Here are key Saudi economic events in 2023

The Saudi economy witnessed several major events during 2023, the most prominent of which is hosting Expo 2030 and World Cup 2034, and opening Lucid’s first electric vehicle (EV) factory in the Kingdom.

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), the launch of the New Square Development Co. to develop the largest downtown in Riyadh, as well as the launch of four special economic zones in the Kingdom for investors from all over the world, in addition to the launch of Riyadh Airlines.

The year’s events included raising the rate of reverse repurchase (reverse repo) agreements from 450 basis points to 550 basis points, and raising the rate of repurchase (repo) agreements from 500 basis points to 600 basis points, on four seperate occasions.

Saudi Arabia also announced the extension of its voluntary reduction of one million barrels per day, which began in July 2023, until the end of the first quarter of 2024, in addition to its voluntary reduction of 500,000 barrels per day until the end of December 2024 in coordination with some countries participating in the OPEC Plus agreement.

Moreover, the 2023 key decisions included returning the number of pilgrims to pre-Covid 19 capacity, starting the exécution of the new Companies Law, establishing and stating the operation of the Insurance Authority, as well as the launch of options contracts for individual stocks.

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- Return of the numbers of Hajj pilgrims to pre-COVID pandemic levels

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

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

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 in Saudi Arabia took effect as of January 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 Governor of Saudi Central Bank (SAMA)

The Custodian of the Two Holy Mosques issued a royal order to relieve Dr. Fahd bin Abdullah bin Abdul Latif Al-Mubarak, former SAMA Governor, from his post, and to appoint Ayman bin Mohammed bin Saud 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 square meters (sqm) of land in Riyadh and other cities witnessing a rise in prices

The Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail announced that the Crown Prince directed granting the residential sector 100 million 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 Co. to develop the largest modern downtown in the world in Riyadh

Crown Prince Mohammed bin Salman announced the launch of the New Square Development Co., with the aim of developing the world's largest modern downtown in Riyadh, which contributes to developing the capital's future in line with the goals of Vision 2030.

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- 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 mln

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 bin Abdulaziz Al Saud issued a royal decree to mark “Flag Day” annually on March 11.

15- Salman Al-Dossary appointed as Minister of Media

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

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

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

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

Crown Prince Mohammed bin Salman bin Abdulaziz, Prime Minister and Chairman of the Public Investment Fund (PIF), announced on March 12, 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 on Oct. 19, 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 bin Abdulaziz Al Saud issued directives on April 9, 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 special economic zones

Crown Prince Mohammed bin Salman bin Abdulaziz, Prime Minister and Chairman of the Council of Economic and Development Affairs (CEDA), announced launching four special economic zones (SEZs). The zones are titled 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

Saudi Arabia’s Crown Prince Mohammed Bin Salman announced that a 4% stake in oil major Saudi Aramco was transferred to Sanabil Investments, which is wholly owned by the Saudi Arabia's sovereign wealth fund.

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

The Saudi Central Bank (SAMA) raised today, March 22, its reverse repo rate by 25 basis points (bps) 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 mln bpd for 2024

OPEC and its allies agreed on June 4 to set a new production target at 40.46 million barrels per day (bpd) from January-December 2024, OPEC+ said in a statement.

Accordingly, OPEC+ agreed to slash its production target for 2024 by around 1.4 million barrels per day (bpd) compared to current production targets, Reuters reported.

25- Crown Prince launches Sports Clubs Investment, Privatization project

Crown Prince Mohammed bin Salman launched on June 5, the investment and privatization project for sports clubs upon completing the implementing procedures of the first stage.

26- Civil Transactions Law approved

Crown Prince Mohammed bin Salman 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 at 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 square meters and at the Industrial Valley in King Abdullah Economic City.

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

The Public Investment Fund (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 Al Madinah Heritage Company 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 Saudi Tourism Investment Company

The PIF announced the establishment of the Saudi Tourism Investment Company (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 Company

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

33- PIF establishes Saudi Facility Management Company

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 Insurance Authority

The Cabinet approved the establishment of the Insurance Authority, which officially started operations in November.

35- Crown Prince launches KAUST new strategy

Crown Prince, Mohammed bin Salman, issued the new strategy of King Abdullah University of Science and Technology (KAUST). The strategy 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 of Saudi Arabia among other countries to join the group. 

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

Saudi Crown Prince Mohammed bin Salman 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

Prince Mohammed bin Salman, Crown Prince, Prime Minister, and Chairman of Soudah Development launched the masterplan to develop Soudah and parts of Rijal Almaa into Soudah Peaks, Saudi Press Agency reported.

39- Lucid opens first EV factory in Saudi Arabia

Lucid Group opened its first electric vehicle (EV) factory in Saudi Arabia’s King Abdullah Economic City (KAEC).

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, the single-stock options (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 Budget for 2024

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

Crown Prince Mohammad bin Salman, Prime Minister and 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

The Public Investment Fund (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

The Royal Commission for Riyadh City (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 headquarters

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

Saudi Arabia’s 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 barrels per day, which began in July 2023, until the end of the first quarter of 2024, in coordination with some participating countries in the OPEC+ agreement.

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.

Source : ARgaam