Letter from the publisher

Dear Readers,

One developing storyline of great interest in Saudi Arabia comes from outside the Kingdom. It comes from the U.S., in fact. President Donald Trump’s re-election is spurring excitement in Saudi Arabia, as leaders in the private and public sectors look forward to renewing the strong relationships they shared with American leadership from 2017 to 2021.

I got to see a lot of this up close during my time as a special envoy to the region. These leaders respect and understand each other, and the sky is the limit in business and diplomacy when they can collaborate.

But perhaps even more importantly, President Trump has made no secret of his desire to see more global investment in the U.S. Saudi Arabia has hundreds of billions of dollars invested in the US and the Kingdom intends for it to continue to grow, showcasing the way Saudi growth benefits the American economy. And American investors and companies are starting to put more of their wealth into growth opportunities in the Kingdom. It’s a two-way street and a virtuous cycle of cooperation. That’s the basis of any healthy, growing, deepening relationship.

As Minister of Investment His Excellency Khalid Al Falih declared in a recent Fox Business interview: “We’re bullish on the U.S. for the strong economy that it has, and we’re confident that there are thousands and thousands of Americans who are coming to Saudi Arabia to invest with us, to innovate, to create the economies of the future.”

In this issue, you will catch a glimpse of that innovation and the emerging professional consensus that betting on Saudi Arabia’s growth is a good deal.

Warm regards,

Publisher, KSA: The Next Frontier

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Live and Active Culture

Cultural, educational, and arts developments are key pillars of Saudi Arabia’s Vision 2030, driving economic diversification, tapping into the Kingdom’s rich heritage, and fostering a proud and vibrant society. Initiatives like the ones announced recently at Bashayer – the annual international event showcasing Saudi Arabia’s plans, hosted at the brand-new Bab Samhan luxury hotel – aim to preserve and celebrate Saudi heritage while positioning the Kingdom as a global hub for cultural exchange and innovation. Diriyah Company’s plans to develop two cultural, educational, and arts districts exemplifies this commitment, highlighting transformative projects that align with the Kingdom’s strategic objectives to enhance cultural infrastructure and stimulate growth in a way that is unique to the desert nation.

The Qurain Cultural District is set to become a beacon of Saudi culture, showcasing the country’s rich history and artistic achievements. This district will house prominent cultural assets, including theaters, galleries, and performance venues, creating an immersive space for creative expression and cultural exploration. It will also feature luxury hotels and branded residences, including a Ritz-Carlton and the 200-plus-room Address Diriyah. By integrating traditional design with modern functionality, mixed-use buildings, retail space, and dining options interspersed among the unique cultural offerings, the Qurain Cultural District is poised to become a destination for both locals and international visitors, enriching Saudi Arabia’s cultural landscape.

The Northern District, another ambitious project unveiled by Diriyah Company, will host a variety of prominent institutions. This area will feature the King Salman Foundation, a leading organization supporting community development, alongside a world-class university that will drive educational innovation. Additionally, the district will include a museum celebrating Saudi heritage and cultural institutions fostering academic and artistic collaboration. Together, these elements will create a dynamic ecosystem for learning and cultural exchange.

To bring these transformative projects to life, Diriyah Company, charged with overseeing one of five giga-projects under Vision 2030, has partnered with leading firms, including Nesma & Partners, MAN Enterprise Al-Saudia, China State Construction, and El Seif Engineering. These joint ventures reflect a commitment to delivering world-class developments. Diriyah’s ambitious vision includes hosting 50 million visits to its 14-square-kilometer district annually and contributing over $18 billion to Saudi Arabia’s GDP, positioning it as a cornerstone of the Kingdom’s economic and cultural future.

Welcome to the Orb

Shebara, the newest luxury resort by Red Sea Global, has officially opened its doors along the Red Sea coast. Positioned in an area known for its natural beauty and ecological significance, Shebara is now welcoming guests to its 38 overwater villas and 35 beachfront villas for a high-end experience that maintains a strong focus on innovation and sustainability.

The resort’s design stands out for its distinctive stainless-steel orbs, structures that blend into the horizon through their reflective surfaces. This innovative approach minimizes visual impact on the landscape, aligning with Red Sea Global’s efforts to incorporate sustainability into its projects. Guests will now be able to see up close how the orbs serve not just as architectural highlights but also as symbols of Saudi Arabia’s commitment to building upscale attractions while minimizing their environmental footprint.

Shebara offers its guests a range of year-round amenities tailored for relaxation and exploration. Its spa sanctuary is now open and providing treatments inspired by natural elements, aiming to integrate wellness with consciousness of the surrounding environment. The resort also features luxury accommodations, dining options featuring cuisines from around the world, and activities that connect guests with the region’s marine and desert ecosystems.

Located on its own island rich in biodiversity, Shebara provides access to coral reefs, coastal habitats, and desert landscapes just 25 kilometers from mainland Saudi Arabia. The resort is part of Red Sea Global’s broader mission to contribute to Saudi Arabia’s Vision 2030, which emphasizes sustainability and economic diversification through tourism development. Shebara is the fourth resort Red Sea Global has opened thus far.

As part of this initiative, Shebara reflects an effort to balance luxury tourism with ecological responsibility. By combining modern design with environmental awareness, the resort aims to showcase the potential for integrating sustainability into the hospitality sector. Shebara is a step toward realizing the vision of transforming the Red Sea region into a global destination while preserving its unique natural heritage.

Credit Where It’s Due

Sovereign credit ratings are critical indicators of a country’s creditworthiness, reflecting its ability to meet financial obligations and the strength of its underlying economic framework. A high sovereign credit rating like Aa3 signifies strong fiscal management, a resilient economy, and robust financial policies, all of which should boost investor confidence. Such ratings play a vital role in determining borrowing costs on international markets and influence global perceptions of a nation’s economic stability.

Moody’s recent upgrade of Saudi Arabia’s sovereign credit rating to Aa3 highlights the Kingdom’s improving economic and financial fundamentals. The Aa3 rating positions Saudi Arabia among the most creditworthy nations, just a few notches below the top rating of AAA. This recognition demonstrates Moody’s confidence in Saudi Arabia’s ability to manage its economy and pay off debts despite forecasted budget deficits averaging 2.5% of GDP in the coming years. Saudi Arabia’s government debt, currently about 24% of GDP, remains low by global standards, illustrating its fiscal discipline and the ability to weather economic fluctuations. With major government-backed projects underway to drive economic growth, this upgrade is a significant confirmation that the Kingdom’s fiscal state is strong.

A key factor in Moody’s assessment is not just Saudi Arabia’s ambitious economic growth, but its diversification under Vision 2030. The Kingdom has launched dozens of high-impact projects as well as multiple giga-projects, like the ones often featured in this newsletter, in sectors such as tourism, mining, petrochemicals, and electric-vehicle manufacturing. Developments like NEOM, the futuristic region aiming to attract global tourists and businesses, and investments in green technologies have been deemed “credit positive” for their potential to broaden the Kingdom’s economic base, hedge against risks to its economy even if one sector struggles, and reduce dependence on oil revenues.

This upgrade is a significant milestone for Saudi Arabia, signaling growing economic strength and stability. For foreign investors, it underscores the Kingdom’s investment appeal, signaling that opportunities in emerging industries are not just potentially lucrative but, on the whole, secure. With enhanced creditworthiness, Saudi Arabia provides an attractive environment for international partnerships, making it an opportune time for investors to engage with its growing markets.

Fertile Grounds

New crops are blooming in the Saudi desert. Developing sustainable and desert-friendly architecture is vital to Saudi Arabia’s economic future, aligning with Vision 2030’s goals of diversification and environmental stewardship. Employing cutting-edge technology, the Kingdom is transforming its arid landscapes into hubs of innovation, bolstering food security, and reducing reliance on imports. These advancements position Saudi Arabia as a leader in sustainable development, showcasing its commitment to creating self-sufficient, climate-resilient systems that benefit both local communities and global supplies of food and other plants. And they took a step forward with the official opening of Topian in early December.

Topian, located within the futuristic Oxagon city in NEOM, is a groundbreaking greenhouse project that exemplifies this vision. Spanning a massive area of four hectares (more than 430,000 square feet), Topian is the first climate-resilient greenhouse in the region, designed to withstand harsh desert conditions while enabling sustainable agricultural production. Its state-of-the-art facility will be used to grow a variety of crops year-round, utilizing advanced technologies to maximize yield and resource efficiency. By optimizing energy, water, and land use, Topian sets a new benchmark for sustainable horticulture in the Middle East.

As Vishal Wanchoo, CEO of Oxagon, put it: “This pilot aims to deliver, at scale, sustainably produced ingredients that NEOM residents and hospitality partners will be able to use – demonstrating an entirely localized ‘farm-to-table’ supply chain. Together with Topian, we are taking the next step in utilizing clean technology to change industry for the better.”

The development of Topian is the result of strategic partnerships with global leaders in horticulture and technology. Dutch company Van Der Hoeven, renowned for its expertise in climate-controlled greenhouse solutions, is a key collaborator, bringing cutting-edge innovations to the project. These partnerships ensure the integration of advanced climate-control systems, water recycling technologies, and AI-driven monitoring solutions to maintain unparalleled efficiency and productivity even while embarking on novel horticultural projects.

Topian shows how the Kingdom is dedicated to fostering innovation in challenging environments, but also offers a platform for businesses to contribute to and benefit from this transformative journey. With NEOM poised to become a global hub for green technology and innovation, Topian now stands as a testament to Saudi Arabia’s potential as a destination for forward-thinking investments in sustainability and food security. It also establishes a testbed for other firms interested in meeting global demands for the same, encouraging healthy competition for producing fresh, nutritious foods that will be available to more people, faster, and at lower cost.

All Play and Lots of Work

Qiddiya, hailed as Saudi Arabia's “City of Play,” is set to become a major entertainment and cultural hub with a diverse array of attractions and facilities. This ambitious project, led by the Qiddiya Investment Company (itself owned by the Public Investment Fund) is transforming a vast expanse of desert near Riyadh into a vibrant metropolis dedicated to leisure, innovation, and most of all, play – which Qiddiya emphasizes is crucial to quality of life for Saudi nationals and tourists.

Among the City of Play’s standout features is the 50,000-square-meter Dragon Ball-themed park, a unique attraction that immerses visitors in the world of the iconic anime, blending more than 30 thrilling themed rides with interactive experiences and beloved characters. Visitors will even have the opportunity to stay in Dragon Ball-themed hotels after days exploring the seven themed zones based on the eponymous series’ seven dragon balls. Speed enthusiasts will be thrilled by the Speed Park track, which promises exhilarating motorsport experiences. A stadium named for HRH Crown Prince Mohammed Bin Salman will host major sporting events, contributing to the city’s dynamic atmosphere.

Qiddiya also aims to become a premier destination for gaming and e-sports, capitalizing on the growing popularity of competitive gaming with state-of-the-art facilities and tournaments. A partnership with Six Flags has allowed Qiddya to introduce a high-octane amusement park, featuring a range of rides and entertainment options suitable for all ages. 75% of the amusement park has already been completed, including large sections of a signature ride called Falcon’s Flight, which, when complete, is planned to be the tallest, longest, and fastest roller coaster in the world. 

The Aquarabia theme park, meanwhile, will offer aquatic adventures with a variety of water-based attractions, including 81 private luxury cabanas and a surf school. And a planned performing arts center will provide a venue for a rich array of cultural performances, from music to theater.

Those who enjoy a slower pace can enjoy two meticulously designed courses, one designed by the legendary golfer Jack Nicklaus. These championship courses will blend world-class design with the natural beauty of the Saudi landscape in the shadow of the Tuwaiq mountain range.

Other strategic partnerships play a crucial role in Qiddiya’s development. Collaboration with information-technology company DETASAD will ensure cutting-edge IT solutions to keep the massive enterprise up and running, while a memorandum of understanding with the General Authority for Small and Medium Enterprises SMEs (known as Monsha’at) will boost entrepreneurship and economic growth across sectors. Additionally, partnerships with prominent soccer clubs Al-Nassr and Al-Hilal, which will play at the new stadium, will elevate Qiddiya's profile in the sports sector, integrating world-class soccer experiences into the city’s offerings. These alliances are set to propel Qiddiya into the spotlight as a premier global entertainment destination.

Integral to Saudi Arabia’s Vision 2030, Qiddiya represents a significant step towards diversifying the economy and enhancing the country’s entertainment landscape. The city aims to attract tourists, boost local employment, and contribute to the Kingdom’s cultural and economic development. The massive project is estimated to provide 325,000 permanent jobs, with another 100,000 jobs estimated to be created during the construction period. Qiddya City estimates that more than 600,000 people will eventually live in the City of Play, while tourists will make a combined 48 million trips there annually.