Where the Saudi economy is heading
GDP size, Vision 2030's giga-projects, and the practical culture-and-business norms every foreign company should plan around — sourced and updated regularly.
The Saudi economy at a glance
The largest economy in the Middle East and the G20's only Arab member — diversifying fast away from oil.
- Nominal GDP of roughly $1.24–1.25 trillion (2024) — World Bank / IMF.
- GASTAT reported 4.5% real GDP growth for full-year 2025, driven by oil, non-oil and government activities.
- Non-oil activities reached roughly 55% of real GDP in 2025 per official Vision 2030 reporting.
- Inflation has run low and stable, around 1.9%–2.3% through 2025 (GASTAT CPI).
- FDI inflows rose 24.2% year-on-year to about SAR 119.2 billion (~$31.7B) in 2024 — still below the government's $100B/year 2030 target.
- VAT introduced in 2018 at 5%, raised to 15% since 1 July 2020, administered by ZATCA with mandatory e-invoicing (FATOORA).
- The Public Investment Fund's assets reached roughly SAR 4.54 trillion (~$1.21 trillion) by end-2025 — the primary vehicle behind the giga-projects.
- Sovereign credit ratings as of 2025: S&P A+, Fitch A+, Moody's Aa3 — all stable/positive outlook.
- Female labor-force participation rose from ~17% (2017) to ~36% (2024/2025), already exceeding the original 30%-by-2030 target.
The giga-projects
PIF-backed developments reshaping tourism, real estate and urban life. Several have opened in phases through 2025–2026; some (especially NEOM) have seen publicly reported scope changes — treat headline figures as evolving.
- NEOM: announced 2017 at $500B, covering THE LINE, Oxagon and Trojena. Recent press reports scope reductions and delays to THE LINE — treat specific revised figures as unconfirmed.
- Qiddiya: PIF-owned entertainment/sports city near Riyadh. Six Flags Qiddiya City opened 31 December 2025 (28 rides). Official targets: 48 million visitors/year and 325,000 jobs by 2030.
- The Red Sea Project / AMAALA (Red Sea Global): ultra-luxury coastal tourism, opened in phases through 2025. Official targets: up to 9 resorts, ~50,000 jobs, 100% renewable energy.
- Diriyah Gate: heritage/cultural megaproject around At-Turaif (UNESCO World Heritage Site). Officially cited masterplan value ~$63B; Bujairi Terrace dining district is operational.
- ROSHN: PIF's giga real-estate developer (est. 2020), land bank over 200 million m². Flagship SEDRA community in Riyadh is delivering homes; supports Vision 2030's 70% homeownership target.
- King Salman Park: on the site of Riyadh's former domestic airport, aiming to be the world's largest urban park; targets Riyadh's green space rising from 1.5% to 9.1%, mostly by 2030.
- New Murabba: 19 km² downtown Riyadh development (incl. The Mukaab landmark). Officially stated plans: 104,000 residential units, 9,000 hotel rooms, ~400,000 residents.
Several cost/timeline figures reported in the press for New Murabba, King Salman Park and Qiddiya (and NEOM's leaked cost/timeline) are market estimates or unconfirmed press reports, not official PIF disclosures — we present only the officially stated targets above and flag the rest as unverified.
Business etiquette & the working week
Practical norms for a foreign company operating day-to-day in Saudi Arabia.
- The working week is Sunday–Thursday, Friday–Saturday weekend — set by royal order since June 2013 to align with global markets.
- Standard working hours are 8 hours/day or 48 hours/week under Saudi Labor Law.
- During Ramadan, working hours for fasting Muslim employees are legally capped at 6 hours/day (36 hours/week) — Labor Law Article 98.
- Key public holidays affecting business: Founding Day (22 Feb), Saudi National Day (23 Sep), and Eid al-Fitr / Eid al-Adha (dates set by the Hijri calendar).
- Gender-mixing restrictions in workplaces have relaxed considerably since 2017; 2024/2025 Labor Law amendments explicitly prohibit gender-based employment discrimination.
- Arabic is the official language and legally required in contracts and commercial dealings; English is very widely used in business settings.
Government rules, fees and programs change often. This guide is a starting reference — always confirm current figures with the official portal or ask our smart agent before relying on a specific number.
