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Fashion Boosts Non-Oil GDP in Saudi Arabia

A part of the Fashion Authority's participation in the “100 Saudi Brands” exhibition
A part of the Fashion Authority's participation in the “100 Saudi Brands” exhibition
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Fashion Boosts Non-Oil GDP in Saudi Arabia

A part of the Fashion Authority's participation in the “100 Saudi Brands” exhibition
A part of the Fashion Authority's participation in the “100 Saudi Brands” exhibition

Aligning with efforts undertaken by the Saudi government to diversify its economy away from oil, the fashion sector has carved out its role as a key player in achieving this goal.

The Kingdom’s fashion sector is paving its way towards rapid growth, aiming to become a significant contributor to the non-oil GDP.

So far, this sector constitutes more than 1% of the non-oil GDP, with the Kingdom’s fashion market estimated at around 90 billion riyals (24 billion dollars). Consequently, it stands as the largest market in the Arab world.

Recognizing the pivotal role of the fashion sector, a dedicated Fashion Authority was established in 2020 under the auspices of the Ministry of Culture.

Tasked with organizing major events that showcase Saudi designs, the Authority emphasizes the promotion of local products while importing valuable European and global experiences to the Kingdom.

This initiative aligns with a broader Saudi openness to the world, aimed at promoting the Kingdom’s attire and culture—a facet of the projects and initiatives of the Kingdom’s national transformation plan “Vision 2030.”

Eyad Mashat, the CEO of the global fashion company “FAD,” echoed this sentiment in statements he made to Asharq Al-Awsat.

Mashat emphasized that the significant growth across all sectors in the Kingdom, aligned with the objectives of Vision 2030, has played a pivotal role in the rapid expansion witnessed by the fashion industry in the local market.

Saudi Arabia has established a competitive and attractive investment environment through “bold steps and revolutionary decisions,” said Mashat.

These measures have successfully overcome numerous previous challenges, utilizing digital transformation applications to swiftly streamline many governmental procedures.

This has significantly shortened the time and processes required for the launch of small to medium-sized projects, reducing the timeline from over 15 days to just a few hours.

In tandem with the development of legislative environments and incentivizing systems implemented by the Kingdom, Mashat observed that citizens have become more receptive to the importance of the fashion industry.

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Foreign Investments in Saudi Arabia Triple, with Over 1,200 Benefiting from Premium Residency

The 28th Global Investment Conference kicked off in Riyadh on Monday. (SPA)
The 28th Global Investment Conference kicked off in Riyadh on Monday. (SPA)
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Foreign Investments in Saudi Arabia Triple, with Over 1,200 Benefiting from Premium Residency

The 28th Global Investment Conference kicked off in Riyadh on Monday. (SPA)
The 28th Global Investment Conference kicked off in Riyadh on Monday. (SPA)

Saudi Arabia has tripled its foreign investment inflows and increased the number of investors tenfold since the launch of Vision 2030. More than 1,200 international investors have also obtained premium residency in the Kingdom.

These figures were revealed by Minister of Investment Khalid Al-Falih during the 28th Global Investment Conference, held in Riyadh on Monday under the patronage of Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister.

Al-Falih emphasized that premium residency is a key enabler for attracting foreign investment, as it simplifies procedures for investors and enhances their ability to seize the opportunities available in Saudi Arabia, solidifying the Kingdom’s position as a global investment hub. Residency holders, he noted, are treated as if they were in their home countries.

Since the introduction of Vision 2030, investment inflows have tripled, and the GDP has grown by 70%, reaching $1.1 trillion—half of which comes from non-oil sectors, he continued.

Al-Falih also stressed the immense opportunities in areas such as digital infrastructure and research-driven economic growth. He identified sustainability and circular carbon economy projects as key focus areas for future investment.

He acknowledged the geopolitical risks and labor shortages that pose challenges to investment. However, he projected that the Global South is poised to attract half of global financial flows by 2025.

The minister went on to say that hosting the Global Investment Conference in Riyadh provides Saudi Arabia with a platform to present its strategic vision to international partners and highlight its status as a trusted partner in sustainable economic growth.

Nivruti Rai, Managing Director and CEO of Invest India and President of the World Association of Investment Promotion Agencies (WAIPA), underscored the importance of international collaboration in achieving sustainable growth and digital transformation. She lauded Vision 2030 as a model for economic and social progress, underlining the role of technology, education, and tourism in driving development.

The world has consumed nearly 2.5 trillion metric tons of greenhouse gas emissions, leaving only 500–700 billion metric tons for sustainable use, she noted, while underscoring the need for countries like Saudi Arabia and India to lead innovation in renewable energy sources such as solar, wind and green hydrogen.

Saudi Arabia’s commitment to innovation in energy and water was also commended, with Rai describing mega projects like NEOM as a “dream come true” and a leading example of integrating technology and sustainability to improve quality of life.

During a panel discussion, Saudi Minister of Economy and Planning Faisal Al-Ibrahim revealed that investment and fixed capital now constitute 25% of the GDP. He noted that Vision 2030 has unlocked vast opportunities in previously untapped sectors, including mining, tourism, culture, and entertainment, significantly contributing to the Kingdom’s non-oil growth.

Al-Ibrahim stressed the importance of adopting advanced technologies in renewable energy, green hydrogen, defense, education, and healthcare.

He stressed Saudi Arabia’s role as a central platform for accessing new markets and boosting global economic stability through continuous innovation.

Egyptian Minister of Investment and Foreign Trade Hassan Al-Khatib highlighted the importance of Saudi-Egyptian cooperation and sound policy adoption to attract investments in promising sectors.

Saudi investments in Egypt would significantly contribute to fostering a favorable investment climate, he said.

Greek Deputy Minister of Foreign Affairs Kostas Fragogiannis discussed Greece’s focus on attracting investments in gas, including talks with Saudi Arabia and other nations, to access European markets.

The Invest in Saudi Arabia platform organized the three-day Global Investment Conference from November 25 to 27 in collaboration with WAIPA. This major event brings together global leaders, investors, and stakeholders to explore opportunities in sustainable growth and digital transformation, aiming to diversify and enhance global investment strategies.