program Administration of Korea, Seok Jong-gun, where we signed a cooperation agreement in the field of government quality assurance stemming from the basic agreement signed with the Korean side in 2019.” 

Saudi Crown Prince Mohammed bin Salman’s 2019 visit to South Korea led to the signing of an MoU aimed at strengthening defense and industrial partnerships, focusing on military acquisitions, research, and technology. 

Since then, defense ties between Saudi Arabia and South Korea have grown through several agreements.  

In February 2024, their defense ministers discussed closer collaboration, and at the World Defense Show, they signed an MoU to establish a joint committee for weapons research and development.  

This was followed by a $3.2 billion deal in September, with South Korea’s LIG Nex1 agreeing to supply Saudi Arabia with mid-range surface-to-air missile systems. 

On the sidelines of IDEX 2025, Al-Ohali also visited the Turkish pavilion, where he met with Haluk Gorgun, president of Turkiye’s defense industry agency. “We discussed the most important developments in cooperation and joint programs between the two countries in the military industries sector.” Al-Ohali said in another X post. 

The Saudi pavilion at IDEX 2025 highlights the Kingdom’s growing defense capabilities, showcasing locally developed technologies and emphasizing investment opportunities in the military, defense, and security sectors.  

The pavilion underscores Saudi Arabia’s commitment to sustainability and advancing military technologies, while also showcasing the role of qualified national experts in the defense sector.