Al Riyadh Newspaper: September 22, 2025

The collected texts offer a broad overview of Saudi Arabia’s strategic vision, economic initiatives, and cultural development, heavily referencing Vision 2030 goals such as diversifying the economy, increasing private sector contribution, and fostering global partnerships, particularly in AI and innovation. A significant portion of the text details economic activity and financial markets, including inflation data, real estate trends, and the impact of the US Federal Reserve’s interest rate decisions on both the Saudi stock market and global commodities like gold. Furthermore, the sources touch upon cultural and social topics, highlighting the growth of the entertainment sector, the success of the local cinema box office, environmental protection efforts, and administrative updates concerning legal enforcement and public service projects.

Saudi Vision 2030: Pillars of National Transformation

Saudi Vision 2030 is fundamentally a comprehensive national strategic plan for transformation, moving beyond mere development goals. It is built upon the foundation of preserving the Kingdom’s historical roots (three centuries of justice and consultation) while embracing modern visions to reshape its global economic and political standing without sacrificing its identity. The Vision’s trajectory is consistently defined by a strong commitment to sustainable development and enhancing the quality of life.

The Crown Prince, Mohammed bin Salman, is recognized as the leader and driving force behind this Vision.

Key Pillars and Achievements of Vision 2030

1. Economic Diversification and Global Standing

A central objective of Vision 2030 is to reduce reliance on oil and establish a diversified, non-oil, and sustainable economy. Notable economic achievements already demonstrate the success of this shift:

• Non-Oil GDP Contribution: For the first time in the Kingdom’s history, non-oil activities accounted for 56% of the Gross Domestic Product (GDP), surpassing the initial goals. The non-oil GDP surpassed 4.5 trillion Riyals (approximately $1.2 trillion).
• Global Investment Hub: The Vision aims for the Kingdom to become a global center for business. A significant marker of international confidence is the attraction of 660 regional headquarters of global companies to the Kingdom, exceeding the initial target set for 2030.
• Financial Sector Transformation: The Saudi financial market is recognized as the fastest-growing globally, exceeding $2.4 trillion in value by the end of Q2 2025.
• Digital Economy: The share of electronic payments reached over 79% of individual transactions by the end of 2024, surpassing the 2030 goal. This transformation makes the Kingdom a global leader in shifting toward a non-cash economy.
• Artificial Intelligence (AI): The Kingdom is advancing strategically to become a global center for Artificial Intelligence in the coming years.
• Logistics and Industry: The Vision includes strategic goals to transform the Kingdom into a manufacturing and logistics platform.

2. Culture, Heritage, and Tourism

The sources emphasize that culture is a strategic pillar of Vision 2030, transforming from a supporting activity into a major economic lever.

• Cultural Economy Goals: The Kingdom aims to raise the cultural sector’s contribution to 3% of the GDP (approximately 180 billion Riyals) by 2030, up from less than 1% previously.
• Key Projects: Major projects like Diriyah, Al-Ula, Qiddiya, and the Riyadh Season embody the cultural and entertainment investment framework. The Diriyah project is seen not just as urban development but as an investment in national memory, making culture a fundamental pillar of socio-economic development.
• Tourism Growth: The Kingdom achieved remarkable growth in tourist numbers and spending, exceeding previously announced targets. It is targeted to attract 50 million visits by 2030. In 2023, the tourism sector’s contribution surpassed 7% of the GDP.
• Creative Industries: The Ministry of Culture, established in 2018, defined a national strategy covering 16 sub-sectors, including film, theater, fashion, culinary arts, heritage, and museums. The focus includes developing infrastructure for culture and tourism, such as new museums and facilities.

3. Human Capital and Quality of Life

Vision 2030 places investment in human capital as a top priority. Objectives focus on building a vibrant society and enhancing citizen well-being:

• Employment: The unemployment rate among Saudis has decreased to 6.3% by the end of Q1 2025 (down from 12.3% in 2016).
• Women’s Empowerment: Female labor force participation reached a record high of 36.3% during the same period.
• Youth Focus: Over 70% of Saudis are under the age of 35, representing the driving energy and source of innovation for the Vision.
• Housing: The Vision aims to raise the home ownership rate to 70% by 2030. The “Real Estate Balance” platform was launched to regulate the market in Riyadh and ensure fair and transparent land distribution.
• Education: Efforts are in place to combat illiteracy and promote lifelong learning, aligning with the Vision’s goals for sustainable development.

4. Strategic Partnerships and Governance

The Vision is realized through strategic international engagement and flexible, efficient governance:

• International Partnerships: The establishment of the Saudi Center for Strategic Partnerships (SCISP) aims to convert diplomatic meetings into long-term strategic collaborations across various sectors (economic, cultural, technological).
• Global Integration: The Kingdom links Vision 2030 with international initiatives, such as connecting it with China’s “Belt and Road” initiative.
• Mega-Projects: Hosting global events like Expo 2030 in Riyadh and the 2034 FIFA World Cup demonstrate the Kingdom’s capability as a global hub and a major component of its soft power strategy.
• Environmental Sustainability: Initiatives like the Saudi Green Initiative are aimed at reducing carbon emissions and achieving carbon neutrality, reinforcing the commitment to environmental protection. The establishment of the Special Forces for Environmental Security in 2019 is also in line with Vision 2030 goals for a healthy and sustainable lifestyle.
• Flexibility in Governance: The Vision is implemented with an underlying principle of flexibility. The Crown Prince confirmed that any program or goal that does not serve the public interest will be modified or canceled, reinforcing that achieving the public benefit is the essential standard.
• Defense Capabilities: The Vision includes raising national defense capabilities, with the localization rate of military industry reaching over 19%.

Saudi Vision 2030: Culture and Entertainment as Economic Pillars

Saudi Vision 2030 views the Cultural and Entertainment sector not merely as a recreational amenity, but as a strategic pillar and a primary engine for sustainable economic diversification and enhanced national identity. The transformation aims to reposition culture from a supporting activity to a major economic lever.

The Crown Prince’s vision emphasizes that the economy, culture, and urban development are deeply interconnected elements, forming a single, integrated national landscape.

Economic Goals and Transformation

The Kingdom has ambitious economic objectives for the cultural sector, aiming for measurable, long-term growth:

1. GDP Contribution: A core goal is to raise the cultural sector’s contribution to 3% of the GDP (approximately 180 billion Riyals) by 2030, a significant jump from less than 1% previously.
2. Sustainable Economy: Cultural diversity is positioned as a strategic choice contributing to the creation of a diversified and sustainable economy. The investment is seen as a “gift of the soul,” an inexhaustible resource unlike oil or minerals, contributing to national wealth.
3. Governance and Support: The Ministry of Culture, established in 2018, defined a national strategy covering 16 sub-sectors. Initiatives like the Cultural Investment Conference (scheduled for September 2025) are designed to consolidate financial policies, expand partnerships, and launch funding initiatives to promote cultural economic activity.

Major Projects and Destination Creation

Cultural and entertainment investments are channeled through mega-projects designed to attract global attention and tourism:

• Mega-Projects: The comprehensive investment framework includes major destinations such as Diriyah, Al-Ula, Qiddiya, and the Riyadh Season.
• Al-Ula: The Royal Commission for Al-Ula has a plan targeting 2 million visits by 2035, aiming for a significant economic return estimated at $32 billion contribution to the national GDP. Al-Ula is intended to be a global platform hosting arts and antiquities, exemplified by events like the Winter at Tantora festival, which attracts thousands of tourists and artists annually.
• Diriyah: The Diriyah project, exemplified by the historic Al-Turaif neighborhood, is not just urban development but an investment in national memory. The JAX District in Diriyah has been converted into a creative hub that houses the first Saudi museum for contemporary art, creative agencies, and international design events.
• King Salman Park: This is planned as a colossal cultural and recreational project situated in the heart of Riyadh, featuring the Royal Arts Complex, multi-use halls, and a national theater with 2,300 seats.
• Riyadh Art: This global project involves the installation of over 1,000 artworks and supports the annual “Noor Riyadh” festival.

Growth in Creative Industries

The Vision has specifically fostered the development of creative industries by supporting infrastructure and providing incentives:

• Film and Cinema: Since the ban on cinemas was lifted in 2018, the sector has achieved legislative and logistical leaps. Incentives include reimbursement for production costs, reaching up to 40% in some shooting locations. The Kingdom is projected to lead the region with roughly 803 screens by the end of 2024. Dedicated funding, including a 375 million Riyal film fund, supports the value chain from production to distribution.
• Fashion and Design: The sector is experiencing rapid growth, contributing 2.5% of GDP in 2023, with its market value forecast to reach $42 billion by 2028. Notably, women represent over 50% of the workforce in this creative industry. Initiatives like “Saudi 100 Brands” support local supply chains and international marketing.
• Music: The Music Commission is focused on developing the sector’s infrastructure and establishing professional regulations, licenses, and governance frameworks.
• Heritage and Local Crafts: Local communities, including artisans and craftspeople, are recognized as essential partners for preserving heritage and folk arts. Their participation ensures the authenticity of the cultural experience and drives creative industries (such as traditional clothing, heritage food, and perfumes).

Tourism and Soft Power Impact

Cultural and entertainment initiatives are directly linked to attracting international visitors and strengthening Saudi Arabia’s global position:

• Tourism Targets: The Kingdom achieved remarkable growth in tourist numbers and spending in 2024. The goal is to reach 50 million visits by 2030.
• GDP from Tourism: In 2023, the tourism sector’s contribution exceeded 7% of the GDP.
• Soft Power: By hosting global events, such as the 2034 FIFA World Cup and the upcoming Expo 2030 in Riyadh, the Kingdom uses the cultural and sports sectors as effective tools of soft diplomacy, reinforcing its global image and capabilities.
• Intellectual Property: To protect investment in creative content, the Saudi Authority for Intellectual Property has enhanced the regulatory framework for copyrights, patents, and trademarks.

Saudi Arabia: A Global Investment Hub

The designation of Saudi Arabia as a “Global Investment Hub” is a core objective and a demonstrated achievement of Saudi Vision 2030, reflecting the Kingdom’s shift toward a diversified, non-oil economy and enhanced international standing.

Based on the sources, here is a comprehensive discussion of the Kingdom’s role as a Global Investment Hub:

Strategic Goals and Transformation

The primary goal is to transform Saudi Arabia into a global center for business, finance, and investment, moving away from oil dependency toward a diversified economic base.

• Non-Oil Economic Growth: The success of this transition is evidenced by record achievements, such as non-oil activities contributing 56% of the Gross Domestic Product (GDP), surpassing initial goals. This non-oil GDP exceeded 4.5 trillion Riyals (approximately $1.2 trillion). This performance demonstrates the robust health and strength of the Saudi economy against external shocks.
• Targeted Diversification: The diversification effort involves developing key sectors, including manufacturing, logistics, tourism, and renewable energy, to establish the Kingdom as a manufacturing and logistics platform.

Attracting International Capital and Headquarters

A key metric demonstrating the success of the Kingdom’s attractiveness as an investment hub is the massive influx of international companies:

• Regional Headquarters (RHQs): Saudi Arabia has successfully attracted 660 regional headquarters of global companies. This achievement far exceeds the initial target set for Vision 2030, underscoring international confidence and the Kingdom’s successful execution of its strategy.
• Investment Momentum: These results reflect the strategic foresight of the leadership and the commitment of global corporations to establishing their principal regional base within the Kingdom.

Financial and Technological Leadership

The drive to become a hub is supported by rapid advancements in the financial and digital sectors:

• Fastest-Growing Financial Market: The Saudi financial market is recognized as the fastest-growing globally. By the end of the second quarter of 2025, its value surpassed $2.4 trillion.
• Non-Cash Economy: The shift toward a non-cash economy is nearly complete, with the share of electronic payments reaching over 79% of individual transactions by the end of 2024. This achievement makes Saudi Arabia a global leader in this transition, surpassing the 2030 goal ahead of schedule.
• FinTech Sector Growth: The number of Financial Technology (FinTech) companies reached 261 in the first half of 2025, supported by the Capital Market Authority (CMA) and the Saudi Central Bank (SAMA) through initiatives like the regulatory sandbox. The FinTech sector attracted investment flows exceeding 2.7 billion Riyals and created 6,726 jobs.

Leveraging Strategic International Partnerships

The status of an investment hub is reinforced by its approach to global relations, converting diplomatic ties into economic reality:

• Saudi Center for Strategic Partnerships (SCISP): This center was established by a Council of Ministers decision in 2017 to transform traditional bilateral meetings into long-term strategic collaborations and partnerships. SCISP serves as the principal mechanism for consolidating the Kingdom’s efforts with global nations, establishing robust strategic partnerships across economic, cultural, and technological fields.
• Investment Forum: The Kingdom is actively working to expand partnerships by hosting major events like the Cultural Investment Conference, which facilitates partnerships and unifies financial policies. Furthermore, the Future Investment Initiative (FII Institute) and the Digital Cooperation Organization (DCO) signed a memorandum of understanding to accelerate the adoption of Artificial Intelligence (AI) in emerging markets, furthering the Kingdom’s goal of becoming a global AI center.

Supporting Infrastructure for Investors

The investment environment is strengthened by comprehensive legal and institutional reforms:

• Intellectual Property Protection: To reassure investors regarding intangible assets and contracts, the Saudi Authority for Intellectual Property has enhanced the regulatory framework for protecting copyrights, patents, and trademarks, aligning with significant international improvements observed in 2025.
• Real Estate Market Stability: The launch of the “Real Estate Balance” platform is aimed at achieving stability in the market, particularly in Riyadh, by regulating land distribution with transparency and fairness to prevent speculative inflation. This measure helps ensure that the necessary housing and commercial infrastructure are available at reasonable costs to support sustained investment.

Saudi Vision 2030 Real Estate Transformation and Governance

Real Estate Development forms a critical cornerstone of Saudi Vision 2030, directly connecting to the overarching goal of building a vibrant society and enhancing the quality of life for citizens. The sector is undergoing substantial transformation driven by regulatory reforms, massive infrastructure investment, and financial market modernization.

Core Strategic Goals

The fundamental goal within Vision 2030 is centered on human capital and achieving widespread well-being:

• Home Ownership Target: The Vision aims to raise the national home ownership rate to 70% by 2030.
• Beyond Construction: Achieving this goal is viewed not merely as providing loans or building units, but as establishing a “firm conviction in the fairness of entitlement” and ensuring the transparency of mechanisms.

Regulatory Reforms and Market Stability

The real estate market, particularly in the capital, Riyadh, experienced “crazy price hikes” in residential land prices during the past period. In response, the leadership introduced specific regulatory mechanisms to restore equilibrium:

• “Real Estate Balance” Platform (منصة التوازن العقاري): This platform was launched under the directives of the Crown Prince to regulate the real estate sector in Riyadh.
• Purpose: The platform serves as the single official channel for applying for land plots, aiming to achieve market stability and specifically “place a limit on the price increases” of real estate products.
• Mechanism: It is designed to regulate the distribution of white (undeveloped) lands with transparency and fairness to eligible citizens.
• Eligibility: Conditions for applying via the platform include being married or over 25 years old and not already owning another property. The platform reflects the government’s commitment to delivering high-quality housing services.

Real Estate Financing and Investment

The financial infrastructure has been modernized to support large-scale real estate transactions and funding:

• Financial Market Growth: The Saudi financial market is the fastest-growing globally, surpassing $2.4 trillion in value by the end of Q2 2025.
• Securitization: Saudi Arabia launched its first issuance of asset-backed securities (RMBS), supported by residential mortgages. This strategic step aims to free up liquidity in banks and enhance their lending capacity, thereby stimulating growth in the real estate market. Banks are anticipated to restructure up to $48 billion in existing mortgage portfolios through the Saudi Real Estate Refinance Company (SRC) by the end of Q1 2025.
• Transaction Volume: In the first half of 2025, the total value of real estate transactions in the Kingdom reached 167 billion Riyals across 216,000 deals, covering an area of 2 billion square meters.

Market Dynamics and Cost Pressures

The sector faces challenges related to inflation and construction costs, underscoring the necessity of regulatory intervention:

• Inflationary Driver: The real estate sector, particularly residential rental prices, was the biggest contributor to the acceleration of annual inflation, which reached 2.3% in August 2025.
• Riyadh Rental Inflation: Riyadh recorded the highest residential rental inflation rate in the Kingdom over one year, peaking at 15.7%.
• Construction Costs: Building costs for the residential sector increased by 0.7% in the Kingdom, driven primarily by rising labor costs (9.9%), equipment rental prices (1.8%), and energy prices (1.5%).
• Material Prices: While global prices for materials like iron and cement are stabilizing or slightly decreasing, prices remain high in Saudi Arabia due to strong local demand. For instance, the price of national black cement saw a decrease of 2.52% in August 2025.
• Demand in Jeddah: In Jeddah, the highest demand in the ownership apartments market was concentrated on small and medium-sized units, ranging from 130m² to 134m² and 180m² to 186m².

Modernizing Governance and Infrastructure

To support long-term development and investor confidence, the Kingdom is introducing modern regulatory frameworks and massive infrastructure projects:

• Real Estate Registry: The General Real Estate Authority announced the start of implementing the new real estate registry (Tasjeel Aini) in 77 districts across Riyadh (23 districts), Makkah (41 districts), and the Eastern Region (13 districts). Property owners are mandated to register their properties, and failure to do so within the specified period may lead to financial fines.
• Smart City Development (Riyadh): The Royal Commission for Riyadh City (RCRC) is leading efforts to transform Riyadh into a smart and sustainable city, which includes major projects, quality of life enhancements, and effective transportation management.
• Infrastructure Investment: The RCRC is advancing Phase 2 of its road development program, valued at over 8 billion Riyals (approximately $2.1 billion), to reduce traffic congestion (which can reach 20-30% during peak hours) and build modern transportation infrastructure.
• Protection of Creative Assets: To reassure investors regarding intangible assets, the Saudi Authority for Intellectual Property has strengthened the regulatory framework for copyrights, patents, and trademarks.
• Mega-Projects Impact: Key projects such as King Salman Park (a gigantic urban and cultural project in Riyadh) and the ongoing development of Diriyah and new cities like NEOM represent massive real estate and infrastructure investments that shape the modern urban landscape in alignment with Vision 2030.

Global Innovation Index and Strategic Competition

The Global Innovation Index (GII) is a crucial benchmark used internationally to measure the innovation performance of countries, reflecting a nation’s ability to drive technological and economic advancement.

The GII is published by the World Intellectual Property Organization (WIPO) in collaboration with research institutions. It utilizes over 80 indicators to evaluate a nation’s innovative ecosystem, encompassing categories such as the institutional environment, infrastructure, investment in Research and Development (R&D), and the quantity and quality of knowledge and creative outputs. The Index is regarded as a mirror for measuring the dynamics of global economic and technological power, identifying which nations are advancing and establishing broad guidelines for future development.

Saudi Arabia’s Performance in the GII

In line with the goals of Saudi Vision 2030 to build a diversified, knowledge-based economy, the Kingdom has actively focused on improving its standing in this global measure:

• In the Global Innovation Index 2024, Saudi Arabia achieved the 47th rank among 133 economies.
• This push for innovation is supported by significant growth in the startup ecosystem. For example, the number of Financial Technology (FinTech) companies grew from fewer than 20 in 2017 to over 200 by the end of 2024.
• The growth in the startup sector is substantial, with Saudi companies collecting $860 million in investment funding in the first half of 2025, representing a 116% increase.
• Strategic international partnerships play a key role in boosting innovation by establishing global accelerators and incubators (such as collaborations with Plug and Play and 500 Global) to train Saudi youth and develop nascent companies according to global standards.

Global Context and Strategic Competition

The GII highlights major shifts in the global landscape, emphasizing the escalating competition, particularly in technology and knowledge economies:

• The latest edition of the index noted the strategic significance of China entering the top ten global innovators for the first time, surpassing major European economies like Germany (which subsequently fell to the 11th position).
• China’s elevated ranking is underpinned by its strategic focus, including dedicating over 2.4% of its GDP to R&D, placing it among the highest investors in this field globally.
• This strategy reflects a national transformation aimed at shifting China from the “Factory of the World” to the “Laboratory of the World“.
• Chinese innovation efforts are concentrated on high-impact technological domains, such as developing 5G networks, Artificial Intelligence (AI), smart cities, autonomous vehicles, and leading the transition to clean energy technologies like solar panels and electric batteries.

Overall, Saudi Arabia views its GII ranking and continuous improvement as a measure of the effectiveness of its national innovation policies and its ambition to transform into a global center for AI and advanced technology, a core component of Vision 2030.