The comprehensive study, spanning 19 markets worldwide, delves into the preferences and behaviors of consumers in the KSA, providing valuable insights into their outlook compared to their global counterparts

JEDDAH — In a positive spot in the world, Saudi Arabia radiates an optimistic glow, as a remarkable 71% of its population expresses confidence in the future. Surpassing the global average of 43%, this buoyant consumer sentiment unfolds in the latest Toluna Global Consumer Barometer.

The comprehensive study, spanning 19 markets worldwide, delves into the preferences and behaviors of consumers in the KSA, providing valuable insights into their outlook compared to their global counterparts.

The research indicates that a substantial 64% of KSA residents report heightened satisfaction with their current life and a greater sense of optimism about their future, surpassing the global average of 45%.

However, a noteworthy 25% of residents express concerns over personal financial security, attributing them to prevailing global and economic circumstances.

In response to economic uncertainties, KSA residents are taking proactive steps in financial planning. Notably, 29% plan to reduce spending on books and magazines, recognizing the abundance of online resources.

Similarly, 28% intend to cut back on luxury product or service expenses, while 24% will trim their entertainment and subscription budgets.

Additionally, 22% are opting to dine out less, 22% will curtail leisure activities and hobbies, 19% plan to spend less on vacation holidays, and 20% will refrain from buying new cars.

Looking ahead, the study sheds light on anticipated grocery shopping behavior in the next three months. Key drivers for KSA consumers include price, health, product availability, and quality.

Moreover, 45% of shoppers plan to reduce unnecessary purchases, and 39% will compare prices online and offline.

Other strategies include shopping more often to avoid waste and secure the best deals (31%), visiting more stores in search of value (28%), shopping less often but in bulk (30%), switching to cheaper brands (26%), and adjusting the number of snacks purchased (28%).

Georges Akkaoui, enterprise account director & office leader MEA at Toluna, commented on the findings, stating, "These findings reflect the current economic sentiment and consumer behavior in the KSA.

“Amidst positive signals, consumers are seeking value and reliability in their choices. Brands prioritizing quality, affordability, and sustainability will resonate most with today's savvy shoppers."

The study also outlines anticipated spending behavior in the coming quarter, with 26% planning to allocate more towards groceries, 19% towards mobile phones, 26% towards vitamins and minerals, 23% towards food takeaway, 19% towards sports and fitness, 18% towards life insurance, private health insurance (19%), and gaming (15%).

Source: Zawya

Around $1 trillion worth of preliminary investments will pour into Saudi Arabia’s six key sectors by 2030, as the kingdom implements a wave of reforms to transform its economy, according to Goldman Sachs Research.

Of the estimated investments, which are part of the $3.3 trillion targeted by the kingdom’s National Investment Strategy (NIS), $245 billion will be spent on upstream energy, while $100 billion and $170 billion will go to downstream energy, and metals and mining, analysts at the global investment banking said.

The transport and logistics sector will see around $150 billion, while total investments in ICT and digital transformation will reach $147 billion. Renewable energy, EV production and clean hydrogen will see investments reach around $120 billion, $50 billion and $36 billion, respectively, through the end of the decade.

The said sectors are already benefiting from increased investment, Goldman Sachs noted, adding that they are likely to drive a “capex supercycle” through the end of the decade.

“Within six strategic sectors, we see scope for nearly $1 trillion in preliminary investments through the end of the decade across investment programs, with more projects to be announced in tandem with technological progress and as Saudi accelerates execution of mega-projects and smart cities,” wrote Goldman Sachs Research analyst Faisal AlAzmeh in a team report.

In one of its latest briefings, Goldman Sachs noted that Saudi Arabia’s focus on diversifying its economy is already showing results.

The kingdom launched NIS in 2021 as a crucial enabler for achieving Vision 2030, the government’s blueprint for economic transformation. Its focus is to strengthen the role of foreign direct investment (FDI), which is expected to grow to 3.4% of GDP by 2025 and 5.7% by 2030.

A key pillar of the NIS is Shareek, a 2021 program that seeks to expand domestic investment made by private sector businesses to $1.3 trillion by 2030.

Some of the plans to boost investments

Among the sectors in focus, Saudi’s clean technology is set to see additional 60 gigawatts of renewable energy capacity and two to three GW of nuclear energy capacity by 2030.

In metals and mining, Saudi Arabia announced a new investment law in 2021 to facilitate the issuance of mining licenses and leverage an estimated $1.3 trillion worth of metals and minerals that are said to be “vastly unexplored”.

To boost its transportation and logistics sector, Saudi launched recently an updated National Transport and Logistics Strategy, a Saudi Aviation Strategy and a new national airline. There are also plans to expand the King Salman International Airport.

As for digital transformation, the country’s telecommunications providers are focused on network capacity expansion, particularly 5G and fiber-to-home services.

source: Zawya

The private credit fund Ruya Private Capital I LP, run by Ruya Partners, has received a $10 million investment from Saudi Venture Capital (SVC).

Founded in 2020 by Omar Al Yawer, Mirza Beg and Rashid Siddiqi, Ruya Partners is an independent private credit firm that provides funding solutions to private sector companies in developing markets.

The fund will focus on providing capital solutions in the form of private debt instruments to SMEs, with a concentration on mid-market companies, including late-stage venture capital-backed businesses in Saudi Arabia and the region.

Press release:

Saudi Venture Capital (SVC) announced its investment of $10 million in "Ruya Private Capital I LP," a private credit fund managed by Ruya Partners.

The fund will focus on providing capital solutions in the form of private debt instruments to SMEs, with a concentration on mid-market companies, including late-stage venture capital-backed businesses, in Saudi Arabia and the region.

The subscription agreement was signed by Dr. Nabeel Koshak, CEO and Board Member at SVC, and Omar Al Yawer, Partner at Ruya Partners.

The signing ceremony was also attended by Nora Alsarhan, Chief Investment Officer, and Haifa Bahaian, Chief Legal Officer at SVC, as well as Mirza Beg and Rashid Siddiqi, Founding Partners at Ruya Partners.

Dr. Koshak commented: "The investment in the private credit fund managed by Ruya Partners is part of SVC's Investment in Funds Program. The investment also comes as a result of the increasing demand for venture debt and private debt by Saudi startups and SMEs and to implement SVC's strategy related to the launch of the "Investment in Venture Debt Funds and Private Debt Funds" product to fill financing gaps in the ecosystem".

"We are honored to have received this commitment of capital and trust from SVC and look forward to a successful partnership together," stated Omar Al Yawer.

The Founding Partners Mirza Beg and Rashid Siddiqi added: "We firmly believe that offering private credit capital solutions to companies in a manner which is non-dilutive to shareholders will serve as a powerful catalyst for their future growth and should contribute towards the continued expansion and development of the SME ecosystem."

SVC is a government investment company established in 2018 and is a subsidiary of the SME Bank, one of the developmental banks affiliated with the National Development Fund. SVC aims to stimulate and sustain financing for startups and SMEs from pre-Seed to pre-IPO by investing $2 billion through investment in funds and co-investment in startups. SVC invested in 43 funds that have invested in 700+ companies.

Source: Wamda

Saudi Arabia and Switzerland hosted the first-ever Saudi-Swiss CleanTech Forum in 2023. The event brought together Swiss companies and small and medium-sized enterprises (SMEs) to showcase innovative solutions to address global challenges, combat climate change, and promote sustainability.

The forum was a partnership between the Embassy of Switzerland in Saudi Arabia, the Research, Development and Innovation Authority (RDIA), and King Abdulaziz City of Science and Technology (KACST). It aimed to boost international trade and economic ties between the two nations.

Discussions at the forum also revolved around the benefits of Saudi Arabia's Vision 2030, which strives to make the country a major industrial power and a global logistics hub.

In his keynote speech, Saudi Arabia's Minister of Economy and Planning, Faisal bin Fadel Al-Ibrahim, highlighted the importance of the partnership between Saudi Arabia and Switzerland, as well as the challenges facing the environment. He also stated that Saudi Arabia is a leading country in the Middle East for private sector investment, with around $5.5 billion invested in 2022.

Al-Ibrahim mentioned several significant projects, including the NEOM green hydrogen projects and a carbon capture facility. The NEOM green hydrogen projects, which are expected to be commissioned in 2026, will be the world's largest green energy facility and will be powered entirely by renewable energy.

Switzerland is known for its innovation and utilizes a "bottom-up" approach, with the government focusing on education and fundamental research to support companies. In an interview with Arab News, Helene Budliger Artieda, Swiss State Secretary for Economic Affairs, explained that the government's primary role is centered on funding a robust education system and supporting fundamental research at universities.

Artieda added that transitioning to a greener world is a key priority for both Saudi Arabia and Switzerland. She highlighted Switzerland's expertise in areas such as railways and water treatment and management. She also mentioned that there are various investment opportunities that Switzerland might be interested in, such as the Kingdom's vast areas, abundant solar parks, and green hydrogen initiatives.

Artieda emphasized the presence of numerous niche opportunities in the Kingdom, including investments in sustainable Saudi fashion. She noted that Switzerland has a well-established textile industry. She also expressed interest in the significant developments occurring in the global fashion industry, implying that Saudi Arabia is eager to align with global trends and standards, particularly those related to sustainability.

On Sunday, Artieda held a meeting with the minister of economy and planning to discuss ways to expand economic relationships, explore the potential for trade and investment collaboration between their respective countries, and review topics of mutual interest. She emphasized the significance of establishing a robust framework to facilitate this cooperation.

Additionally, the Saudi Press Agency reported on Sunday that Saudi Arabia's National Industrial Development and Logistics Program (NIDLP) organized a Saudi-Swiss symposium in Riyadh. The event had several objectives, including shedding light on the Kingdom's economic transformation and exploring investment opportunities between Saudi Arabia and Switzerland.

Saudi Arabia's non-oil exports to Switzerland are valued at around SR3.5 billion ($0.93 billion), while total imports from Switzerland into the Kingdom stand at approximately SR8 billion.

Overall, the Saudi-Swiss CleanTech Forum was a successful event that highlighted the importance of innovation and sustainability in addressing global challenges. The partnership between Saudi Arabia and Switzerland is a positive step towards achieving these goals.