Egypt’s annual inflation slows to 13.9% in July/node/2611338/business-economy
Egypt’s annual inflation slows to 13.9% in July
According to data, fruit prices plunged 11 percent, vegetables fell 7 percent, and meat and poultry were down 4.9 percent. File/Reuters
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NADIN HASSAN
Egypt’s annual inflation slows to 13.9% in July
Fruit, vegetable, and meat prices record steep declines
Hotels and restaurants recorded a 0.6% increase
Updated 16 sec ago
NADIN HASSAN
RIYADH: Egypt’s annual urban inflation rate eased to 13.9 percent in July, down from 14.9 percent the previous month, as falling food costs helped temper price pressures, official data showed.
Figures from the Central Agency for Public Mobilization and Statistics revealed that the monthly inflation rate declined by 0.6 percent, with the general consumer price index standing at 256.5 points.
The moderation was largely driven by significant drops in key food categories. Fruit prices plunged 11 percent, vegetables fell 7 percent, and meat and poultry were down 4.9 percent. Personal belongings also recorded a marginal decline of 0.5 percent.
However, price increases persisted in some segments. Grains and bread rose 0.4 percent, while dairy products, eggs and cheese each edged up 0.2 percent. Fish and seafood prices also gained 0.2 percent, as did beverages, coffee, tea and cocoa, while mineral water, soft drinks and natural juices climbed 0.8 percent.
Outside the food sector, inflation trends were mixed. Tobacco products saw the steepest rise at 7.8 percent. Clothing and footwear gained 0.3 percent, supported by a 0.4 percent increase in ready-made garments and a 0.2 percent rise in footwear.
FASTFACT
HIGHLIGHTS
Monthly inflation fell 0.6 percent, with the CPI at 256.5 points.
Tobacco increased 7.8 percent, while housing costs rose 0.7 percent.
Some food categories, including grains and bread, posted modest increases.
Housing costs advanced 0.7 percent, driven by a 0.8 percent increase in actual rents and a 1.7 percent rise in home maintenance expenses.
Furnishings, household equipment and routine maintenance were up 0.7 percent, home textiles rose 2.6 percent, glassware and tableware 0.6 percent, and gardening and household tools 1.2 percent.
Healthcare prices climbed 0.3 percent, reflecting a 0.6 percent increase in outpatient services and a 1.1 percent jump in hospital fees.
Transportation costs edged higher by 0.1 percent, boosted by a 0.2 percent increase in vehicle purchases and a 0.3 percent rise in private transport expenses.
Communication services rose 0.6 percent, while recreation and culture gained 0.3 percent, supported by higher spending on cultural and entertainment activities and organized tourist trips.
Hotels and restaurants recorded a 0.6 percent increase, with ready meals up 0.5 percent and hotel services up 1.5 percent. Miscellaneous goods and services grew 0.7 percent, led by a 1.2 percent rise in personal care items.
Saudi ports post 12% rise in July container volumes
Updated 37 sec ago
Nour El-Shaeri
RIYADH: Ƶ’s ports handled 722,502 twenty-foot equivalent units in July, marking a 12.01 percent year-on-year increase as infrastructure upgrades and expanded logistics services boosted throughput.
According to the Saudi Ports Authority, also known as Mawani, the gain was led by a 35.34 percent jump in transshipment volumes to 175,666 TEUs, while export containers climbed 12.86 percent to 275,098 TEUs. Imports recorded a modest 0.10 percent rise to 271,738 TEUs.
The July performance follows strong growth in May, when Saudi ports handled 720,684 TEUs, up 13 percent year on year.
The uptick in activity supports the goals of Ƶ’s National Transport and Logistics Strategy, which aims to position the Kingdom as a global logistics hub under Vision 2030.
In a release, Mawani stated: “These increases reflect the expansion of trade exchange with global markets, the stimulation of sectors related to maritime transport, the enhancement of supply chain efficiency, the growth of maritime activity, the support of the Kingdom’s food security, the expansion of economic activity, and the creation of jobs.”
Total cargo tonnage, comprising general cargo, dry and liquid bulk, grew 2.81 percent to 21.1 million tonnes from 20.6 million tonnes a year earlier. General cargo reached 461,958 tonnes, dry bulk 4 million tonnes, and liquid bulk 16.6 million tonnes.
Livestock imports climbed 13.18 percent to 582,708 head. The number of ships calling at Saudi ports rose 11.27 percent to 1,017, passenger traffic grew 41.70 percent to 73,953, while vehicle volumes fell 22.66 percent to 69,969 units.
Maritime traffic expanded by 11.27 percent to 1,017 ships from 914 ships last year. Passenger numbers climbed 41.70 percent to 73,953 compared to 52,191 a year earlier, while vehicle volumes fell 22.66 percent to 69,969 units.
In August, Mawani signed an SR500 million ($133.2 million) contract with Petrotank to establish an integrated marine bunkering hub at King Fahad Industrial Port in Yanbu, a project aimed at enhancing fuel storage and bunkering capacity, attracting more vessels, and boosting the competitiveness of Saudi ports.
Spanning 110,700 sq. meters and operating under a 20-year lease, the facility will boost fuel and oil storage capacity, increase vessel traffic, and strengthen the Kingdom’s competitiveness in global shipping.
Deflation to shape global outlook despite inflation risks, QNB says
Bank says global economy has entered new phase characterized by structural fluctuations
Shifts in prices of key goods and services remain among most closely monitored macroeconomic indicators
Updated 13 min 33 sec ago
Miguel Hadchity
RIYADH: Long-term deflationary forces are set to dominate global trends, interrupted by brief inflation surges triggered by geopolitical and structural shocks, Qatar National Bank has warned.
In its weekly report, carried by the Qatar News Agency, the bank said the new macroeconomic phase will be defined by structural fluctuations, not a purely inflationary or deflationary environment, with prices periodically jolted by supply disruptions and policy shifts.
The assessment comes as the International Monetary Fund forecasts global inflation to ease to 4.2 percent this year and 3.6 percent in 2026, even as major economies send mixed signals, with US consumer prices rising 2.7 percent year on year in June and China’s consumer price index edging up to 0.1 percent after months of decline.
“The bank pointed out that the global economy is no longer stable in a purely inflationary or contractionary environment, but has entered a new phase characterized by structural fluctuations,” QNA reported.
It said shifts in the prices of key goods and services remain among the most closely monitored macroeconomic indicators, alongside economic growth rates, as they directly impact purchasing power, consumer confidence, investment decisions, and monetary policy.
Inflation vs. deflation
While moderate inflation is considered normal and even necessary for economic growth, QNB said excessive inflation or sharp deflation can lead to structural imbalances and long-term economic disruptions.
The report cited the “Great Moderation” in advanced economies as an example of stable growth under controlled inflation. However, it cautioned that central banks’ aggressive monetary tightening in response to inflation can also trigger recessions or financial stress.
QNB’s report said some geopolitical development could have deflationary consequences by reducing efficiency and demand, under certain conditions. QNA
On the other hand, deflation — a sustained drop in price levels — often signals deeper structural weaknesses, such as weak demand, financial deleveraging, or demographic decline. While falling prices may seem beneficial at first glance, QNB said they can reduce consumption, delay investment, increase real debt burdens, and trap economies in a low-growth cycle.
Japan’s “Lost Decade” was cited as a prime example of deflation’s damaging long-term effects, with other major economies facing similar challenges after the 2007-08 financial crisis.
Post-pandemic uncertainty
The report said the post-COVID-19 era, combined with supply shocks, led to unusually high inflation, but economists remain divided on whether inflation or deflation will dominate in the medium to long term.
QNA said “some analysts highlight that one of the main reasons why inflation is returning to the fore as a source of economic concern lies in the disintegration of many structural factors that supported the Great Moderation.”
Rising geopolitical fragmentation has disrupted global trade, while supply chain reconfigurations, green transition costs, and demographic pressures could keep inflation structurally higher.
Others believe technology-driven deflationary forces will prevail. Innovations in automation, artificial intelligence, and digital services continue to reduce costs, offsetting inflationary pressures.
A July report by Morgan Stanley said the ongoing AI wave continues to dominate global markets, with significant investments projected in data centers.
The report forecasted that global data center spending would reach $2.9 trillion by 2028, covering hardware such as chips and servers, and infrastructure, including construction and maintenance.
QNB’s report also said some geopolitical developments, including trade fragmentation, could have deflationary consequences by reducing efficiency and demand, under certain conditions.
Saudi industrial output jumps 7.9% in June on manufacturing gains
Updated 37 min 29 sec ago
Nirmal Narayanan
RIYADH: Ƶ’s industrial production climbed 7.9 percent year on year to 111.9 in June, driven by a sharp rebound in manufacturing and higher crude output, official data showed.
Figures from the General Authority for Statistics also revealed a 1.6 percent month-on-month rise in the Industrial Production Index, underscoring momentum in the Kingdom’s non-oil economy.
The IPI, which measures changes in industrial output across mining, manufacturing, utilities, and waste management, is a key indicator for Ƶ’s Vision 2030 diversification drive.
The June IPI figure, reflecting continued growth in the manufacturing sector, affirms Ƶ’s progress in its economic diversification efforts aimed at reducing its decades-long reliance on crude revenues.
In its latest report, GASTAT stated: “Preliminary results indicate a 7.9 percent increase in the IPI in June 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity, electricity, gas, steam, and air conditioning supply activity and water supply, sewerage and waste management and remediation activities.”
Mining and quarrying — which include crude oil production — increased 6 percent annually as Saudi output rose to 9.36 million barrels per day, up from 8.83 million bpd in June 2024.
The authority revealed that the sub-index for manufacturing activities rose 11.1 percent year on year in June, supported by an increase in the manufacture of coke and refined petroleum products, which jumped 15.3 percent, and the production of chemicals and chemical products, which rose 18.7 percent.
In May, a separate report released by GASTAT revealed that the Kingdom’s gross domestic product grew 2.7 percent year on year in the first quarter, driven by strong non-oil activity.
Commenting on the GDP figures, Ƶ’s Minister of Economy and Planning, Faisal Al-Ibrahim, who also chairs GASTAT’s board, said at the time that the contribution of non-oil activities to the Kingdom’s economic output reached 53.2 percent — an increase of 5.7 percent from previous estimates.
The sub-index of electricity, gas, steam, and air-conditioning supply activity increased 5.6 percent in June, compared to the same month in 2024.
The authority added that the sub-index of water supply, sewerage, waste management, and remediation operations increased 6.9 percent year on year in June.
Overall, the index of oil activities advanced 7.7 percent year on year in June, while the index of non-oil activities rose 8.6 percent during the same period.
On a monthly basis, manufacturing activity in Ƶ increased 1.4 percent, supported by growth in the production of coke and refined petroleum products, which rose 1.7 percent.
Compared to May, mining and quarrying activities in the Kingdom also increased 1.9 percent in June.
Overall, the index of oil activities increased 1.9 percent in June from May, while non-oil activities expanded 1.1 percent during the same period.
The Industrial Production Index measures changes in industrial output based on the International Standard Industrial Classification framework, covering mining, manufacturing, utilities, and waste management sectors.
S&P Global data show the Kingdom’s non-oil private sector remained robust in July, with its Purchasing Managers’ Index at 56.3, outpacing the UAE at 52.9, Kuwait at 53.5, and Qatar at 51.4.
Saudi cement sales jump 21% in Q2 as mega-projects fuel demand
Updated 47 min 12 sec ago
Dayan Abou Tine
RIYADH: Ƶ’s cement sector registered a sharp upswing in the second quarter of 2025, with total sales by the Kingdom’s 17 producers reaching 13.13 million tonnes.
According to figures by Al-Yamama Cement, this marks a 21 percent increase compared to the same period last year.
The rise was driven almost entirely by local demand, which accounted for 97 percent of all dispatches and increased by 23 percent year on year. In contrast, export volumes decreased by 16 percent, accounting for only 3 percent of total cement sales during the quarter.
Amr Nader, cement expert and CEO at A³&Co., told Arab News: “Key drivers based on our market analysis are, first, the mega projects activation: progress in Neom, ROSHN, Diriyah, and The Line translated into large batch cement drawdowns, particularly in Tabuk, Riyadh, and Eastern regions.”
According to Nader, another factor was seasonal acceleration. With both Ramadan and the Hajj season falling in the second quarter, periods when construction activity typically slows due to reduced working hours and labor availability, contractors advanced cement purchases.
This pre-holiday push to meet project milestones and complete concrete pours before the slowdown triggered a temporary spike in local cement sales early in the quarter.
An inventory depletion strategy is another reason. “Some companies pushed domestic sales aggressively to clear stock before summer fuel adjustments,” added Nader.
Ƶ has been accelerating its Vision 2030 agenda, channeling significant resources into mega-projects and infrastructure developments aimed at diversifying the economy.
This spending drive has been evident in recent budget reports, where planned increases in government expenditures have contributed to calculated fiscal deficits. According to the International Monetary Fund, these deficits are part of a deliberate strategy to complete priority projects while maintaining fiscal stability.
Public debt-to-gross domestic product remains within low-risk sovereign thresholds by global standards, supported by ample fiscal buffers and prudent debt management under the Fiscal Sustainability Program.
Company-level performance
At the company level, Al Yamama Cement led the market in the second quarter with 1.93 million tonnes sold locally, capturing a 15.2 percent market share. It was followed by Saudi Cement with 1.36 million tonnes, Qassim Cement with 1.14 million tonnes, and Yanbu Cement with 1.00 million tonnes.
While local sales soared, exports were comparatively weak. Saudi Cement remained the top exporter with 376,000 tonnes sold abroad, followed by Najran Cement at 50,000 tonnes and Eastern Province Cement at just 5,000 tonnes.
Nader said increased competition in target markets was a major factor behind the decline in cement exports. “East Africa and Yemen have seen rising local production, such as capacity expansions in Kenya and the reactivation of plants in Ethiopia, alongside aggressive pricing from Turkiye and Iran,” he said.
Other factors, according to the expert, included export quotas and licensing requirements, with several producers choosing to focus on clinker shipments due to their higher margins and simpler logistics.
Freight disruptions also played a role, as Red Sea security risks forced vessel rerouting, increasing lead times and shipping costs to East Africa and Yemen. This had a greater impact on bagged cement than on bulk clinker.
Additionally, customs and standardization delays in markets such as Sudan, Ethiopia, and Somalia contributed to shipment hold-ups and, in some cases, outright cancelations.
Clinker production and sales
Clinker production, the precursor to cement, also rose significantly during the quarter. Total clinker output reached 14.80 million tonnes according to figures by Al-Yamama Cement, reflecting a 12.6 percent year-on-year increase.
Saudi Cement was the leading producer with approximately 2.15 million tonnes. As kiln utilization increased to meet rising demand, producers also built up strategic inventories.
Clinker stockpiles climbed 2.85 percent from a year earlier, totaling 134.05 million tonnes by the end of June. Southern Province Cement held the largest inventory, with 20.15 million tonnes in stock.
Clinker exports outpaced cement shipments during the period. Saudi firms exported 1.63 million tonnes of clinker in the second quarter, marking a 39 percent annual increase.
The surge in clinker exports from Ƶ in the second quarter was driven by a combination of market and operational factors. According to Nader, higher global free-on-board prices, particularly in Asia and East Africa, made exports more lucrative than domestic cement sales.
Shipping advantages also played a role, as Red Sea constraints proved less problematic for bulk clinker vessels, especially via Yanbu and Jeddah ports. With an estimated 35–38 million tonnes of surplus clinker, producers maximized exports to manage inventories and avoid seasonal plant stoppages, while some benefited from foreign exchange gains through dollar‑denominated sales.
Key destinations included Bangladesh and Kenya, along with opportunistic shipments to Benin and Ghana, and steady short‑haul supply to Yemen’s grinding units.
Saudi cement prices among region’s lowest
“Ƶ continues to enjoy some of the most affordable cement prices in the region, largely because of fuel subsidies and domestic overcapacity,” Nader said.
As of August 2025, retail prices in most Saudi regions range between SR12.5 ($3.33) and SR14 per 50‑kg bag, which is approximately $67–75 per tonne, with the Eastern Region generally at the lower end due to its proximity to production plants and export hubs, Nader added. This stability has held despite stronger domestic sales and rising input costs.
Regionally, prices are often higher due to different cost structures and supply dynamics. In the UAE, bags typically sell for SR14–SR16, reflecting higher energy and import costs. In Oman, the range is SR13–SR14.5. In Egypt, prices are SR10–SR11 per bag, though high inflation and currency depreciation weigh on affordability, according to Nader.
In Jordan, prices reach SR15–SR16 because of limited domestic production and higher operating costs.
While Ƶ’s prices remain competitive, the sector continues to face margin pressures from rising fuel costs and periodic price competition among producers.
Nader described the situation as mixed across the industry. Average revenues for Saudi cement producers rose 15 to 20 percent year on year in the second quarter of 2025, reflecting higher domestic sales volumes and, in some cases, stronger clinker exports.
However, net profits were flat or down by up to 10 percent for many companies, as gross margins contracted from 26 to 30 percent in the second quarter last year to around 22 to 25 percent this year.
The squeeze on margins was driven by rising input costs, particularly fuel, explained Nader. Energy prices increased in line with ongoing regional fuel subsidy reforms, raising kiln operating costs.
Several companies also increased their use of alternative fuels, but many of these systems are still in early adoption stages and have not yet delivered the full efficiency gains expected. At the same time, logistics bottlenecks, including port congestion and Red Sea freight disruptions, pushed up distribution costs.
Performance varied significantly by player. Southern Cement and Eastern Province Cement were able to maintain margins, leveraging strong export channels to offset local price pressures.
In contrast, companies like Qassim Cement and Tabuk Cement, which rely heavily on local bagged cement sales and have less flexibility in fuel sourcing, saw sharper profitability declines.
While the second quarter brought clear revenue gains, persistent margin pressure meant that only the most operationally efficient producers, those with vertical integration, strong export channels, or advanced fuel optimization, were able to turn the sales surge into significant profit growth.
Ƶ’s transportation boom opens doors for private investment
Private entities expected to contribute around 80% of targeted investments in the sector
Updated 10 August 2025
Nirmal Narayanan
Ƶ’s transportation boom opens doors for private investment
RIYADH: Ƶ’s rapidly expanding transportation sector is unlocking new investment opportunities for private players, both local and global, experts have told Arab News.
Central to the Kingdom’s Vision 2030 strategy, transportation development is seen as a key enabler for economic diversification and the drive to position Ƶ as a global logistics, tourism, and business hub.
With a growing emphasis on public-private partnerships, Minister of Transport and Logistic Services Saleh Al-Jasser announced during the third PIF Private Sector Forum, held in Riyadh in February, that private entities are expected to contribute around 80 percent of the targeted investments in the country’s transport and logistics sector.
He added that the total value of projects offered to the private sector — through privatization and other models — could reach SR240 billion ($63.95 billion).
Joseph Salem, executive at Arthur D. Little, Middle East. (Supplied)
Joseph Salem, partner and travel, transportation and hospitality practice lead at Arthur D. Little, Middle East, told Arab News that public-private partnerships are at the core of this strategy.
“Privatization of key transport infrastructure, such as ports and airports, is creating new opportunities for private investment,” he said, adding: “The development and management of cargo terminals through PPP agreements are attracting private efficiency and capital. The construction and engineering sectors are also benefiting, with numerous megaprojects like the Riyadh Metro and Neom’s mobility network.”
Alessandro Tricamo, partner at Oliver Wyman’s transportation and services practice for India, the Middle East, and Africa, echoed similar sentiments and emphasized the importance of selecting suitable assets to attract investors.
“Globally, asset classes such as airports and seaports are typically considered bankable, with the potential to generate strong returns and attract private investment. Conversely, railways and public transport systems often require structured support from the government to become commercially viable,” said Tricamo.
Alessandro Tricamo, partner at Oliver Wyman’s transportation and services practice for India, the Middle East, and Africa. (Supplied)
He added: “In the Kingdom, there’s still a need to refine how these projects are structured and presented to the private sector, as expectations are sometimes misaligned with market realities. Clear, realistic frameworks will help unlock greater private sector involvement and broaden the Kingdom’s business landscape.”
The Kingdom’s logistics infrastructure is expanding rapidly. According to a report released by the General Authority for Statistics in December, the number of logistics facilities in the country has increased by 267 percent since 2021, with the Eastern Province leading in logistics hubs spanning 6.3 million sq. meters.
“Private companies are seizing opportunities in trucking, warehousing, freight forwarding, and e-commerce delivery services. Technology firms are also entering the market, offering solutions in AI, electric vehicles, and autonomous transport,” said Salem.
He added: “Overall, the transportation revolution in Ƶ is creating a more diversified and competitive business environment. Private sector involvement is key to realizing the Kingdom’s ambitious Vision 2030 goals.”
Transportation as a growth enabler
Anthoine Barthes, vice president of Al-Futtaim Automotive, told Arab News that transportation infrastructure underpins nearly every pillar of Vision 2030, acting as a foundation for economic growth.
Anthoine Barthes, vice president of Al-Futtaim Automotive. (Supplied)'/
According to Barthes, transportation is not only about mobility but also about creating links between economic zones, facilitating trade, drawing investment, enhancing quality of life, and boosting tourism.
“A key objective is for Ƶ to become a global logistics hub, and this requires state-of-the-art ports, efficient rail networks, extensive road infrastructure, and modern airports capable of handling significant cargo and passenger volumes,” said Barthes.
He also pointed to the Riyadh Metro — with its six lines spanning 176 km — as evidence of the Kingdom’s progress in developing effective public transport systems.
“These efforts, alongside continuous improvements to road infrastructure and the integration of smart city mobility solutions, are crucial for enhancing the quality of life, mitigating urban congestion, and fostering sustainable urban growth,” added Barthes.
Salem noted that infrastructure development supports the growth of multiple industries, including tourism and entertainment, with road upgrades linking key cities to rising destinations such as Qiddiya and Amaala.
He also highlighted how enhancements around Makkah and Madinah have improved accessibility for millions of religious visitors, reinforcing tourism and Umrah growth.
Integrated logistics backbone
Tricamo underlined that efficient logistics and supply chain management are fundamental to sustained economic development.
“A well-connected transport network that links urban and industrial centers and facilitates the smooth movement of goods and people is a key enabler of the Kingdom’s broader economic ambitions. It directly impacts the reliability, speed, and cost-effectiveness of supply chains,” said Tricamo.
Arthur D. Little’s Salem believes that infrastructure modernization and the integration of advanced technologies are strengthening the Kingdom’s global supply chain footprint. He pointed to Ƶ’s rise in the World Bank’s Logistics Performance Index, climbing 17 spots to rank 38th globally in 2023.
“Vision 2030 also focuses on expanding multi-modal freight capacity. The rail network will grow from 3,650 km to 8,000 km, enhancing logistics. Air cargo capacity is set to increase to over 4.5 million tonnes annually by 2030, while Saudi ports will handle up to 40 million TEUs,” said Salem.
He added: “Additionally, 40 new logistics centers across 100 million sq. meters will attract global companies, positioning Ƶ as a logistics hub. These efforts are expected to reduce logistics costs, improve reliability, and grow the sector to $57 billion by 2030.”
Impact on the business landscape
Barthes said ongoing advancements in the Kingdom’s transport infrastructure are expected to reshape the business environment.
He noted that reduced logistics costs, quicker deliveries, and agile supply chains will benefit a wide range of industries.
“A world-class infrastructure is a primary magnet for foreign direct investment. International companies are more willing to establish operations, knowing they can efficiently move goods and people,” said Barthes.
Salem emphasized how transportation development enhances the ease of doing business and improves trade connectivity through upgraded logistics hubs.
“The growth of tourism, retail, and real estate sectors is another benefit. Better transportation networks make it easier for people to travel and for goods to be delivered, driving demand in these industries,” said the Arthur D. Little partner.
He added that modernized ports, roads, and rail corridors are boosting trade volumes, while domestic improvements in connectivity are helping to meet growing internal demand across agriculture, retail, and construction.
Technology-driven transformation
Tricamo highlighted the vital role of digital innovation in shaping Ƶ’s future transport ecosystem.
“Digital solutions — from smart ticketing and real-time tracking management systems — will be essential for building a future-ready, user-centric transport ecosystem,” he said.
Salem echoed these views, noting the Kingdom’s strong push for smart infrastructure, digital logistics, and electric mobility.
He added that electric vehicles are reshaping transportation, supported by investments in thousands of fast-charging points across 1,000 locations by 2030. The goal is to have 30 percent of vehicles in Riyadh electrified by then.
“Smart cities like Neom are integrating IoT sensors, AI-driven traffic management, and predictive congestion systems to optimize transportation. These technologies improve traffic flow, reduce accidents, and enhance the overall commuter experience. In logistics, automation and AI are being used to streamline freight operations, reduce errors, and optimize delivery routes,” said Salem.
Overcoming challenges
Salem acknowledged that the Kingdom faces hurdles such as overreliance on road transport, the country’s vast geography, regulatory bottlenecks, skill shortages, and climate-related challenges.
He emphasized that the government is proactively addressing these with targeted initiatives.
“To reduce reliance on roads, Ƶ is investing heavily in rail and public transit projects like the Riyadh Metro. The vast size of the Kingdom is being addressed by extending transportation networks to remote areas, ensuring equitable access to modern infrastructure,” said Salem.
He added that regulatory reforms, including the establishment of the National Center for Privatization, are streamlining approval processes and attracting private sector investment.
“Through partnerships with global firms, Ƶ is transferring knowledge and building local expertise to overcome skills gaps,” said the Arthur D. Little partner.
Tricamo pointed to the scale of investment as the primary challenge facing transport infrastructure expansion.
“In Ƶ, the ambitious scope and accelerated timeline of Vision 2030 add further complexity, requiring multiple high-value infrastructure projects to be developed simultaneously. The private sector can play a key role in easing this burden,” he said.
The Oliver Wyman partner concluded by emphasizing the need for careful asset selection to balance commercial viability and government support.
