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While primarily an equity exchange, over the past decade the Saudi Stock Exchange (Tadawul) has evolved from its starting point as a single-asset-class platform to include a wider array of financial instruments, starting in 2010 with the addition of an exchange-traded fund. Tadawul entered 2019 on the back of a strong year, in which the main index showed the first solid gain since 2016. A raft of reform measures, inclusion in some of the world’s most influential indices and a lengthy roster of initial public offering prospects emerging from the Kingdom’s Vision 2030 strategy mean that the near term is likely to be another lively period for the market. This chapter contains an interview with Khalid Al Hussan, CEO, Saudi Stock Exchange (Tadawul).

Amid ongoing reform of subsidies, the gradual privatisation of public assets, and ambitious plans to expand seawater desalination facilities and improve sanitation infrastructure, Saudi Arabia’s utilities sector will undergo significant changes over the coming years. In order to diversify its energy mix, the Kingdom is pursuing a series of ambitious goals to increase its solar and wind capacity, while also developing its first nuclear power station. In May 2016 a royal decree dissolved the Ministry of Water and Electricity, which had previously overseen the sector. The electricity segment now falls under purview of the newly revamped Ministry of Energy, Industry and Mineral Resources, while water is overseen by the recently established Ministry of Environment, Water and Agriculture. This chapter contains interviews with Fahad Al-Sudairi, Acting CEO of Saudi Electricity Company (SEC); Mohammed Al Mowkley, CEO, National Water Company; and Khaled Al Qureshi, CEO, Water and Electricity Company.

As one of the biggest banking sectors by assets in the MENA region, Saudi Arabia has been something of a sleeping giant in recent years. Economic uncertainty and the effects of low international oil prices have seen both muted lending growth and deposit acquisition, while economic reforms have led to more market uncertainty. The Kingdom’s lenders have, however, remained profitable throughout this period, and are well positioned to take advantage of opportunities arising from an anticipated acceleration of economic growth. In the meantime, an industry that has seen little structural change over recent decades is about to be transformed by new market entrants and mergers of some of its biggest institutions. This chapter contains interviews with Ahmed Alkholifey, Governor, Saudi Arabian Monetary Authority; and Søren Nikolajsen, Managing Director, Alawwal Bank.

Firming oil prices have brought about an improvement in Saudi Arabia’s trade balance in 2018. The government’s longer-term ambition, however, is to protect itself from the uncertainty of the energy market by diversifying the export base away from hydrocarbons. The Kingdom’s newly formulated economic strategy also aims to boost foreign investment, thereby reducing the economy’s dependence on public spending. Both of these objectives are being pursued through a cross-government effort that is reshaping Saudi Arabia’s business environment. The changes being made to the legislative and regulatory frameworks that govern trade and investment bode well for economic growth in the long term, although concrete results in the short term have yet to be secured. This chapter contains an interview with Ibrahim Al Omar, Governor, Saudi Arabian General Investment Authority.

A welcome improvement was seen in the Kingdom’s economic fortunes in 2018, with GDP growth of 1.2% in the first quarter marking the first expansion of the national economy after five consecutive quarters of contraction. Overall, the economy grew by 2.2% for the year, compared to a contraction of 0.7% in 2017. Firming oil prices have enabled the government to produce two record-breaking budgets for 2018 and 2019, and the private sector is poised to benefit as the projects outlined in the nation’s ambitious development strategy begin to take shape with its help. Saudi Arabia’s long-term goal of securing enough private investment to shift the nation’s primary engine of growth away from state spending, however, remains a work in progress. This chapter contains interviews with Turki Al Hokail, CEO and Board Member, National Centre for Privatisation; Ajlan Abdulaziz Alajlan, Chairman of the Board, Ajlan & Bros, and Chairman, Riyadh Chamber of Commerce and Industry; and Husameddin Al Madani, Director-General, National Centre for Performance and Measurement.

Saudi Arabia is the largest country in the Middle East and the 13th-largest nation in the world, with an area of approximately 2.15m sq km, covering 80% of the Arabian Peninsula. Home to an estimated 15% of the world’s proven oil reserves and the single-largest economy in MENA, Saudi Arabia is a key player both regionally and globally. Established in September 1932, in recent years the Kingdom has poured its considerable financial resources into a series of large-scale economic development, diversification and modernisation initiatives. Saudi Arabia has attracted international attention for the momentum of its socio-economic transformation, taking place under the auspices of the Vision 2030 development blueprint. This chapter contains a viewpoint from Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud and an interview with Prince Khalid bin Faisal Al Saud, Governor, Makkah Province.