Saudi Arabia

Foreign direct investment inflows fell 18% quarter on quarter in Q2 2026 to SAR 22.3bn (about USD 5.95bn), which Fortune links to the US-Iran war's effect on investor appetite. That leaves the target of about USD 100bn a year by 2030 further off, and agencies such as the Ministry of Investment have more reason to compete for new projects.

Fortune · 2026-10-07

SABIC Agri-Nutrients took a final investment decision on a new ammonia, urea and carbon-capture complex at Jubail and awarded the roughly USD 3.47bn construction contract to South Korea's Samsung E&A, with construction due to start in Q4 2026. This is a binding contract rather than a memorandum of understanding, and it shows that large industrial projects are still going ahead despite the conflict.

TASC Outsourcing (industry summary) · 2026-09-22

PIF-owned ROSHN and TMG Saudi, the Saudi arm of Egypt's Talaat Moustafa Group, signed a preliminary agreement for a joint company to explore a Riyadh development of more than 55,000 homes, with the Egyptian side holding 51%. No value or timeline has been disclosed. The structure suggests PIF entities are willing to take minority stakes alongside experienced foreign developers.

TASC Outsourcing (industry summary) · 2026-09-22

No significant developments identified in this section for the reporting period.

Aperture editorial note · 2026-10-10

The Ministry of Finance's FY2027 Pre-Budget Statement estimates that real GDP will shrink by 3.6% in 2026, mainly because of the oil sector, while non-oil activity grew 1.8% in the first half. It plans SAR 1,392bn of spending against SAR 1,202bn of revenue in 2027, a deficit of about 3.6% of GDP, so state-led project spending continues even in a downturn.

Saudi Ministry of Finance · 2026-09-30

Independent analysis of the same documents says the 2026 deficit will be larger than budgeted, possibly around 5.5% of GDP. It also notes that the planned 3% cut in nominal spending for 2027 comes with no detail and that such cuts are rarely achieved. Suppliers to government and to entities funded by the Public Investment Fund (PIF) should expect more borrowing and some reprioritisation rather than a sudden stop in spending, but payment and scheduling risk is higher.

Arab Gulf States Institute in Washington (AGSI) · 2026-10-02

On 16 September the Saudi Central Bank (SAMA) raised its repo rate by 25 basis points to 4.50% and its reverse repo rate to 4.00%, matching the US Federal Reserve's hike. Because the riyal is pegged to the dollar, local financing costs follow US policy rather than the domestic slowdown, which makes it more expensive to fund entry with local debt.

Saudi Central Bank (SAMA) · 2026-09-16

Houthi forces hit Saudi airports repeatedly. The worst incidents were a fire at the fuel storage area of Riyadh's King Khalid International Airport on 19 September, and strikes on Riyadh and Abha airports in early October that the civil aviation authority said killed at least three civilians and injured 36. The Houthis have also warned airlines that aircraft in Saudi airspace, outside Mecca and Medina, are targets, which directly threatens business travel and air cargo.

Al Jazeera (with AP and Reuters) · 2026-10-08

Lufthansa Group suspended flights to Riyadh through 16 October and Air India cancelled Riyadh services, while the US Mission now requires special authorisation for its staff to use King Khalid airport. US government staff are also restricted from travelling in Jizan, Asir and Najran provinces and in Qatif, Yanbu and Taif. Firms with expatriate staff should review travel policies, duty-of-care plans and alternative routings.

U.S. Mission Saudi Arabia · 2026-10-08

On 10 October the Saudi-led coalition reported large-scale strikes on 136 military targets in Houthi-held Yemen, aimed at the group's ballistic missile network, following the 9 October Riyadh airport attack that killed a Saudia pilot. This points to a widening conflict rather than de-escalation in the near term.

Arab News · 2026-10-10