Here are key Saudi economic events in 2023

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The Saudi economy witnessed several key events and accomplishments in 2023, the most prominent of which is hosting Expo 2030 and World Cup 2034. This is besides the launch of four special economic zones (SEZs) across the Kingdom to cater to investors worldwide.

 

Moreover, Crown Prince Mohammed bin Salman announced a number of projects, including the inclusion of Diriyah project as the fifth major project owned by the Public Investment Fund (PIF) and the launch of the New Square Development Co. to develop the largest downtown in Riyadh. This is in addition to the establishment of several other companies, including Riyadh Airlines, the National Automotive and Mobility Investment Co. (Tasaru Mobility Investments), among others.

 

Key events in 2023 included raising the reverse repo rate from 450 basis points (bps) to 550 bps, besides upping the repo rate from 500 to 600 bps, on four seperate occasions.

 

Saudi Arabia also announced the extension of its voluntary reduction of oil ouput by one million barrels per day (bpd), which began in July 2023, until the end of the first quarter of 2024. This is in addition to its voluntary cut of 500,000 bpd until the end of December 2024, in coordination with some OPEC+ member nations.

 

Moreover, key decisions taken last year included the return of the number of pilgrims to pre-COVID levels. Further, the new Companies Law came into force,  along with establishing and launching the Insurance Authority (IA), as well as the introduction of single stock options (SSOs) contracts.

 

Below is a list of key events in chronological order:

 

1- Inclusion of Diriyah project as the fifth major project owned by the PIF

 

 

Crown Prince Mohammed bin Salman announced the inclusion of Diriyah project as the fifth major project owned by the Saudi sovereign fund.

 

2- Hajj pilgrims return to pre-COVID levels

 

 

Minister of Hajj and Umrah Tawfiq Al-Rabiah announced the return of Hajj pilgrims to pre-COVID levels, with no age restrictions.

 

3- Launch of the Events Investment Fund with SAR 14 billion investment capital

 

 

Crown Prince Mohammed bin Salman launched the Events Investment Fund, under his chairmanship, with the aim of developing sustainable infrastructure to support four promising sectors: culture, tourism, entertainment, and sports. This is in addition to building strategic partnerships to maximize impact in target sectors and increase opportunities to attract foreign investment.

 

4- The new Companies Law takes effect in Saudi Arabia

 

 

The new Companies Law and its Executive Regulations took effect as of Jan. 19, 2023, allowing the division of the stock nominal value.

 

5- Launch of transit visa for air visitors

 

 

The Saudi Ministry of Foreign Affairs has launched the electronic issuance of a transit visa for visitors arriving by air. This visa allows the beneficiary to reside in Saudi Arabia for a period of four days (96 hours), with a validity of three months.

 

6- Appointment of Ayman Al-Sayari as SAMA Governor

 

 

The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, issued a royal order to relieve Fahd Al-Mubarak, former Governor of the Saudi Central Bank (SAMA), from his post, appointing Ayman Al-Sayari in his place.

 

7- Licensing the first branch of a foreign insurance firm in the Kingdom

 

 

SAMA announced licensing the first branch of a foreign insurance firm in the Kingdom, the US-based Cigna Worldwide Insurance, specialized in health insurance.

 

8- A directive to grant 100 million sqm of land in Riyadh and other cities witnessing a rise in prices

 

 

Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail announced that the Crown Prince directed granting the residential sector 100 million square meters (sqm) of land in Riyadh and other cities that are witnessing a rise in land and real estate prices.

 

9- PIF invests SAR 5 billion in new shares in four national companies in the construction sector

 

 

PIF invested SAR 5 billion by subscribing to new shares in Nesma & Partners Contracting Co., ElSeif Engineering Contracting Co., AlBawani Holding Co., and Almabani General Contractors Co.

 

10- Launch of New Square Development to develop the world’s largest modern downtown in Riyadh

 

 

The Crown Prince announced the launch of New Square Development, with the aim of developing the world's largest modern downtown in Riyadh, contributing to developing the capital's future in line with Vision 2030 goals.

 

11- Announcing new features and solutions for the updated housing subsidy program

 

 

The Sakani Program announced the launch of the updated housing subsidy program, which comes to meet the needs of the beneficiaries in line with their various financing capabilities and their need to own adequate housing.

 

12- The Capital Market Authority’s (CMA) board reshuffle

 

 

King Salman issued a royal order on the formation of a new board for the market regulator.

 

13- Shareek announces first bundle of projects worth SAR 192.4 million

 

 

The Private Sector Partnership Reinforcement Center (Shareek) announced the first wave of supported projects for large companies joining the program. The projects were announced for eight national companies in variuos strategic sectors at a total value of SAR 192.4 million.

 

14- March 11 announced as Flag Day

 

 

King Salman issued a royal decree to mark “Flag Day” annually on March 11.

 

15- Salman Al-Dossary appointed as Minister of Media

 

 

King Salman issued a royal order on appointing Salman Al-Dossary as Minister of Media.

 

16- Saudi Arabia allows GCC residents to apply for tourist visas regardless of profession

 

 

Minister of Tourism, Ahmed Al Khateeb, scrapped previous conditions on granting tourist visas to GCC residents of certain professions.

 

17- Crown Prince announces establishment of PIF’s Riyadh Air

 

 

The Crown Prince, who is also Prime Minister and PIF Chairman announced on March 12, 2023, the establishment of the new national carrier, Riyadh Air, which is wholly owned by the sovereign wealth fund.

 

18- Fourth phase of Riyadh bus service kicks off

 

 

The Royal Commission for Riyadh City (RCRC) announced the start of the fourth phase of the Riyadh bus service within the King Abdulaziz Public Transport Project in the Saudi capital.

 

19- Saudi NCP lists details of 200 projects set for privatization

 

 

The National Center for Privatization & PPP (NCP) published a list of 200 projects approved for privatization in diverse sectors. The list allowed local and international investors to know more about Saudi Arabia’s privatization projects before they are officially put on the market.

 

20- King Salman extends Citizen Account Program

 

 

King Salman issued directives on extending the Citizen Account Program in the current mechanism and providing temporary additional support to its beneficiaries for four months until July 2023.

 

21- Saudi Arabia launches 4 SEZs

 

 

The Crown Prince, who is also Chairman of the Council of Economic and Development Affairs (CEDA), launched four SEZs, namely the King Abdullah Economic City (KAEC) SEZ, Jazan SEZ, Ras Al Khair SEZ and Cloud Computing SEZ.

 

22- Saudi Aramco 4% stake transferred to PIF's Sanabil

 

 

The Crown Prince announced that a 4% stake in oil major Saudi Aramco was transferred to Sanabil Investments, which is wholly owned by the Saudi sovereign wealth fund.

 

23- SAMA raises reverse repo, repo rates by 25 bps

 

 

SAMA raised its reverse repo rate from 475 bps to 500 bps (5%). It also hiked its repo rate by 25 bps to 550 bps from 525 bps (5.50%).

 

24- OPEC+ sets output target of 40.5 million bpd for 2024

 

 

OPEC and its allies agreed to set a new production target at 40.46 million bpd from January-December 2024. Accordingly, OPEC+ slashed its production target for 2024 by around 1.4 million bpd.

 

25- Crown Prince launches sports clubs investment and privatization project

 

 

The Crown Prince launched the investment and privatization project for sports clubs upon completing the implementing procedures of the first stage.

 

26- Civil Transactions Law approved

 

 

The Crown Prince announced the Cabinet’s approval on the Civil Transactions Law, after completing the regulatory measures.

 

27- Allowing Saudis to travel abroad without COVID vaccination

 

 

Saudi Arabia decided to allow Saudi citizens to travel aboard without taking the COVID vaccination, based on the reports submitted by the health authorities regarding the stability of the epidemiological situation locally and globally.

 

28- Ceer gets license for EV production facility

 

 

The Ministry of Industry and Mineral Resources issued an industrial license for Ceer, to establish an electric vehicle (EV) manufacturing facility over one million sqm at the Industrial Valley in KAEC.

 

29- PIF sets up Sawani to unlock potential of camel dairy industry

 

 

PIF announced the establishment of Sawani Co. (Sawani), to enable the growth of the Saudi camel farming industry and actively contribute to its sustainable development.

 

30- PIF establishes MHC to enhance Ajwa dates production

 

 

The PIF announced the establishment of Al Madinah Heritage Co. (MHC), to improve the quality and production capacity of Ajwa dates in the Madinah region.

 

31- PIF sets up Asfar

 

 

The PIF announced the establishment of the Saudi Tourism Investment Co. (Asfar) to support the growth of the country’s tourism sector. The company will invest in new tourism projects and develop attractive destinations with hospitality, tourist attractions, retail, and food and beverage offerings in cities across Saudi Arabia, in addition to investing in the local tourism value chain.

 

32- PIF establishes SRJ Sports Investments

 

 

The PIF announced the establishment of SRJ Sports Investments Co., a sports investment company that aims to accelerate the growth of the sports sector in Saudi Arabia and MENA.

 

33- PIF establishes FMTECH

 

 

The PIF announced the establishment of Saudi Facility Management Co. (FMTECH). The company will offer a comprehensive range of services, including utilities, energy, and waste management as well as maintenance, housekeeping, security, and landscaping services.

 

34- Cabinet approves setting up IA

 

 

The Cabinet approved the establishment of the IA, which officially started operations in November 2023.

 

35- Crown Prince launches KAUST new strategy

 

 

The Crown Prince issued the new strategy of King Abdullah University of Science and Technology (KAUST). It aims to transform science and research into economically profitable innovations through focusing on national priorities for research, development, and innovation.

 

36- Saudi Arabia gets official nod to join BRICS

 

 

BRICS officially agreed to invite the Kingdom, among other countries, to join the group.

 

37- Crown Prince rolls out masterplan for logistics centers to turn Saudi Arabia into global hub

 

 

The Crown Prince unveiled the masterplan of logistics centers, which aims to develop the infrastructure of the logistics sector, diversify the local economy, and strengthen the Kingdom’s position as a leading investment destination and a global logistics hub.

 

 38 - Crown Prince launches Soudah Peaks masterplan

 

 

The Crown Prince, who is also Chairman of Soudah Development, launched the masterplan to develop Soudah and parts of Rijal Almaa into Soudah Peaks.

 

39- Lucid opens first EV factory in Saudi Arabia

 

 

Lucid Group opened its first EV factory in Saudi Arabia’s KAEC.

 

40- PIF establishes BDC to develop Jeddah's Al Balad

 

 

PIF announced the establishment of Al Balad Development Co. (BDC), to be the main developer of Jeddah Historic District (Al Balad).

 

41- PIF and SEC launch Electric Vehicle Infrastructure Company 

 

 

PIF and Saudi Electricity Co. (SEC) announced the launch of Electric Vehicle Infrastructure Company. PIF will own a 75% stake in the company, while SEC will hold the remaining 25% stake.

 

42- PIF sets up Tasaru Mobility Investments 

 

 

PIF launched Tasaru Mobility Investments, which specializes in developing local supply chain capabilities for the automotive and mobility industry in the Kingdom.

 

 43- Crown Prince unveils masterplan for new Abha International Airport 

 

 

The Crown Prince launched the general masterplan for the new Abha International Airport. 

 

44- Crown Prince launches Ardara to develop AlWadi in Abha 

 

 

The Crown Prince announced the launch of Ardara, which will develop AlWadi in Aseer Region in the southwest of Saudi Arabia.

 

45- PIF and Hyundai Motor sign JV agreement on automotive manufacturing plant in Saudi Arabia

 

 

PIF and Hyundai announced the signing of a joint-venture (JV) agreement to establish a highly automated vehicle manufacturing plant in Saudi Arabia.

 

46- Crown Prince launches Esports World Cup

 

 

The Crown Prince announced the launch of the Esports World Cup to be held annually in Riyadh starting summer 2024.

 

47- Saudi Aramco discovers natural gas fields in the Kingdom

 

 

Prince Abdulaziz bin Salman, Minister of Energy, announced that Saudi Aramco discovered several natural gas fields in the Eastern Province and the Empty Quarter.

 

48- FIFA President announces Saudi Arabia as host for the 2034 World Cup

 

 

Gianni Infantino, the President of the Federation Internationale de Football Association (FIFA), announced that Saudi Arabia will host the 2034 FIFA World Cup.

 

 49- Tadawul launches SSOs contracts

 

 

Tadawul launched its latest financial derivatives product, SSOs contracts.

 

50- Saudi Arabia wins the right to host Expo 2030

 

 

Saudi Arabia won last November the vote of the general assembly of the Bureau International des Expositions (BIE) to host Expo 2030.

 

51- Finance Ministry announces Saudi 2024 budget

 

 

The Saudi Ministry of Finance announced the 2024 state budget, estimating expenditures at SAR 1.25 trillion and revenues at SAR 1.17 trillion, resulting in an expected deficit of around SAR 79 billion. Regarding the 2023 budget, the expected total expenditures are SAR 1.27 trillion, and total revenues are SAR 1.19 trillion, with a projected deficit of SAR 82 billion.

 

52- Crown Prince launches urban plan and branding of Qiddiya city

 

 

The Crown Prince, who is also Chairman of the board of directors of the Qiddiya Investment Co. (QIC), launched the urban design for the city of Qiddiya and Qiddiya’s brand.

 

 53- PIF sets up Dan Company, specializing in agritourism and ecotourism

 

 

PIF announced the establishment of Dan Company, specializing in agritourism and ecotourism. The company plans to develop unique tourism projects around cities across Saudi Arabia with attractive natural and farmed landscapes.

 

54- RCRC announces completion of Riyadh bus network

 

 

RCRC announced the completion of the main network of the Riyadh public buses within the King Abdulaziz Project for Riyadh Public Transport. The total number of routes currently reaches 54, served by 679 buses across 2,145 stations and stops.

 

 55- Saudi Arabia offers new tax incentives to attract regional HQs

 

 

The Ministry of Investment, in coordination with the Ministry of Finance and the Zakat, Tax and Customs Authority (ZATCA), announced a new 30-year tax incentive package to support the program of attracting regional headquarters of global companies, encouraging and facilitating the opening procedures for international companies establishing their regional headquarters in Saudi Arabia.

 

56- Saudi Cabinet allows companies and large farmers to grow wheat and seasonal fodder

 

 

The Cabinet agreed to allow local agricultural companies and large farmers to grow wheat and seasonal fodder in accordance with controls set by the Ministry of Environment, Water and Agriculture (MEWA).

 

57- Saudi Arabia extends voluntary cut of oil output until Q1 2024

 

 

Saudi Arabia announced the extension of its voluntary production cut of one million bpd, which began in July 2023, until the end of the first quarter of 2024, in coordination with some OPEC+ member countries.

 

58- Maaden announces discovery of potential gold resources

 

 

Saudi Arabian Mining Co. (Maaden) announced a potential discovery of significant gold resources along 100 kilometers, south of Mansoura and Masara gold mine.