EXECUTIVE SUMMARY

Is rarely out of the headlines, but what is happening sector to sector?

forts and has made some key acquisitions itself while encouraging further technology transfer.

TRANSPORT & LOGISTICS

An agreement was signed in February 2019 between Saudia Cargo and King Abdullah Port to establish a secure logistical operations zone, which followed the official inauguration of the port by Crown Prince Mohammed bin Salman. Contract renewals for Jeddah Islamic Port pushed players to look for new hubs to develop, mainly Yanbu and Jazan, highlighting the strategic shift from East to West as the main trading coast. As for land transport, 2019 saw the inauguration of the Haramain High-Speed Railway, connecting Mecca, Jeddah, KAEC, and Medina, as well as the revamping of the strategic masterplan for Jeddah Metro.

AVIATION

The year that should see the official inauguration of the new Terminal at King Abdulaziz University has seen extensive reshuffling at the management level, both within the General Authority for Civil Aviation, which is stepping down from its role as an operator, and within various public and private industry companies. NEOM Airport was launched thanks to the efforts of Saudi Air Navigation Services (SANS), one of the few players in the industry that has consistently been delivering on its KPIs year after year. While Prince Sultan Aviation Academy celebrates its 60th anniversary, KAEC saw the opening of a new non-profit aviation academy, bound to reshape the future of the country’s aviation.

DIGITAL ECONOMY

The ongoing digital transformation is both intended to build better infrastructure for the private sector as well as improve the provision of public services. There has been a large pick up of cloud technology by both the public and private domain, with cybersecurity providers also taking a leap. In terms of telecommunications, the Kingdom is taking a regional lead in the roll out of 5G, catering to the insatiable demand for data from the young Saudi population.

REAL ESTATE & CONSTRUCTION

Revamping an industry following the combined fall of Saudi bin Laden and Saudi Oger, not to mention oil prices, has been an extremely challenging task for the Ministry of Housing, though developers and contractors have started to see the light at the end of the tunnel. New board strategies, nimbler business models, and endto-end services are returning the real estate sector to prosperity in the medium term, while the announcement of megaprojects and infrastructural development leaves the construction industry with

FOOD & AGRICULTURE

As a result of the decision to cut water supplies for agricultural purposes, new agricultural techniques have spread around the Kingdom in order to meet the long-lasting goal of food security. While the Saudi Agricultural and Livestock Investment Company (SALIC) and Agricultural Development Fund (ADF) engage in investment and lending efforts to support the financial feasibility of the sector, at the end of the supply chain the F&B sector continues to grow at steady rates, despite labor fees impacting operational costs. New concepts, both at the fine dining and casual cafe level, keep blossoming in Riyadh and Jeddah, with a new wave of rising stars.

HEALTH

The healthcare sector is one of the testing grounds for the digital transformation of Vision 2030, with strong coordinated efforts to develop unified patient records and better monitoring systems, including those for health insurance through the Council of Cooperative Health Insurance (CCHI). The restructuring through medical cities with more primary health centers is continuing to offload the current pressure on specialist care. The Ministry of Health is offloading more of its services to the private sector, while the Saudi Food and Drug Authority (SFDA) incentivizes the local pharmaceutical industry.

EDUCATION

Niche education institutes are spreading around the Kingdom in an effort to provide young Saudis with the necessary skills required by a dynamic workforce. Vocational training is bound to be reshaped into the realm of entrepreneurship, as the Kingdom’s economy is in desperate need of new business proposals of small and medium scale. Universities are faced with the need to directly access the market and be financially independent, while at the same time obtain the necessary international accreditations and recognition to fare well in global rankings.

ENTERTAINMENT, CULTURE & SPORTS

Entertainment was the talk of the town in 2019, with many events and activities presented to audiences for the first time. Governed by Vision 2030’s Quality of Life program, authorities for sports and entertainment were incepted, while the Saudi Seasons agenda helps ensure activates are spread all over the Kingdom according to a national calendar. Several greenfield megaprojects, including the Amaala “Red Sea Riviera” project and NEOM, a planned city in Tabuk Province, have broken ground, whilst other projects including Diriyah Gate and AlUla focus on preserving the unique cultural heritage of the Kingdom. ✖