Breaking Business News in KSA: Updates and Analysis
Saudi Arabia is usually recognized for being the world’s largest oil producer, exporter, and the key player in OPEC’s decision-making. However, in the past few years, the country has been stepping up its game and diversifying its economy by nurturing new sectors to reduce its reliance on oil exports, and this shift is reaping fruits.
Here are the latest business updates and analysis from KSA:
1. Hospitality Industry on the Rise
As Saudi Arabia prepares to host the G20 summit in November 2020, the country has witnessed remarkable growth in the hospitality industry. According to a recent report, the Saudi tourism and hospitality sector’s value is projected to reach USD 100 billion by 2023, up from about USD 40 billion in 2019. Several international hotel brands such as Hilton, Marriott, and Intercontinental, have increased their presence in the country by opening new hotels and resorts.
2. Digital Transformation Initiatives
Saudi Arabia is increasingly investing in promoting digital transformation in various sectors. The government has recently launched an initiative called e-commerce regulation ‘SINDAD’, which aims to regulate the e-commerce market, enhance consumer protection, and promote the growth of the digital economy in the Kingdom. The country also established two digital organizations to promote digitalization and entrepreneurship, namely ‘The National Digital Transformation Unit’ and ‘The National Entrepreneurship Institute.’
3. The Push for Renewable Energy
As part of the country’s Vision 2030 initiative, Saudi Arabia aims to increase the share of renewable energy in the country’s total energy mix to 27% by 2024. The Renewable Energy Project Development Office (REPDO) recently announced that they have shortlisted ten companies for the installation of a 1.2 GW solar power plant in the Kingdom’s northern region. The project is expected to be the largest utility-scale facility of its kind globally and is estimated to exceed USD 2 billion.
4. The Expansion of Pharmaceutical Industry
The Saudi Arabian pharmaceutical market is expanding and attracting international investment. The country’s pharmaceutical sector recorded a 5-year CAGR of 5.8% from 2014 to 2018. Due to the increase in demand, the government and international investors have taken initiatives to boost the sector, such as establishing manufacturing facilities, enhancing drug registration procedures, and offering exclusive privileges and investment opportunities to the industry.
5. COVID-19 Outbreak: Impact and Future Expectations
Like every nation, Saudi Arabia has not been immune to the impact of COVID-19. The country implemented several measures to mitigate the virus’s spread, such as suspending international flights and imposing curfews. These measures have negatively impacted certain sectors, such as retail businesses and the entertainment industry. However, the government has announced numerous economic packages and initiatives to support businesses and employees affected by the pandemic. Moreover, Saudi Arabia has launched a “Bridges Program” aimed at creating 50 career paths in new sectors, including Artificial Intelligence, Robotics, and Digital Media, with the hope of connecting Saudi graduates with new job opportunities.
Conclusion
The KSA has successfully undergone a remarkable transition towards a more diversified economy in the last few years, which has significantly decreased the country’s dependence on oil. The hospitality industry is booming, there is a push for digital transformation and renewable energy, the pharmaceutical industry is expanding, and the government has implemented various measures to tackle the economic impact of COVID-19. Investors and entrepreneurs should capitalize on this opportunity and explore various business investment avenues the KSA offers.
