From Davos: The World Looks to Saudi Vision, from Reform to Delivery

The logo of the World Economic Forum at the Davos Conference Center (AFP)
The logo of the World Economic Forum at the Davos Conference Center (AFP)
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From Davos: The World Looks to Saudi Vision, from Reform to Delivery

The logo of the World Economic Forum at the Davos Conference Center (AFP)
The logo of the World Economic Forum at the Davos Conference Center (AFP)

At the 2026 World Economic Forum in Davos, Saudi Arabia offered a compelling account of how long-term ambition can be translated into measurable results.

Through a narrative grounded in data and outcomes, Saudi ministers traced the evolution of Vision 2030 from structural reform to disciplined execution, presenting the Kingdom as one of the world’s most attractive investment destinations.

Rising capital-formation rates now place Saudi Arabia alongside major economies such as China and India, underscoring growing international confidence in the strength and future of its economy.

On the margins of the forum, a high-level dialogue at the Saudi House pavilion brought together Princess Reema bint Bandar Al Saud, Saudi ambassador to the United States; Minister of Investment Khalid Al-Falih; Minister of Finance Mohammed Al-Jadaan; Minister of Economy and Planning Faisal Alibrahim; IMF Managing Director Kristalina Georgieva; and Lubna Olayan, Chair of Olayan Financing.

Titled From Reform to Delivery: Implementing Change at Scale, the session examined the next phase of Vision 2030 and how it has enhanced the government’s capacity for evidence-based planning and execution.

Saudi Arabia’s presence at the 2026 forum runs from Jan. 19-23 through an expanded Saudi House program - the largest since its launch - bringing together ministers, senior officials, business leaders and global thinkers.

From vision to policy discipline

Al-Jadaan emphasized that visions and reform agendas cannot be taken for granted. The true test, he said, lies not in designing strategies but in sustaining their execution, an area where many reform efforts around the world lose momentum. Saudi Arabia’s fiscal framework, supported by record foreign reserves at the central bank, has provided the flexibility needed to absorb shocks and maintain reform momentum.

He noted that 93 percent of Vision 2030’s key performance indicators have either been achieved or are progressing as planned. He added that reform has moved beyond individual initiatives to become a permanent institutional practice, supported by a 22 percent rise in financial reserves between 2022 and 2025.

He also stressed that trust and credibility are central to this process. Sustained progress depends on maintaining confidence with markets and stakeholders through pragmatic fiscal discipline and clear prioritization of resources. With fiscal space always finite, sequencing and focus are essential. He pointed to IMF Article IV consultations as a rigorous external validation of Saudi Arabia’s economic direction, noting that ambitions set a decade ago are now reflected in tangible outcomes, with hundreds of indicators either exceeding targets or firmly on track.

Converting strategy into outcomes

Building on this theme, Alibrahim said that turning strategies into results requires clarity of purpose, institutional adaptability and the ability to adjust course quickly. He explained that sustainable transformation cannot be achieved without a conscious approach to managing risk.

According to Alibrahim, Vision 2030’s long-term perspective has strengthened the government’s ability to plan, execute and respond to data, allowing it to change direction when needed while balancing risks and opportunities over both short and long horizons.

Attracting global capital

Al-Falih placed Saudi Arabia’s experience within a broader global context marked by geopolitical uncertainty, strained supply chains and rapid technological change. He noted that capital cannot avoid risk entirely but must find ways to balance it with the need for growth, particularly at a time when the world requires vast investment to navigate major transitions. These include energy digitization and the restructuring of global artificial intelligence supply chains.

He further explained that investors are increasingly drawn to markets that combine scale with access to global opportunities. This, in turn, requires skilled human capital, reliable energy, credible decarbonization pathways, advanced physical and digital infrastructure, and transparent, predictable regulatory systems. He said that few countries offer all these elements together, adding that Saudi Arabia has succeeded in doing so.

Al-Falih continued that foreign direct investment has risen to five times its pre–Vision 2030 level, while domestic investors have also increased their commitments. Capital formation as a share of GDP now matches levels seen in China and India, with visible effects across global supply chains, from shipbuilding on the eastern coast to automotive manufacturing on the western coast, as well as green and blue hydrogen projects developed with international partners.

Energy, markets and new frontiers

Al-Falih noted that the availability of Saudi capital, combined with a partnership-driven approach, has been a decisive factor. The government co-invests alongside the Public Investment Fund, major national companies and the private sector, aligning capital with strategic priorities.

While petrochemicals, fertilizers and mining remain important, the scope of transformation has broadened significantly. Saudi capital markets have become more integrated, the exchange-traded fund ecosystem has expanded, and inclusion in major global indices has lowered barriers for international investors.

At the same time, he said that the Kingdom is moving beyond its traditional role as an oil and gas supplier. It is investing in hydrogen, accelerating renewable energy localization and developing cross-border electricity interconnections with Africa, the Gulf, Iraq and Egypt. Investments in critical minerals and global supply chains now extend to joint ventures in the United States and Asia, supporting demand in a low-carbon economy. Saudi Arabia, Al-Falih concluded, also aims to position itself as a hub for the new economy, including data and artificial intelligence.

Georgieva: A transformation that inspires

Georgieva described Saudi Arabia’s reform journey as a “generational transformation” that spans sectors and places the Kingdom in a position of global leadership. Reforms that reduced the state’s direct role while enabling the private sector to flourish, she said, now underpin the country’s economic resilience.

She highlighted the breadth of diversification — from finance and tourism to sports and fashion — as particularly striking, adding that Saudi Arabia has also emerged as a partner and sponsor of reform beyond its borders, with the IMF office in Riyadh helping to share the Saudi experience with other countries. Concluding her remarks, she urged Saudi leaders and officials to maintain momentum and continue supporting others on similar paths.

Princess Reema, for her part, emphasized that human capital remains the engine of long-term growth. She said that investment in youth, job creation and a supportive social environment, encouraged many young Saudis to build their futures at home.

Lubna Olayan observed that the business landscape has undergone a notable shift. Where large corporations once dominated, small and medium-sized enterprises are now playing a growing role, supported by banks and new financing channels. She noted that economic diversification has opened private-sector opportunities, particularly in tourism, a labor-intensive service industry.

Powell: A model with global relevance

In a separate Saudi House session, Dina Powell McCormick, Vice Chair of Meta’s board, said her 25-year relationship with Saudi Arabia has given her a firsthand view of “extraordinary progress” under Vision 2030.

Recalling discussions in Washington in 2017 during her tenure as US deputy national security advisor under President Donald Trump, she described a long-term roadmap centered on unlocking the potential of a population that is more than 65 percent under the age of 35 and on the expanding role of women as entrepreneurs and leaders.

On technology, Powell said the world is approaching a pivotal moment that could reshape humanity within just three to eight years, making Saudi Arabia’s execution-focused transformation a model of growing relevance well beyond the region.



BP's Ousted Chairman: 'I Won't Let a False Narrative Go Undisputed'

FILE PHOTO: Vehicles drive past a BP (British Petroleum) petrol station in Liverpool, Britain, February 7, 2023. REUTERS/Phil Noble/File Photo
FILE PHOTO: Vehicles drive past a BP (British Petroleum) petrol station in Liverpool, Britain, February 7, 2023. REUTERS/Phil Noble/File Photo
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BP's Ousted Chairman: 'I Won't Let a False Narrative Go Undisputed'

FILE PHOTO: Vehicles drive past a BP (British Petroleum) petrol station in Liverpool, Britain, February 7, 2023. REUTERS/Phil Noble/File Photo
FILE PHOTO: Vehicles drive past a BP (British Petroleum) petrol station in Liverpool, Britain, February 7, 2023. REUTERS/Phil Noble/File Photo

Albert Manifold on Wednesday hit out after being sacked as chairman of British energy giant BP, saying that he would "not allow a false narrative to go unchallenged.”

"I dispute entirely the characterization of my conduct," he said in an emailed statement to the Financial Times and other financial media, one day after BP unexpectedly removed him after less than one year in the role.

The group cited "serious concerns" about governance standards, oversight and conduct at the company.

"I was removed without warning and without explanation," Manifold said.

"During my time as chairman I worked to drive genuine change at BP -- cutting costs, challenging excess, and holding the organization to higher standards."

According to anonymous sources quoted by the Financial Times, other directors viewed Manifold as too aggressive and believed he exerted excessive control over the company.

Amanda Blanc, a senior independent director, had said that while he "helped bring a welcome focus and pace to BP's transformation,” the board had "been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable.”

BP faced a shareholder backlash at its annual meeting last month as investors rejected a resolution that would have reduced its climate reporting requirements.

Some of the investor discontent was directed at Manifold, with 82 percent of shareholders voting in favor of his election -- below the near-unanimous support typically received by directors.

He had become chairman in October, replacing Helge Lund, who departed after a major reset at the British energy giant that saw it shelve carbon-reduction targets to focus on fossil fuel output.


Türkiye Curbs Russian Urals Imports as Prices Rise

Crude oil tanker near the port city of Nakhodka, Russia (Reuters)
Crude oil tanker near the port city of Nakhodka, Russia (Reuters)
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Türkiye Curbs Russian Urals Imports as Prices Rise

Crude oil tanker near the port city of Nakhodka, Russia (Reuters)
Crude oil tanker near the port city of Nakhodka, Russia (Reuters)

Türkiye is set to cut imports of Russia's Urals crude from Baltic and Black Sea ports this month to the lowest level in almost one and a half years, according to data from LSEG, Kpler and trading sources.

Türkiye is the largest importer of seaborne Russian crude in the Mediterranean and the world's third-largest after India and China. It mainly buys Urals and only occasionally other grades.

Kpler data shows Türkiye's Urals imports are expected to average about 161,000 barrels per day this month, down from 189,000 bpd on ⁠average in January-April ⁠and 302,000 bpd in May 2025.

The drop comes despite reduced crude supply from the Gulf, which has pushed global oil prices higher.

"Türkiye is used to Russian crude at a significant discount. They were not prepared to buy the grade at such high price levels," a ⁠trader at a major Western firm said.

Two other sources said the fall in Urals shipments to Türkiye in April and May was driven by stronger demand in Asia, particularly in India. "There was not much available in the market,” one trader said.

As a result, seaborne Urals exports to Türkiye are set to fall to their lowest since at least January 2025, LSEG data shows.

The decline is partly offset by higher Turkish imports of ⁠CPC Blend from ⁠the Caspian region, a grade sourced from both Russia and Kazakhstan depending on the cargo.

Following the outbreak of the Iran war, the premium for Urals on a delivered ex-ship basis in Indian ports rose as high as $8 per barrel against Brent, before easing to about $2 to $4 per barrel.

That remains well above levels seen before the conflict.

Russia increased crude loadings from its western ports by around 9% in the first half of May to 2.35 million to 2.4 million bpd from about 2.2 million bpd on average in April.


Saudi Real Estate Legislation Places Makkah and Madinah at the Center of Global Investment Ambitions

An aerial view showing the urban boom and major hospitality projects surrounding the Grand Mosque in Makkah (SPA).
An aerial view showing the urban boom and major hospitality projects surrounding the Grand Mosque in Makkah (SPA).
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Saudi Real Estate Legislation Places Makkah and Madinah at the Center of Global Investment Ambitions

An aerial view showing the urban boom and major hospitality projects surrounding the Grand Mosque in Makkah (SPA).
An aerial view showing the urban boom and major hospitality projects surrounding the Grand Mosque in Makkah (SPA).

Saudi Arabia’s legislative and regulatory environment has become the primary driver reshaping the investment landscape in Makkah and Madinah, pushing the real estate sector beyond its traditional local framework toward a global horizon. This structural transformation, fueled by an unprecedented package of regulatory decisions approved by the government during 2025 and brought into effect at the start of 2026, has led to the emergence of an innovative real estate market model based on diversifying investment products and attracting major international companies and investors.

These regulatory reforms are being reinforced by a boom in mega infrastructure projects surrounding the Two Holy Mosques, embodying the goals of Saudi Vision 2030 to increase capacity for pilgrims and transform the western region into a magnet for foreign capital. This shift is reflected in a series of structural decisions and on-the-ground projects that have already begun reshaping the investment sector.

Last year saw the issuance of several major decisions and regulations, most notably the Saudi Cabinet’s approval in July of an updated system allowing non-Saudis to own property in the Kingdom, subject to specific ownership controls in the two holy cities. The decision came into force at the beginning of this year, with analysts expecting it to directly contribute to attracting international companies, increasing demand for residential and hospitality units, and broadening the investor base in the sector.

Extending these reforms further, the Capital Market Authority announced in January 2025 that foreigners would be permitted to invest in Saudi-listed companies owning permanent or temporary real estate assets within the boundaries of Makkah and Madinah. The move aims to boost foreign capital inflows, raise liquidity levels in real estate projects tied to the Hajj and Umrah ecosystem, and support the development of advanced hotels and residential complexes near the holy sites.

Within this broader development framework, Saudi Crown Prince Mohammed bin Salman launched the “King Salman Gateway” project in Makkah last October as a mixed-use destination spanning 12 million square meters adjacent to the Grand Mosque. The project includes around 50,000 residential units and 16,000 hotel rooms, while allowing ownership for Muslims worldwide in line with the Kingdom’s non-Saudi property ownership system.

Makkah is also home to the “Masar Destination” project, which stretches across 1.25 million square meters and is designed to accommodate 158,000 residents through 13,000 housing units distributed across 82 towers, in addition to 24,000 hotel units in 58 towers and 19,000 serviced apartments.

In Madinah, the “Rua Al Madinah” project is under development across an area of 1.35 million square meters, featuring around 80,000 hotel rooms and nearly 500 residential units. According to Ahmed bin Wasl Al-Juhani, CEO of Rua Al Madinah Holding Company, one of the Public Investment Fund’s subsidiaries, project completion has surpassed 65 percent.

Madinah (Ministry of Awqaf)

Infrastructure Projects Double Land Market Values

These mega projects and newly adopted regulations are being integrated with major infrastructure networks approved by the state to increase the number of pilgrims and Umrah visitors. They include the historic expansions of the Grand Mosque, modernization of transport and logistics networks surrounding the Two Holy Mosques, and regulation of urban development in the holy sites.

This has driven steadily rising demand for the hospitality sector, including hotels and serviced apartments, while significantly increasing the market value of strategic land plots near the Grand Mosque.

Amid this boom, Al Rajhi Capital and Thakher Development signed a memorandum of understanding last Thursday to establish a real estate investment fund in Makkah with investments exceeding SAR2 billion ($534.6 million). The fund, located within the “Thakher Makkah” project, aims to support the hospitality and housing sectors while enhancing the investment experience in the holy city.

A master plan of the “King Salman Gateway” project (SPA).

Record Profits

This legislative boom has also positively reflected on the financial results of real estate companies operating in the two regions and listed on the Saudi stock market, Tadawul, with firms posting record annual profit growth in 2025.

Jabal Omar Development recorded an exceptional elevenfold jump in profits, posting net earnings exceeding SAR2.39 billion ($637.3 million) in 2025, compared with around SAR200 million ($53.3 million) in 2024. The company also maintained positive momentum in the first quarter of 2026, posting SAR116.99 million ($31.2 million) in profits.

Makkah Construction and Development Company also posted a 15 percent rise in profits to SAR474 million ($126.4 million), compared with SAR411 million ($109.6 million) in 2024, while continuing its growth trajectory in the first quarter of 2026 with an 8 percent increase to SAR162.2 million ($43.2 million).

Meanwhile, Taiba Investments reported a 9.3 percent increase in profits, reaching SAR364 million ($97.1 million) in 2025, compared with SAR411 million ($109.6 million) in 2024. The company also maintained positive performance, generating profits exceeding SAR124.8 million ($33.3 million) during the first quarter of 2026.

Entry of Foreign Developers Intensifies Competition

Providing an analytical reading of the market, real estate expert and appraiser engineer Ahmed Al-Faqih told Asharq Al-Awsat that Makkah and Madinah represent the spiritual destination of two billion Muslims worldwide, noting that these regulations create momentum capable of meeting the aspirations of a broad segment of Muslims seeking property ownership in the western region, which also includes Jeddah and Taif.

He expected the deeper impact of these systems to become evident during the first and second quarters of 2027.

Al-Faqih added that the impact would extend to increasing both the volume and quality of real estate transactions, with greater focus on the residential sector compared with agricultural and industrial sectors. He also predicted accelerated real estate development through the launch of tailored products that account for the diverse cultures of targeted nationalities.

He noted that the western region’s market is expected to witness the entry of non-Saudi developers who will compete with local developers on the quality of real estate products. He added that government regulators are focusing on two core principles: “real estate balance and sustainability,” which would further increase the market’s attractiveness to international capital and shift it from randomness toward regulation and steadily rising profitability over the coming decade.

Serving the Pilgrim Ecosystem

Ayman Al-Sultan, a real estate sector observer, told Asharq Al-Awsat that real estate activity in Makkah and Madinah is inherently tied to a broader economic and urban ecosystem dedicated to serving pilgrims, noting that development over recent years has been comprehensive across both urban and regulatory tracks.

He pointed out that regulatory updates related to allowing non-Saudis to own property under specific controls, alongside opening investment in Saudi-listed companies holding real estate assets within the two cities, reflect a direction toward broadening the investment base within a clear regulatory framework that preserves the unique status of the two holy cities.

He added that major infrastructure projects linked to Hajj and Umrah have boosted interest in real estate projects tied to hospitality, housing, and support services for the Two Holy Mosques. Based on market observations, he said the convergence between regulation and urban development is steering the market toward more organized projects linked to Hajj and Umrah-related services in the coming phase.

The mixed-use residential and commercial complex developed by Makkah Construction and Development overlooking the Grand Mosque (Makkah Construction and Development).

Current Hajj Season Translates Legislative Boom Into Reality

These regulatory developments are casting a direct shadow over the current Hajj season, which is witnessing peak human and investment flows. Observers believe this season represents the clearest practical reflection of infrastructure flexibility following the implementation of the latest legislative decisions.

Residential and hotel complexes surrounding the Two Holy Mosques are no longer merely static real estate assets. Instead, they have evolved into a core pillar of an integrated hospitality system managed by investment funds and listed companies seeking to meet growing demand within an attractive and stable regulatory environment.

Ultimately, this intensive operational momentum, coinciding with the influx of pilgrims, demonstrates that the new real estate model in Makkah and Madinah has moved beyond the theoretical planning phase and entered the stage of tangible returns.

The convergence between flexible government legislation and massive capital spending on infrastructure places the western region on the threshold of a golden investment decade that is redrawing the map of international real estate development and reinforcing the status of the Two Holy Mosques as a central hub for sustainable development and rising economic growth in line with the ambitions of Saudi Vision 2030.

In the final analysis, this integration between regulatory achievement and the realities of the current season confirms that real estate in the holy capital and Madinah has already entered a phase of maximum investment appeal.