Key economic milestones for Saudi Arabia in 2024

The Kingdom of Saudi Arabia's flag

The Saudi economy witnessed several key milestones in 2024, including winning the bid to host the 2034 World Cup, coupled with the inauguration of Riyadh Metro by Custodian of the Two Holy Mosques King Salman bin Abdulaziz.

During 2024, the US Federal Reserve cut interest rates three times by 100 basis points (bps) in total at the September, November and December meetings, with interest rates currently ranging between 4.25% and 4.50%.

Further, Crown Prince Mohammed bin Salman announced the completion of the transfer of 8% of Saudi Aramco's issued shares from state ownership to portfolios held by wholly-owned subsidiaries of the Public Investment Fund (PIF).

Additionally, the Saudi government and Saudi Aramco announced a secondary public offering of 1.545 billion shares of the latter’s common stock by the government, representing approximately 0.64% of the Saudi-listed oil giant’s issued shares.

Moreover, Saudi Arabia nearly doubled the valuation of its mineral resources in 2024, soaring from SAR 4.9 trillion to SAR 9.4 trillion. Concurrently, it launched the geographical survey project for renewable energy projects.

Elsewhere, OPEC+ countries agreed to extend the oil production cut from Jan. 1, 2025, until Dec. 31, 2025. 

Here are the details of these events in chronological order:

1- Ceasing contracts with foreign companies without regional headquarters (HQs) in Saudi Arabia

The suspension decision came into effect as of Jan. 1, 2024, covering agencies, institutions, and funds affiliated with the government or any of its entities.

2- Saudi Aramco’s notification on fuel price adjustment

Several Tadawul-listed companies announced receiving a notice from Saudi Aramco on changes in feedstock and fuel prices starting Jan. 1, 2024.

3- Valuation of mineral wealth in Saudi Arabia rose to SAR 9.4 trillion

Minister of Industry and Mineral Resources, Bandar Alkhorayef, announced that Saudi Arabia upped the valuation of its mineral wealth from $1.3 trillion (SAR 4.9 trillion) in 2016 to $2.5 trillion (SAR 9.4 trillion).

4- Implementation of low-margin mortgage financing without salary cap

National Housing Co. (NHC) ratified a low-interest financing rate (the lowest profit margin), adopted by the Real Estate Development Fund (REDF) for all housing projects being developed in suburbs and urban communities. Rates of up to 2.59%, without a salary cap, applied to the first 10,000 off-plan sales contracts, in cooperation with four local banks.

5- No intention to impose a personal income tax

Finance Minister Mohammed Al-Jadaan ruled out plans to impose a personal income tax in Saudi Arabia. There is VAT, income tax on companies and foreign investors, paired with the local Zakat obligations, with no intention for a change.

6- Launch of the National Biotechnology Strategy

The Crown Prince launched the National Biotechnology Strategy to enhance the Kingdom's position as an industry leader. The strategy focuses on improving national health, raising the quality of life, environment protection, achieving food and water security, maximizing economic opportunities, and localizing promising industries while contributing to the goals of Vision 2030.

7- Saudi Arabia launches first savings product for individuals

The Ministry of Finance and the National Debt Management Center (NDMC) launched the first government-backed savings product for individuals, named “Sah”, derived from the initials of the phrase “government sukuk” in Arabic.

8- Launch of Alat Co.

The Crown Prince rolled out Alat Co., a PIF company aimed at positioning Saudi Arabia as a global hub for sustainable industries with a focus on advanced technology and electronics.

9- Launch of Contractor Financing Program (CFP), in partnership with National Infrastructure Fund (Infra)

PIF, in partnership with Infra,  launched the CFP.

10- Guidelines for offering real estate contribution certificates approved

The Capital Market Authority (CMA) approved the guidelines for offering real estate contribution certificates. It also amended the rules for the offer of securities and continuing obligations and the glossary used in the authority's regulations and rules, effective from the date of publication.

11- Extension to exempt small enterprises from paying financial compensation for 3 years

The Cabinet, chaired by King Salman, approved extending for three years the exemption for small enterprises with a total workforce of nine workers or less, including the owner, from paying financial compensation.

12- Significant increase in confirmed gas and condensate reserves in Jafurah field

Minister of Energy Prince Abdulaziz bin Salman said Saudi Aramco added significant volumes to the confirmed reserves of gas and condensates in the unconventional Jafurah field.

13- Euro 5 clean diesel and gasoline fuel launched in Saudi Arabia

The Ministry of Energy announced finalizing the launch of clean diesel and gasoline (Euro 5) in the Saudi markets, to replace the existing diesel and gasoline fuels.

14- Transfer of an 8% stake in Aramco to portfolios of PIF companies

The Crown Prince announced transferring 8% of Saudi Aramco’s issued shares to wholly-owned portfolios of the PIF.

15- Construction begins at the Ceer EV facility

Ceer was awarded a project to develop a near SAR 5 billion EV manufacturing facility in King Abdullah Economic City (KAEC).

16- Rules approved for public entities to set up companies

The Saudi Cabinet approved rules for handling requests from public entities to set up companies, participate in their establishment, or set up any entity with the purpose of investment or profit-making.

17- PIF launches Neo Space Group (NSG)

PIF established NSG, wholly owned by the fund, in a bid become a national champion in the Saudi satellite and space sector.

18- Saudi Aramco’s 1.54 billion secondary public offering

The Saudi government and Saudi Aramco carried out the secondary public offering of 1.54 billion ordinary shares, representing approximately 0.64% of the latter’s issued shares.

19- OPEC+ extends oil cuts till 2025-end

OPEC+ countries agreed to extend their oil output cuts from Jan. 1, 2025, to Dec. 31, 2025. Member nations are extending the voluntary oil production cuts of 2.2 million bpd until the end of November 2024, after which the cuts will be phased out on a monthly basis as scheduled starting December 2024 until November 2025.

20- Roll-out of a geographical survey project for renewable energy sites

The Ministry of Energy launched the geographical survey project for renewable energy sites and awarded contracts to Saudi companies to install 1,200 meteorological stations for measuring solar and wind energy Kingdom-wide.

21- New oil & gas discoveries in Eastern Province and Empty Quarter

Saudi Aramco announced the discovery of two unconventional oil fields, a reservoir of light Arabian oil, two natural gas fields, and two natural gas reservoirs. The Al-Ladam unconventional oil field was discovered in the Eastern Province, while the Katuf field was discovered in the Empty Quarter.

22- PIF launches three new renewable energy JVs

PIF bagged three new agreements to localize the manufacture and assembly of equipment and components needed for solar and wind power. Renewable Energy Localization Co. (RELC) – a wholly-owned PIF company – signed the agreements.

23- Launch of the National Minerals Program

Saudi Arabia rolled out the National Minerals Program, affiliated with the Ministry of Industry and Mineral Resources.

24- Ministry of Municipal, Rural Affairs & Housing renamed as Ministry of Municipalities & Housing

King Salman issued a royal decree to change the name of the Ministry of Municipal, Rural Affairs & Housing to the Ministry of Municipalities & Housing.

25- Saudi Aramco holds a majority stake in Petro Rabigh

Saudi Aramco signed a binding agreement to acquire an additional stake of approximately 22.5% in Rabigh Refining and Petrochemical Co. (Petro Rabigh) from Sumitomo Chemical Co., for $702 million.

26- Prince Mohammed bin Salman Royal Reserve Development Authority launches management plan

The Prince Mohammed bin Salman Royal Reserve Development Authority launched the reserve’s Integrated Development Management Plan, or IDMP.

27- Saudi Cabinet approves updated Investment Law

The Saudi Cabinet approved the new Investment Law, one of the National Investment Strategy’s pillars, aligning with the Vision 2030 framework.

The new law will be pivotal in achieving comprehensive development goals and diversifying the national economy's resources.

28- Phase 1 of Riyadh Parking PPP project launched

Riyadh Municipality launched the first phase of the Riyadh Parking public-private partnership (PPP) project to reduce unauthorized parking and enhance the urban landscape of the Saudi capital.

29- Saudi Cabinet endorses Real Estate Transactions Tax Law

The Saudi Cabinet, in its session chaired by the Crown Prince, approved the Real Estate Transactions Tax Law.

The Cabinet also ratified the Commercial Register Law and the Trade Names Law.

30- PIF sets up SARCC to meet demand for staff accommodation

Total revenues is estimated at SAR 1.18 trillion and expenditures are seen to reach SAR 1.28 trillion.

Revenue for 2024 is forecast to reach SAR 1.23 trillion, expenditure at SAR 1.35 trillion, and a deficit of SAR 118 billion.

31- HRSD Ministry issues procedural guide for expatriate worker dues insurance

The Ministry of Human Resources and Social Development (HRSD) and the Insurance Authority (IA) launched the insurance product to cover the dues of expatriate workers in private sector establishments in the event of default. They also issued a guide explaining all the procedures related to the insurance product.

32- 550 international companies licensed to open HQs in Riyadh

Minister of Investment Khalid Al-Falih highlighted that the global companies' HQs program now includes 550 regional offices, surpassing the 500-target set for 2030.

33- Donald Trump wins US presidency

Donald Trump has won the US presidential election, becoming the 47th president, after defeating Kamala Harris. Trump returned to the White House amidst clear momentum for his Republican Party.

34- King Salman extends Citizen Account support till 2025-end

King Salman  directed the extension of additional support for the Citizen Account Program beneficiaries until 2025-end, with registration to the program remaining open.

35- Saudi Arabia’s budget estimate for 2025

Total revenues are estimated at SAR 1.18 trillion and expenditures are seen to reach SAR 1.28 trillion, as per the 2025 budget estimate.

Revenue for 2024 is forecast to reach SAR 1.23 trillion, with expenditure at SAR 1.35 trillion and a deficit of SAR 118 billion.

36- Adjusting unemployment target to 5% by 2030

Saudi Arabia set a new target for unemployment among Saudis at 5% by 2030, said HRSD Minister Ahmed AlRajhi. This new target was set after the previous Vision 2030 goal of a 7% unemployment rate was accomplished seven years ahead of schedule.

37- No major tax reforms or project delays

Finance Minister Mohammed Al-Jadaan said the Saudi government is committed to the government’s decision to not raise economic burdens, albeit still focuses on supporting economic growth. The minister stressed that no major changes are planned for the existing tax framework or non-oil revenues. Besides, previous strategies and projects remain ongoing and will be financed.

38- Riyadh Metro opens its doors

King Salman launched on Nov. 27 the Riyadh Metro project at a total cost of $25 billion. It integrates with the Riyadh Bus Project, which has already been launched, covering a total of 1,900 kilometers (km).

39- Crown Prince unveils National Red Sea Sustainability Strategy

The Crown Prince, who is also Prime Minister and Chairman of Economical and Development Affairs Council, launched the National Red Sea Sustainability Strategy. It aims to protect the Red Sea ecosystem, enhance cooperation framework for its sustainability, and empower the society.

40- PIF launches Adeera to develop distinct new Saudi hospitality brands

PIF announced the launch of the Hotel Management Co. (Adeera), poised to be a leading national hospitality management firm that will bolster national cadres and the industry as a whole by developing new globally-relevant Saudi hospitality brands.

41- Saudi Arabia to host 2034 World Cup

Saudi Arabia has been awarded the right to host the 2034 FIFA World Cup, making it the first nation to solely host the expanded 48-team tournament. Matches will be played across five Saudi cities.

42- Crown Prince sets up Supreme Commission for Hosting 2034 World Cup

The Crown Prince announced establishing the Supreme Commission for Hosting the 2034 World Cup, following the FIFA’s announcement that Saudi Arabia will host the mega tournament.

43- Fed cuts rates for 3rd time

The Fed reduced on Dec. 18 the interest rate range by 25 bps for the third consecutive time, following rate cuts during the September meeting (50 bps) and the November meeting (25 bps). The Federal Open Market Committee (FOMC) approved a reduction in the federal funds rate range to stand between 4.25% and 4.50%. This aligned with market expectations, which had anticipated a 25-bp cut.

44- Cabinet approves standard incentives for industrial sector

The Saudi Cabinet, chaired by the Crown Prince, approved the standard incentives for the industrial sector.

45- Listing of 13 companies on TASI and 30 others on Nomu in 2024

The Saudi stock market saw significant growth in 2024, welcoming 13 new listings to its Main Market (TASI) and 30 others to the Nomu-Parallel Market.