Saudi Business Sector Achieves Trillions in Revenue Thanks to Government Incentives

King Abdullah Financial District (KAFD) in Riyadh (SPA)
King Abdullah Financial District (KAFD) in Riyadh (SPA)
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Saudi Business Sector Achieves Trillions in Revenue Thanks to Government Incentives

King Abdullah Financial District (KAFD) in Riyadh (SPA)
King Abdullah Financial District (KAFD) in Riyadh (SPA)

Government incentives have played a pivotal role in enabling Saudi Arabia’s business sector to achieve operational revenues of SAR 5.3 trillion ($1.4 trillion), with operational expenditures reaching SAR 2.2 trillion ($586 billion).

According to the 2023 Comprehensive Economic Survey conducted by the General Authority for Statistics (GASTAT), employee compensation totaled SAR 544.7 billion ($145 billion), while total fixed capital formation amounted to SAR 867.8 billion ($231 billion).

Legal and commercial expert Dr. Osama Al-Obaidi explained to Asharq Al-Awsat that the increase in operational revenues is largely due to government initiatives aimed at enhancing the private sector’s contribution to the national economy and GDP in line with Vision 2030. These efforts have driven innovation, localized technology, and established Saudi Arabia as a global investment destination while creating high-quality jobs that contribute significantly to wages and benefits.

Al-Obaidi emphasized that economic diversification under Vision 2030 has resulted in positive outcomes through incentives for investments in industry, mining, and strong construction activity. These efforts span residential, commercial, and investment projects while targeting key sectors like telecommunications, technology, artificial intelligence, electric vehicles, transportation, and logistics, as part of the Kingdom’s strategy to become a global logistics hub.

Additionally, Saudi Arabia’s focus on localizing technology, promoting innovation, and fostering tourism and entertainment has driven the growth of national industries and the service sector while boosting employment rates, Al-Obaidi noted.

The government’s commitment to creating a competitive environment, increasing non-oil sector contributions, and providing incentives has strengthened the Kingdom’s ability to attract foreign investments and create new job opportunities. This, in turn, has enhanced operational revenues and improved efficiency, productivity, and quality across industries and services.

Gross Domestic Product Impact

Economist Ahmed Al-Jubeir told Asharq Al-Awsat that the government is offering comprehensive incentives to private sector players, including small and medium enterprises (SMEs), to capitalize on available initiatives and programs. These efforts are designed to promote business growth and help companies achieve their goals, ultimately benefiting Saudi GDP and the broader economy.

The initiatives and programs cover various private sector activities, providing low-interest loans and opportunities to participate in strategic and large-scale projects in health, tourism, real estate, and more. Specialized programs for construction and equipment sectors are also part of these efforts, Al-Jubeir added.

The latest data from the General Authority for Statistics confirms the government’s ongoing support for the private sector, which recorded operational revenues of approximately SAR 5.3 trillion last year.

Moreover, data indicates that the manufacturing sector contributed 30% of total operational revenues, followed by mining and quarrying at 21.8%, and wholesale and retail trade at 16%. Together, these sectors accounted for 67.8% of total revenues. Other sectors, including construction, finance and insurance, information and communications, and transportation and storage, contributed smaller shares.

Operational Expenditures

The report also revealed that manufacturing represented 41.5% of total operational expenditures, followed by wholesale and retail trade at 22.3% and construction at 7.6%. Collectively, these sectors accounted for 71.4% of operational expenditures, with other sectors like information and communications, mining and quarrying, and finance and insurance contributing the remaining shares.

Fixed Capital Formation

Total acquisitions of fixed assets reached SAR 1.5 trillion ($399.5 billion), while sales of these assets amounted to SAR 646.2 billion ($172 billion). Wholesale and retail trade had the highest contribution to total fixed capital formation at 22.6%, followed by manufacturing at 22.4%, mining and quarrying at 14.9%, and construction at 12.2%.

Other sectors, including information and communications, transportation and storage, and finance and insurance, contributed smaller shares.

According to GASTAT, total salaries and wages amounted to SAR 461.1 billion ($122.8 billion), representing 84.6% of total employee compensation. Meanwhile, benefits and allowances totaled SAR 83.6 billion ($22 billion), making up 15.4% of total compensation.



Dollar Set for Second Straight Weekly Fall despite US-Iran Clashes

US dollar banknotes (Reuters)
US dollar banknotes (Reuters)
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Dollar Set for Second Straight Weekly Fall despite US-Iran Clashes

US dollar banknotes (Reuters)
US dollar banknotes (Reuters)

The dollar was down and heading for a second straight weekly fall on Friday as investors stayed cautiously optimistic about a swift end to the Middle East conflict, after President Donald Trump said the ceasefire remained in place despite renewed US-Iran hostilities.

The two sides have occasionally exchanged fire since the ceasefire took effect on April 7, with Iran hitting targets in Gulf countries.

Analysts flagged that oil prices were modestly higher, a fragile ceasefire broadly held and reports indicated that US-Iran talks were continuing, according to Reuters.

They also noted that positioning has returned to historical averages and is no longer as supportive for the dollar as it was a few weeks ago.

“The hope for risk bulls is still that China is adding pressure on the US to reach some kind of deal in the Gulf before the 14-15 May Trump-Xi summit,” said Francesco Pesole, forex strategist at ING.

“The outlook is looking quite binary from here for the dollar, with the reaction in equities still likely to have a bigger bearing than oil volatility on the dollar,” he added.

Stocks were down in Europe but US stock index futures rose on Friday as a recovery in chipmakers helped offset worries about renewed US-Iran tensions.

The dollar index measured against key peers fell 0.28% at 97.96, after hitting 97.623 earlier this week, its lowest level since February 27, a day before the war started. It was set for a weekly drop of 0.22% after falling 0.31% the previous week.

Investors flocked to the safe-haven dollar and sold currencies of oil-dependent economies such as Japan and the euro area after oil prices surged following Iran’s effective closure of the Strait of Hormuz.

Markets are also bracing for the US non-farm payrolls report later on Friday, and it may take an outlier number, particularly a sufficiently weak one, to really move the dial on dollar volatility.

"An unchanged unemployment rate and labour force participation rate are also expected, so the report should not alter the outlook for the Fed," said Volkmar Baur, forex analyst at Commerzbank.

The euro was up 0.35% at $1.1765, poised to end the week a touch firmer.


FAO: World Food Prices Rise to More Than Three Year High in April

People buy food at Ningxia Night Market in Taipei, Taiwan May, 6, 2026. REUTERS/Ann Wang
People buy food at Ningxia Night Market in Taipei, Taiwan May, 6, 2026. REUTERS/Ann Wang
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FAO: World Food Prices Rise to More Than Three Year High in April

People buy food at Ningxia Night Market in Taipei, Taiwan May, 6, 2026. REUTERS/Ann Wang
People buy food at Ningxia Night Market in Taipei, Taiwan May, 6, 2026. REUTERS/Ann Wang

World food prices climbed in April to their highest in more than three years, with vegetable oils particularly elevated due to the Iran war and the effective closure of the Strait of Hormuz, the United Nations Food and Agriculture Organization (FAO) said on Friday.

FAO Chief Economist Máximo Torero said vegetable oil prices are being driven by elevated energy costs that are in turn raising demand for biofuels made using organic materials, such as oil-rich ⁠plants.

He added, however, ⁠that despite war-linked disruptions, agri-food systems were showing resilience, with cereal prices having increased only moderately thanks to adequate supplies from previous seasons.

The FAO Food Price Index, which measures changes in a basket of globally traded food commodities, rose for a third consecutive month in April to average 130.7 points, the UN agency said, up ⁠1.6% from its revised March level and the highest since February 2023.

The index hit a peak of 160.2 in March 2022 after the start of the Ukraine war, Reuters reported.

The FAO's April vegetable oil price index rose 5.9% month-on-month to its highest since July 2022 as a result of increased soy, sunflower, rapeseed oil and palm oil prices, the latter, notably, underpinned by biofuels policy incentives.

By contrast, April cereal prices rose just 0.8% from March and were up 0.4% from a year ago, reflecting modestly higher prices for ⁠the likes ⁠of wheat and maize linked to weather concerns, rising fertilizer costs and increased biofuels demand.

There are expectations for reduced 2026 wheat plantings, the UN agency said, as farmers shift to less fertilizer-intensive crops given prices for the inputs have surged.

Elsewhere, April meat prices rose 1.2% month-on-month to a record high amid limited slaughter-ready cattle in Brazil, the FAO said, while sugar dropped 4.7% thanks to forecasts for ample supply in Brazil, China and Thailand.

In a separate report, the FAO slightly raised its 2025 global cereal production estimate to a record 3.040 billion metric tons, 6% above levels seen in the prior year.


Gold Set for Weekly Gain as Markets Focus on US-Iran Peace Deal Prospects

FILE PHOTO: Gold ornaments are placed for polishing inside a Senco Gold & Diamonds jewelry workshop in Kolkata, India, January 29, 2026. REUTERS/Sahiba Chawdhary/File Photo
FILE PHOTO: Gold ornaments are placed for polishing inside a Senco Gold & Diamonds jewelry workshop in Kolkata, India, January 29, 2026. REUTERS/Sahiba Chawdhary/File Photo
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Gold Set for Weekly Gain as Markets Focus on US-Iran Peace Deal Prospects

FILE PHOTO: Gold ornaments are placed for polishing inside a Senco Gold & Diamonds jewelry workshop in Kolkata, India, January 29, 2026. REUTERS/Sahiba Chawdhary/File Photo
FILE PHOTO: Gold ornaments are placed for polishing inside a Senco Gold & Diamonds jewelry workshop in Kolkata, India, January 29, 2026. REUTERS/Sahiba Chawdhary/File Photo

Gold rose on Friday and was headed for a weekly gain on easing fears of inflation and higher interest rates, as investors remained optimistic about a US-Iran peace deal despite renewed hostilities.

Spot gold was up 0.85% at $4,709.06 per ounce, as of 0739 GMT. Bullion has gained 2% so far this week.

US gold ‌futures for June ‌delivery rose 0.1% to $4,716.50. The United States ‌and ⁠Iran exchanged fire ⁠on Thursday in the most serious test yet of their month-long ceasefire, but Iran said the situation returned to normal while the US said it did not want to escalate.

"The comments that we've had from the Trump administration this morning that the ceasefire is holding and that there's still lingering optimism that ⁠a deal will get done between the US ‌and Iran - that's kind of ‌supporting the gold market for now," said Kyle Rodda, a senior financial ‌market analyst at Capital.com.

Gold prices have fallen more than 10% ‌since the war began in late February, pressured by higher oil prices. Elevated crude oil prices can stoke inflation, increasing the likelihood of higher interest rates. While gold is seen as an inflation hedge, high ‌interest rates tend to weigh on the non-yielding asset.

"We just wait for the next ⁠headline about ⁠whether the US and Iran are getting close to agreeing on something. I think that there could be some choppy price action in the next 24 hours going into the end of the week," Rodda said.

Markets now await the monthly US employment report due later in the day to assess how the Federal Reserve will move forward with monetary policy this year. Nonfarm payrolls likely increased by 62,000 last month after rebounding by 178,000 in March, a Reuters survey of economists predicted.

Spot silver rose 1.5% to $79.68 per ounce, platinum gained 1.2% to $2,045.38, and palladium was up 1.4% at $1,500.91.