The Saudi flag against Riyadh’s skyline
Saudi Arabia’s economy saw several significant developments in 2025, most notably a series of decisions affecting the real estate sector. 
Crown Prince Mohammed bin Salman said the Saudi economy continued to diversify its growth drivers and strengthen its ability to reduce dependence on oil.
The year also witnessed major geopolitical developments with economic repercussions, most notably a trade war triggered by tariffs imposed by the United States on several countries, led by China and Europe.
During 2025, the US Federal Reserve cut interest rates three times, by a cumulative 75 basis points, at its September, November, and December meetings, bringing the target range to 3.50%–3.75%.
The Public Investment Fund (PIF) launched Al Waha Duty-Free Co., which specializes in duty-free retail, as well as a company to develop and operate Expo 2030 Riyadh facilities, and established its first commercial paper program.
Meanwhile, the Ministry of Industry and Mineral Resources launched standard incentives for the industrial sector, allocating SAR 10 billion for their implementation. The number of companies that established regional headquarters in the Kingdom rose to 682.
Below is a chronological overview of key developments:
1. Launch of standard incentives for the industrial sector
The Ministry of Industry and Mineral Resources, in cooperation with the Ministry of Investment, announced the launch of standard incentives for the industrial sector during a ceremony held in Riyadh, with SAR 10 billion allocated to the initiative.
2. Listed firms receive Aramco notices on feedstock and fuel prices
Several companies listed on the Saudi stock market said they had received notices from Saudi Aramco regarding adjustments to feedstock and fuel prices, effective Jan. 1, 2025.
3. Ministry launches 15 enablers under Saudi AEO program
The Ministry of Industry and Mineral Resources launched 15 enablers and incentives for entities enrolled in the Saudi Authorized Economic Operator (Saudi AEO) program, highlighting the program’s role in boosting the competitiveness of Saudi exports, improving access to global markets, and reinforcing the Kingdom’s position as a global logistics hub.
4. Saudi Electricity settles historical obligations worth SAR 5.7 billion
Saudi Electricity Co. said it had received approval from a ministerial committee overseeing electricity sector restructuring to adopt a final settlement of long-disputed amounts related to technical differences in fuel quantities and prices, handling costs, and electricity charges.
The committee approved a final settlement of SAR 5.69 billion, payable by the company to the government, represented by the Ministry of Finance. The amount will be converted into a Mudarabah instrument in line with an agreement signed between the company and the ministry, within 30 days from Jan. 31, 2025.
5. Launch of second and third phases of Riyadh Road Development Program
The Royal Commission for Riyadh City (RCRC) announced the start of the second phase of the Main and Ring Road Axes Development Program, comprising eight projects with a total cost exceeding SAR 8 billion.
In December, the commission also announced the launch of the third phase, which includes six projects with a combined cost exceeding SAR 8 billion.
6. Crown Prince names automotive manufacturing zone
Crown Prince Mohammed bin Salman announced naming the designated automotive manufacturing zone, located within the Special Economic Zone at King Abdullah Economic City, “King Salman Automotive Cluster.”
7. Saudi Arabia launches its first industrial zone dedicated to aircraft manufacturing and maintenance in Jeddah
Saudi Arabia launched its first industrial zone dedicated to aircraft manufacturing and maintenance in Jeddah, during the Aerospace Connect Forum held in the city.
8. Saudi Arabia inaugurates the first phase of the Sports Boulevard project with five destinations
The board of directors of the Sports Boulevard Foundation, chaired by Crown Prince and Prime Minister Mohammed bin Salman, inaugurated the first phase of the Sports Boulevard project, comprising five destinations.
9. Saudi Arabia submits Expo 2030 registration dossier to the Bureau International des Expositions (BIE)
Saudi Arabia submitted the official registration dossierfor hosting Expo 2030 Riyadh to the Bureau International des Expositions (BIE), reaffirming the Kingdom’s commitment and readiness to host the global event.
In June, the Expo 2030 Riyadh registration dossierreceived final approval during the BIE general assembly meeting held in Paris, marking the final stage of host country registration. The Saudi delegation also received the Expo flag.
In October, Expo 2030 Riyadh officially received the BIE flag during the closing ceremony of Expo 2025 Osaka, which concluded after six months of events in Japan.
10. PIF launches Al Waha, a duty-free retail company
The Public Investment Fund announced the launch of Al Waha Duty-Free Co., which specializes in travel retail. The company will be the first Saudi-owned operator of duty-free retail outlets.
11. SP raises Saudi Arabia’s credit rating to A+
Standard Poor’s upgraded Saudi Arabia’s sovereign credit rating to A+ from A, with a stable outlook.
12. Crown Prince launches the Saudi Architecture Characters Map featuring 19 styles
Crown Prince Mohammed bin Salman launched the Saudi Architecture Characters Map, which includes 19 architectural styles inspired by the Kingdom’s geographic and cultural characteristics. The initiative aims to celebrate architectural heritage, enhance quality of life, and modernize the urban landscape in Saudi cities as part of Vision 2030.
13. Crown Prince directs measures to restore balance in Riyadh’s real estate sector
Crown Prince Mohammed bin Salman, Prime Minister, directed the adoption of several measures based on studies conducted by the Royal Commission for Riyadh City (RCRC) and the Council of Economic and Development Affairs (CEDA), addressing rising land and rental prices in Riyadh in recent years, with the aim of restoring balance to the real estate sector.
14. Approval of the executive regulations of the Investment Law
Saudi Arabia’s Minister of Investment approved the executive regulations of the Investment Law, aimed at enforcing its provisions and achieving the goals and objectives set forth therein.
15. Cabinet approves amendment to idle land fees regulation
The Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved amendments to the idleland fees regulation.
The Ministry of Municipalities and Housing announced the adoption and implementation of the executive regulations for the White Land Tax, setting the tax rate at up to 10% of land value, in line with urban development priorities.
Saudi Minister of Municipal and Rural Affairs and Housing, Majed Al-Hogail, unveiled the geographic scope of the White Land fees in Riyadh, a key step to regulate the real estate market and promote balanced urban development.
The Saudi flag against Riyadh’s skyline
Saudi Arabia’s economy saw several significant developments in 2025, most notably a series of decisions affecting the real estate sector.
Crown Prince Mohammed bin Salman said the Saudi economy continued to diversify its growth drivers and strengthen its ability to reduce dependence on oil.
The year also witnessed major geopolitical developments with economic repercussions, most notably a trade war triggered by tariffs imposed by the United States on several countries, led by China and Europe.
During 2025, the US Federal Reserve cut interest rates three times, by a cumulative 75 basis points, at its September, November, and December meetings, bringing the target range to 3.50%–3.75%.
The Public Investment Fund (PIF) launched Al Waha Duty-Free Co., which specializes in duty-free retail, as well as a company to develop and operate Expo 2030 Riyadh facilities, and established its first commercial paper program.
Meanwhile, the Ministry of Industry and Mineral Resources launched standard incentives for the industrial sector, allocating SAR 10 billion for their implementation. The number of companies that established regional headquarters in the Kingdom rose to 682.
Below is a chronological overview of key developments:
1. Launch of standard incentives for the industrial sector
The Ministry of Industry and Mineral Resources, in cooperation with the Ministry of Investment, announced the launch of standard incentives for the industrial sector during a ceremony held in Riyadh, with SAR 10 billion allocated to the initiative.
2. Listed firms receive Aramco notices on feedstock and fuel prices
Several companies listed on the Saudi stock market said they had received notices from Saudi Aramco regarding adjustments to feedstock and fuel prices, effective Jan. 1, 2025.
3. Ministry launches 15 enablers under Saudi AEO program
The Ministry of Industry and Mineral Resources launched 15 enablers and incentives for entities enrolled in the Saudi Authorized Economic Operator (Saudi AEO) program, highlighting the program’s role in boosting the competitiveness of Saudi exports, improving access to global markets, and reinforcing the Kingdom’s position as a global logistics hub.
4. Saudi Electricity settles historical obligations worth SAR 5.7 billion
Saudi Electricity Co. said it had received approval from a ministerial committee overseeing electricity sector restructuring to adopt a final settlement of long-disputed amounts related to technical differences in fuel quantities and prices, handling costs, and electricity charges.
The committee approved a final settlement of SAR 5.69 billion, payable by the company to the government, represented by the Ministry of Finance. The amount will be converted into a Mudarabah instrument in line with an agreement signed between the company and the ministry, within 30 days from Jan. 31, 2025.
5. Launch of second and third phases of Riyadh Road Development Program
The Royal Commission for Riyadh City (RCRC) announced the start of the second phase of the Main and Ring Road Axes Development Program, comprising eight projects with a total cost exceeding SAR 8 billion.
In December, the commission also announced the launch of the third phase, which includes six projects with a combined cost exceeding SAR 8 billion.
6. Crown Prince names automotive manufacturing zone
Crown Prince Mohammed bin Salman announced naming the designated automotive manufacturing zone, located within the Special Economic Zone at King Abdullah Economic City, “King Salman Automotive Cluster.”
7. Saudi Arabia launches its first industrial zone dedicated to aircraft manufacturing and maintenance in Jeddah
Saudi Arabia launched its first industrial zone dedicated to aircraft manufacturing and maintenance in Jeddah, during the Aerospace Connect Forum held in the city.
8. Saudi Arabia inaugurates the first phase of the Sports Boulevard project with five destinations
The board of directors of the Sports Boulevard Foundation, chaired by Crown Prince and Prime Minister Mohammed bin Salman, inaugurated the first phase of the Sports Boulevard project, comprising five destinations.
9. Saudi Arabia submits Expo 2030 registration dossier to the Bureau International des Expositions (BIE)
Saudi Arabia submitted the official registration dossierfor hosting Expo 2030 Riyadh to the Bureau International des Expositions (BIE), reaffirming the Kingdom’s commitment and readiness to host the global event.
In June, the Expo 2030 Riyadh registration dossierreceived final approval during the BIE general assembly meeting held in Paris, marking the final stage of host country registration. The Saudi delegation also received the Expo flag.
In October, Expo 2030 Riyadh officially received the BIE flag during the closing ceremony of Expo 2025 Osaka, which concluded after six months of events in Japan.
10. PIF launches Al Waha, a duty-free retail company
The Public Investment Fund announced the launch of Al Waha Duty-Free Co., which specializes in travel retail. The company will be the first Saudi-owned operator of duty-free retail outlets.
11. SP raises Saudi Arabia’s credit rating to A+
Standard Poor’s upgraded Saudi Arabia’s sovereign credit rating to A+ from A, with a stable outlook.
12. Crown Prince launches the Saudi Architecture Characters Map featuring 19 styles
Crown Prince Mohammed bin Salman launched the Saudi Architecture Characters Map, which includes 19 architectural styles inspired by the Kingdom’s geographic and cultural characteristics. The initiative aims to celebrate architectural heritage, enhance quality of life, and modernize the urban landscape in Saudi cities as part of Vision 2030.
13. Crown Prince directs measures to restore balance in Riyadh’s real estate sector
Crown Prince Mohammed bin Salman, Prime Minister, directed the adoption of several measures based on studies conducted by the Royal Commission for Riyadh City (RCRC) and the Council of Economic and Development Affairs (CEDA), addressing rising land and rental prices in Riyadh in recent years, with the aim of restoring balance to the real estate sector.
14. Approval of the executive regulations of the Investment Law
Saudi Arabia’s Minister of Investment approved the executive regulations of the Investment Law, aimed at enforcing its provisions and achieving the goals and objectives set forth therein.
15. Cabinet approves amendment to idle land fees regulation
The Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved amendments to the idleland fees regulation.
The Ministry of Municipalities and Housing announced the adoption and implementation of the executive regulations for the White Land Tax, setting the tax rate at up to 10% of land value, in line with urban development priorities.
Saudi Minister of Municipal and Rural Affairs and Housing, Majed Al-Hogail, unveiled the geographic scope of the White Land fees in Riyadh, a key step to regulate the real estate market and promote balanced urban development.
