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Agreement Signed to Advance Saudi Contracting Sector

The agreement is signed between the Federation of Saudi Chambers and Saudi Contractors Authority in Riyadh on Monday, June 27, 2022. (Asharq Al-Awsat)
The agreement is signed between the Federation of Saudi Chambers and Saudi Contractors Authority in Riyadh on Monday, June 27, 2022. (Asharq Al-Awsat)
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Agreement Signed to Advance Saudi Contracting Sector

The agreement is signed between the Federation of Saudi Chambers and Saudi Contractors Authority in Riyadh on Monday, June 27, 2022. (Asharq Al-Awsat)
The agreement is signed between the Federation of Saudi Chambers and Saudi Contractors Authority in Riyadh on Monday, June 27, 2022. (Asharq Al-Awsat)

President of the Saudi Contractors Authority (SCA) Zakaria al-Abdul Qader revealed that the number of workers in the contracting sector has reached three million in various professions.

He revealed that 165,000 companies operate in the contracting sector in the Kingdom, ranging from small, to medium, and large enterprises.

He said many jobs have been localized and work is underway with legislatures to localize more.

He made his remarks during an event organized by the Federation of Saudi Chambers to discuss prospects for cooperation and the Authority's initiatives and services to organize and develop the contracting sector.

During the event, the Federation of Saudi Chambers and SCA signed an agreement to expand the scope of cooperation between them, lay the foundations and standards for organizing and developing the sector, and activate relevant regulations and decisions.

The agreement will allow national facilities to undertake building and construction projects, improving their working conditions, providing technical advice to companies, identifying challenges and obstacles, providing proposals and solutions, and enhancing the participation of sector facilities in construction programs in accordance with the Kingdom’s Vision 2030.

Secretary-General of the Federation Hussein al-Abdul Qader and Secretary-General of the SCA Eng. Thabet bin Mubarak al-Suwaid signed the agreement.

Meanwhile, head of the National Committee for Contractors in the Federation of Saudi Chambers Hamad al-Hammad said the value of projects in the contracting sector during the past five years amounted to SAR20 trillion ($1.3 trillion).

This reflects the importance of the sector, its vitality and its developmental role, he stressed, adding that the contracting sector is yet to recover fully from the repercussion of the coronavirus pandemic.

However, he stressed that the sector is gradually improving and the localization of Saudis in this sector is constantly growing.

Hammad further noted that many initiatives have been launched to increase the number of Saudi workers.

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Saudi Arabia Boosts Appeal as Foreign Investment Inflows Surge 44%

The Saudi capital, Riyadh (SPA) 
The Saudi capital, Riyadh (SPA) 
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Saudi Arabia Boosts Appeal as Foreign Investment Inflows Surge 44%

The Saudi capital, Riyadh (SPA) 
The Saudi capital, Riyadh (SPA) 

Saudi Arabia is advancing rapidly toward its Vision 2030 goals, recording a notable surge in foreign direct investment (FDI) during the first quarter of this year. Inflows rose 44% year-on-year to SAR 22.2 billion ($6 billion), up from SAR 15.5 billion ($4 billion) in the same period of 2024. The growth comes amid government efforts to attract investors and position the Kingdom as a global economic hub.

Attracting more FDI is central to Vision 2030, which seeks to diversify the economy beyond oil, stimulate private sector growth, and create jobs. Saudi Arabia aims to draw $100 billion in FDI by 2030, expand spending on “giga-projects,” and develop sectors including tourism, sports, and entertainment.

According to data from the General Authority for Statistics, total inbound FDI reached about SAR 24 billion ($6.4 billion) in the first quarter of 2025, marking a 24% increase compared to the same quarter in 2024. However, it dipped 6% from the previous quarter’s SAR 25.6 billion ($6.8 billion).

Outbound FDI dropped sharply, totaling SAR 1.8 billion ($480 million) in Q1 2025, a 54% decrease from SAR 3.9 billion ($1 billion) in the prior-year period. Compared to the previous quarter, outbound flows rose slightly by 7%.

Since 2021, Riyadh has required international companies seeking government contracts to establish regional headquarters in the Kingdom. Authorities have also pledged to modernize investment regulations to improve the business environment.

According to the Vision 2030 annual report, FDI as a share of GDP hit its 2023 target, with inflows reaching SAR 96 billion ($25.6 billion), up 50% from 2022 (excluding the exceptional Aramco transaction). However, the indicator declined by 1.31 percentage points between 2021 and 2023 due to weaker net inflows in 2021 and 2022 as global investors faced liquidity pressures from rising interest rates.

Despite this, data shows steady progress toward sustainable growth. FDI is becoming more diverse, spreading across industries and regions rather than concentrating solely in oil or the eastern provinces. This trend reflects greater investor confidence and supports efforts to attract long-term capital.

In 2023, Saudi Arabia adopted a new methodology for calculating FDI statistics in collaboration with the International Monetary Fund to improve data quality and transparency. As a result, historical figures were updated, with 2020 set as the reference baseline.