In 2014 Saudi Arabia spent 35% of its budget on defence, equivalent to roughly $80.7bn. The coming years are likely to see increased emphasis on homeland security in three areas: securing the Kingdom’s northern and southern borders, cybersecurity and counter-terrorism. The Kingdom remains focused on developing a sophisticated domestic defence industry, investing heavily to this end in research...
The abundance of hydrocarbons in the Kingdom has led to a proliferation of downstream petrochemicals businesses. The natural gas that is allocated to producers at a subsidised price forms a significant part of Saudi Arabia’s value proposition to foreign investors. Demand from rapidly expanding markets in Asia, as well as steady sales to established Asian centres, should ensure that the Kingdom...
In 2015 Saudi Arabia will have generated twice as much electricity as it did in 2000 as demand in the Kingdom continues to expand. Energy-intensive industries, as well as highly subsidised utilities prices for customers, look set to push demand even higher in the coming years, and the government is increasingly looking to boost private sector participation in the sector. Numerous initiatives...
The Kingdom’s second-largest city and its most significant seaport, Jeddah is one of Saudi Arabia’s key economic engines. While rapid population growth has placed a strain on both housing and public infrastructure, economic growth remains strong, with GDP per capita increasing by 2.4% in 2014 while employment rose by 3.4%. Expansion plans for Jeddah Islamic Port, which is key to the region’s...
The regulatory intervention that followed intense price competition in 2013 has enabled Saudi Arabia’s insurance market to return to a trajectory of sustainable growth over the course of 2014. Competition in the sector is still stiff, however, with 35 insurance and re-insurance companies in operation as of December 2014. In 2006 the authorities enacted the Health Insurance Law, which initially...
A growing role for the private sector has brought greater investment opportunities in Saudi Arabia, with both domestic and international players taking a greater interest in the local market. With the stock exchange opening its doors to foreign investors and a recovery in the number of IPOs, significant capital inflows are expected in the short to medium term. A number of corporate and private...
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