Saudi education spending surges 91.5% amid school return 

Saudi education spending surges 91.5% amid school return 
Education was the only sector to register positive growth during the week. Shutterstock
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Updated 26 February 2025
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Saudi education spending surges 91.5% amid school return 

Saudi education spending surges 91.5% amid school return 
  • Overall POS transactions in the Kingdom declined by 12.1%, dropping to SR11.77 billion from SR13.4 billion the previous week
  • Spending on clothing and footwear saw the sharpest decline, falling 27.5% to SR663.16 million

RIYADH: Education spending in Saudi Arabia surged by 91.5 percent to SR220.76 million ($58.8 million) between Jan. 12 and 18, fueled by students returning to school after the midyear break. 

According to the latest point-of-sale transactions bulletin, this sector was the only one to register positive growth during the week, with the number of transactions rising by 60 percent to 153,000. 

The education sector experienced a 44.4 percent drop in transaction value to SR115.2 million from Jan. 5 to 11, before rebounding this week.

Overall POS transactions in Saudi Arabia declined by 12.1 percent, dropping to SR11.77 billion from SR13.4 billion the previous week, as spending in other sectors cooled, revealed the bulletin issued by the Saudi Central Bank. 

Spending on clothing and footwear saw the sharpest decline, falling 27.5 percent to SR663.16 million. Expenditure on hotels followed with a 19.9 percent dip to SR324.45 million, while recreation and culture recorded a 19.7 percent drop to SR221.8 million. 

Spending on food and beverages recorded a decrease of 9.2 percent to SR1.73 billion, claiming the biggest share of the total POS value. Expenditure in restaurants and cafes followed, recording an 18 percent decrease to SR1.73 billion. 

Miscellaneous goods and services accounted for the third biggest POS share with a 12.3 percent downstick, reaching SR1.42 billion. 

Spending in the leading three categories accounted for approximately 41.5 percent or SR4.8 billion of the week’s total value. 

At 2.1 percent, the smallest decrease occurred in spending on construction materials, leading total payments to reach SR340.1 million. 

Expenditures on transportation followed dipping by 2.6 percent to SR661.6 million, while public utilities recorded a 6 percent fall to SR48.1 million. 

Geographically, Riyadh dominated POS transactions, representing around 35.5 percent of the total, with expenses in the capital reaching SR4.18 billion — a 9 percent decrease from the previous week. 

Jeddah followed with a 12.5 percent dip to SR1.71 billion, and Dammam came in third at SR602.91 million, down 7.1 percent. 

Madinah experienced the most significant decrease in spending, dipping by 19.6 percent to SR471 million. 

Hail and Makkah followed recording decreases of 18.6 percent and 17 percent reaching SR171.87 million and SR497.28 million, respectively. 

Madinah and Makkah saw the largest decreases in terms of number of transactions, slipping 13.5 percent and 12.7 percent, respectively, to 7.98 million and 8.18 million transactions. 

The Kingdom’s POS transactions saw a decline in the week from Jan. 5 to 11, with the total number of transactions dropping by 3.7 percent to 216.5 million. The value of transactions fell by 11.2 percent to SR13.4 billion. 

Key sectors experienced significant contractions, including telecommunications at 20.4 percent and transportation at 20.9 percent. The downturn in spending was also evident in discretionary sectors like clothing and footwear, which saw an 18.7 percent drop in transaction value.

The hotel sector was the only industry to show growth, with a 12.5 percent rise in the number of transactions and a 1.1 percent increase in transaction value. 

Riyadh and Jeddah, the two largest markets, saw transaction values decline by 10 percent and 7.8 percent, respectively, signaling a broader slowdown across major cities.


Saudi Arabia launches April round of Sah savings bonds with 4.88% return  

Saudi Arabia launches April round of Sah savings bonds with 4.88% return  
Updated 8 sec ago
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Saudi Arabia launches April round of Sah savings bonds with 4.88% return  

Saudi Arabia launches April round of Sah savings bonds with 4.88% return  

JEDDAH: Saudi Arabia has launched the fourth round of its Sah savings product for 2025, offering a 4.88 percent return for April under the Ijarah sukuk structure.  

Issued by the Ministry of Finance and managed by the National Debt Management Center, Sah is the Kingdom’s first savings bond designed for individuals. It operates under the Ijarah format, a Shariah-compliant structure similar to leasing, where investors earn returns in exchange for the right to use an asset.  

The offering, part of the local bond program and denominated in riyals, aligns with Saudi Vision 2030’s goal of increasing the national savings rate from 6 percent to 10 percent by the end of the decade. 

In late February, the NDMC confirmed it would continue using the Ijarah format for future issuances to provide accessible, low-risk savings solutions. This initiative, a key component of the Financial Sector Development Program under Vision 2030, seeks to enhance personal savings by fostering regular financial habits, expanding product availability, and promoting financial literacy to support future goal planning. 

The latest issuance opened at 10:00 a.m. Saudi time on April 6 and will close at 3:00 p.m. on April 8. 

The allocation date is set for April 15, with the redemption period running from April 20 to 22, and redemption payments scheduled for April 30, according to the center. 

The bonds, accessible via digital platforms of approved financial institutions, offer a one-year savings period with fixed returns upon maturity. The minimum subscription is SR1,000 ($266), with a maximum limit of SR200,000 per user across all issuances during the program period. 

The product is fee-free and offers low-risk returns. Eligible Saudi nationals aged 18 and above can subscribe through Aljazira Capital, Alinma Investment, SAB Invest, Al-Rajhi Capital, and SNB Capital.  

Under the same sukuk structure, the March round of this year’s program offered a 4.98 percent return and raised SR2.64 billion through sukuk issuances. 

According to the NDMC, the March issuance was divided into four tranches. The first tranche, valued at SR364 million, will mature in 2027. The second, worth SR316 million, is set to mature in 2029, while the third, amounting to SR1.46 billion, will mature in 2032. The fourth and final tranche, worth SR500 million, will mature in 2039. 

The Kingdom’s debt market has experienced substantial growth in recent years, drawing strong investor appeal amid a global environment of rising interest rates. 

A March report by Kuwait Financial Center, known as Markaz, revealed that Saudi Arabia led the Gulf Cooperation Council in primary bond and sukuk issuances during 2024, raising $79.5 billion across 79 issuances.  


Kuwait business activity strengthens, UAE sees slight dip in non-oil growth: S&P Global 

Kuwait business activity strengthens, UAE sees slight dip in non-oil growth: S&P Global 
Updated 39 min 45 sec ago
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Kuwait business activity strengthens, UAE sees slight dip in non-oil growth: S&P Global 

Kuwait business activity strengthens, UAE sees slight dip in non-oil growth: S&P Global 

RIYADH: Kuwait’s non-oil private sector continued to gain traction in March, with business conditions improving at a faster pace, while growth in the UAE’s non-energy economy moderated slightly, an economy tracker showed.

According to the latest S&P Global Purchasing Managers’ Index surveys, Kuwait’s PMI rose to 52.3 in March from 51.6 a month earlier, signaling a solid monthly improvement in business activity driven by stronger demand, higher output, and a rebound in hiring. 

In contrast, the UAE’s PMI slipped to 54 from 55 in February, indicating softer — though still robust — growth across its non-oil economy. 

Any PMI reading above 50 signifies an expansion, while a reading below 50 indicates contraction, according to S&P. 

The growth of Kuwait’s non-oil business sector reflects a broader trend across the Middle East, where countries including Saudi Arabia are actively pursuing economic diversification to reduce their reliance on crude revenues. 

Kuwait’s non-oil private sector saw a sharper rise in output and new orders in March, while employment returned to growth after a dip in the previous month. 

“The latest reading pointed to a solid monthly improvement in the health of the non-oil private sector, and one that was more pronounced than in the previous month,” said S&P Global. 

The report noted a significant uptick in purchasing activity in Kuwait, driven by stronger demand, new product offerings, and competitive pricing. 

New export orders also rose, marking the fastest pace so far this year. Surveyed firms said discounting was the main factor supporting the growth in business activity. 

“The tried and tested formula of keeping prices low paid off for firms in Kuwait again in March. Although output prices rose, the pace of inflation was only marginal and clients responded accordingly by committing to new orders,” said Andrew Harker, economics director at S&P Global Market Intelligence. 

“In fact, both new orders and output rose more quickly than in February,” he added.

Although companies raised their selling prices in March after a reduction in the previous month, the rate of inflation remained marginal as firms continued to price competitively to attract customers.

S&P Global also noted that staff costs were unchanged in the third month of 2025, following a slight decline in February.

“There were some reports of firms making conscious efforts to try to keep on top of workloads, with employment and inventories raised accordingly,” said Harker, adding: “But given the strength of new order growth, more capacity will likely be needed to try to prevent the sustained accumulation in backlogs of work continuing.”

Looking ahead, non-oil companies in Kuwait expressed increased optimism, with business confidence reaching a three-month high in March.

Over 34 percent of survey respondents expected activity to grow, citing the impact of new marketing strategies and the availability of quality products at competitive prices.

UAE growth eases

While the UAE continued to register strong non-oil growth, March marked the third consecutive monthly dip in PMI, with the headline reading falling to its lowest since September 2023. 

S&P Global attributed the slowdown to milder demand growth and lingering capacity constraints.

“The UAE PMI signaled another month of robust growth in the non-oil economy in March, although there were some signs that momentum may be slowing. A third consecutive month-on-month softening of new order growth shows that some firms could be encountering challenges in meeting their sales targets,” said David Owen, senior economist at S&P Global Market Intelligence. 

The UAE’s PMI had reached a nine-month high of 55.4 in December. The latest figure marks its lowest level since September.

Survey respondents reported gaining new customers in March, supported by improved demand conditions. However, strong competition and only modest growth in new export orders meant the upturn in sales was the weakest since October.

“The quest to overcome capacity hurdles ramped up in March, as firms purchased inputs in bulk to try and clear their backlogs. The surge in purchasing activity reached its fastest pace since mid-2019, while a decrease in inventories indicated that these new inputs were quickly integrated into operations,” said Owen.

He added that some non-oil firms in the UAE are still grappling with backlogs due to widespread delays in customer payments.

S&P Global noted that while business activity in the country’s non-oil private sector rose sharply in March, it was still at the slowest pace in four months. Around 27 percent of surveyed firms reported increased activity during the month, while 8 percent saw a decline.

Employment growth remained subdued, marking its weakest pace in nearly three years, with most firms keeping staff numbers unchanged. 

“Given the elevated demand levels, this suggests that some firms could be struggling to locate suitable candidates,” said Owen.

The report also noted that Dubai’s non-oil business conditions improved at a softer rate for the third consecutive month in March. Dubai’s PMI dropped to a five-month low of 53.2, down from 54.3 in February and below the overall UAE reading of 54. 


Egypt’s net foreign assets climb in February

Egypt’s net foreign assets climb in February
Updated 06 April 2025
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Egypt’s net foreign assets climb in February

Egypt’s net foreign assets climb in February

CAIRO: Egypt’s net foreign assets climbed by $1.48 billion in February, their second increase this year after having fallen in each of the last three months of last year, central bank data showed.

Net foreign assets climbed to the equivalent of $10.18 billion from $8.70 billion at the end of January, according to Reuters calculations based on official central bank currency exchange rates.

The increase appeared related to an increase in Egyptian treasury bill purchases by foreign investors, one banker said.

Foreign assets were boosted in January following the sale of $2 billion in international bonds on Jan. 29 in Egypt’s first dollar-denominated international bond sale in four years.

They are expected to rise again in March following the approval by the International Monetary Fund of its fourth review of an $8 billion financial support package signed in March 2024. Last month’s approval unlocked $1.2 billion in addition to making another $1.3 billion available under the IMF's resilience and sustainability facility.

Egypt had been using foreign assets, which include those assets at both the central bank and commercial banks, to help to prop up its currency since as long ago as September 2021. Net foreign assets turned negative in February 2022 and only returned to positive territory in May last year.

Foreign assets increased in February at both the central bank and commercial banks, while foreign liabilities rose at the central bank but fell at commercial banks.


Saudi Arabia’s M&A boom: Shaping a future-ready economy for Vision 2030

Saudi Arabia’s M&A boom: Shaping a future-ready economy for Vision 2030
Updated 06 April 2025
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Saudi Arabia’s M&A boom: Shaping a future-ready economy for Vision 2030

Saudi Arabia’s M&A boom: Shaping a future-ready economy for Vision 2030
  • Kingdom recorded 224 mergers and acquisitions deals valued at $ 7.6 billion in the first half of 2024

RIYADH: Amid the mergers and acquisitions boom in Saudi Arabia, the approval of economic concentration requests by the General Authority for Competition is reshaping the country’s business landscape, signifying a strategic shift toward market consolidation and growth.

Such oversight is required in the M&A market to ensure that they do not create monopolies or disrupt market competition.

Saudi Arabia saw a 17.4 percent surge in these approvals in 2024, reflecting the Kingdom’s efforts to strengthen its competitive business environment.

The rise aligns with GAC’s goal of implementing competition-enhancing policies, combating illegal monopolistic practices, and improving market performance to boost consumer and business confidence, attract investment, and promote sustainable development. 

Economic concentration requests approved impact on Saudi Arabia’s business landscape

The increasing number of economic concentration requests approved by GAC marks a significant shift in Saudi Arabia’s business landscape, signaling a trend toward strategic consolidation.

According to Imad Matar, PwC Middle East deals advisory and transaction services leader, the firm’s 2024 TransAct Middle East Mid-Year Update revealed that the Kingdom recorded 224 M&A deals valued at $ 7.6 billion in the first half of 2024, reflecting a 19 percent surge compared to the previous year.

“This surge in deal volume, alongside regulatory approvals, indicates that businesses are focusing on scaling up and enhancing their competitive market positioning, aligning with the Kingdom’s Vision 2030 goals,” Matar said.

“For local investors, this trend presents opportunities to form strategic partnerships, boost operational efficiency, and strengthen market presence. International investors will likely find Saudi Arabia increasingly attractive due to its favorable regulatory environment and growing focus on non-oil sectors,” he added.

The advisory and transaction services leader went on to note that the evolving business landscape offers diverse opportunities across industries such as technology, energy, and industrial manufacturing, which are central to the Kingdom’s economic diversification efforts. Martin Pavlica, principal at Kearney Middle East and Africa’s private equity and principal investors practice, explained that this shift indicates a more dynamic and competitive market environment in the Kingdom, thereby spurring an uptick in M&A activity. 

These developments align with KSA’s broader economic reforms and efforts to diversify the local economy under Vision 2030.

Martin Pavlica, principal at Kearney Middle East and Africa’s private equity and principal investors practice

“These developments align with KSA’s broader economic reforms and efforts to diversify the local economy under Vision 2030. Both local and international investors are increasingly encouraged to pursue deals and expand their presence in KSA,” Pavlica said.  

“This, in turn, is also contributing to the strengthening of the local capital market and robust IPO (initial public offering) activity. We expect these trends to continue proliferating in the coming years,” he added. 

The rise in economic concentration approvals also reflects the Kingdom’s evolving regulatory environment and growing investment activity.

Elif Koc, partner at Bain and Co., told Arab News that 2024’s dramatic increase in strategic inbound and domestic deal value benefits local investors by facilitating market consolidation and economies of scale, while international investors gain from increased regulatory transparency and investment clarity.

The partner highlighted that the largest deal in 2024 was Saudi Aramco’s $8.9 billion acquisition of Rabigh Refining & Petrochemical in the third quarter of the year.

“With the regulatory framework increasingly favoring competition and market efficiency, Saudi Arabia is expected to attract higher foreign direct investment, increase capital inflows, and strengthen corporate consolidation trends, further solidifying its position as a leading business hub,” Koc said.

According to Giuseppe Netti, head of Middle East and Africa sales at Bloomberg, there is increased deal-making across industries, which suggests companies — both domestic and international — are looking at consolidation as a way to scale, gain efficiencies, and compete more effectively.

“For local businesses, this creates a more competitive landscape that pushes firms to be more innovative and efficient. For international investors, it reinforces the idea that Saudi Arabia is actively shaping its regulatory framework to accommodate a growing economy, making it an increasingly attractive market for M&A,” Netti told Arab News, adding: “The key here will be ensuring that this wave of activity contributes to sustainable, long-term growth rather than short-term consolidation.” 

Current trend of increased M&A activity in Saudi Arabia alignment with Vision 2030

The rise in M&A activity in Saudi Arabia closely aligns with Vision 2030, which aims to diversify the economy and reduce reliance on oil revenues.

PwC’s Matar highlighted that the company’s report shows that in the first half of 2024, sectors such as technology, industrial manufacturing, and energy led M&A activity, with technology alone accounting for $1.4 billion in deals.

“This trend reflects the Kingdom’s push to become a global hub for innovation, particularly in the tech and green energy sectors,” he said.

The PwC representative added: “The National Transformation Program, a core component of Vision 2030, continues to unlock new opportunities for growth and investment. By attracting both local and international investors, M&A activity is helping to build a more competitive market.”

Matar also emphasized that as these investments fuel growth in non-oil sectors, they are instrumental in transforming the Kingdom into a diversified and resilient economy. 

By accelerating sectoral transformation and innovation, these deals will play a vital role in shaping the Kingdom’s long-term economic resilience​.

Elif Koc, partner at Bain and Co.

From Kearney’s perspective, the current trend of increased M&A activity aligns closely with Vision 2030 across three key areas: economic diversification, private sector enablement, and foreign capital attraction.

Javier Herrera, a partner at Kearney Middle East and Africa’s private equity and principal investors practice, said: “M&A activity in priority sectors such as technology, manufacturing, health care and logistics enables KSA to fully unlock their potential and support diversification objectives.”

As for private sector enablement, Herrera clarified that private sector companies can expand, innovate and become more competitive through M&A, which ultimately results in higher private sector contribution to gross domestic product.

On foreign capital attraction, he said: “Improved regulatory frameworks and economic policies have created a more business-friendly environment in KSA and positioned the country as one of the world’s most attractive FDI destinations.”

Bain and Co.’s Koc highlighted how energy, tech, and advanced manufacturing had seen strong growth in 2024, reflecting strategic shifts toward non-oil industries.

She said: “Outbound M&A transactions surged, with deal value for European targets increasing by over 100 percent YTD, while APAC deal value declined by 77 percent, indicating a preference for assets in Western markets. This shift supports Saudi’s ambition to integrate into global markets and enhance its investment footprint.”

Koc added that domestically, increased M&A contributes to job creation, technology transfer, industrial growth, and a more dynamic private sector, reinforcing Saudi Arabia’s non-oil GDP expansion goals under Vision 2030. 

“By accelerating sectoral transformation and innovation, these deals will play a vital role in shaping the Kingdom’s long-term economic resilience,” the Bain and Co. partner added.

Netti from Bloomberg shed light on how, from an investor’s perspective, the fact that companies are actively looking to expand, consolidate, or enter the Saudi market shows confidence in the country’s economic trajectory.

“It also supports the development of more competitive local players who can contribute to a stronger, more diversified economy. However, while deal volume is an important indicator, what really matters is whether these transactions drive long-term value creation, job growth, and innovation,” he concluded in that regard.

Long-term effects of the recent M&A boom shaping Saudi Arabia’s economy

Saudi Arabia’s M&A boom is likely to significantly shape the Kingdom’s economy and innovation landscape.

Matar explained that the PwC report showed that in the first half of 2024, the Kingdom’s M&A deals totaled $7.6 billion, with key sectors such as technology, renewable energy, and infrastructure leading the charge.

“As the country continues its transition toward a diversified economy, these investments will drive innovation in areas like AI, cloud computing, and green energy — key growth areas in line with Vision 2030. Saudi Arabia’s capital markets remain strong, with the Kingdom playing a pivotal role in regional M&A activity,” he said.

“The sustained growth in M&A transactions will bolster the Kingdom’s global competitiveness, reinforcing its position as a key player in regional and global markets. As the country strengthens its infrastructure and deepens its focus on non-oil sectors, Saudi Arabia is set to become an even more influential economic force, enhancing its competitiveness by 2025,” the PwC representative added.

Pavlica from Kearney projected that in the coming years, Saudi Arabia will see a marked increase in its industrial capabilities, localization efforts and advancements in innovation and technology.

“The recently announced $100 billion artificial intelligence initiative is set to drive cross-border acquisitions and partnerships, focusing on the transfer of cutting-edge technology and expertise to KSA,” he said, adding: “High-growth sectors including cloud computing and advanced manufacturing are expected to benefit significantly from foreign collaborations, fostering a robust local innovation ecosystem.”

Pavlica also believes that accelerated research, development, and commercialization of emerging technologies will further bolster Saudi Arabia’s global competitiveness.

Bain and Co.’s Koc explained how the Kingdom’s expansion into global markets through M&A activities signals a strong ambition for economic integration and leadership in key industries.

“Increased investments in R&D, renewable energy, and advanced manufacturing will boost innovation and industrial self-sufficiency, positioning Saudi Arabia as a high-tech and knowledge-based economy,” she said.

The Bain and Co. partner added: “As consolidation strengthens local enterprises, Saudi companies will become more competitive on the global stage, creating opportunities for international partnerships and capital inflows. With sustained M&A activity, the Kingdom is on track to solidify its status as a major global investment hub, securing the long-term economic impact of Vision 2030.”

If this momentum continues, key outcomes could include a more innovation-driven economy — with strategic M&A in sectors like fintech, AI, and renewables leading to more investment in R&D, making Saudi Arabia a hub for cutting-edge technology and entrepreneurship, according to Netti from Bloomberg.

It could also see stronger regional and global positioning as Saudi companies expand through acquisitions and become competitive on an international scale. 

“It will also lead to a deeper capital market ecosystem. With increased M&A often comes stronger capital markets, attracting institutional investors looking for exposure to a fast-evolving economy,” said Netti.

The Bloomberg official warned that sustained momentum will require a balanced regulatory approach to ensure that M&A activity continues to support competition and economic resilience. 

“Saudi Arabia is at a pivotal moment, and the focus should be on strategic transactions that drive real impact over the long term,” Netti said.


Ras Al-Khair becoming Saudi Arabia’s industrial powerhouse

Ras Al-Khair becoming Saudi Arabia’s industrial powerhouse
Updated 05 April 2025
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Ras Al-Khair becoming Saudi Arabia’s industrial powerhouse

Ras Al-Khair becoming Saudi Arabia’s industrial powerhouse
  • Industrial zone’s strategic location on the Arabian Gulf positions it as a key gateway for the export of vital resources

RIYADH: Saudi Arabia’s industrial and mining sector has long been recognized for its scale and significance, and Ras Al-Khair Industrial City, on the Kingdom’s eastern seaboard, is proving a critical driver of global supply chains.

A recent media visit to Ras Al-Khair Industrial City, organized by the Ministry of Industry and Mineral Resources, provided an exclusive insight into the vast capabilities of this strategic industrial powerhouse.

After discussions at the Future Minerals Forum in January, the visit underscored the Kingdom’s dedication to bolstering its industrial and mining ambitions, key pillars of Vision 2030.

A pillar of Saudi Arabia’s industrial landscape

As one of the largest industrial cities in the Kingdom, Ras Al-Khair plays an essential role in processing and exporting minerals to global markets.

The industrial zone is home to cutting-edge facilities that reinforce Saudi Arabia’s position as a leading player in securing critical mineral resources while supporting international supply chains.

A tour of the city revealed its state-of-the-art infrastructure, including the facilities of the Saudi Iron & Steel Co., also known as Hadeed, a wholly owned subsidiary of the Public Investment Fund, and Ma’aden’s phosphate and ammonia production sites.

The presence of aluminum smelters and the International Maritime Industries further illustrates the depth of the region’s industrial integration.

“Mining is very critical and very important in two aspects. It’s an industry by itself, from exploration to refining, and then turning it into a product used by different industries. The Kingdom is moving strongly in this direction,” Khalil bin Salamah, the vice minister of Industry and Mineral Resources told Arab News.

Gaute Andreassen, partner at Bain & Co., further highlighted the importance of securing resources, saying: “Saudi Arabia has significant potential within critical energy transition minerals, such as aluminum, copper, and rare earth elements. The country’s efforts to extract these resources at scale can make it a top player in the global mining landscape.”

A hub for global supply chains

Ras Al-Khair’s strategic location on the Arabian Gulf positions it as a key gateway for the export of vital resources, solidifying Saudi Arabia’s role in the global economy.

The city’s advanced transport infrastructure facilitates the movement of raw materials and finished goods, ensuring uninterrupted supply to international markets.

The presence of Ma’aden, Saudi Arabia’s flagship mining and metals company, further amplifies the region’s importance.

With its extensive phosphate operations and world-class aluminum production, the company is instrumental in diversifying the Kingdom’s economic base and reducing its reliance on hydrocarbons. 

We are utilizing green energy for a greener economy, offering lower carbon footprint products to the world.

Khalil bin Salamah, vice minister of Industry and Mineral Resources

Bin Salamah also noted Saudi Arabia’s growing role as a global supplier, saying: “We are finding more resources available in Saudi Arabia, available at commercial quantities, attracting local and foreign investors.”

Saudi Arabia is not only rich in mineral resources but is also making significant strides in ensuring these resources are extracted, refined, and utilized efficiently.

The Kingdom’s ongoing investments in infrastructure and logistics are enabling smoother and more cost-effective mining operations.

Additionally, regulatory reforms and incentives are attracting international mining companies, further strengthening Saudi Arabia’s position as a global mining hub, available at commercial quantities, attracting local and foreign investors. 

Chris Braun, head of Europe, the Middle East and Africa mining practice and partner at Bain & Co., echoed these sentiments, stating: “The Kingdom is making major strides in ensuring that mining discoveries lead to economic benefits. Through localization policies and infrastructure investments, Saudi Arabia is positioning itself as an attractive destination for foreign investors.”

The Kingdom’s Vision 2030 aims to position Saudi Arabia as a global mining and industrial powerhouse, and Ras Al-Khair stands at the forefront of this transformation.

Investments in high-tech facilities, research, and development continue to drive efficiency and sustainability in the sector.

Titanium, rare earth metals, and other critical minerals are also part of the Kingdom’s industrial strategy.

“Saudi Arabia is doubling its capacity to be a reliable global supplier to the world when it comes to the titanium industry. We are exploring how to use titanium and other value-added products in manufacturing components for aviation and turbines,” Bin Salamah said. 

Saudi Arabia sits on a lot of the levers that are likely to yield success in mining.

Chris Braun, head of Europe, the Middle East and Africa mining practice and partner at Bain & Co.

This underscores the Kingdom’s ambitions in high-tech manufacturing and advanced industries. Additionally, the phosphate and aluminum sectors are playing a vital role in global supply chains.

“Saudi Arabia is playing a big role, taking phosphate from Wa’d Al-Shamal to Ras Al-Khair, producing the AP (alkaline phosphatase), a critical component for global food security,” Bin Salamah said. “The bauxite that goes into aluminum is now supplying the aviation and auto industries,” he added.

Bain & Co.’s Andreassen said: “The question of commercial viability is important, but Saudi Arabia’s endowment of minerals, combined with strong government initiatives, will create an environment where these resources are efficiently utilized.”

Future-ready industrial giant

Sustainability is also a key focus in the Kingdom’s industrial expansion, Bin Salamah said, adding that Saudi Arabia is starting the mining and refining industry at an earlier stage of development to give an increased opportunity to adopt new technologies in this area.

He added: “We are utilizing green energy for a greener economy, offering lower carbon footprint products to the world.”

This aligns with Saudi Arabia’s efforts to integrate renewable energy and sustainable practices in industrial production.

The visit to Ras Al-Khair reaffirmed the Kingdom’s commitment to industrial expansion and economic diversification.

With its robust ecosystem of mining, metals, and maritime industries, Ras Al-Khair is poised to play an even greater role in shaping the future of global supply chains.

“Saudi Arabia sits on a lot of the levers that are likely to yield success in mining. It has access to many minerals that are critical for the region and globally in the years to come,” Braun said.

He added: “Through a local major player in the mining sector in the Kingdom, KSA has potential to become a global champion if it continues its growth trajectory.”

Moreover, the Kingdom is fostering innovation in handling industrial by-products.

“One of the main challenges is the redmart, which comes as a side product when we do the refining of our ore. We are supporting innovative companies to come up with a solution,” Bin Salamah said. As Saudi Arabia continues to accelerate its industrial and mining ambitions, Ras Al-Khair Industrial City is a testament to the country’s progress.