Mining, entertainment sectors eye 100bn in investments by 2030
RIYADH: Saudi Arabia is steadily progressing in its journey to attract $100 billion in foreign direct investments by the end of this decade, with the Kingdom heavily focusing on securing funds in high-growth sectors, experts have said.
Saudi Arabia's Vision 2030 economic diversification program aims to transform its economic landscape, including attracting foreign direct investment and increasing FDI's contribution to the Kingdom's gross domestic product.
To facilitate and increase FDI, in August Saudi Arabia approved an updated investment law, aimed at boosting transparency and easing the process of investing in the Kingdom.
Speaking to Arab News, Emilio El-Asmar, partner at Oliver Wyman's Government and Public Institutions practice – India, Middle East and Africa, said that the mining sector is one of the most promising industries that will help the Kingdom achieve its FDI goals by 2030.
He also pointed out that the ongoing regulatory reforms happening in Saudi Arabia are making the Kingdom an attractive destination for foreign investments.
'Saudi Arabia's National Investment Strategy, central to Vision 2030, aims to transform the Kingdom into a globally competitive, innovation-driven economy,' said El-Asmar.
Saudi Arabia offers geopolitical neutrality, long-term offtake potential, and value-add opportunities.
Emilio El-Asmar, partner at Oliver Wyman's Government and Public Institutions practice – India, Middle East and Africa
He added: 'Mining and metals are among the most promising areas, as the Kingdom has $2.5 trillion worth of untapped resources, including gold, copper, lithium, and rare earth elements, which are vital to energy transition and global industry. Regulatory reforms and integrated industrial zones are opening this frontier market to international investment.'
The comments from the Oliver Wyman official come after Saudi Arabia launched a new incentive package to attract foreign direct investments into the nation's mining sector.
The Ministry of Investment is collaborating closely with the Ministry of Industry and Mineral Resources through an exploration enablement program aimed at simplifying investments in the mineral exploration industry, the Saudi Press Agency reported in March.
Ryan Alnesayan, partner at Arthur D. Little in the Middle East region, also echoed similar views and said that the mining sector could become a game changer in Saudi Arabia's economic diversification journey.
'The new mining law and exploration incentives are attracting serious interest, and the Kingdom is positioning itself as a global mining hub with reliable data, infrastructure, and long-term demand,' said Alnesayan.
El-Asmar further said that Saudi Arabia's Ras Al-Khair and Wa'ad Al Shamal offer integrated infrastructure, rail and port access, and proximity to downstream processing, making them investment-friendly destinations for international entities.
'These ecosystems support refining, smelting, and metal fabrication. A pipeline of investable projects, from exploration to processing, is backed by national institutions including the Public Investment Fund and industrial champions,' said the Oliver Wyman official.
Global players are investing in everything from gaming and digital media to smart cities and AI.
Ryan Alnesayan, partner at Arthur D. Little in the Middle East region
He added: 'As global supply chains seek secure mineral sources, Saudi Arabia offers geopolitical neutrality, long-term offtake potential, and value-add opportunities. Its location between Africa, Asia, and Europe gives investors access to regional growth markets.'
In January, speaking at the Future Minerals Forum, Saudi Arabia's Minister of Industry and Mineral Resources Bandar Alkhorayef said the nation seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the Kingdom's broader plans to establish mining as the third pillar of its industrial economy.
In May, a report released by the General Authority for Statistics revealed that net FDI into Saudi Arabia stood at SR22.1 billion ($5.89 billion) in the fourth quarter of 2024, representing a rise of 26 percent compared to the previous three months.
GASTAT also added that this figure was the highest level across the year, surpassing the SR15.5 billion seen in the first three months of 2024, the SR19 billion recorded in the second quarter, and the SR17.5 billion witnessed in the third.
This development comes after Saudi Arabia rose to 13th place in Kearney's 2025 Foreign Direct Investment Confidence Index, published in April.
This is up one spot from last year and also means the Kingdom retained its position as the third-most attractive emerging market, signaling continued global confidence in its transformation strategy.
Kearney added that the ranking reflects the nation's bold, reform-driven approach to building an internationally competitive, future-ready economy.
Other crucial sectors
El-Asmar also outlined other crucial areas that could drive FDI into Saudi Arabia in the coming years.
According to the Oliver Wyman official, sectors including pharmaceuticals, biotechnology and petrochemicals are also expected to see foreign funds pour into the Kingdom.
He added: 'In petrochemicals, Saudi Arabia is expanding beyond crude oil into speciality chemicals, high-performance plastics, and packaging, backed by integrated feedstock and logistics infrastructure.'
El-Asmar said that Saudi Arabia is ranked second among G20 countries in digital competitiveness, and the Kingdom has strong infrastructure, forward-looking regulations, and digital competitiveness capable of drawing FDI in AI, cloud, cybersecurity, smart city tech, fintech, and health tech.
'Incentives include regulatory sandboxes, IP protections, and access to a growing consumer and enterprise market, making the Kingdom attractive for global tech firms and startups,' said El-Asmar.
Alnesayan also highlighted the role of technology and entertainment sectors in materialising Saudi Arabia's FDI goals.
'Entertainment and tech reflect Saudi Arabia's new growth story. Global players are investing in everything from gaming and digital media to smart cities and AI. These sectors are fueling job creation, innovation, and a dynamic consumer market,' said the Arthur D. Little official.
El-Asmar agreed that the entertainment sector is central to Saudi Arabia's diversification and FDI strategy, reflecting cultural openness and rising domestic demand.
'With a population of 35 million and rising demand for premium experiences, the Kingdom is seeing growth in cinemas, theme parks, live events, and content production. Major international brands are entering the market, supported by co-investment and giga-projects like Qiddiya,' he said.
RHQ program and FDI
Alnesayan believes that Saudi Arabia's regional headquarters program is emerging as one of the key drivers of FDI in the Kingdom.
'The RHQ Program is not just about relocating offices — it's about anchoring decision-making in Riyadh. That brings investment, talent, and deeper regional integration. We've already seen over 600 companies commit, and the momentum is accelerating,' he said.
Saudi Arabia's regional headquarters program offers incentives such as a 30-year corporate income tax exemption, withholding tax immunity, and various support services for international businesses.
Some of the noted firms that relocated their headquarters to the Kingdom are Northern Trust, Bechtel and Pepsico from the US, and IHG Hotels and Resorts, PwC, and Deloitte from the UK.
El-Asmar also highlighted the importance of the RHQ program and said that Saudi Arabia's location — at the crossroads of Europe, Asia, and Africa — makes it an ideal base for regional operations.
Potential challenges
Despite all these positive developments, experts also outlined some of the challenges Saudi Arabia could face in achieving its FDI targets within the stipulated timeline.
'The fundamentals are strong, but challenges remain — global volatility, talent gaps, and the need for ongoing regulatory clarity. But the Kingdom is addressing these head-on through reforms, infrastructure investment, and strategic partnerships that reduce risk and increase investor confidence,' said Alnesayan.
El-Asmar said that foreign investors need predictability, and to address this, Saudi Arabia has launched the Investor Confidence Protection Mechanism and Investor Council, alongside legal reforms including English-language documentation and digital licensing portals.
'High operational costs and complex procedures persist in some sectors. Special Economic Zones, tax incentives, and digital services are helping to reduce these barriers and simplify market entry,' said El-Asmar.
He concluded: 'While these challenges are real, Saudi Arabia's strategic reforms, long-term vision, and favorable location continue to make it one of the world's most promising emerging FDI destinations.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
an hour ago
- Arab News
Saudi 100 Brands returns to Paris Fashion Week with Tranoi Showcase
The Saudi Fashion Commission presents homegrown talents at Paris Fashion Week, to be held from June 24 to 27 at the fifth floor of La Samaritaine. The exclusive showroom dedicated to Saudi 100 Brands, the commission's flagship program, will highlight 11 trailblazing designers and their Spring-Summer 2026 collections. This exceptional showcase by Saudi 100 Brands aims to provide a platform for meaningful cultural exchange through contemporary Saudi fashion. It is part of a long-term vision — to establish the Kingdom as an essential presence in the global fashion industry. Burak Cakmak, CEO, the Saudi Fashion Commission, said: 'The return of Saudi 100 Brands to Paris Fashion Week reflects our commitment to showcasing Saudi creativity at the highest level. 'This platform not only brings our designers to a global audience but also deepens our connections with the international fashion community, reinforcing our vision to position Saudi Arabia as a driving force in shaping the future of fashion and nurturing meaningful global partnerships.' Boris Provost, CEO of Tranoï, said: "Saudi fashion is experiencing remarkable momentum, and we are proud to support this creative energy with Saudi 100 Brands. 'At Tranoï, we are committed to amplifying the voices of emerging talents on a global scale. This collaboration with the Saudi Fashion Commission perfectly embodies our mission: to offer an international stage to a new generation of designers, here in Paris, the fashion capital of the world.' The 11 designers presented in the renowned Parisian department store exemplify Saudi creative excellence, with a selection varying between menswear and womenswear. Menswear designers are 1886, Awaken, Eleven, Hajruss, Mirai and RBA. Womenswear designers are Razan Alazzouni, Rebirth, Reem Alkanhal, Waad Aloqaili and Yasmina Q Highlighted by Saudi 100 Brands and Tranoi, the event celebrates creative boldness and reaffirms the Saudi Fashion Commission's commitment to promoting emerging talent on the international stage. The creative showcase is open from June 24 to 27, from 9 a.m. to 7 p.m. on the fifth floor of La Samaritaine.
Asharq Al-Awsat
2 hours ago
- Asharq Al-Awsat
Shipping Company Maersk Temporarily Pauses Haifa Port Calls
Container shipping company Maersk said on Friday it had temporarily paused vessel calls at Israel's Haifa port amid regional tensions. The Danish company said it did not experience any further disruptions to its scheduled operations in the region. Israel has been hitting Iran from the air since last Friday in what it describes as an effort to prevent Tehran from developing nuclear weapons. Iran has denied plans to develop such weapons and has retaliated by launching counterstrikes on Israel. On Thursday, Iran's Revolutionary Guards said it had launched combined missile and drone attacks at military and industrial sites linked to Israel's defense industry in Haifa and Tel Aviv.
Arab News
15 hours ago
- Arab News
Recess evening at Hayy Jameel celebrates youth, creativity, alternative learning
JEDDAH: Hayy Jameel has hosted Recess: Closing Conversations to mark the conclusion of its flagship after-school initiative for teenagers. The evening offered a platform to revisit the transformative journey of the program's first cohort, and featured thoughtful exchanges with the learning team at Hayy, along with mentors who guided the students through the months-long experience. The session welcomed reflections from mentors including Dr. Effat Fadag, Saudi artist and founder of Naqsh Art Studio; Rizwana Anwer, educator and alternative learning advocate; Sahrish Ali and Nayla Attar, artist-teachers and members of the learning team at Hayy Jameel; and Abdelelah Qutub, exhibition designer and program mentor. Speaking about the inspiration behind Recess, Attar said: 'After all these foundations were laid out, we were really trying to create a comprehensive program, something that teaches teenagers how to navigate skills and topics usually reserved for much later in life. 'We wanted them to get a glimpse of what it means to move from high school into a design-thinking process, and even into the contemporary art world. There's a big gap in how people perceive and interact with art, especially in Saudi, and Recess was about bridging that.' Ali stressed the importance of creating lifelong learning spaces, and said: 'We started by developing a program for kids aged 5 to 13, but we noticed a gap when it came to teens, so we built this program with weekly after-school sessions, combining core theoretical knowledge, practical art studio time, and mentorship from creatives in our network.' Fadag said: 'It's not just about hearing, but listening. Listening helps promote the inner voice. One of the most important things for me was encouraging students to ask questions like 'Why are we doing this?' and to integrate research and critical thinking into their work. Art challenges us to negotiate identity and social engagement, and this is what we tried to bring into the program.' Anwer brought an educator's lens shaped by both international teaching experience and homeschooling, and said: 'I came from a traditional academic background, but as a teacher I saw how many students struggled with that model. 'When I became a parent I knew I didn't want to put my children in the same system. Homeschooling and unschooling helped me realize that learning can be more holistic and individual. That's what we tried to reflect in Recess.' Qutub, who boasts an architecture background, emphasized the importance of spatial thinking and collaborative presentation, and said: 'Students had a tendency to view their work in isolation, so I worked with them to think about how their pieces related to one another and to the space as a whole. 'My role was to get them production-ready, to help them engage with the real-world process of creating and displaying artwork, and to see themselves as part of a collective dialogue.' The showcase at Hayy Jameel featured the works of 10 young artists, with each piece a reflection of their journey through Recess. The multidisciplinary program, which ran from February to May, offered a structured yet flexible curriculum blending theoretical sessions, practical workshops, field trips, and portfolio development. Through art-making, mentorship, and cultural engagement, the students explored themes like identity, nature, technology, and personal narrative, resulting in works that invited reflection and dialogue. Hadeel Felemban, learning assistant at Hayy Jameel, said: 'The program was mainly designed for high-school students who are passionate about pursuing art at a higher level. 'It ran over the course of several months, with weekly Saturday sessions that combined theory, practical work, and mentorship from artists and educators. The students learned about the creative process behind artworks and exhibitions, built their own portfolios, and engaged with different departments at Hayy, including the exhibition, cinema, and public programs teams. They also had weekly interventions with guest artists and visited cultural sites like the Islamic Biennale and Al-Balad.' As the mentors gathered with students one last time for Closing Conversations, the atmosphere was charged with pride, curiosity, and a shared sense of accomplishment. Young artist Aleen Alqurashi shared how the program had transformed her perspective on both art and herself, saying: 'I honestly didn't think I had any talent in art; I just joined because I wanted to improve. 'But throughout this program, it really helped me see things differently; not just in art, but in life. I discovered talents I didn't know I had, and I wanted my final project to carry a deeper meaning, something people could relate to.' Nooh Spurlock, 14, also a homeschooled student and the son of mentor Rizwana Anwer, participated in the program with a concept that merged creativity, gaming, and self-exploration. He said: 'My work is about a video game — are you inside your mind when you're fighting against yourself? 'I was inspired by a lot of things: different video games, different elements from that genre. The mentors connected me with game developers who helped me with the research and planning.' His final project, titled 'Into the Mind,' was a video game set inside the player's consciousness, in which one must battle different versions of themselves. The game featured three levels, each representing a specific emotion, with each stage designed to mentally and emotionally prepare the player for the next.
