Letter from the publisher

Dear Readers,

I am pleased to present the third issue of KSA: The Next Frontier having just returned from the Kingdom. I am still trying to wrap my head around the dizzying array of developments I saw during my week there. Saudi Arabia is hopping. Everywhere I went, I could see the rapidly developing economy and a nation excited for its future. From the more traditional tourism areas to secluded luxury resorts rising on mountains and by the sea – some of which you will read about below – the whole country is brimming with energy.

But the Kingdom is not just about tourism and giga-projects. As you’ll see in this issue, the Kingdom is making it easier for business leaders to invest in, and launch, new endeavors and capitalize on that energy.

Saudi Arabia is open for business. The opportunities now available there seem boundless. I would not have imagined this when I first set foot in the Kingdom in 2017.

As I’ve said many times before, but I think bears repeating: You need to check it out to believe it.

Warm regards,

Publisher, KSA: The Next Frontier

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Stars of the Kingdom

Glass ceilings are shattering across the desert. The emergence of a dynamic cohort of women leaders in Saudi Arabia is reshaping the Kingdom’s workforce and entrepreneurship landscape. Saudi Arabia’s Vision 2030 emphasizes the importance of women’s participation in all sectors as a key component of its broader economic strategy. This initiative aims to empower women, promote gender equality, and integrate them more fully into the workforce, reflecting a commitment to creating a more inclusive society – while tapping into women’s ingenuity and potential economic contributions.

In recent years, female participation in the workforce has seen notable growth, particularly in sectors like technology. According to the Saudi Ministry of Human Resources and Social Development, women’s labor force participation increased from 21% in 2017 to approximately 34% in 2023, and women now constitute nearly half of the Kingdom’s workforce overall. The tech industry, in particular, has become a focal point for female employment, with initiatives encouraging women to pursue careers in coding, data science, and other digital fields. The Kingdom is also witnessing the rise of women-led startups, contributing to a burgeoning entrepreneurial ecosystem. It is now estimated that 28% of tech jobs in the Kingdom are held by women, as compared to 17% in Europe.

Several notable Saudi women are making significant strides in leadership and innovation. For instance, Dr. Hayat Sindi, a pioneering biotechnologist and advocate for women in science, is known for her work in developing affordable healthcare solutions. Another influential figure is Dr. Sara Althari, co-founder and managing partner of a successful global strategic advisory firm that helps pioneer landmark investments in the Kingdom. Additionally, Rania Nashar , the former CEO of Samba Financial Group, Saudi Arabia’s third-largest bank, has become a role model in the finance sector, breaking barriers and inspiring a new generation of female leaders with her public leadership and poise.

These developments are positive for the sake of women’s empowerment, but also to the broader issue of economic growth. Unleashing women's potential as equals in every realm possible is a key driver of Saudi Arabia’s long-term prosperity. By empowering women and fostering their participation in various industries, the Kingdom not only enhances its workforce but also drives innovation and competitiveness, ultimately contributing to a more robust and diversified economy. Unlocking the Kingdom’s full economic potential is an ongoing project, and women are leading the way.

Seeing Red

Blink and you’ll miss the transformation of the historic Red Sea region. Recent lightning-speed developments in Saudi Arabia’s Red Sea Global luxury resorts highlight the transformative vision for luxury and sustainability sweeping the region. Central to this vision of “regenerative tourism” is AMAALA, a premier luxury destination designed around wellness and holistic experiences. The project is making significant strides, particularly with the near-completion of the Triple Bay marina village, which has seen the successful flooding of the marina basin. This ambitious development aims to blend the beauty of the Red Sea with innovative leisure offerings, enhancing the overall guest experience.

Completed contracts for floating pontoons and fixed decks are poised to elevate the marina’s functionality, while a construction contract for the AMAALA Yacht Club promises to attract boating enthusiasts and sophisticated travelers alike. In another notable development showcasing the holistic approach to wellness that pervades the development, the Saudi Ministry of Health has approved the design for the AMAALA hospital, which will serve the entire region and its expected tourist and new resident populations.

Another highlight in this expanding luxury portfolio is the unveiling of Nujuma, the first Ritz-Carlton Reserve property in the Middle East, accessible by chartered boat or seaplane. This exclusive resort encapsulates the essence of unity with nature – as it is enmeshed in starry open skies and perched about the sea -- and personalized service. Guests can indulge in various dining experiences at restaurants like Tabrah, Jamaa, and Sita, each offering distinct culinary delights inspired by global cuisines, and at the astrology-themed cocktail bar Maia. The Neyrah Spa embodies the resort’s ethos, providing rejuvenating treatments set against stunning coastal views. Together, these features promise an unparalleled experience for discerning travelers.

Adding to the allure of Red Sea Global hotels are the unique offerings of the new St. Regis Red Sea Resort and the Six Senses Southern DunesResort. The St. Regis promises signature luxury with its elegant design, bespoke restaurants and spa, and stunning white-sand-beachfront views. The Six Senses Southern Dunes Resort, which opened in late 2023, is already captivating guests with its focus on sustainable living, integrating organic architecture with the natural desert landscape, powered by nothing but its own solar farm. Both resorts reflect a commitment to environmental stewardship while providing guests with luxurious experiences that cater to both relaxation and adventure.

As Red Sea Global hotels continue to develop, they are not only enhancing Saudi Arabia’s tourism landscape but also setting a benchmark for unique experiences. The global hospitality industry can learn from Red Sea Global's seamless blending of architecture and luxury with local landscapes and cultures, all while taking on sustainable practices. 

Tape Gone

MIZA is an anti-bureaucracy. It’s an agency that helps businesses looking to grow in Saudi Arabia get past red tape – more accurately, it makes it seem like the red tape isn’t there to begin with. MIZA was established to help businesses seamlessly invest in the Kingdom, whether they are startups or an established enterprise. MIZA is set up to be something of a concierge, guiding entrepreneurs and executives through the dynamic and extensive landscape of Saudi investments with unparalleled expertise and a variety of capabilities.

Navigating any country’s financial, legal, logistical and tax landscape can be daunting, but MIZA simplifies it. Its financial and tax consultancy services assist companies with all business tax paperwork, from registration to compliance. They assist in registering all business facilities with the relevant authorities, making sure new businesses meet all legal obligations without incurring prohibitive expenses along the way. MIZA stands for the idea that a business’s expertise is providing useful goods and services to consumers, and entrepreneurs should be focused on that, secure in the knowledge that setting up shop in a new country will be handled by the experts.

MIZA offers an impressive array of services to get new projects off the ground, starting with an extensive range of business setup services tailored to companies’ specific needs. For those leaders looking to build a talented team, MIZA offers talent-acquisition specialists to help find and onboard the best candidates. For those in need of help drafting legal documents or developing effective marketing strategies, MIZA’s experienced professionals and consultants provide familiarity with the regulatory landscape and guidance throughout the process. By taking care of nitty-gritty details, MIZA is designed to allow business owners to concentrate on growing both their enterprise and the Kingdom’s economy at the same time.

Logistics are always a headache for new ventures when starting out in a new country, but MIZA streamlines this process as well. Their logistics services cover everything from the transportation of goods and people to reliable courier services and even furniture installation.

Though the business landscape in many countries is often hindered by bureaucracy, MIZA stands out as an all-purpose guide to navigating the rules in ways that achieve broader Saudi social and economic goals while presenting foreign investors and multinational businesses with massive growth opportunities. By offering personalized support that makes the investment process straightforward and efficient, MIZA helps show interested entrepreneurs that clearing regulatory and logistical hurdles is no obstacle to success in the Kingdom’s rapidly developing economy. With MIZA’s help, it is easier than ever to get a business up and running in the Kingdom.

Downhill Skiing in the Desert?

Saudi Arabia is making a major push to host international sporting competitions. But could it someday host a Winter Olympics?

For the Kingdom, the answer is of course, nothing is out of our reach. To bolster its argument the Kingdom points to Trojena, a remarkable mountain tourism destination under construction in Tabuk Province, Saudi Arabia. This development, located in the northwest corner of the Arabian Peninsula, is poised to transform the region's landscape. As a key component of the NEOM project, Trojena is set to be a premier winter sports and luxury destination, advancing Saudi Arabia’s Vision 2030 by diversifying its tourism offerings and creating jobs in construction, luxury hospitality, and adventure tourism. NEOM, the revolutionary $500 billion regional-development project that aims to create a new model of urban living, integrates cutting-edge technology, sustainability, and economic innovation into everything it does. And Trojena’s design, which is being brought to life through partnerships with brand-name multinational firms recognized for excellence in luxury and experiential tourism, suggests it is no different.

Trojena’s standout features, and the reason it represents a unique development opportunity within Vision 2030, is its cooler climate compared to the rest of Saudi Arabia. Nestled in the northwest mountains, Trojena benefits from altitudes of 1,500 to 2,600 meters (approximately 5,000-8,500 feet) above sea level, making it an ideal location for outdoor winter sports, a rarity in the desert and the region. The high elevation and lower temperatures will enable the development of 36 kilometers of ski slopes, offering an unprecedented opportunity for skiing and snowboarding in the region, as well as high-altitude training and a variety of year-round outdoor activities that are typically hard to enjoy in the desert heat.

The development of Trojena is slated to include an impressive array of amenities designed to cater to diverse interests. NEOM plans for 42,000 square meters of retail and dining spaces, thousands of hotel rooms—including luxury properties from prestigious brands like Raffles Hotels, Marriott International, and the Anantara resort line from Minor Hotels—and many apartments. Visitors can look forward to a rich selection of both indoor and outdoor activities geared towards both adrenaline rushes and relaxation, aiming for a comprehensive and engaging experience.

One other partnership is particularly significant. Last year, NEOM announced a deal with Denver, Colorado-based outdoor hospitality brand Collective Retreats to oversee the creation of a luxury retreat featuring 60 open-air guest rooms, all in a spirit that emphasizes sustainability and high-quality experiences. Slated to open in 2026, Collective Trojena will offer access to skiing, snowboarding, high-altitude training, paragliding, mountain biking, hiking, and water sports. Additionally, it will provide culture-forward programming centered around film, art, music, and food, enriching the cultural fabric of the destination and providing a wide array of possible experiences for visitors.

Trojena is committed to environmental sustainability, with plans to power the entire mountain destination using solar and wind energy, aligning with Vision 2030’s broader efforts to reduce carbon footprints and promote green energy technologies even while scaling up Saudi infrastructure.

With a new slate of winter-sports offerings and a region built for luxury, the Kingdom is probably on the winning side of the argument of why a Winter Olympics in the Kingdom should be seriously considered.

Healthy, Wealthy, and Wise

Saudi Arabia’s biotech industry is rapidly emerging as a key sector in the Kingdom’s strategy to diversify its economy beyond oil. Under the umbrella of Vision 2030, HRH Crown Prince Mohammed Bin Salman’s bold national development plan, the country is fostering innovation in life sciences and biotechnology to fuel sustainable growth in a region of the world where ingenuity and resourcefulness are crucial to building thriving economies.

Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO) plays a pivotal role in Saudi Arabia’s national biotech strategy. As one of the leading pharmaceutical companies in the region, SPIMACO has been instrumental in expanding local production of essential medicines and biopharmaceuticals, reducing reliance on imports. The company, which recently completed construction on a major manufacturing complex in Qassim Province, focuses on manufacturing high-quality drugs and developing biotechnology-based therapies, including vaccines and biosimilars. Through strategic partnerships and investments in research and development, SPIMACO supports the Kingdom's broader efforts to position itself as a biotechnology hub. A recent partnership with the Korean biotech company Altos Biologics represents a significant milestone in SPIMACO’s goal of upscaling production of injectable treatments and localizing medicine production.

Beyond SPIMACO, key investments in research, development, and partnerships have propelled Saudi Arabia into a growing hub for biotechnology in the Middle East. A significant focus has been on health biotechnology, with the country aiming to lead in areas like personalized medicine, genomics, and bioengineering. This has been achieved through collaborations with top-tier international research institutes and the creation of research centers like the King Abdullah International Medical Research Center and the King Abdulaziz City for Science and Technology (KACST).

In recent years, the country has made significant strides in genomics, a field critical for advancing personalized healthcare. The Saudi Human Genome Program, for example, is one of the largest initiatives in the Middle East, aiming to map the genetic makeup of the Saudi population and uncover genetic mutations linked to diseases prevalent in the region. Launched by KACST in 2014, it aims to help create targeted therapies that will improve healthcare outcomes at lower costs.

This sector’s growth has been further accelerated by the COVID-19 pandemic, as the Kingdom has moved swiftly to develop capabilities for manufacturing and distributing vital medical supplies and treatments in the wake of a global need for more reliable and effective vaccine production.

As the biotech industry continues to grow, Saudi Arabia is setting the foundation to become a regional and eventually global leader in developing the technologies that improve and extend human life. The Saudi government expects the biotech sector to become a more-than-$30 billion industry within the next 15 years, creating tens of thousands of jobs within the same span – and all working towards advancements that could shape the future of health and wellness.

Investors Capitalize on Saudi Growth

Saudi Arabia has always been known for its energetic markets, but in recent years a newer kind of market is drawing people into the Kingdom – a capital market. The Saudi Exchange, known as Tadawul, has emerged as a strategic hub for companies aiming to enhance their market presence. Established in 2007, Tadawul has undergone significant transformations to establish itself as the largest stock exchange in the Middle East and North Africa, with a market cap of $3 trillion, $2.6 trillion of which represents growth over the last decade. Though Tadawul initially operated with limited foreign investment and a small number of listings, it has developed into a dynamic marketplace that attracts both local and international investors, paving the way for economic diversification in the Kingdom.

Under HRH Crown Prince Mohammed Bin Salman’s Vision 2030, Tadawul has implemented crucial reforms designed to bolster its appeal and efficiency. The initiative aims to diversify the economy away from oil dependency and encourage private sector growth. Key changes include improved regulations, enhanced corporate governance standards, and increased transparency in trading. Additionally, the introduction of new trading mechanisms, such as the inclusion of exchange-traded funds and derivative products, has attracted a broader range of investors, facilitating greater liquidity and market participation.

Major companies listed on Tadawul, such as Saudi Aramco, SABIC, and Al Rajhi Bank, have significantly contributed to its reputation. Saudi Aramco’s historic initial public offering (IPO) in 2019 marked a pivotal moment for the exchange, raising $29.4 billion and establishing the largest market capitalization in the world at the time. Since then, share prices of various listed companies have surged, reflecting growing investor confidence and strong financial performance. And the surge only continues to grow. In 2023, eight companies in key industries -- pharmaceuticals, food, transportation, energy – made their IPOs on Tadawul, and seven of those increased in value by an average of 71 percent. The overall increase in market capitalization has positioned Tadawul as an exciting option for global investors seeking opportunities in emerging markets – an estimated 3,700 qualified foreign investors in the last few years alone.

The ongoing trend of increasing privatization, as illustrated by Tadawul, combined with the vast room for growth in a newly diversified economy, represents a tremendous opportunity for domestic growth and an influx of foreign investment. As more enterprises consider listing and the government continues to encourage private sector involvement, Tadawul stands poised to play a crucial role in Saudi Arabia’s economic transformation.