AGP Executive Report

Security and Investment: Riyadh’s airport has reopened to limited flights, with Saudia and flynas operating while major foreign carriers have extended cancellations. Houthi attacks have also prompted Saudi Arabia to postpone its flagship investment conference until 2027. Economic Growth: Official figures show hotel numbers rose 31.6% in 2025 and operating factories increased 18.9%, reflecting continued expansion in tourism and manufacturing. Trade and Logistics: DP World has added 17 automated electric cranes at Jeddah’s South Container Terminal as part of an $800 million upgrade aimed at lifting annual capacity to five million TEUs. FedEx has also expanded road transport for dangerous goods across Saudi Arabia and four other Gulf markets. Food Supply: Saudi grain firms signed agreements with poultry producer Tanmiah to provide storage and source imported feed grains. Finance: Global Islamic finance assets reached $6.5 trillion in 2025, up 9%; Saudi Arabia remains among the sector’s leading markets.

Investment Climate: Saudi Arabia postponed its flagship Future Investment Initiative until 2027 after Houthi attacks, while Saudi stocks fell to their lowest close since April 2021. Britain plans defensive RAF patrols over the kingdom as security concerns disrupt travel and threaten critical infrastructure. Energy & Markets: Brent crude eased but remained near $109 a barrel, with attacks on Saudi energy sites and Gulf shipping keeping supply risks high. Projects & Property: Developer Arada launched its Saudi business with a SAR50 billion land portfolio and a $3.8 billion Riyadh residential project. The kingdom also approved 19 hospitality projects worth $1.8 billion; property prices rose 1.2% year on year in the third quarter despite a quarterly decline. Infrastructure: Saudi Railways carried 41 million passengers in the third quarter, while Sepco won a contract for a 500MW battery storage project.

Security and Markets: The UK will send RAF Typhoon jets on defensive missions over Saudi Arabia as Houthi attacks escalate, adding pressure to an economy already facing flight disruptions and market jitters. More than 45% of departures have been cancelled since October 8, and the Saudi benchmark fell 1.7% on Tuesday as oil climbed to a five-month high. Investment Climate: Saudi Arabia has postponed its flagship Future Investment Initiative conference until 2027 amid the attacks, delaying a major gathering for global investors. Real Estate: UAE developer Arada is entering Riyadh with a $3.8 billion residential project and plans to build 100,000 homes in Saudi Arabia over the next three to five years. Financial Services: Mastercard and Enjaz are teaming up to expand card offerings for consumers and businesses in the Kingdom.

Investment Climate: Saudi Arabia has postponed its flagship Future Investment Initiative in Riyadh until 2027 as Houthi attacks and travel disruption raise security concerns for global investors. Energy Markets: Brent traded near $109 a barrel as markets weighed Middle East supply risks. Saudi oil exports averaged 5.55 million barrels per day in the first half of October, putting them on track for their second-highest monthly level since the Iran-US war began. Tourism Investment: Indonesia’s Danantara fund completed the purchase of a 4.4-hectare plot in Makkah, adding to its hotel investment as it plans a complex for pilgrims with retail and accommodation. Hospitality Pipeline: Saudi ministries announced the first projects approved under a program designed to lower costs and attract private investment in tourism destinations.

Investment Events: Organisers have ruled out in-person attendance at Riyadh’s Future Investment Initiative on Oct. 26–29 and are weighing a virtual event or postponement as Houthi attacks disrupt travel. Travel Disruption: King Khalid International Airport has restricted take-offs and landings to flights with prior approval, with several airlines suspending service—raising fresh risks for business travel and major events. Real Estate: Thakher Development completed a SAR 2 billion sale of Makkah hotel towers and development plots to Indonesia’s Danantara sovereign wealth fund, a major international investment under the kingdom’s new property ownership rules. Financial Services: Saudi wealth managers are expanding into private markets and broader client segments, while facing pressure to build stronger advisory services and technology systems. Economic Outlook: SAMA Governor Khaled Al-Jadaan says the Saudi economy remains resilient, with infrastructure and alternative energy routes helping sustain oil supplies and regional trade.

Energy and resilience: Finance Minister Mohammed Al-Jadaan said Saudi investment and reforms helped cushion global energy shocks. But Houthi threats are raising shipping costs and disrupting Red Sea routes; Saudi crude exports through Bab al-Mandeb reached about 1.5 million barrels a day by Oct. 12, roughly half pre-war levels. New growth markets: Chinese automakers are expanding across the Gulf, bringing EVs, hybrids and battery technology into a region upgrading transport infrastructure. Industry and food security: GCC industrial investment has reached about $426 billion, supporting nearly 22,000 factories and 1.7 million jobs. Qatar-backed Rasmal Ventures’ Aqua Development is also promoting Gulf shrimp farming to address supply-chain risks in a $72 billion global market.

Economic Outlook: Saudi Central Bank Governor Ayman Al-Sayari said the economy remains resilient, backed by strong financial buffers and a well-capitalized banking system, while warning that regional conflict is disrupting trade and shipping and adding pressure to inflation and financial conditions. Energy and Trade: Saudi and Russian foreign ministers reaffirmed cooperation within OPEC+ and pledged to expand trade and investment ties, while voicing concern over tensions near the Bab el-Mandeb Strait and the safety of shipping. Investment: Saudi Arabia’s foreign investment inflows rose 33.5% to SR159.1 billion in 2025, according to a recent report. Tourism Regulation: The Saudi Red Sea Authority introduced licensing, inspection, insurance and environmental requirements for recreational boat operators, aiming to raise safety and service standards as coastal tourism grows. Sustainability: Saudi Arabia placed 29 executives on Forbes Middle East’s 2026 sustainability leaders list, second-most in the region.

Energy and Shipping Risk: Saudi Arabia said it intercepted four drones over Riyadh, the Eastern Province and the south, while two tankers were attacked off its Gulf coast; crews were safe. With Houthi strikes also targeting energy assets and Brent approaching $110 a barrel, supply disruptions and higher shipping costs remain concerns. Global Outlook: IMF officials, led by committee chair and Saudi Finance Minister Mohammed Al-Jadaan, warned that wars, energy shocks, trade tensions and debt threaten growth despite global resilience. Al-Jadaan said Saudi investments and alternative energy routes have helped cushion the shock. Investment: Saudi FDI inflows rose 33.5% to $42.4 billion in 2025, according to a new report.

Shipping and Energy Risk: Tankers were attacked in separate incidents off Jubail, with one damaged by a rocket-propelled grenade and another hit by an unknown projectile; crew members were safe. Off Yemen, a small boat fired at an LNG tanker before its security team turned it away. The attacks add to supply concerns as Brent approaches $110 a barrel. Economic Outlook: IMF chief Kristalina Georgieva cited both resilience and mounting worries over inflation, debt and conflict. Saudi Finance Minister Mohammed Al-Jadaan warned that conflict and supply-chain disruption are raising economic costs and price pressures. Investment: Saudi Arabia’s FDI inflows rose 33.5% in 2025 to about $41.7 billion, while its investment stock reached $278 billion, according to official figures.

Energy Markets: Brent crude climbed to $110 a barrel as Houthi attacks on Saudi targets and renewed risks to shipping through the Strait of Hormuz stoked supply fears. Saudi Arabia says investments in alternative export routes can help keep energy and trade flowing. Business Disruption: Riyadh’s airport shutdown and widespread flight cancellations are stranding travellers and disrupting business travel. Financial firms have shifted some staff to remote work, while major events and the EU-Gulf summit face delays amid security concerns. Economic Outlook: The IMF has warned Gulf economies could contract by 4.8% this year and take time to recover, putting pressure on Saudi Arabia’s diversification ambitions. Yet Saudi FDI inflows rose 33.5% to $42.4 billion in 2025, and September inflation held at 1.9%.

Security and Business: Saudi air defenses intercepted two cruise missiles over the Red Sea and a drone headed toward the Eastern Province as attacks on airports and Aramco heighten risks to travel, energy infrastructure and investor confidence. Flight suspensions and postponed regional events are adding to disruption. Energy and Trade: Finance Minister Mohammed Al-Jadaan said investments in alternative export routes help protect energy supplies and trade flows, as shipping risks mount. Economic Outlook: The IMF warns Gulf economies may take years to regain their pre-war growth paths. Saudi Arabia’s 2025 foreign investment inflows rose 33.5% to $42.4 billion, while inflation held at 1.9% in September.

Economic Outlook: The IMF says Saudi Arabia and the UAE have weathered the regional shock better than some neighbours thanks to alternative export routes and financial buffers, but those cushions are narrowing. The fund warns Gulf economies may take years to regain their pre-war growth paths. Business Disruption: Houthi attacks on airports and Aramco facilities, alongside shipping risks, are unsettling markets and delaying major events. Saudi Finance Minister Mohammed Al-Jadaan says investment in alternative routes is helping keep energy supplies and trade moving. Investment and Prices: Saudi FDI rose 33.5% to $42.4 billion in 2025, while inflation held at 1.9% in September. SME Finance: Foodics has invested in Funding Souq to offer embedded financing to restaurant businesses in Saudi Arabia and the UAE, as the restaurant technology firm expands into financial services.

Economic Resilience: At the G20 finance meeting in Bangkok, Finance Minister Mohammed Al-Jadaan said Saudi investments in alternative transport routes are helping keep energy and trade flowing amid shipping disruption. Inflation: Consumer inflation held at 1.9% year-on-year in September, while wholesale prices rose 4.2%, adding to concerns that higher shipping costs could feed through to businesses. Markets and Investment: Saudi shares fell 0.3% on Thursday as Houthi threats and the strike on Aramco’s Dhahran offices weighed on sentiment; Brent traded near $105 a barrel. The attacks have also postponed the EU-GCC summit and disrupted other major events. PIF Strategy: The fund’s assets topped $900 billion at end-2025 and it contributed an estimated 11% of non-oil GDP, but its new 2026–30 strategy comes amid weaker recent returns, rising debt financing and uncertainty around some investments. Foreign Investment: Saudi FDI inflows rose 33.5% in 2025 to SR159.1 billion, led by construction and manufacturing.

Energy and Markets: A Houthi strike caused a limited fire at an administrative building at Saudi Aramco’s Dhahran headquarters, while missile debris injured four people in Riyadh. Saudi forces intercepted another missile aimed at the capital on Wednesday. Brent crude rose above $106 a barrel as attacks on Saudi energy sites and shipping through the Strait of Hormuz heightened supply fears. Investment and Travel: Organisers are preparing hybrid attendance and alternative routes for Riyadh’s Future Investment Initiative, scheduled for Oct. 26–29, as airport disruption clouds business travel. Regional Cooperation: Turkey says it is discussing a major electricity link with Saudi Arabia, Jordan and Syria. Iraq’s prime minister, on his first official visit to Riyadh, is also set to discuss economic cooperation and regional security with Saudi leaders.

Energy Security: A Houthi missile strike sparked a fire at an Aramco administrative building in Dhahran. Saudi authorities reported no casualties and a limited fire; Reuters sources said several floors were badly damaged, though operations continued and some staff were told to work from home. The Houthis threatened further attacks on oil sites and airports. Markets: Saudi shares fell 1.7% as investors weighed the risk to energy infrastructure, while oil climbed above $105 a barrel on supply concerns. Riyadh airport remains closed until October 17, disrupting travel and business. Regional Cooperation: Saudi Arabia signed energy agreements with Kuwait, Qatar and Egypt covering electricity, renewables, oil, gas, storage and infrastructure—an effort to deepen cross-border cooperation amid mounting uncertainty.

Energy Risk: A Saudi Aramco administrative building in Dhahran came under attack, sparking a limited fire with no reported injuries. Missile debris injured four people in Riyadh and damaged 15 homes, while Saudi forces said they intercepted further missiles and drones. Brent crude climbed above $107 a barrel as traders weighed the threat to Saudi supply. Travel and Trade: Riyadh’s King Khalid International Airport is closed until October 17, prompting flight cancellations and disrupting a key business hub. Economic Outlook: The IMF has projected a contraction in Saudi GDP this year as conflict, higher spending and disruption weigh on growth and diversification plans. Supply Resilience: Saudi Arabia is also pursuing plans to raise East-West Pipeline capacity to 10 million barrels a day, strengthening export options amid regional shipping risks.