A Thriving Economy
KSA Development Authority aiming to create a thriving economy where everyone has the opportunity to succeed. By providing a supportive business environment for businesses of all sizes and investing in education to prepare for the jobs of the future, Saudi Arabia is creating an exciting and prosperous future for all.
The future of our nation will be determined by our young people, and we are prioritizing them, their skills and their empowerment. We are building a culture that values determination and provides rewarding opportunities for growth while also creating diverse job opportunities for Saudis, while attracting the best global talent.
The Kingdom is open for business. To become a leading global economy, we are improving our business environment, restructuring our economic cities, creating special zones, and deregulating the energy market to make it more competitive. We are also investing for the future by unleashing promising new sectors and privatizing government services to diversify our economy and ensure its sustainability.
Located at the crossroads of three continents, we are leveraging our unique position to become a major hub for international trade and forming new partnerships to grow our economy and supporting our domestic companies in increasing exports.
With these efforts, through Vision 2030 KSADA is creating a thriving economy that serves as the foundation for a vibrant society and an ambitious nation.
Plan to unlock the potential
KSA Development Authority (KSADA) through Vision 2030 program, unveiled in 2016, representing a transformative and deeply ambitious plan to unlock the Kingdom's vast potential by creating a diversified, innovative, and world-leading nation. Since Vision 2030's launch, Saudi Arabia has witnessed unprecedented change and remarkable growth. KSADA's projects are bold and exciting blueprints that draws upon Saudi Arabia's rich history, heritage, culture, strategic location, and economic strength. It has ushered in a new era of economic diversification through strategic investments in key sectors, transforming society and opening Saudi Arabia to the world, and fostering a more inclusive, sustainable and global outlook.
SAUDI ARABIA'S SME BOOM
SMEs are pivotal to Saudi Arabia's economic health, driving innovation, job creation, and GDP growth. Their adaptability and innovative capacity not only fuel employment but also attract Foreign Direct Investment (FDI), signaling a robust business ecosystem. This dynamic foster economic expansion, technology transfer, and enhances national competitiveness globally. Supporting SMEs, through measures like the establishment of the SME bank, Saudi Arabia aims for sustainable growth by improving financial access, advancing technology, and diversifying its workforce, reinforcing its stance as an innovation and investment hub.
RESEARCH, INNOVATION AND DEVELOPMENT
Combining development with innovation is crucial for a nation's economic growth. Saudi Arabia has recognized this by making Research, Development, and Innovation (RDI), KSADA focusing more on a diversified, knowledge-based economy. One clear goal is to reach the top 10 in the Global Competitive Index. This not only shows Saudi Arabia's commitment to economic progress but also its aim to be a leading global player in technology and innovation.
RDI ASPIRATIONS
- ⦁ ANNUAL INVESTMENT EQUIVALENT TO 2.5% OF GDP IN 2040
- ⦁ CONTRIBUTE $16bn TO THE ECONOMY IN 2040
RDI NATIONAL PRIORITIES
- ⦁ Health and Wellness
- ⦁ Sustainable
- ⦁ Environment and
- ⦁ Supply of Essential
- ⦁ Needs
- ⦁ Energy and Industrial
- ⦁ Leadership
- ⦁ Economies of
- ⦁ the Future
DIGITAL DISRUPTION
The Kingdom's digital excellence on a global scale is evident as it occupies the 3rd position globally and 1st regionally in the World Bank's GovTech Maturity Index (GTMI). The Kingdom achieved a high maturity rate in the overall index, reaching 97.13%.
- ⦁ Telecom and IT Sector's GDP Contribution (2023) 4%
- ⦁ Tech Utilization Ranking (UN's E-Government Development Index) 4th globally
- ⦁ Women in Tech Roles 35%
- ⦁ Women in Leadership Positions 24%
- ⦁ Telecommunications Market Growth 4% increase to $20.24 billion
- ⦁ IT Market Growth 8% increase to $23.33 billion
- ⦁ Market Value of Tech Companies Approximately $28.8 billion
BUILDING AN INCLUSIVE WORKFORCE
KSA Development Authority champions women's empowerment, signifying a leap forward in both economic and social domains. Since 2016, reforms have enhanced women's rights, enabling driving, independent travel, and equitable access to legal processes marking a profound societal transformation. These advancements have led to increased female participation in the workforce and leadership, enriching Saudi society with diverse perspectives and expertise. The commitment to gender equality is part of a broader vision to create a vibrant, inclusive future, with women playing a crucial role in the nation's development. As Saudi Arabia diversifies its economy, women's contributions are set to increase, showcasing a commitment to an inclusive and thriving society.
- ⦁ THE PERCENTAGE OF SAUDI WOMEN IN THE WORKFORCE INCREASED FROM 17% to 36%
- ⦁ WITH TOTAL WOMEN IN THE WORKFORCE REACHING 33.5%
TRANSFORMING THE AUTOMOTIVE LANDSCAPE
THE AUTOMOTIVE INDUSTRY IN SAUDI ARABIA IS UNDERGOING A SIGNIFICANT TRANSFORMATION, MARKED BY MAJOR DEVELOPMENTS FROM SEVERAL KEY PLAYERS
- ⦁ Lucid Group has opened Saudi Arabia's first car manufacturing facility, the AMP-2 in King Abdullah Economic City (KAEC), Jeddah.
- ⦁ Ceer, the first Saudi electric vehicle brand, with BMW and Foxconn as partners, aims to produce 500,000 vehicles annually by 2030. This is notable for its potential impact on the global EV market and its contribution to Saudi Arabia's economic diversification efforts. Ceer's operations are expected to significantly contribute to the country's GDP and create around 30,000 jobs in 2026.
- ⦁ Hyundai Motor Company, in partnership with the Public Investment Fund (PIF), plans to establish a new automotive manufacturing plant in the country. The venture, with an investment of over $500 million, will produce both internal combustion engine vehicles and EVs, highlighting the commitment to diversifying automotive production and embracing electric mobility.
SUPPLY CHAIN OF THE FUTURE
Saudi Arabia's strategic location, connecting three continents and situated just a few hours from most major economic hubs, underpins the Global Supply Chain Resilience Initiative (GSCRI). This initiative is focused on drawing vital supply chains to the Kingdom, making the most of its distinct competitive and unique strengths. This GSCRI not only supports Saudi Arabia's domestic development but also aims to strengthen supply chains at both regional and global levels, offering investors a distinct competitive advantage.
GSCRI STRATEGICALLY PRIORITIZES KEY SECTORS IN WHICH SAUDI ARABIA HAS A COMPETITIVE ADVANTAGE, Aerospace, Automotive, Building materials, Food processing, Machining and equipment, Maritime, Medical devices, Military industries, Mining and metals, Petrochemicals, Pharmaceutical manufacturing, Renewables.
ELEVATING GLOBAL TRADE
KSA Development Authority (KSADA) has launched 22 logistics zones, targeting a total of 59 by 2030, including the Special Integrated Logistics Zone (SILZ) in Riyadh. Strategically located 8 kilometers from King Khalid International Airport and spanning 3 square kilometers, SILZ offers direct connectivity through a bonded corridor, streamlining access to global air routes. This prime location enhances delivery efficiency to the Middle East's largest consumer market, reducing logistical costs and improving service. Apple Inc, as SILZ's first occupant, highlights its capacity to support global corporations in regional logistics. SILZ is pivotal in transforming the Kingdom into a global logistics hub, supporting the Saudi Aviation Strategy's goal of managing 4.5 million tons of air freight, facilitating knowledge transfer, and developing local talent, thereby advancing logistical standards in the Kingdom and beyond.
GLOBAL BUSINESS GROWTH
To drive economic diversification and offer new business avenues in the Kingdom, the first wave of four Special Economic Zones was initiated, featuring unique commercial regulations.
- ⦁ King Abdullah Economic City (KAEC) Province: Makkah (100km from city of Jeddah) Size of the zone: 60km
- ⦁ Ras Al-Khair Province: Eastern (100km from city of Jubail) Size of the zone: 20km
- ⦁ Shipbuilding and maintenance, repair and operations (MRO)
- ⦁ Rig platforms and MRO
- ⦁ Jazan Economic City Province: Jazan Size of the zone: 24.6km
- ⦁ Food processing
- ⦁ Metals conversion
- ⦁ Logistics
- ⦁ Cloud Computing This virtual SEZ is part of King Abdulaziz City for Science and Technology (KACST) in Riyadh
INDUSTRIAL EVOLUTION
Saudi Arabia's industrial cities are playing a pivotal role in the nation's economic growth and diversification. As a key component of the National Industrial Strategy, the Kingdom is focused on expanding its industrial base. This includes localizing industries with high potential and drawing in both global and regional investments. By fostering an environment that encourages industrial innovation and growth, Saudi Arabia aims to establish itself as a leading industrial power in the region.
MINERAL WEALTH
Saudi Arabia's vast mineral wealth and high reserves consolidate its position as a key player in the mining industry. The estimated mining wealth of over $2.5 trillion presents an exceptional opportunity for the Kingdom to boost its economy further through strategic developments in this sector. The mining sector in Saudi Arabia is a key driver of various industries, serving as the economy's third pillar. With abundant mineral reserves, the sector caters to the energy and industrial sectors' needs while meeting local market demands.