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With the creation of a new defence holding company and clauses requiring that local manufacturing and job creation be written into new contracts with international suppliers, the Kingdom’s aerospace, defence and security sector is primed for growth. The defence and security market in Saudi Arabia is among the most lucrative in the world, as exemplified by the more than $110bn worth of defence contracts signed during US President Donald Trump’s May 2017 visit to Riyadh. Shares in several major US defence firms soared following news of the agreements, and President Trump highlighted the boost for jobs in the US. However, the new deal also included pledges for new factories and employment prospects for people in Saudi Arabia itself. This chapter contains an interview with Ahmed Al Khateeb, Chairman, Saudi Arabian Military Industries; and Advisor to the Minister of Defence.

Bold strategies to use industry as an engine of economic change could see new gold mines, plastics factories and medical laboratories boost growth, prosperity and jobs. While raising the profile of private enterprise, the government is planning to inject capital into promising sectors, but it is also setting ambitious targets for itself and for industry. Though the launch of Vision 2030 coincided with a difficult year for many industries in the Kingdom, it has served to galvanise industrialists and government ministries as they work towards recovery and future growth. The shift towards privatization and the increasing focus on SMEs are both positive indicators of the government’s commitment to implement the much-needed structural changes outlined in the development plan. This chapter contains an interview with Khalid Al Mudaifer, President and CEO, Ma’aden; Mohammed Al Badr, Managing Director, Saudi Chemical; and Khalid Al Amoudi, CEO, Saudi Red Bricks.

These are crucial times for Saudi Arabia’s power and water sectors as both move through a process of major reform. Privatisation is at a more advanced stage in water than in power, but the next few years should see substantial change in both markets, providing significant opportunities for investors. Projects that use a wider range of energy sources are also in the planning and development stages, while efficiency in distribution and usage is being strongly promoted, alongside a further reduction in subsidies through reorganisation of the electricity tariff system. Meanwhile, major desalination projects are under way, along with the roll out of new sewage and wastewater treatment plants, reservoirs, leakage reduction measures, transmission networks and groundwater conservation schemes. The Kingdom has set itself some ambitious short- and long-term goals for both sectors, with a shift towards a more market-oriented approach a key objective of the reforms. This chapter contains an interview Ziyad Al Shiha, President and CEO, Saudi Electricity Company; Ali Alhazmi, Governor, Saline Water Conversion Corporation; and Thamer Al Sharhan, Managing Director, ACWA Power.

At a time of great change in Saudi Arabia and amidst debates about rapid economic diversification, it is perhaps easy to overlook the fact that even in the most optimistic forecasts of Saudi Vision 2030 – the national development strategy – the oil and gas sector will account for at least half of the country’s exports in the fourth decade of the 21st century. Similarly, while the revolution in shale oil and gas in the US has dominated headlines, the cost at which Saudi Arabia is able to pump crude oil and gas remains among the lowest in the world. The global oil supply and demand cycle may have resulted in lower prices since mid-2014, but the anticipated initial public offering of 5% of the state energy company Saudi Aramco, valued at up to $2trn, has heightened expectations that the Kingdom could soon be home to the most valuable listed company on the planet. This chapter contains an interview with Mohammad Sanusi Barkindo, Secretary-General, Organisation of the Petroleum Exporting Countries; and Abdallah Al Subaiyyal, President and CEO, Yanbu Aramco Sinopec Refining Company.

As the second-largest city in Saudi Arabia, Jeddah plays a central role in the Kingdom’s non-oil economic growth, largely due to a combination of its roots in shipping and trade, and its importance as a transit point for millions of visitors travelling to the holy cities of Makkah and Medina each year. Major infrastructure projects in the city are set to underpin growth across various sectors in the coming years – including industry, tourism and logistics – while also positioning the broader region as a principle contributor in achieving the country’s longer-term goals under Saudi Vision 2030. This chapter contains and interview with Mazen Batterjee, Vice-Chairman, Jeddah Chamber of Commerce and Industry.

Due to the importance of Makkah and Medina in the Muslim world, and the millions of pilgrims they attract, the two holy cities form a major component of Saudi Arabia’s non-oil economy. The pilgrimages of Hajj and Umrah are performed each year, with worshippers’ fees, food, transport and accommodation totalling some $12bn in revenues. Makkah is home to the Masjid Al Haram, known as the Grand Mosque, which houses the Kaaba – Islam’s holiest site – and is also the birthplace of the Prophet Muhammad. Medina, meanwhile, is home to the Masjid an-Nabawi, or the Prophet’s Mosque, another important place of pilgrimage for worshippers during the Hajj and Umrah. With religious tourism such a vital source of non-oil revenue, much of the development in and around Makkah and Medina over the coming years is directly linked to the goals laid out in Vision 2030, which include plans to significantly boost pilgrim numbers as well as increase the country’s appeal as a wider tourist destination. This chapter contains an interview with Osama Al Bar, Mayor of Makkah.