These events defined Saudi Arabia in 2022

The Kingdom of Saudi Arabia's flag

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Saudi Arabia’s economy was shaped by many major events in 2022. A royal decree was issued on appointing Crown Prince Mohammed bin Salman as Prime Minister.

 

The decree reshuffled the Cabinet and placed the prince as leader of the Kingdom’s government. The Kingdom resumed normal economic activity, after the COVID-19 precautionary measures were lifted.

 

The National Industrial Strategy was also launched last year.

 

King Salman issued a royal decree on allocating SAR 20 billion to face the fallout of rising global prices, based on the reports submitted by the Crown Prince.

 

The Saudi Central Bank (SAMA) raised its reverse repo rate by 50 basis points (bps) to 450 bps from 400 bps (4.5%). It also hiked its repo rate to 500 bps.

 

Initial public offering (IPOs) saw a strong momentum on the Main and Parallel Markets in 2022. Americana Restaurants International was also the first dual listing on the Saudi Exchange (Tadawul).

 

Oil prices hit their highest level since 2008, soaring above $139 per barrel, as the US and allies considered banning import of oil from Russia. Oil prices fell to $77 per barrel, the lowest level in 2022.

 

Moreover, OPEC+ issued several decisions in coincidence with the global oil market developments. It decided to reduce crude oil output target by two million barrels per day from November 2022, and maintained this decision in December.

 

During 2022, the Crown Prince announced launching several projects and strategies, and establishing many firms.

 

Here’re the most significant events in 2022:

 

 

1. GOSI transfers stakes in 30 Tadawul-listed firms to fully-owned subsidiaries

 

 

On Jan. 13, Hassana Investment Co. (HIC), the investment arm of the General Organization of Social Insurance (GOSI), announced transferring stakes in 30 Tadawul-listed firms to fully-owned subsidiaries.

 

2- Crown Prince launches Boutique Group to focus on ultra-luxury hotels

 

 

Crown Prince Mohammed Bin Salman launched, on Jan. 20, Boutique Group, a new hospitality brand that will manage and convert a collection of iconic historic and cultural palaces in Saudi Arabia into ultra-luxury boutique hotels.

 

3- Saudi students in primary and KG stages return to full class attendance

 

 

On Jan. 22, Saudi Arabia announced that 3.5 million students in the primary and kindergarten stages resumed in-person attendance in all regions across the Kingdom.

 

4- King Salman declares Feb. 22 as official holiday every year to mark 'Founding Day'

 

 

King Salman issued, on Jan. 27, a royal decree, announcing Feb. 22 of every year as an official holiday, on the occasion of celebrating the establishment of Saudi Arabia.

 

5- Transfer of a 4% stake in Aramco to PIF

 

 

The Crown Prince announced, on Feb. 13, the transfer of a 4% stake in Saudi Aramco to the Public Investment Fund (PIF).

 

6- End of deadline to correct anti-coverup law violations

 

 

The National Anti-Commercial Concealment Program announced that the deadline to correct all the violations with respect to the Anti-Commercial Concealment Law ended on Feb. 16.

 

7- Licensing D360 Bank

 

 

The Saudi Cabinet gave the go-ahead, on Feb. 15, for Minister of Finance, Mohammed Al-Jadaan, to issue a license to the local digital bank - D360 Bank (under established), with SAR 1.65 billion in capital.

 

8- Russia-Ukraine crisis

 

 

On February 24, Putin announced that the Russian army would launch a military operation in Ukraine to support pro-Russian separatists, which led to a rise in oil prices to record levels.

 

9- Amendment to rules on offering securities and continuing obligations

 

 

The Capital Market Authority's (CMA) board approved, on Jan. 28, amendments to the rules on the offer of securities and continuing obligations. It also endorsed the glossary of defined terms used in CMA's regulations.

 

10- Launch of TROJENA mountain tourism destination in NEOM

 

 

Crown Prince Mohammed bin Salman announced the launch of TROJENA, a new global destination for mountain tourism in NEOM.

 

11- Ease of all COVID-19 restrictions

 

 

Saudi Arabia decided to eased the remaining COVID-19 restrictions starting today, March 5.

 

12- Crown Prince launches scholarship program strategy

 

 

Crown Prince Mohammed bin Salman launched, on March 7, The Custodian of the Two Holy Mosques Scholarship Program, which marks the beginning of a new era in the scholarship program that will contribute to enhancing citizens’ competitiveness through upskilling the human capital in new and promising sectors.

 

13- Oil prices exceed $139

 

 

Brent crude prices exceeded, on March 7, $139 a barrel, as the US and its European allies considered a ban on Russian oil imports.

 

14- Crown Prince launches National Development Fund strategy

 

 

Crown Prince Mohammed bin Salman launched, on March 14, the National Development Fund (NDF) strategy.

 

15- New fee structure for the services provided by Tadawul Group subsidiaries

 

 

The Capital Market Authority (CMA) approved, on March 26, the new fees structure for the services provided by Saudi Tadawul Group Holding Co.'s (Tadawul Group) subsidiaries, Saudi Exchange, Securities Depository Center (Edaa) and Securities Clearing Center (Muqassa). The new fees structure is related to the shares buy and sell commissions, the units of Real Estate Investment Traded (REITs) funds, Exchange-Traded Funds (ETFs), Closed-End Funds (CEFs), and tradable rights.

 

16- Tadawul Group finalizes roll-out of post-trade enhancements

 

 

Tadawul Group announced today, April 7, the completion of the roll-out of new enhancements through its subsidiaries to develop the post-trade services infrastructure.

 

17- Saudi Arabia increases Hajj pilgrimage capacity to one million

 

 

Saudi Arabia authorized one million pilgrims, both foreign and domestic, to perform the Hajj this year, in line with defined quotas and other health precautions.

 

18- King Salman orders establishing two commissions to develop Saudi's Taif, Al-Ahsa

 

 

The Custodian of the Two Holy Mosques King Salman issued a royal order to establish two commissions to develop Taif and Al-Ahsa.

 

19- Al Rajhi Bank’s shareholders approve a capital increase to SAR 40 billion

 

 

In May 2022, Al Rajhi Capital increased capital from SAR 25 billion to SAR 40 billion via a 60% bonus issue.

 

20- Saudi Arabia’s PIF launches Saudi Coffee Company

 

 

The Saudi Coffee Company is expected to invest nearly SAR 1.2 billion ($319 million) over the next 10 years in the national coffee industry.

 

21- Lucid signs agreement to establish 1st factory in Saudi Arabia

 

 

US- based electric car maker Lucid Motors, which is partially owned by the PIF, signed an agreement to establish a factory in King Abdullah Economic City (KAEC).

 

22- Billionaire Alwaleed bin Talal sells 16.87% of KHC to Saudi sovereign fund

 

 

Saudi Arabia’s Public Investment Fund entered a deal to buy a 16.87% stake, or 625 million shares in Kingdom Holding Co. (KHC) from Saudi billionaire Prince Alwaleed bin Talal.

 

23- Saudi Arabia to establish National Health Holding Co., National Health Insurance Center

 

 

Saudi Cabinet approved the establishment of the National Health Holding Company and also gave nod to the charter of the National Health Insurance Center, which will boost the performance of the health institutions.

 

24- Saudi Arabia lifts COVID-19 precautionary measures

 

 

On June 13, Saudi Arabia decided to lift the COVID-19 precautionary and preventive measures.

 

25- Tadawul launches single stock futures contracts

 

 

The Saudi Exchange (Tadawul) launched, on July 4, single stock futures (SSFs) contracts, which will be cleared by the Securities Clearing Center Co. (Muqassa).

 

26- Crown Prince unveils priorities for research, development and innovation for coming two decades

 

 

Crown Prince Mohammed Bin Salman announced national aspirations and priorities for the research, development and innovation for the coming two decades. He identified four key priorities - human health; environmental sustainability and basic needs; leadership in energy and industry; and future economies.

 

27- Saudi wealth fund PIF launches new aircraft leasing company

 

 

The PIF launched an aircraft leasing firm, AviLease, that will focus on leasing, trading, and asset management services.

 

28- King Salman orders allocating SAR 20 billion to face rising global prices

 

 

Custodian of the Two Holy Mosques King Salman issued a royal order approving the allocation of SAR 20 billion to face rising global prices.

 

29- Crown Prince unveils designs for The LINE, the City of the Future in NEOM

 

 

Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Chairman of the NEOM board of directors, announced the designs of THE LINE, a civilizational revolution that puts humans first, providing an unprecedented urban living experience while preserving the surrounding nature.

 

30- PIF launches Saudi Egyptian Investment Company

 

 

The Public Investment Fund (PIF) launched the Saudi Egyptian Investment Company (SEIC) to invest in promising sectors throughout Egypt, one ne of the most important strategic markets in Africa.

 

31- Launching infrastructure works and master plan of Rua Al Madinah project

 

 

Crown Prince Mohammed bin Salman launched the infrastructure works and unveiled the master plan of the Rua Al Madinah project, which will span nearly 1.5 million square meters (sq m), and is set to add over 47,000 hotel rooms by 2030.

 

32- Raising stc’s capital to SAR 50 billion

 

 

In August, stc approved increasing the company’s capital by 150%, from SAR 20 billion to SAR 50 billion, through a bonus-share distribution.

 

33- Launching National Gaming and Esports Strategy

 

 

Crown Prince Mohammed bin Salman launched the National Gaming and Esports Strategy.

 

34- A royal decree to appoint Crown Prince Mohammed bin Salman as Prime Minister and reshuffle the Kingdom’s Cabinet.

 

 

King Salman bin Abdulaziz issued royal decrees, reshuffling the Kingdom’s Cabinet and appointing Crown Prince Mohammed bin Salman as Prime Minister.

 

35- Launching Savvy Gaming Group strategy

 

 

Saudi Arabia’s Crown Prince launched Savvy Gaming Group strategy with SAR 142 billion investments.

 

36- Launching Saudi Downtown Company to develop downtowns in Saudi Arabia

 

 

Crown Prince Mohammed bin Salman, Chairman of the Public Investment Fund (PIF) launched Saudi Downtown Company (SDC), which aims to build and develop downtown areas and mixed-use destinations in 12 cities throughout Saudi Arabia.

 

37- OPEC+ issues several decisions in conjunction with events in the global oil market

 

 

OPEC+ issued several decisions during 2022, coinciding with events in the global energy market, the latest of which was to reduce crude oil production by two million barrels per day starting from November 2022 and keep the decision at the December meeting.

 

38- Crown Prince launches National Industrial Strategy

 

 

Crown Prince Mohammed bin Salman launched the National Industrial Strategy, after it was approved by the Saudi Cabinet today.

 

39- Crown Prince launches Global Supply Chain Resilience Initiative

 

 

Crown Prince Mohammed bin Salman launched the Global Supply Chain Resilience Initiative (GSCRI), which aims to strengthen the Kingdom’s position as a major hub in global supply chains.

 

40- Launching Halal Products Development Company

 

 

The Public Investment Fund (PIF) launched the Halal Products Development Co. (HPDC), which will invest in localizing the Halal production industry in the Kingdom.

 

41- PIF establishes five regional investment firms

 

 

Crown Prince Mohammed bin Salman announced that the Public Investment Fund (PIF) will establish five regional firms to invest in Jordan, Bahrain, Sudan, Iraq and Oman.

 

42- PIF launches Local Content Growth Program to grow competition, innovation in private sector

 

 

The Public Investment Fund (PIF) launched the Local Content Development Program, which aims to raise the contribution of the fund and its subsidiaries to local content to 60% by the end of 2025, support and empower the private sector, and stimulate the competitive and innovative advantages of national industries.

 

43- Crown Prince launches Ceer as first Saudi EV brand

 

 

Crown Prince Mohammed bin Salman announced the launch of Ceer Co., which is the first Saudi brand to manufacture electric cars in the Kingdom.

 

44- PIF sells 12 million shares in Tadawul Group

 

 

The Public Investment Fund (PIF) sold 12 million shares in Saudi Tadawul Group Holding Co. (Tadawul Group) to institutional investors, which represents 10% of company's capital.

 

45- Crown Prince orders authority establishment to develop Darin and Tarout Island

 

 

Crown Prince Mohammed bin Salman issued directives on the establishment of an authority to develop the Darin and Tarout Island.

 

46- Crown Prince launches masterplan of King Salman International Airport in Riyadh

 

 

Crown Prince Mohammed bin Salman announced the masterplan of King Salman International Airport (KSIA). It will boost Riyadh’s position as a global logistics hub, stimulate transport, trade and tourism, and act as a bridge linking the East with the West.

 

47- Saudi Arabia discovers several new natural gas fields

 

 

Minister of Energy Prince Abdulaziz bin Salman announced that Saudi Arabian Oil Co. (Saudi Aramco) discovered several natural gas fields in the Central Region, Empty Quarter, Northern border region and Eastern region.

 

48- Saudi Arabia submits bid to host Expo 2030

 

 

Saudi Arabia submitted on Nov. 29, its bid to host Expo 2030 in Riyadh to the Bureau International des Expositions (BIE), the governing body of the World Expo.

 

49- HRSD Ministry launches second edition of Tawteen Program to provide 170,000 jobs

 

 

Ministry of Human Resources and Social Development (HRSD) launched the second edition of Tawteen Program, which targets providing 170,000 job opportunities.

 

50- PIF announces launch of Aseer Investment Company

 

 

The Public Investment Fund (PIF) announced the establishment of Aseer Investment Company (AIC) to operate as its investment arm in the Aseer region of Saudi Arabia. The new company will promote and stimulate local and foreign direct investment to develop and transform the region.

 

51- Crown Prince announces Sindalah island development in NEOM

 

 

Crown Prince Mohammed bin Salman bin Abdulaziz, announced the development of Sindalah, the first luxury island destination in NEOM and one of the most important projects supporting Saudi Arabia’s national tourism strategy.

 

52- Tadawul approves market-making framework for equity, derivatives markets

 

 

The Saudi Exchange (Tadawul) announced the launch of the market-making framework for equity and derivatives markets to ensure the availability of liquidity and increase price formation efficiency, in line with its efforts to advance the growth of the Saudi capital market as part of the Kingdom’s Vision 2030.

 

53- Saudi Arabia’s 2023 general budget

 

 

The Ministry of Finance announced that Saudi Arabia's revenues for the 2023 state budget are estimated at SAR 1.130 trillion, with a forecast expenditure of SAR 1.114 trillion with an expected surplus of SAR 16 billion.

 

54- Oil prices fell to $77 per barrel

 

 

Oil prices dropped below the level of $77 a barrel on the Russian President's statements that his country to reduce its oil output, in response to the G7’s decision to set crude selling price cap.

 

55- Saudi Arabia tops G20 visitors’ growth rating in 2022

 

 

A recent report by the Organization for Economic Co-operation and Development (OECD) stated that Saudi economy is expected to grow by 9.9% in 2022, the highest growth rate among G20.

 

56- Tadawul gets first dual listing

 

 

Shares of Americana Restaurants International started trading on on Dec. 12 on the Saudi Exchange (Tadawul) and Abu Dhabi Securities Exchange (ADX).

 

57- SAMA raises reverse repo, repo rates by 50 basis points

 

 

The Saudi Central Bank (SAMA) raised its reverse repo rate by 50 basis points (bps) to 450 bps and repo rate by 50 bps to 500 bps. This was the seventh this year coinciding with the US Federal Reserve decisions.

 

58- Launching SME Bank business

 

 

The Small and Medium Enterprises Bank (SME Bank), one of the development funds and banks affiliated with the National Development Fund (NDF), officially launched operations on Dec. 4.

 

59- Launching Kingdom’s first Special Integrated Logistics Zone, Apple first investor

 

 

Minister of Transport and Logistic Services, Saleh Al-Jasser launched the Special Integrated Logistics Zone in Riyadh, the Kingdom’s special logistics zone. Apple will be the first main investor.

 

60- OPEC+ adjust monthly meetings

 

 

The Joint Ministerial Monitoring Committee (JMMC) member nations decided to convene their meetings bimonthly, instead of each month, agreeing to meet more frequently if its members feel the need.

 

They also approved requesting a full ministerial gathering at any time to address market developments.

 

61- Completing 3 mergers in Saudi market

 

 

The Saudi market witnessed the completion of three mergers in 2022, including Saudi Tadawul Group Holding Co. (Tadawul Group)  and National Petrochemical Co. (Petrochem), Alahli Takaful and Arabian Shield Cooperative Insurance Co., and SABB Takaful and Walaa Cooperative Insurance Co.

 

62- Listing several companies in the main and parallel market

 

 

During 2022, a total of 17 companies were listed on the main Market, Tadawul, as well as a total of 31 companies and REITs were listed on the parallel market, Nomu. In addition, diverse companies obtained approvals to be offered on the two markets.