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Al-Khorayef: ‘Economic Corridor’ Positions Saudi Arabia as Global Hub

Minister of Industry and Mineral Resources Bandar Al-Khorayef at Jeddah Forum (Asharq Al-Awsat)
Minister of Industry and Mineral Resources Bandar Al-Khorayef at Jeddah Forum (Asharq Al-Awsat)
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Al-Khorayef: ‘Economic Corridor’ Positions Saudi Arabia as Global Hub

Minister of Industry and Mineral Resources Bandar Al-Khorayef at Jeddah Forum (Asharq Al-Awsat)
Minister of Industry and Mineral Resources Bandar Al-Khorayef at Jeddah Forum (Asharq Al-Awsat)

Saudi Arabia is moving swiftly to cement its position as a global manufacturing and production hub, capitalizing on its sweeping economic transformation.

The “New Economic Corridor” stands out as a pivotal initiative supporting this drive, built on four integrated national strategies: localization, industry, mining, and exports.

Together, these strategies aim to turn the Kingdom into a regional and global platform for production and exports, one that attracts high-value investments and fuels economic transformation under Vision 2030.

Speaking to Asharq Al-Awsat, Minister of Industry and Mineral Resources Bandar Al-Khorayef said Saudi Arabia’s alignment of these four strategies positions it to become both a regional and global manufacturing center.

He noted that the Kingdom’s strong natural and human resources, including abundant oil, gas, petrochemicals, and minerals, complement its strategic geographic location, which grants access to key and emerging markets across the region, Africa, Central Asia, and other parts of Asia.

Boosting Petrochemical Conversion

Al-Khorayef revealed that efforts are underway to channel part of Saudi Arabia’s petrochemical exports into local downstream industries.

A successful pilot project carried out in cooperation with the Ministry of Energy led to a domestic demand surge of more than 300,000 tons for one product, with more items expected to be added in the future. This initiative, he said, will bolster downstream industries and strengthen their contribution to the national economy.

Expanding Pharmaceutical and High-Tech Manufacturing

On pharmaceuticals, the minister pointed to a clear plan that has significantly increased the number of local factories. The Kingdom, he said, has succeeded in localizing the production of sensitive medical products such as insulin and is currently advancing projects in vaccines and biologics.

Al-Khorayef also highlighted Saudi Arabia’s growing focus on advanced technology industries, including electronics and microchips. He cited partnerships with private-sector firms such as Alat and cooperation with the Ministry of Communications to promote information technology within this advanced industrial push.

Attracting Future Technologies

The minister emphasized the Kingdom’s strong infrastructure, noting that its ports, roads, and railways reflect political and financial stability and enhance competitiveness in the energy sector, a critical component of industrial zones.

“This combination of resources, location, and infrastructure makes Saudi Arabia a key partner and an essential hub in global industries,” he said, adding that the ministry’s focus is on attracting technologies of the future rather than those of the past.

Over the past six years, Al-Khorayef said, the government has introduced a range of effective policies and incentives - most notably the promotion of local content, which has become the biggest driver of investment. It gives investors priority in the domestic market, including in government procurement and major corporate contracts.

He added that the state’s investment in industrial city infrastructure has been a decisive factor, with more than 25 million square meters developed and advanced industrial cities and ready-built factories established.

These conditions, he explained, make investment easier, thanks to industrial financing from the Saudi Industrial Development Fund, export financing from the Saudi EXIM Bank, and incentives under the “Made in Saudi” program led by the Saudi Export Development Authority.

These policies, he said, are stable and long-term, while temporary incentives are available for energy projects and standardized incentives for localization, subject to the approval of a ministerial committee, measures that enhance the Kingdom’s ability to attract quality investments.

Expanding Global Partnerships

Al-Khorayef said his recent tours to several world capitals aim to encourage the Saudi private sector to forge international partnerships and promote the Kingdom as a leading global investment destination.

He noted that Saudi Arabia recently took part in Germany’s K Show 2025, where German companies expressed keen interest in investing in the Kingdom.

The minister also said Saudi Arabia has become a global platform for discussing mining issues among governments and companies, stressing that the sector needs more firms, investment, and scientific research. He said current efforts focus on strengthening the technical and scientific aspects of mining to enhance its efficiency.

Mining, he added, is the third pillar of Saudi industry after oil, gas, and petrochemicals, with mineral wealth estimated at around 2.5 trillion riyals ($667 billion).

He disclosed that efforts are underway to extract lithium from water used in oil and gas operations as well as from desalinated and seawater, expressing optimism about achieving positive results in the near future.

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Business

Flight to Stability Boosts Saudi Real Estate

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)
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Flight to Stability Boosts Saudi Real Estate

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

As geopolitical turmoil redraws the regional investment map, Saudi Arabia is emerging as a “fortress of stability” and a safe haven for capital.

Experts told Asharq Al-Awsat the Kingdom’s real estate sector has been the biggest winner, posting exceptional growth of 20% to 30%.

They said the surge is no coincidence, but the result of strong financial buffers and ambitious structural programs under Vision 2030, which have proved effective in absorbing external shocks and turning regional challenges into sustained growth.

In an economic paradox, the current regional conflict has underscored Saudi Arabia’s appeal as an investment destination, backed by flexible government programs that adapt to shifting conditions.

The impact has been clear in real estate. The sector has benefited from an influx of residents and investors from crisis-hit countries, driving a sharp rise in occupancy across residential and hotel units, and increasing flows of travelers and economic activity into the Kingdom.

Despite pressure on global energy markets, commodities and supply chains, Saudi real estate has moved in the opposite direction, with a clear positive effect. Rental returns across the Kingdom jumped by an average of 20% to 30%, driven by immediate and rising demand.

The trend highlights the Saudi economy’s ability to offer a stable and rewarding investment environment, even in difficult regional and global conditions.

Positive impact

Saudi investor Mohammed Al-Murshid, a member of the Riyadh Chamber of Commerce and Industry and former head of its real estate committee, said the fallout from the current war had a clear short-term positive impact on demand, especially rents in major cities including Riyadh, Jeddah and the Eastern Province.

He said the war was not the main driver, but reinforced an existing trend.

Al-Murshid told Asharq Al-Awsat the effect stemmed from shifts in population movement in countries more directly affected by the conflict. Flight disruptions and partial airspace closures in the Gulf pushed travelers and residents toward Saudi Arabia as a relatively more stable hub.

In some cases, people moved by land to Riyadh as a safe transit point. This created immediate demand for short-term rentals and hotels, put temporary pressure on furnished units, and lifted corporate demand.

“In times of regional instability, companies tend to relocate employees to safer environments and strengthen their presence in more stable economies,” Al-Murshid said.

He said Saudi Arabia benefited from its economic weight and relative security and stability compared with some regional hotspots.

Global inflation has also fed into the market. Higher energy prices, shipping and insurance costs linked to the war have pushed up construction costs.

Global estimates suggest these factors raised property prices by 15% to 20%, reflecting the market’s exposure to supply chain pressures.

Al-Murshid said the war boosted Saudi real estate by 20% to 30%, citing the ability of Vision 2030 programs to absorb shocks, alongside population growth among citizens and residents that continues to drive domestic demand.

Saudi real estate is the biggest winner

Dr. Abdul Rahman Baashen, head of the Al Shorouk Center for Economic Studies, echoed that view, saying the sector has emerged as a leading beneficiary of current geopolitical shifts.

He said the “key” lies in resilient local demand, which has continued to grow on the back of domestic factors despite disruption elsewhere in the region.

Baashen pointed to a key paradox. While global oil supply volumes fell due to the near-total closure of the Strait of Hormuz, the surge in crude prices offset the drop in exports.

The rise in value boosted state revenues, helping sustain government spending on major real estate and infrastructure projects, a core support for the market.

Three drivers

Baashen identified three factors driving momentum:

A temporary surge in demand, fueled by the movement of people and companies seeking stability.

A rise in prices, driven by higher global construction and logistics costs.

A stronger strategic position for Saudi Arabia as a regional investment haven.

He said Saudi real estate is now in a state of “smart balance,” supported by strong domestic demand and additional external demand linked to regional crises.

This mix gives the sector flexibility to adapt to current conditions in the short- and medium-term, while keeping it closely tied to the strength of the Saudi economy.

Reinforcing Saudi Arabia’s position

Baashen and Al-Murshid agreed that the crisis has reinforced Saudi Arabia’s status as a regional investment haven.

They said three forces are shaping that position: strong demand driven by a move toward stability, rising prices in line with global costs, and growing international confidence in the Saudi economy.

They said the sector now rests on solid domestic demand, with added support from external demand linked to regional shifts, sustaining its appeal and performance in the short and medium term.

Business

STC Profits Jump 12% as Revenues Near $5.3 Billion

stc group CEO Eng. Olayan Alwetaid stated that the group began 2026 with strong operational and financial momentum. Asharq Al-Awsat
stc group CEO Eng. Olayan Alwetaid stated that the group began 2026 with strong operational and financial momentum. Asharq Al-Awsat
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STC Profits Jump 12% as Revenues Near $5.3 Billion

stc group CEO Eng. Olayan Alwetaid stated that the group began 2026 with strong operational and financial momentum. Asharq Al-Awsat
stc group CEO Eng. Olayan Alwetaid stated that the group began 2026 with strong operational and financial momentum. Asharq Al-Awsat

stc Group has announced its preliminary financial results for the period ending March 31, 2026, reporting an increase in revenues during the first quarter, which reached SAR19,939 billion ($5.3 billion), up by 3.8% compared to the same quarter of the previous year.

Gross profit also increased to SAR9,772 billion ($2.6 billion), marking a rise of 7.4% compared to the same quarter of the previous year.

According to a statement issued by stc on Tuesday, the group stated that operating profit for the first quarter rose to SAR3,978 billion ($1.06 billion), an increase of 11.0% compared to the same quarter of the previous year. Earnings before interest, taxes, zakat, depreciation and amortization (EBITDA) also increased to SAR6,557 billion (1.75 billion), up by 7.1% compared to the same quarter of the previous year.

Net profit rose to SAR3,696 billion ($984 million), reflecting an increase of 12.0% compared to the same quarter of the previous year, after excluding non-recurring items.

stc distributes SAR0.55 per share for the 1st quarter of 2026, in accordance with the dividends distribution policy approved by General Assembly.

stc group CEO Eng. Olayan Alwetaid stated that the group began 2026 with strong operational and financial momentum, successfully translating the group’s strategy into tangible growth and reinforcing its role in the digital economy.

In the first quarter, the group achieved a 3.8% increase in revenue, 7.1% EBITDA growth, and a rise in net profit (after excluding non-recurring items) by 12% compared to the same quarter last year.

These results demonstrate a robust business model and an effective balance between investments opportunities, operational efficiency, and digital infrastructure development, supporting sustainable and competitive long-term growth.

The GCEO highlighted the group’s continued execution of its strategy to expand regional digital infrastructure through the Silklink project. This initiative, in partnership with the Syrian Sovereign Fund and an investment of 3 billion, aims to implement telecommunications infrastructure in Syria.

The project is a significant step toward building a cross-border digital ecosystem by developing advanced infrastructure that connects Syria regionally and internationally through a fiber-optic network of over 4,500 kilometers, as well as data centers and international submarine cable landing stations.

This strengthens stc’s role in supporting regional digital connectivity and creates new opportunities for growth and expansion in telecommunications and digital services.

The statement added that stc supported millions of Riyadh Season visitors with advanced telecommunications and digital services, demonstrating efficient service delivery during peak periods.

The group also showed high readiness during Ramadan by serving Umrah performers and visitors to the Two Holy Mosques through enhanced infrastructure and increased operational capacity, meeting rising data and voice traffic demands.

During Ramadan, internet data traffic rose by more than 21% at the Grand Mosque and over 40% at the Prophet’s Mosque year-on-year, with 5G accounting for over 48% of traffic.

These results highlight the efficiency of stc’s digital infrastructure and its ability to provide reliable, high-quality connectivity to visitors worldwide.

To advance local content and national capabilities, the group enhanced its role in building a resilient and sustainable digital ecosystem by localizing technologies, developing supply chains, and enabling national partners.

In 2026, the group participated in the Private Sector Forum and signed several agreements to boost local content, expand supplier networks, and support national partners in workforce training and technological advancement. These efforts strengthened local digital industries, advanced the telecommunications and IT sector, and improved global competitiveness.

On the institutional excellence and innovation front, the group continued to cement its digital maturity by embedding best practices in data governance, which enable innovation, improve business efficiency, and support reliable decision-making.

This progress was recognized by two data governance awards received across the Middle East, reflecting stc’s achievements in building an advanced digital ecosystem.

The GCEO added that in the first quarter of 2026, the group demonstrated its ability to execute its strategy, achieve objectives, and strengthen its leadership in telecommunications and technology.

This maximized its contribution to the national and digital economy and enhanced its societal impact.

The group’s efforts reinforce its role as a key partner in digital transformation across the Kingdom and region, in alignment with Saudi Vision 2030.

Business

UAE Announces it Is Leaving OPEC, OPEC+

The OPEC logo on the building prior to the 186th Ordinary Meeting of the Organization of Petroleum Exporting Countries (OPEC) at the OPEC headquarters in Vienna, Austria, 03 June 2023. (EPA)
The OPEC logo on the building prior to the 186th Ordinary Meeting of the Organization of Petroleum Exporting Countries (OPEC) at the OPEC headquarters in Vienna, Austria, 03 June 2023. (EPA)
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UAE Announces it Is Leaving OPEC, OPEC+

The OPEC logo on the building prior to the 186th Ordinary Meeting of the Organization of Petroleum Exporting Countries (OPEC) at the OPEC headquarters in Vienna, Austria, 03 June 2023. (EPA)
The OPEC logo on the building prior to the 186th Ordinary Meeting of the Organization of Petroleum Exporting Countries (OPEC) at the OPEC headquarters in Vienna, Austria, 03 June 2023. (EPA)

The United Arab Emirates said on Tuesday it was quitting OPEC and OPEC+ with the decision going into effect on May 1.

“This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets,” it said in a statement carried by the WAM state news agency.

“This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs.”

“The UAE joined OPEC in 1967 through the Emirate of Abu Dhabi and continued its membership following the formation of the United Arab Emirates in 1971. Throughout this period, the UAE has played an active role in supporting global oil market stability and strengthening dialogue among producing nations,” read the statement.

“The decision reflects a policy-driven evolution in the UAE’s approach, enhancing flexibility to respond to market dynamics while continuing to contribute to stability in a measured and responsible manner.”

“Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions.”

“This decision does not alter the UAE’s commitment to global market stability or its approach based on cooperation with producers and consumers. Rather, it enhances the UAE’s ability to respond to evolving market needs.”

The UAE “reaffirmed that its production policies will be guided by responsibility and market stability, taking into account global supply and demand.”

“It will continue investing across the energy value chain, including oil, gas, renewables, and low-carbon solutions, to support resilience and long-term energy system transformation.”