Beyond the barrel: How Aramco is reinventing energy production for a new era

Beyond the barrel: How Aramco is reinventing energy production for a new era
Visitors attend the Saudi Aramco exhibition stand at the Abu Dhabi National Exhibition Centre in the UAE. Shutterstock
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Updated 16 May 2025
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Beyond the barrel: How Aramco is reinventing energy production for a new era

Beyond the barrel: How Aramco is reinventing energy production for a new era

JEDDAH: Saudi Aramco’s investment strategy reflects a pragmatic and forward-looking approach as the global energy landscape continues to evolve, experts have told Arab News.

Having reported a net income of $106.2 billion in 2024, the world’s largest and most valuable energy company remains focused on its long-term growth. 

Central to this are its ambitious natural gas projects, including the Jafurah unconventional gas field and the Tanajib gas plant, which are vital to Saudi Arabia’s future energy security.

These initiatives support the Kingdom’s ongoing transition from crude oil to gas-powered electricity generation and align closely with Vision 2030’s objectives of economic diversification and environmental responsibility.

A pragmatic approach

Saudi Aramco is intensifying its natural gas development, recognizing its role as a cleaner alternative to crude oil. These efforts dovetail with the broader national strategy to reduce emissions while bolstering economic resilience.

Tamer Al-Sayed, chief financial officer at the Future Investment Initiative Institute, told Arab News that Aramco’s diversification extends to its global liquefied natural gas ventures, such as its stake in MidOcean Energy.

“Natural gas serves as a reliable bridge fuel with lower carbon intensity than crude,” he explained.

Aramco is also harnessing artificial intelligence to boost operational efficiency and reduce emissions, sharpening its competitive edge in an increasingly renewable-driven world.

“This twin strategy — scaling cleaner fuels and deploying smart technologies — ensures Aramco remains globally competitive while contributing to the Kingdom’s climate goals,” Al-Sayed said.




Tamer Al-Sayed, chief financial officer at the Future Investment Initiative Institute. Supplied

Investing in carbon capture 

A cornerstone of Aramco’s decarbonization is a large-scale carbon capture and storage facility under development in Jubail. Expected to capture up to 9 million tonnes of CO2 annually, it will be among the largest of its kind globally.

Al-Sayed acknowledged the issues associated with CCS, saying: “The economics remain challenging without a robust carbon pricing mechanism.”

He emphasized that CCS is a strategic bet to allow Saudi industry to maintain market access amid tightening low-carbon regulations. There is also potential for new revenue streams through “carbon capture-as-a-service.”

“In macroeconomic terms, this is a bet on future-proofing Saudi industry,” he added, highlighting the Kingdom’s readiness to capitalize on emerging carbon markets and green trade policies.

A cleaner future

Aramco’s renewable energy investments focus heavily on solar power and hydrogen. The company is advancing the Sudair Solar PV plant and three additional projects totaling 5.5 gigawatts, aimed at greening the grid and reducing domestic oil consumption — thereby freeing hydrocarbons for export or industrial use.

In the hydrogen sector, Aramco targets producing 2.5 million tonnes of blue ammonia annually by 2030, leveraging its gas reserves and CCS infrastructure to become a leading clean energy exporter.

“This aligns with Vision 2030’s goal of developing high-value, knowledge-based industries,” Al-Sayed said.

While renewables will not replace hydrocarbons overnight, they remain a critical element of Saudi Arabia’s long-term energy diversification.

Expanding downstream 

Aramco’s recent acquisitions in emerging markets underscore a strategic push into downstream operations. Its full ownership of Chile’s Esmax and a 40 percent stake in Pakistan’s Gas & Oil fuel retail network give the Saudi firm direct access to growing energy markets.

“From a Saudi economic lens, such downstream investments help reduce overreliance on crude oil exports by monetizing the full hydrocarbon value chain — from well to wheel,” Al-Sayed explained.

These moves also generate foreign revenue streams, support the Kingdom’s balance of payments, and complement broader trade diplomacy efforts.

With Pakistan’s fuel demand rising alongside its population and infrastructure growth, and Chile serving as a gateway into South America’s energy retail landscape, Aramco is positioning itself for durable growth beyond upstream activities.

“These investments also provide resilience against regional demand fluctuations, reinforcing Aramco’s strategy of maintaining a global presence in energy markets,” Al-Sayed added.




GO CEO Khalid Riaz, sitting left, and Aramco Director of International Retail Nader Douhan, sitting right, after the Saudi firm acquired a 40% equity stake in May 2024. Aramco

Recalibration for the future

In the face of rapid decarbonization, Aramco is recalibrating its long-term strategy through diversification, global investments, and adoption of future-focused technologies. The company aims to balance today’s operational realities with tomorrow’s energy goals.

“This is not just about resilience — it is about relevance,” Al-Sayed concluded, underscoring how strategic diversification and investments anchor Aramco firmly in the energy economy of the future.

Resilience amid cuts

Yaseen Ghulam, associate professor of economics and director of research at Al-Yamamah University in Riyadh, offered perspective on Aramco’s 2024 net income decline — which was 12 percent down from the $121.3 billion seen in 2023.

He attributed it to strategic oil production cuts agreed upon by OPEC+, including a 6.25 percent reduction from 2023 and a 14.28 percent cut from 2022.

“OPEC+ further plans to extend voluntary oil production curbs until September 2026, potentially causing a 0.4 million barrels per day reduction in 2025,” Ghulam said.

Despite these market constraints, he noted that Saudi Arabia’s non-oil sector has compensated for the oil-related revenue drop through higher household consumption and increased investment, driven by government diversification efforts.

He forecast non-hydrocarbon sector growth of at least 4 percent, supported by low unemployment, rising female workforce participation, and ongoing Vision 2030 progress, backed by strong fiscal buffers.

Sustainable investment 

When asked about Aramco’s capital expenditures — $53.3 billion in 2024 and projected up to $58 billion in 2025 — Ghulam emphasized the company’s pivotal role in shaping global oil supply trends.

“Aramco has made a record investment and is likely to continue in artificial intelligence, manufacturing, and corporate acquisitions to improve domestic and global oil supply chains and help diversify the nation’s economy,” he said.

He further highlighted the company’s commitment to developing lower-carbon products across energy, chemical, and materials sectors, alongside its plan to leverage its low-cost, low-carbon upstream production to meet growing global demand.

He also pointed out the company’s investments in renewables through its New Energies division, saying:, “Aramco has signed an agreement to build new green hydrogen and ammonia production facilities. The company wants to produce 11 million tonnes of blue ammonia a year by 2030, with the possibility of exporting to markets in Asia and Europe.”

Supporting diversification plans 

According to its 2024 annual report, Aramco’s technology initiatives aim to enhance upstream and downstream operations, expand its product portfolio, and promote sustainable growth aligned with its net-zero ambitions.

Ghulam observed that Saudi Arabia’s economy is rapidly reducing its reliance on oil revenues, thanks to infrastructure, tourism, and technology policies.

“Non-oil activities now make up 52 percent of overall economic activity, with an anticipated 65 percent by the end of the decade. Non-oil revenue in fact doubled in four years. Industries driving this growth include manufacturing, construction, communication, finance, retail trade, restaurants, hotels, and logistics and transportation,” he said.

The Kingdom is rolling out over 5,000 projects aimed at diversification, with 73 percent of new investment expected to target non-oil sectors.

Ghulam concluded that Aramco plays a critical role in supporting this transition by investing heavily in LNG, hydrogen, solar, wind, and battery materials like lithium, alongside maintaining upstream oil projects to sustain its global leadership.


Saudi Arabia approves new Dammam-based budget airline backed by Air Arabia

Saudi Arabia approves new Dammam-based budget airline backed by Air Arabia
Updated 55 min 16 sec ago
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Saudi Arabia approves new Dammam-based budget airline backed by Air Arabia

Saudi Arabia approves new Dammam-based budget airline backed by Air Arabia
  • Eastern Province governor unveils $426 million aviation development package

RIYADH: Saudi Arabia has granted a low-cost airline license to an Air Arabia-led consortium, aiming to boost air connectivity, create jobs, and upgrade transport in the Eastern Province. 

The new carrier, a joint venture between the UAE-based budget airline, KUN Investment Holding, and Nesma, will be headquartered at Dammam’s King Fahd International Airport. It is expected to operate both domestic and international routes, helping expand access and competition in the Kingdom’s growing aviation market. 

According to the General Authority of Civil Aviation, the new airline aims to serve 24 domestic and 57 international destinations, transporting around 10 million passengers annually. Its operations will be supported by a fleet of 45 aircraft and are projected to create more than 2,400 direct jobs, aligning with Saudi Arabia’s Vision 2030 goals to boost the non-oil economy and local employment. 

In a statement, GACA stated: “This move aims to enhance air connectivity in the Eastern Province, increase seat capacity, and provide passengers with competitive options.”  

The announcement comes as part of broader efforts to transform Saudi Arabia into a regional aviation hub. The country plans to handle 330 million passengers and transport 4.5 million tons of air cargo annually by 2030, under the National Strategy for Transport and Logistics Services. 

As part of this strategy, Eastern Province Gov. Prince Saud bin Naif bin Abdulaziz also inaugurated the master plans for King Fahd International, Al-Ahsa, and Al-Qaisumah airports, alongside a new corporate identity for Dammam Airports Co. The governor also launched a SR1.6 billion ($426 million) development package covering 77 infrastructure projects to improve passenger experience and airport services.   

King Fahd International Airport handled 12 million passengers in 2024, up 15 percent from the previous year, with over 99,000 flights recorded, according to data from Dammam Airports Co. The airport also set a daily passenger traffic record, surpassing 50,000 travelers in a single day for the first time.  

With air traffic steadily rising and infrastructure rapidly expanding, the introduction of a new budget airline based in Dammam is expected to solidify the region’s position as a key aviation gateway and support Saudi Arabia’s ambitions to lead the Middle East civil aviation sector by the end of the decade. 


Boeing, Alphavest to launch 5 excellence centers in Morocco

Boeing, Alphavest to launch 5 excellence centers in Morocco
Updated 43 min 44 sec ago
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Boeing, Alphavest to launch 5 excellence centers in Morocco

Boeing, Alphavest to launch 5 excellence centers in Morocco
  • Move aims to elevate North African country’s position in global aerospace value chain
  • Two parties will collaborate to enhance logistics capabilities

JEDDAH: Morocco is set to enhance its global aerospace profile through a new partnership between Alphavest Capital and Boeing, which will launch five centers of excellence dedicated to engineering and high-precision manufacturing.

The Casablanca-based investment firm and the US multinational corporation have signed a memorandum of understanding to jointly develop aerospace centers in Morocco. This move is also poised to significantly elevate the North African country’s position in the global aerospace value chain.

The two parties will collaborate to enhance logistics capabilities, with a focus on engineering for airplane transport systems, including tubes, ducts, hoses, fittings, complex standard machined parts and sheet metal, secondary structures, particularly composite components, and metal processing and distribution.

The development, part of a 2016 agreement between Boeing and Moroccan authorities, highlights the manufacturing company’s commitment to strengthening the country’s industrial base and supply chains.

Majid Benmlih, chairman and CEO of Alphavest, said the “historic” agreement with Boeing marks Morocco’s emergence on the global aerospace stage.

Moroccan asset management firm Alphavest Capital and aircraft manufacturer Boeing have signed a deal to collaborate on creating five aerospace excellence centers in Morocco. Alphavest

“It highlights the kingdom’s position as a best-value destination for aerospace in terms of risk, quality, cost, and delivery,” he said. “This agreement is the result of several years of collaboration between Alphavest Capital and Boeing, especially through the creation and growth of TDM Aerospace.”

Established in 2017 through a partnership between the Moroccan Aerospace Investment Co. and international entrepreneurs, TDM Aerospace is Morocco’s first locally owned Tier 1 supplier, specializing in tube and duct assemblies for Boeing and other clients. 

Morocco hosts 150 aerospace firms that generate €2.5 billion ($2.7 billion) annually and employ 26,000 workers across key cities. The sector focuses on fuselages, structural components, cabin interiors, and wiring systems.

With competitive costs and a workforce that trains 23,000 engineers annually, the nation aims to expand into cabin outfitting, landing gear, and commercial aircraft assembly within the next decade.

Ihssane Mounir, senior vice president of global supply chain and fabrication at Boeing Commercial Airplanes, said they are proud to partner with Alphavest to further develop Morocco’s aerospace supply chain capabilities and cultivate a high-performing, skilled workforce.

“This agreement reinforces our commitment to supporting the Kingdom’s vision of establishing Morocco as a key player in the global aerospace industry,” Mounir added.


Saudi Arabia’s industrial, logistics sectors add $263bn to non-oil GDP in 2024

Saudi Arabia’s industrial, logistics sectors add $263bn to non-oil GDP in 2024
Updated 56 min 22 sec ago
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Saudi Arabia’s industrial, logistics sectors add $263bn to non-oil GDP in 2024

Saudi Arabia’s industrial, logistics sectors add $263bn to non-oil GDP in 2024
  • Contribution of non-oil activities to broader GDP reached 55%
  • Non-oil exports reached a total value of SR514 billion in 2024

RIYADH: Saudi Arabia’s National Industrial Development and Logistics Program contributed SR986 billion ($262.8 billion) to the Kingdom’s non-oil gross domestic product in 2024, accounting for 39 percent of the total, according to the program’s annual performance report. 

This figure marks an increase from SR949 billion in 2023 and underscores NIDLP’s central role in advancing the goals of Vision 2030 to diversify the Saudi economy beyond oil. 

The report highlighted substantial progress across the program’s strategic sectors — industry, mining, energy, and logistics — demonstrating what NIDLP described as a “qualitative transformation” in the national economy. 

The total contribution of non-oil activities to the broader GDP reached 55 percent, with the manufacturing sector alone growing by 4 percent, and both mining and transport/storage sectors expanding by 5 percent. 

Saudi Arabia’s broader economic performance in 2024 reflected resilience amid oil market fluctuations, with overall GDP growing by 1.3 percent for the year, driven primarily by expansion in non-oil sectors, according to data from the General Authority for Statistics. 

Launched in 2019, NIDLP aims to integrate key sectors and leverage local content and the Fourth Industrial Revolution to build a diversified and value-added economic base. 

The 2024 report details a range of achievements that indicate continued momentum toward these long-term economic transformation goals. 

"The number of executive initiatives under the program reached 284 by the end of 2024, of which 163 have been completed, with a completion rate of 57 percent, confirming the pace of achievement and the program’s ability to deliver impact,” the report quoted Minister of Industry and Mineral Resources Bandar Alkhorayef, also chairman of the NIDLP Committee, as saying.  

“The total number of employees in NIDLP sectors surpassed 2.43 million, including more than 508,000 new jobs created during the year. Among those, over 81,000 were taken up by Saudi nationals,” he added in the report. 

Non-oil exports reached a total value of SR514 billion in 2024, reflecting a 13.2 percent year-on-year increase. 

Of this, SR217 billion came from non-oil goods exports, which rose by 4 percent. 

Re-exports surged 42 percent to reach SR90 billion, while services exports climbed 14 percent to SR207 billion. 

Chemicals topped the export categories with SR78.5 billion, followed by electrical equipment at SR42.9 billion, metals and metal products at SR23.3 billion, and food and beverage products at SR10.5 billion. 

The labor market also saw strong gains. Total employment across NIDLP sectors reached 2.433 million workers in 2024. 

The program created more than 508,000 new jobs last year, including over 81,000 roles for Saudi nationals — 42,000 for men and 39,000 for women. 

Key employment drivers included manufacturing, mining and quarrying, electricity and gas, and logistics. 

Non-government investments in program sectors reached SR665 billion. The Saudi Industrial Development Fund’s cumulative loan approvals totaled SR198 billion, while export credit facilities issued by the Saudi Export-Import Bank stood at SR69.14 billion. 

Industrial activity expanded significantly, with 12,589 industrial establishments recorded by year-end. 

The number of ready-built factories reached 1,511. Non-government investments in industrial cities and special zones totaled a cumulative SR1.41 trillion.    

The local defense industry also advanced, with cumulative sales by domestic companies hitting SR34.32 billion. 

The national industrial strategy continues to push for the localization of supply chains in sectors like medical supplies, automotive, energy-related products, and petrochemicals. 

In renewable energy, the program recorded significant progress. Total renewable energy capacity initiated in 2024 reached 20 gigawatts, including 3.7 GW of new solar project agreements and 3.6 GW of new commercial operations. 

The lowest recorded wind energy cost globally was also achieved, at 5.87 halalas per kilowatt-hour. These efforts contributed to an annual carbon emissions reduction of approximately 1.7 million tonnes. 

In mining, exploration spending reached SR228 per sq. km. The number of mining sites offered for competitive bidding increased 380 percent from the previous year. 

The sector aims to contribute SR176 billion to GDP and create 219,000 jobs by 2030. Saudi Arabia was ranked second globally for mining license environment quality, the report stated. 

Logistics witnessed similar advances. A total of 1,056 logistics licenses were issued, while re-export logistics centers expanded to 23 in 2024, up from just two in 2019. 

Port utilization rose to 64 percent, compared to a baseline of 50.2 percent. Customs clearance time was reduced to just two hours, and container throughput reached 7.5 million units. 

Key performance indicators exceeded several targets. Military industrialization localization reached 19.35 percent, surpassing the 12.5 percent goal and up from a 7.7 percent baseline. 

Local content in non-oil sectors reached SR1.231 trillion, above the target of SR1.11 trillion. The number of final licenses issued for promising industries hit 3,107, compared to a target of 845 and a baseline of 169. 

Cumulative exports of promising industries reached SR135.6 billion, exceeding the target of SR98.7 billion. 

The number of re-export-linked logistics centers also surpassed targets, with 23 centers established versus a target of 16. 

At the highest level, NIDLP contributes to three primary pillars of Vision 2030: fostering a vibrant society, creating a thriving economy, and building an ambitious nation. 

One of the six first-tier Vision 2030 objectives that the program directly supports is the development and diversification of the national economy, particularly through job creation and enhanced government performance to promote social responsibility. 

NIDLP also addresses second-tier goals by strengthening private sector participation and maximizing value across key economic sectors. 

The program seeks to improve the competitiveness of Saudi Arabia’s energy sector, enhance local content in oil and gas industries, and promote the development of renewable energy sources. 

Additionally, the program supports the creation of specialized economic zones and the rehabilitation of industrial cities to attract investment and facilitate growth. 

Another key strategic focus of the program is the expansion of non-oil sectors, including mining and downstream industries. 

NIDLP targets the localization of high-potential sectors such as advanced manufacturing and defense industries, while increasing local content across non-oil value chains. 

These initiatives are designed to unlock the full economic potential of the Kingdom’s natural resources and industrial capabilities. 

As part of its logistics mandate, the program also works to establish and improve the performance of logistics hubs, while enhancing domestic, regional, and international connectivity across trade and transport networks.   

These efforts are central to NIDLP’s ambition to solidify Saudi Arabia’s position as a global logistics hub, reinforcing the Kingdom’s strategic role in global supply chains. 

Overall, the program encompasses 96 detailed targets at the third level of Vision 2030 planning, 12 of which are directly linked to NIDLP initiatives. 

These targets serve as the operational backbone for achieving the broader national goals of economic diversification and industrial competitiveness. 


Oman’s telecom sector powers ahead with surge in IoT, mobile connections

Oman’s telecom sector powers ahead with surge in IoT, mobile connections
Updated 20 July 2025
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Oman’s telecom sector powers ahead with surge in IoT, mobile connections

Oman’s telecom sector powers ahead with surge in IoT, mobile connections
  • Momentum backed by substantial public investment
  • Government aims to digitize approximately 80% of services by 2025

JEDDAH: Oman’s telecom sector grew 15.2 percent by May, with mobile subscriptions reaching 8.13 million and Internet of Things connections rising to 1.55 million amid digital expansion and smart tech adoption, official data showed.

IoT subscriptions surged by 118.7 percent, highlighting the growing demand for smart connectivity across sectors such as logistics, utilities, and manufacturing, the National Center for Statistics and Information said.

Oman’s rapidly expanding digital infrastructure is central to Vision 2040, which focuses on innovation, economic diversification, and improved public services. Meanwhile, growth in fiber optic and fixed 5G subscriptions highlights the shift toward advanced, high-speed connectivity.

According to Mordor Intelligence, a global market research and consulting firm, this momentum is backed by substantial public investment.

In 2022, the government announced a $441.5 million digital transformation initiative to modernize the public sector and deliver seamless smart services to citizens and businesses.

“This commitment is further reinforced by the national Digital Economy Program’s ambitious targets under Oman Vision 2040, which projects the digital economy’s contribution to gross domestic product to rise from 3 percent in 2025 to 5 percent in 2030, ultimately reaching 10 percent by 2040,” Mordor said in a report on the Gulf state’s information and communication technology market.

The sultanate’s digital transformation efforts are further underscored by the Government Digital Transformation Program, known as Tahawul. Oman’s Ministry of Transport, Communications, and Information Technology

The research firm added that the government’s digitalization drive includes a goal of digitizing approximately 80 percent of services by 2025, laying a robust foundation for long-term technological progress across sectors.

Further data from NCSI, also published by the Oman News Agency, showed postpaid mobile subscriptions climbed by 5.6 percent to over 1.23 million by the end of May, compared to the same period last year. Prepaid mobile subscriptions also rose, up 3.1 percent to more than 5.33 million.

Mobile broadband Internet subscriptions reached 5.41 million, while fixed broadband subscriptions increased by 2.6 percent year-on-year to 588,015.

Within the fixed Internet segment, fiber optic services grew by 11.4 percent to 339,279 subscriptions.

Fixed 5G connections rose by 2.1 percent to 215,850. However, legacy technologies are on the decline, with fixed 4G subscriptions falling by 38.1 percent to 19,654, digital user lines dropping by 50.8 percent to 11,806, and satellite Internet accounts shrinking by 2.1 percent to 653.

Other Internet services, such as powerline, Ethernet, and leased lines, also contracted by 12 percent, totaling only 773 subscriptions by the end of the fifth month.

The sultanate’s digital transformation efforts are further underscored by the Government Digital Transformation Program, known as Tahawul, which reached 73 percent overall performance by November, up from 53 percent the previous year.

The government has streamlined and digitalized thousands of public services, with four key entities, including the Telecommunications Regulatory Authority, achieving advanced digital excellence.

The progress aligns with Oman Vision 2040’s priorities and is supported by major digital infrastructure projects, such as the upcoming unified e-government portal and the National Digital Integration Platform, which has processed over 1.4 billion data transactions.

The surge in digital government transactions, reaching nearly 27 million in 2024, reflects the growing public adoption of smart services. By 2025, 80 percent of essential government services are expected to be fully online.


Saudi reserve assets rise to $459bn in May on foreign deposit surge 

Saudi reserve assets rise to $459bn in May on foreign deposit surge 
Updated 50 min ago
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Saudi reserve assets rise to $459bn in May on foreign deposit surge 

Saudi reserve assets rise to $459bn in May on foreign deposit surge 
  • Net foreign assets stood at 63.7% of GDP
  • Investments in foreign securities fell by roughly 2% month on month

RIYADH: Saudi Arabia’s official reserve assets reached SR1.72 trillion ($459 billion) in May, marking a roughly 4.5 percent increase from the previous month. 

Data from the Saudi Central Bank, also known as SAMA, shows the reserve boost was primarily driven by a jump in foreign currency and deposits held abroad, which surged 15.5 percent from April to SR671.27 billion — the highest level in nearly six years. 

The rise in reserves comes as Saudi Arabia navigates a shifting global economic landscape marked by volatile oil prices and rising project-driven imports. 

While oil revenues remain a core contributor to external inflows, the Kingdom has also seen growing non-oil export activity and expanding tourism receipts under its Vision 2030 diversification push.   

These factors, along with disciplined financial account management, have supported external balances and bolstered reserve accumulation, even as the current account surplus narrows.  

Despite this sharp monthly uptick, reserves were still about 2 percent lower compared to May of the previous year, according to SAMA data. 

The Saudi Central Bank said the reserve boost was primarily driven by a jump in foreign currency and deposits held abroad. Wikipedia

The central bank’s largest reserve component — investments in foreign securities — fell by roughly 2 percent month on month to around SR955 billion.   

Together, these two categories — foreign currency deposits abroad and foreign securities — accounted for approximately 94.5 percent of Saudi Arabia’s total reserve assets in May.  

This suggests a deliberate allocation of reserves into more liquid foreign deposits, even as longer-term foreign securities slightly declined. Shifting more funds into overseas bank deposits could enhance liquidity, allowing the Kingdom quicker access to reserves when needed.   

Other components include monetary gold, which has remained unchanged at SR1.62 billion since 2008; Special Drawing Rights, or SDRs, steady at SR80.16 billion; and Saudi Arabia’s reserve position at the International Monetary Fund, totaling SR12.65 billion.  

The IMF reserve position reflects the amount the Kingdom can access on demand from the fund without any conditions attached. 

According to a January report from Fitch Ratings, in 2024, Saudi Arabia had strong foreign financial reserves. It could cover 14.4 months’ worth of imports and external payments using its reserves — well above the average of around 2 months for countries with a similar credit rating.  

Also, Saudi Arabia’s net foreign assets — total assets abroad minus external liabilities — stood at 63.7 percent of gross domestic product, compared to an average of just 8.7 percent for other “A”-rated countries. This highlights the Kingdom’s robust financial cushion.   

Overall, the rise in reserves to SR1.72 trillion, driven by strategic allocation to foreign deposits and sustained by prudent reserve management, signals continued resilience and confidence in Saudi Arabia’s economic fundamentals. This upward trend also enhances the Kingdom’s ability to absorb external shocks, maintain currency stability, and support long-term investment goals aligned with Vision 2030.