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Market outlook · 21 September 2026 · 7 min read

Saudi Arabia in 2026: where the opportunity is now

The economy has diversified faster than most expected, and 2026 has tested it. Here is where demand, budgets and partnership opportunities sit today.

Ten years into Vision 2030, Saudi Arabia is a different economy. Non-oil activities now account for 55% of real GDP, up from 45% in 2016. Net foreign direct investment reached US$32.6bn in 2025, up 53% on the year before, and more than 700 international companies have licensed regional headquarters in the Kingdom, against an original 2030 target of 500.

2026 has been harder. The regional conflict that began in February disrupted shipping through the Strait of Hormuz and hit energy infrastructure, and the IMF now expects growth of 1.7% this year before a rebound in 2027. Giga-project budgets have been re-sequenced, and the Public Investment Fund has said it will concentrate most of its investment at home over 2026–2030.

For international companies, the lesson is not to wait. It is to be precise. The structural shift is intact; what has changed is where the money flows first.

Net foreign direct investment inflows

US$ billion

025502017201820192020202120222023202432.62025
View data as a table
YearUS$ bn
20171.1
201812.3
20193.2
20201.6
202128.3
202226.7
202322.9
202421.3
202532.6

Sources: Vision 2030 Annual Report 2025 (GASTAT revised methodology) for 2017–2024; GASTAT for 2025.

Five places the opportunity is concentrating

  • Transport and PPPs. Construction awards fell to US$84.5bn in 2025 from a record in 2024, then rebounded in the first half of 2026, led by the private sector and transport projects such as the Aseer–Jazan Expressway.
  • Energy transition. 64 GW of renewable capacity has been tendered and 43.2 GW is under contract, alongside the world’s largest desalination base.
  • Digital infrastructure. Operational data-centre capacity rose from 68 MW in 2021 to 467 MW in early 2026, with three hyperscale cloud regions live or launching.
  • Industry and mining. More than 13,600 factories operate, 1,660 industrial licences were issued in 2025, and new mining licences more than tripled.
  • Tourism and events. 123 million visits in 2025, a 150 million target for 2030, Expo 2030 and the 2034 World Cup.
Opportunity map of Saudi ArabiaMap of Saudi Arabia showing giga-projects, major cities, MODON industrial cities, Royal Commission cities, special economic zones, economic cities, energy and mining hubs, and ports.Red SeaArabian GulfRiyadhJeddahDammam / KhobarNEOM (Oxagon)The Red SeaAlUlaJubail Industrial CityYanbu Industrial CityWa’ad Al-Shamal

57 locations

  1. RiyadhMajor cityCapital and base for 700+ regional headquarters; home to the Expo 2030 site, two special zones and the Kingdom’s main dry port.
  2. JeddahMajor cityRed Sea commercial gateway with Jeddah Islamic Port; a host city for the 2034 World Cup.
  3. Dammam / KhobarMajor cityEastern Province energy hub and Aramco base, with King Abdulaziz Port and hyperscale cloud regions.
  4. NEOM (Oxagon)Giga-projectRe-scoped: the Oxagon port and industrial city is the priority, with its container terminal opening in phases from 2026; The Line is paused until after 2030.
  5. The Red SeaGiga-projectRed Sea Global’s resort destination, open and expanding; AMAALA opened in 2026.
  6. AlUlaGiga-projectHeritage tourism destination around Hegra, a UNESCO World Heritage Site.
  7. QiddiyaGiga-projectEntertainment city near Riyadh; Six Flags opened in December 2025.
  8. DiriyahGiga-projectHeritage and mixed-use giga-project in Riyadh, still awarding work: SAR 4.9bn of contracts in the first half of 2026.
  9. Jubail Industrial CityRoyal Commission cityRoyal Commission city of about 1,016 km² and one of the world’s largest petrochemical complexes; SABIC and Aramco anchor it, with its own ports and utilities.
  10. Yanbu Industrial CityRoyal Commission cityRoyal Commission city of about 606 km² on the Red Sea; refining and petrochemicals at the end of the East–West pipeline, with a dedicated port.
  11. Ras Al-Khair Industrial CityRoyal Commission cityRoyal Commission city for minerals and maritime industries: Ma’aden’s aluminium and phosphate complexes and the IMI shipyard.
  12. Jazan City for Primary and Downstream IndustriesRoyal Commission cityRoyal Commission city with its own port and a 400,000 b/d Aramco refinery; heavy industry, metals and food processing.
  13. King Abdullah Economic City SEZSpecial economic zoneSpecial economic zone with 5% corporate tax for up to 20 years; anchors the automotive cluster (Lucid, Ceer, Hyundai) beside King Abdullah Port.
  14. Jazan SEZSpecial economic zoneSpecial economic zone focused on food processing, metals and logistics, with the same 5% tax package for up to 20 years.
  15. Ras Al-Khair SEZSpecial economic zoneSpecial economic zone for shipbuilding, offshore and maritime industries, inside the Royal Commission city.
  16. Cloud Computing SEZSpecial economic zoneA special zone hosted at KACST in Riyadh that lets cloud providers operate data centres across the Kingdom under one regime.
  17. Special Integrated Logistics ZoneSpecial economic zoneBonded logistics zone at King Khalid International Airport: 0% corporate tax for up to 50 years, the longest incentive in the Kingdom.
  18. Knowledge Economic CityEconomic cityMixed-use economic city in Madinah focused on knowledge industries, hospitality and services for visitors.
  19. Prince Abdulaziz bin Mousaed Economic CityEconomic cityEconomic city in Ha’il planned around logistics, agribusiness and light manufacturing on the north–south corridor.
  20. SPARKEnergy or mining hubKing Salman Energy Park: a 50 km² energy-industry park near Abqaiq developed by Aramco, with a dry port and logistics zone.
  21. Wa’ad Al-ShamalEnergy or mining hubPhosphate mining and processing city in the far north; Ma’aden’s third phosphate project is under way.
  22. King Abdullah PortPort or logistics hubPrivately developed deep-water container port at KAEC, serving the automotive cluster and Red Sea transshipment.
  23. Jeddah Islamic PortPort or logistics hubThe Kingdom’s busiest port and its main Red Sea gateway, with growing transshipment volumes.
  24. King Abdulaziz PortPort or logistics hubMain container port on the Gulf coast, linked by rail to Riyadh Dry Port.
  25. Riyadh Dry PortPort or logistics hubInland container terminal linked by rail to Dammam; the main customs gateway for central Saudi Arabia.
  26. Riyadh 1st Industrial CityMODON industrial cityMODON’s original Riyadh site, dating from the 1970s; fully built out, with food, plastics and general manufacturing.
  27. Riyadh 2nd Industrial CityMODON industrial cityThe capital’s largest mature industrial city: metals, building materials, packaging and food.
  28. Riyadh 3rd Industrial CityMODON industrial cityNewer MODON city south-east of the capital with serviced plots for light manufacturing and logistics.
  29. Sudair City for Industry and BusinessMODON industrial cityOne of MODON’s largest cities, on the Riyadh–Qassim highway and the North–South railway; land for large plants in food, building materials and pharmaceuticals.
  30. Al-Kharj Industrial CityMODON industrial citySouth of Riyadh, at the heart of the Kingdom’s dairy and food-processing cluster.
  31. Dhurma Industrial CityMODON industrial citySmaller MODON city west of Riyadh for general manufacturing.
  32. Shaqra Industrial CityMODON industrial cityRegional MODON city north-west of Riyadh for light manufacturing and food.
  33. Al-Zulfi Industrial CityMODON industrial cityRegional MODON city in the north of Riyadh Province for light manufacturing.
  34. Dammam 1st Industrial CityMODON industrial cityEstablished in the 1970s beside King Abdulaziz Port and the rail line; metals, plastics and food.
  35. Dammam 2nd Industrial CityMODON industrial cityThe Eastern Province’s main general industrial city, between Dammam and the oil-services corridor.
  36. Dammam 3rd Industrial CityMODON industrial cityThe newest Dammam city, on the highway to Riyadh, with land for larger plants.
  37. Al-Ahsa 1st Industrial CityMODON industrial cityNear Hofuf; food and date processing and light manufacturing for the Al-Ahsa oasis.
  38. Al-Ahsa 2nd Industrial CityMODON industrial cityNewer city on the Salwa road toward Qatar and the UAE, suited to logistics and export manufacturing.
  39. Hafr Al-Batin Industrial CityMODON industrial cityServes the north-east and the trade corridor to Kuwait and Iraq.
  40. Jeddah 1st Industrial CityMODON industrial cityJeddah’s original industrial city, close to Jeddah Islamic Port; food, consumer goods and general manufacturing.
  41. Jeddah 2nd Industrial CityMODON industrial citySouth of Jeddah on the coastal road; plastics, packaging and building materials.
  42. Jeddah 3rd Industrial CityMODON industrial cityNewer city beside the second, with serviced land for light manufacturing and logistics.
  43. Makkah Industrial CityMODON industrial cityServes the Holy City’s year-round demand for food and consumer goods.
  44. Taif Industrial CityMODON industrial cityHighland city with food processing, furniture and light industry.
  45. Rabigh Industrial CityMODON industrial cityBeside the Petro Rabigh refining and petrochemical complex; downstream plastics and conversion.
  46. Madinah Industrial CityMODON industrial cityFood, consumer goods and light manufacturing for Madinah and its visitors.
  47. Yanbu Industrial City (MODON)MODON industrial cityMODON’s light-industry city, separate from the much larger Royal Commission city next door.
  48. Qassim 1st Industrial CityMODON industrial cityNear Buraidah; food processing and agribusiness in the Kingdom’s farming heartland.
  49. Qassim 2nd Industrial CityMODON industrial cityExpansion city for Qassim with serviced plots for light manufacturing.
  50. Ha’il Industrial CityMODON industrial cityAgribusiness and light manufacturing; Ha’il is one of the promising regions where SIDF can finance up to 75% of a project.
  51. Tabuk Industrial CityMODON industrial cityNorth-western hub for food and light manufacturing, the nearest MODON city to NEOM.
  52. Al-Jouf Industrial CityMODON industrial cityNear Sakaka; olive, grain and food processing, close to large solar projects.
  53. Arar Industrial CityMODON industrial cityNorthern Borders city near the Iraq crossing, serving cross-border trade.
  54. Asir Industrial CityMODON industrial cityAt Khamis Mushait; light manufacturing and food for the southern highlands.
  55. Jazan Industrial City (MODON)MODON industrial cityMODON’s light-industry city in Jazan, separate from the Royal Commission city to the north.
  56. Najran Industrial CityMODON industrial citySouthern border region; general manufacturing, in a promising region for SIDF finance.
  57. Al-Baha Industrial CityMODON industrial cityThe smallest regional city, for light manufacturing and food, in a promising region for SIDF finance.

Locations are approximate; smaller industrial cities are placed at their host city. Status as of September 2026. Sources: MODON, Royal Commission for Jubail and Yanbu, Economic Cities and Special Zones Authority, developers.

What has changed in how you win

The rules of entry have become simpler and the rules of competition stricter. Since February 2025, foreign investors register with the Ministry of Investment rather than applying for a licence. At the same time, government buyers increasingly favour companies with a regional headquarters in the Kingdom, local content and a Saudi workforce.

Private sector share of GDP

51%2025

Baseline: 44%2030 target: 65%

Saudi women’s labour-force participation

35.0%2025

Baseline: 22.8%2030 target: 40%

Tourist visits a year

123m2025

Baseline: 65.3m (2019)2030 target: 150m

FDI inflows as a share of GDP

2.8%2025

Baseline: 1.0%2030 target: 5.7%

Source: Vision 2030 Annual Report 2025; tourism baseline from the Ministry of Tourism (2019). Baselines are Vision 2030 reference values from around 2016–2019.

Questions to answer before you commit

  • Which buyers in your sector are still awarding contracts this year, and through which procurement route?
  • Does your offer need a Saudi partner to qualify, or only to accelerate?
  • What local-content and Saudization position will you need to be competitive?
  • Which risks, from payment cycles to project re-scoping, does your business case need to absorb?

Sources

  1. GASTAT, GDP 2025 release (March 2026)
  2. Vision 2030 Annual Report 2025
  3. UNCTAD, World Investment Report 2026
  4. IMF, 2026 Article IV consultation with Saudi Arabia (July 2026)
  5. MEED, contract awards 2025 (January 2026)
  6. AGBI, construction activity in the first half of 2026 (September 2026)
  7. Ministry of Energy, renewable awards (October 2025)
  8. Ministry of Communications and IT, data-centre capacity (May 2026)
  9. Argaam, industrial and mining licences 2025 (March 2026)
  10. Saudi Press Agency, tourism statistics 2025
  11. The National, PIF strategy 2026–2030 (April 2026)

Figures reflect the latest published data at the date shown. This briefing is general information, not legal, tax or investment advice.

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