Mining, entertainment sectors eye $100bn in investments by 2030

��’s regional headquarters program offers incentives and various support services for international businesses opening offices in Riyadh. (SPA)

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Updated 30 June 2025

Nirmal Narayanan

May 31, 2025 22:45

Mining, entertainment sectors eye $100bn in investments by 2030

Ongoing regulatory reforms are making the Kingdom an attractive destination for foreign investments

Updated 30 June 2025

Nirmal Narayanan

May 31, 2025 22:45

RIYADH: �� is steadily progressing in its journey to attract $100 billion in foreign direct investments by the end of this decade, with the Kingdom heavily focusing on securing funds in high-growth sectors, experts have said.

��’s Vision 2030 economic diversification program aims to transform its economic landscape, including attracting foreign direct investment and increasing FDI’s contribution to the Kingdom’s gross domestic product.

To facilitate and increase FDI, in August �� approved an updated investment law, aimed at boosting transparency and easing the process of investing in the Kingdom.

Speaking to Arab News, Emilio El-Asmar, partner at Oliver Wyman’s Government and Public Institutions practice – India, Middle East and Africa, said that the mining sector is one of the most promising industries that will help the Kingdom achieve its FDI goals by 2030.

He also pointed out that the ongoing regulatory reforms happening in �� are making the Kingdom an attractive destination for foreign investments.

“��’s National Investment Strategy, central to Vision 2030, aims to transform the Kingdom into a globally competitive, innovation-driven economy,” said El-Asmar.

�� offers geopolitical neutrality, long-term offtake potential, and value-add opportunities.

Emilio El-Asmar, partner at Oliver Wyman’s Government and Public Institutions practice – India, Middle East and Africa

He added: “Mining and metals are among the most promising areas, as the Kingdom has $2.5 trillion worth of untapped resources, including gold, copper, lithium, and rare earth elements, which are vital to energy transition and global industry. Regulatory reforms and integrated industrial zones are opening this frontier market to international investment.”

The comments from the Oliver Wyman official come after �� launched a new incentive package to attract foreign direct investments into the nation’s mining sector.

The Ministry of Investment is collaborating closely with the Ministry of Industry and Mineral Resources through an exploration enablement program aimed at simplifying investments in the mineral exploration industry, the Saudi Press Agency reported in March.

Ryan Alnesayan, partner at Arthur D. Little in the Middle East region, also echoed similar views and said that the mining sector could become a game changer in ��’s economic diversification journey.

“The new mining law and exploration incentives are attracting serious interest, and the Kingdom is positioning itself as a global mining hub with reliable data, infrastructure, and long-term demand,” said Alnesayan.

El-Asmar further said that ��’s Ras Al-Khair and Wa’ad Al Shamal offer integrated infrastructure, rail and port access, and proximity to downstream processing, making them investment-friendly destinations for international entities.

“These ecosystems support refining, smelting, and metal fabrication. A pipeline of investable projects, from exploration to processing, is backed by national institutions including the Public Investment Fund and industrial champions,” said the Oliver Wyman official.

Global players are investing in everything from gaming and digital media to smart cities and AI.

Ryan Alnesayan, partner at Arthur D. Little in the Middle East region

He added: “As global supply chains seek secure mineral sources, �� offers geopolitical neutrality, long-term offtake potential, and value-add opportunities. Its location between Africa, Asia, and Europe gives investors access to regional growth markets.”

In January, speaking at the Future Minerals Forum, ��’s Minister of Industry and Mineral Resources Bandar Alkhorayef said the nation seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the Kingdom’s broader plans to establish mining as the third pillar of its industrial economy.

In May, a report released by the General Authority for Statistics revealed that net FDI into �� stood at SR22.1 billion ($5.89 billion) in the fourth quarter of 2024, representing a rise of 26 percent compared to the previous three months.

GASTAT also added that this figure was the highest level across the year, surpassing the SR15.5 billion seen in the first three months of 2024, the SR19 billion recorded in the second quarter, and the SR17.5 billion witnessed in the third.

This development comes after �� rose to 13th place in Kearney’s 2025 Foreign Direct Investment Confidence Index, published in April.

This is up one spot from last year and also means the Kingdom retained its position as the third-most attractive emerging market, signaling continued global confidence in its transformation strategy.

Kearney added that the ranking reflects the nation’s bold, reform-driven approach to building an internationally competitive, future-ready economy.

Other crucial sectors

El-Asmar also outlined other crucial areas that could drive FDI into �� in the coming years.

According to the Oliver Wyman official, sectors including pharmaceuticals, biotechnology and petrochemicals are also expected to see foreign funds pour into the Kingdom.

He added: “In petrochemicals, �� is expanding beyond crude oil into speciality chemicals, high-performance plastics, and packaging, backed by integrated feedstock and logistics infrastructure.”

El-Asmar said that �� is ranked second among G20 countries in digital competitiveness, and the Kingdom has strong infrastructure, forward-looking regulations, and digital competitiveness capable of drawing FDI in AI, cloud, cybersecurity, smart city tech, fintech, and health tech.

“Incentives include regulatory sandboxes, IP protections, and access to a growing consumer and enterprise market, making the Kingdom attractive for global tech firms and startups,” said El-Asmar.

Alnesayan also highlighted the role of technology and entertainment sectors in materialising ��’s FDI goals.

“Entertainment and tech reflect ��’s new growth story. Global players are investing in everything from gaming and digital media to smart cities and AI. These sectors are fueling job creation, innovation, and a dynamic consumer market,” said the Arthur D. Little official.

El-Asmar agreed that the entertainment sector is central to ��’s diversification and FDI strategy, reflecting cultural openness and rising domestic demand.

“With a population of 35 million and rising demand for premium experiences, the Kingdom is seeing growth in cinemas, theme parks, live events, and content production. Major international brands are entering the market, supported by co-investment and giga-projects like Qiddiya,” he said.

RHQ program and FDI

Alnesayan believes that ��’s regional headquarters program is emerging as one of the key drivers of FDI in the Kingdom.

“The RHQ Program is not just about relocating offices — it’s about anchoring decision-making in Riyadh. That brings investment, talent, and deeper regional integration. We’ve already seen over 600 companies commit, and the momentum is accelerating,” he said.

��’s regional headquarters program offers incentives such as a 30-year corporate income tax exemption, withholding tax immunity, and various support services for international businesses.

Some of the noted firms that relocated their headquarters to the Kingdom are Northern Trust, Bechtel and Pepsico from the US, and IHG Hotels and Resorts, PwC, and Deloitte from the UK.

El-Asmar also highlighted the importance of the RHQ program and said that ��’s location — at the crossroads of Europe, Asia, and Africa — makes it an ideal base for regional operations.

Potential challenges

Despite all these positive developments, experts also outlined some of the challenges �� could face in achieving its FDI targets within the stipulated timeline.

“The fundamentals are strong, but challenges remain — global volatility, talent gaps, and the need for ongoing regulatory clarity. But the Kingdom is addressing these head-on through reforms, infrastructure investment, and strategic partnerships that reduce risk and increase investor confidence,” said Alnesayan.

El-Asmar said that foreign investors need predictability, and to address this, �� has launched the Investor Confidence Protection Mechanism and Investor Council, alongside legal reforms including English-language documentation and digital licensing portals.

“High operational costs and complex procedures persist in some sectors. Special Economic Zones, tax incentives, and digital services are helping to reduce these barriers and simplify market entry,” said El-Asmar.

He concluded: “While these challenges are real, ��’s strategic reforms, long-term vision, and favorable location continue to make it one of the world’s most promising emerging FDI destinations.”

Saudi events industry showcases different side of Vision 2030

Updated 01 November 2025

Miguel Hadchity

November 01, 2025 22:50

Saudi events industry showcases different side of Vision 2030

Sector’s rapid expansion establishes the country as a leading global hub for tech and business

Updated 01 November 2025

Miguel Hadchity

November 01, 2025 22:50

RIYADH: A decade after Vision 2030 was unveiled, ��’s transformation is now being driven by its booming events industry, not just its infrastructure and giga-projects.

This sector is expanding rapidly, establishing the country as a leading global hub for tech and business.

The Kingdom has successfully attracted over 20 international event brands in recent years, alongside the opening of nearly 10 international representative offices for leading global companies and exhibitions.

This momentum is being channeled through a global exhibition and conference season, a structured period from October to May designed to concentrate a wave of international gatherings.

The coming months promise an even greater intensity with a pipeline of key events, following the success seen in Global Health Exhibition and the Future Investment Initiative.

From Nov. 17 to 20, Cityscape Global will unite real estate experts and investors in the Kingdom to drive growth and opportunity aligned with Vision 2030.

The global cybersecurity community then converges in Riyadh from Dec. 2 for the three-day Black Hat MEA conference. Early next year, the renowned LEAP conference runs from Apr. 13 to 16, convening over 600 startups, 1,800 global tech brands, and 1,900 investors.

This lineup ensures �� remains a magnet for international professionals throughout the season. The curated season arrives at a time of growth for the sector.

�� has emerged as one of the fastest-growing business event markets among the G20 nations, a fact underscored by over 17,000 business events held in a single year, an all-time regional high.

We’re flying them (speakers, guests) in at great expense, but we’re doing it because we understand that this is the sort of market that demands really high quality.

Mike Champion, CEO of Tahaluf

This boom is underpinned by robust infrastructure, an effective regulatory framework, and a significant expansion of venue capacity, with over 1 million sq. meters of additional space slated for development by 2030.

Speaking to Arab News, Saudi economist Talat Hafiz emphasized that “the growth of the event industry has become one of ��’s key priorities,” as part of the Kingdom’s economic diversification efforts.

In another interview, Mike Champion, CEO of Tahaluf, said that the Kingdom is “now quickly filling the void” in the events sector that existed prior to the launch of Vision 2030 in 2016.

Tahaluf is a joint venture between Informa PLC, the Saudi Federation for Cyber Security, Programming and Drones and the Events Investment Fund. It has been strengthening the Kingdom’s events sector since 2023 by connecting global industry communities through its in-person and digital events.

Crucially, the human capital driving this revolution is homegrown. Supported by comprehensive training programs, Saudi professionals now account for nearly 20 percent of the global Certified in Exhibition Management certificate holders, one of the highest rates worldwide. This skilled workforce is a key asset, ensuring the sector’s growth is both sustainable and rooted in local expertise.

Hafiz noted that the strong momentum in ��’s event industry has generated thousands of job opportunities for Saudi nationals, playing a key role in lowering the Kingdom’s unemployment rate to a record 6.8 percent in the second quarter of 2025.

FASTFACT

�� has emerged as one of the fastest-growing business event markets among the G20 nations, a fact underscored by over 17,000 business events held in a single year, an all-time regional high.

On this, Champion highlighted that Tahaluf has a 96 percent staff retention rate, fostering an environment that retains top talent and allows for continuous improvement. “I’ll stick by that as one of the most fundamental important reasons why Tahaluf has done so well,” he said.

To understand the landscape from the front lines, the CEO explained what makes an industry event shifting. “If an event is to shift industries, first and foremost, the event topic, the theme of that event has to be something that is a strategic theme,” he said, citing examples like Global Health Exhibition, Cityscape, and LEAP.

Furthermore, he emphasized the importance of choosing strategic markets and maintaining close ties with the Saudi government and co-create events with them. By focusing only on sectors critical to Vision 2030, Tahaluf ensures its events have inherent importance and attract strategic companies and thought leaders.

Champion attributed Tahaluf’s rapid expansion to several factors. He stated that the company reinvests a substantial amount of its profits back into the quality of its events, rather than seeking excessive operating margins initially.

“We’re flying them (speakers, guests) in at great expense, but we’re doing it because we understand that this is the sort of market that demands really high quality. So if you’re prepared to reinvest a substantial amount of the profits into creating a really big quality product, then that’s going to have a lot of traction in the Saudi market, because it’s a very sophisticated market.”

He noted that these events attract companies and thought leaders, and the announcements made there tend to have significant economic impacts. He revealed: “Over the last two years, since 2023, we’ve had $189 billion of strategic deals announced at our events.”

Detailing the tactical approach, Champion explained that Tahaluf focuses on curated exhibitions and is content-led, with large production departments dedicated to creating bespoke speaker faculties. He also described investor programs that help facilitate foreign direct investment by connecting international capital with major Saudi projects.

The CEO outlined the multi-faceted impact of these events, including direct economic impact, positive media sentiment, and acting as a catalyst for industries. “This year, we will bring in approximately 100,000 individuals from abroad into ��,” he said, adding that the calculated economic impact of their events from 2023 to 2025 will be $17.6 billion.

Hafiz explained that the rapid growth in the events sector is sustainable and not just temporary. “It has been noticed during the past few years, the significant and improvement in the sector in both the infrastructure and the diversity in the sector,” he said.

Looking ahead, Champion shared that the LEAP brand will be the first Saudi-made exhibition exported abroad, launching in Hong Kong. He also announced the launch of the BIO Middle East conference brand in ��, co-located with the CPHI pharma event.

On the company’s financial performance, he noted: “We’re doing very strongly, our revenues will finish this year well over $200 million,” with growth trending at 38-40 percent year on year.

Regarding the prospect of an initial public offering, the CEO said: “I wouldn’t rule anything out over the next few years, because the market here is so interesting, it’s so good, but it’s an answer for shareholders to give.”

Hafiz confirmed that the “flourishing landscape of the events industry has significantly strengthened international investors’ confidence in the local market.” According to the economist, this is evidenced by the Kingdom’s emergence as a powerhouse for hosting and attracting thousands of events annually.

“Last year alone, Riyadh Season attracted more than 20 million visitors and encouraged a number of foreign companies to invest in its activities,” he added.

This influx reflects a vote of confidence from global partners and underscores the sustainable growth of this vital sector.

Topics: Saudi events �� Saudi Vision 2030

�� leads GCC region’s fixed-income issuances in Q3

Updated 01 November 2025

Nirmal Narayanan

November 01, 2025 22:39

�� leads GCC region’s fixed-income issuances in Q3

UAE-based issuers raised $5.82 billion through 57 offerings, marking a 47.3 percent decline

Updated 01 November 2025

Nirmal Narayanan

November 01, 2025 22:39

RIYADH: �� dominated the Gulf Cooperation Council region’s primary debt market in the third quarter of 2025, raising $20.32 billion through 36 issuances, representing a 62.7 percent year-on-year increase in value, according to a new analysis.

In its latest report, Kuwait Financial Center, also known as Markaz, said that primary issuances of bonds and sukuk across the GCC totaled $38.74 billion through 137 issuances during the third quarter, marking a 32.4 percent increase from the same period in 2024, when issuances reached $29.29 billion.

The debt market in the region — particularly in �� — has expanded significantly in recent years, driven by economic diversification efforts that have strengthened investor demand for fixed-income instruments.

The financial sector led all GCC bond and sukuk issuances in the third quarter, with a total value of $21.53 billion, followed by government issuances at $11.1 billion. (Spplied)

“As for issuance preferences, the third quarter of 2025 saw an increased appetite for sukuk issuances in the GCC, representing 52.6 percent of total issuances for the year. This is a change in issuance preferences from the third quarter of 2024, where more conventional bonds were issued,” said Markaz.

According to the report, UAE-based issuers raised $5.82 billion through 57 offerings in the third quarter, marking a 47.3 percent decline compared with the same period in 2024. Qatar ranked third in terms of issuance value, with $5.69 billion raised through 29 issuances, followed by Kuwait, where issuers raised $3.42 billion through eight issuances, reflecting a 118.4 percent increase year on year.

FASTFACTS

• Primary issuances of bonds and sukuk across the GCC totaled $38.74 billion through 137 issuances during the third quarter, marking a 32.4 percent increase from the same period in 2024, when issuances reached $29.29 billion.

• Total GCC corporate primary issuances grew 4 percent in the third quarter to $26.59 billion. Conventional issuances decreased 18.6 percent to $18.37 billion, while sukuk issuances rose sharply — up 202.7 percent during the quarter — reaching a total value of $20.37 billion for the year to date.

Issuances in Bahrain surged 539 percent from a year earlier to $2.55 billion across four issuances, while Omani entities recorded the lowest total, raising $0.94 billion through three issuances.

Markaz added that total GCC corporate primary issuances grew 4 percent in the third quarter to $26.59 billion. Conventional issuances decreased 18.6 percent to $18.37 billion, while sukuk issuances rose sharply — up 202.7 percent during the quarter — reaching a total value of $20.37 billion for the year to date.

The financial sector led all GCC bond and sukuk issuances in the third quarter, with a total value of $21.53 billion, followed by government issuances at $11.1 billion, the report said.

Topics: �� GCC sukuk issuance

Saudi startups surge ahead with bold deals, fresh capital

Updated 01 November 2025

Nour El-Shaeri

November 01, 2025 22:33

Saudi startups surge ahead with bold deals, fresh capital

Funding across key sectors includes AI, logistics, fintech, and HR technology

Updated 01 November 2025

Nour El-Shaeri

November 01, 2025 22:33

RIYADH: �� led this week’s startup activity, with a surge of venture deals, strategic partnerships, and funding announcements across key sectors including artificial intelligence, logistics, fintech, and HR technology.

The wave of investment underscores the Kingdom’s growing prominence as a hub for innovation and its continued push to diversify its economy through technology-driven enterprises.

Saudi food delivery platform Jahez has partnered with noon to integrate their services and enhance delivery speed, convenience, and product choice across the Kingdom.

The collaboration enables users to access noon Minutes through the Jahez app, offering a broad selection of products delivered via noon’s dark store infrastructure, while Jahez’s food delivery services will also be embedded within the noon platform.

According to both companies, the integration aims to boost customer engagement, drive repeat orders, and strengthen loyalty, positioning the partnership as one of the most extensive digital commerce ecosystems in the region.

AI startup rmz.ai secures $100k pre-seed

Saudi generative AI startup rmz.ai has closed a $100,000 pre-seed funding round led by Beyond.xyz, a local virtual production studio.

Founded in 2025, rmz.ai develops intelligent tools for managing image, audio, and video workflows through a unified interface aimed at content creators.

The capital will support the development of the company’s “Creative Agents,” AI-powered assistants designed to simplify content production processes and enhance creative output quality.

Logexa raises $2m

Logistics platform Logexa has completed a $2 million pre-series A funding round led by SEEDRA Ventures, with participation from Nour Nouf Ventures and angel investors.

Established in 2021 by Hussam Sindi and Hussam Spano, the company optimizes underutilized warehousing and transport infrastructure across ��.

The funds will be used to expand operations, upgrade the digital platform, and launch a marketplace focused on shared logistics and storage services.

PIF and Aramco move to combine AI assets under Humain

The Public Investment Fund and Aramco have signed a non-binding term sheet to combine their AI assets under Humain, a PIF-owned entity launched in May.

Under the agreement, Aramco will acquire a significant minority stake in Humain, while PIF retains majority ownership.

The strategic collaboration includes transferring AI assets, talent, and capabilities to accelerate Humain’s growth and international reach.

Humain is focused on building full-stack AI capabilities across data centers, cloud infrastructure, advanced models — including the Arabic large language model ALLAM — and AI solutions. The deal remains subject to regulatory approvals and final agreements.

Tabby reaches $4.5bn valuation

Fintech company Tabby has completed a secondary share sale involving existing shareholders, attracting investors such as HSG and Boyu Capital.

The transaction, which did not involve the issuance of new shares or proceeds to the company, values Tabby at $4.5 billion.

The deal reflects continued investor confidence in Tabby’s growth trajectory and market positioning in the region’s buy now, pay later sector.

BRKZ secures $30m in growth debt

Saudi construction technology firm BRKZ has secured up to $30 million in growth debt from Stride Ventures to support its expansion.

Founded in 2023 by Ibrahim Manna, BRKZ provides a B2B platform for contractors and factories to access building materials and flexible financing options.

The funding will accelerate the development of AI-powered procurement tools, cloud manufacturing models, and global supplier networks. BRKZ, which completed a $17 million series A extension earlier this year, is part of the Saudi Unicorns Program.

Najeeb.ai raises pre-seed round to scale AI insurance tools

Insurtech startup Najeeb.ai has raised an undisclosed pre-seed round from regional angel investors.

Established in 2023 by Ahmed Yasmina and Hammam Homsi, the company integrates artificial intelligence with insurance services to drive transparency and operational efficiency.

Proceeds from the round will support the development of AI-powered products, deepen insurer and healthcare integrations, and prepare the company for regional market entry.

Squadio raises $3m

Human resources tech company Squadio has secured $3 million in a pre-Series A round backed by Wa’ed Ventures, 500 Sanabil MENA, and Nour Nouf Ventures, as well as SEEDRA Ventures, and NTDP.

Founded in 2019 by Khaled Senawy, the platform connects companies with global, remote-first tech talent.

The investment will be used to improve Squadio’s AI-matching engine, grow its presence in MENA, Africa, and Silicon Valley, and expand its partner network. The company previously closed its seed round with SEEDRA Ventures in 2022.

MidLyr raises $2.5m

US-based fintech MidLyr has raised $2.5 million in pre-seed funding led by Silicon Badia, with participation from Wedbush Ventures, Hustle Fund, DCG, and Story Ventures.

Founded in 2025 by Wael El-Sahhar and Ruochen Ren, MidLyr helps banks transform regulatory text into AI-driven workflows for risk, compliance, and marketing functions.

The new funds will drive product development, expand bank partnerships, and scale hiring in the US and Middle East, leveraging the region’s engineering and data science talent.

HALA Capital debuts as CMA-licensed private capital firm

HALA Capital, formerly HALA Ventures, has launched as a licensed private capital firm under the Capital Market Authority, marking its transition from venture capital to a broader asset management strategy. The firm now covers venture capital, private equity, and private credit.

Founded in 2018 by Ali Abussaud and Hussain Al-Marhoon, HALA Capital aims to support innovation, scale enterprises, and deliver long-term impact across the Saudi and regional investment landscape.

The firm emphasizes agility and ecosystem development as central to its investment approach.

Velents.ai raises $1.5m and launches Arabic AI employee

HRtech startup Velents.ai has raised $1.5 million in a round backed by angel investors, including former executives from Google and BCG.

The company also launched Agent.sa, described as the first fully Arabic-speaking AI employee for businesses in the Middle East.

Founded in 2020 by Mohamed Gaber and Abdulaziz Al-Muhaydib, Velents began in recruitment automation and now serves clients in both Egypt and ��.

The capital will support expansion of the company’s AI infrastructure and adoption ahead of a larger funding round planned for early 2026.

KarmSolar enters Cyprus with $5.78m solar project

Egypt-based renewable energy provider KarmSolar has launched its first international expansion through the establishment of KarmCyprus, marking its entry into the Cypriot solar energy market.

The move includes the development of a 7.6-megawatt solar PV plant in Monagroulli, southern Cyprus, backed by €5 million ($5.78 million) in project financing from Eurobank. Operations are slated to commence by September 2026.

Founded in 2011 by Ahmed Zahran, Xavier Auclair, Yumna Madi, and Randa Fahmy, KarmSolar supplies renewable energy across multiple sectors in Egypt.

The company invested €2 million to establish KarmCyprus and raised an additional €8 million from Egyptian and international investors.

The expansion follows KarmSolar’s vertically integrated model encompassing power generation, distribution, storage, and e-mobility, positioning the firm as a credible player in the Mediterranean clean energy sector.

Topics: Start-up of the Week saudi startups

Saudi Eksab, Guyana government sign MoU on investment collaboration in key strategic sectors

Updated 01 November 2025

Arab News

November 01, 2025 16:06

Saudi Eksab, Guyana government sign MoU on investment collaboration in key strategic sectors

Updated 01 November 2025

Arab News

November 01, 2025 16:06

RIYADH: Saudi Eksab and the government of Guyana signed a Memorandum of Understanding to explore investment collaboration across key strategic sectors on the sidelines of the Future Investment Initiative in Riyadh.

The MoU was signed by Yazeed Alyahya, CEO of Saudi Eksab and Zulfikar Ally, Guyana’s minister of Public Service, Government Efficiency and Implementation, with Guyanese President Mohamed Irfaan Ali witnessing the event.

The MoU paves the way for enhanced collaboration to advance strategic investment opportunities and unlock future areas of mutual interest, and strengthens Saudi Eksab’s role as a trusted partner supporting sustainable growth and economic diversification, a statement said.

“Guyana is entering a transformative phase of development. Through this collaboration with Saudi Eksab, we are eager to explore partnerships that accelerate infrastructure development and economic diversification while fostering global cooperation,” Ally said in the statement.

“This partnership marks an exciting step forward in our mission to identify high-impact investment initiatives that drive shared economic growth. We look forward to identifying meaningful opportunities,” AlYahya meanwhile said.

Topics: �� Guyana Saudi Eksab

Why it is vital to protect acacia trees from invasive beetle

Updated 01 November 2025

Haifa Alshammari

October 31, 2025 21:17

Why it is vital to protect acacia trees from invasive beetle

A wood-boring beetle has been killing trees in the Kingdom, including the important acacia and jujube
But an environmental expert cautions against using insecticides that could harm the ecosystem

Updated 01 November 2025

Haifa Alshammari

October 31, 2025 21:17

RIYADH: The acacia tree is of significant importance to both the environment and culture in ��. It provides shelter for migratory birds and protects travelers and Bedouins in the Arabian Peninsula’s hot desert.

Among the many environmental benefits of the acacia tree is its ability to prevent desertification; its roots improve soil fertility; it provides shade and lower temperatures; it stores carbon and reduces carbon dioxide levels; and it stabilizes dunes in desert areas.

An invasive beetle — scientific name Agrilus planipennis fairmaire — has been attacking trees for years, killing many of them in the Kingdom, including perennial trees.

The 'Emerald ash borer' (scientific name: Agrilus planipennis Fairmaire) is a highly destructive wood-boring beetle feeding on the phloem of ash trees. (Supplied)

Oubaid Alouni, an environmental consultant and former consultant at the National Center for Vegetation Cover Development and Combating Desertification, explained the role of the acacia tree in the ecosystem and how the pest threatens its existence.

He outlined the different types of acacia trees in ��.

“The acacia tree grows naturally in the desert. It is a desert umbrella tree and is divided into two types; the Iraqi acacia and the Najdi acacia, and reaches around 55 types in total,” Alouni said.

There is also another type of acacia tree that grows in Asir, locally known as Al-Kanhbal, scientific name Vachellia origena, that differs from the Najdi acacia, which has long branches and provides ample shade.

While some acacia trees are native to ��, others were imported, such as acacia raddiana. They all share a similar trait, providing vital protection from strong sunlight.

While some acacia trees are native to ��, while others were imported, along with the wood borer. (SPA file photo)

“Any hiker, any traveler, who wants to go to the desert must pass by this tree and take shelter under it,” Alouni said, describing how people have always been connected to this species and valued it.

Securing native trees, not only acacia, holds a deeper meaning for the culture and tradition, he said, such as when the Prophet Muhammad used to sit under the Ziziphus spina-christi.

The acacia tree is threatened by the Agrilus planipennis Fairmaire as this species relies on the tree for nutrients.

“This insect reached �� through imported wood, as they found larvae inside wood imported from Russia,” Alouni said.

DID YOU KNOW?

• Some of the finest honey in the Kingdom is produced from acacia and jujube trees.

• Acacia trees help reduce sand encroachment in the desert and provide shelter for several bird species.

• The acacia tree can withstand drought for up to 10 years, even severe drought.

The pest is a highly destructive wood-boring beetle feeding on the phloem of ash trees. It is also known as the Emerald ash borer, and is native to China, Japan, South Korea, Mongolia and Russia.

This bug is typically a small, metallic green beetle, around half an inch (about 1.2 to 1.5 cm in length), and one of its distinguishing features is that when the wing covers are lifted, the upper abdomen is bright red.

Its life cycle involves multiple stages. The first is the egg stage, during which females lay 40-53 eggs.

The larva lives inside the tree for one to two years, eating the layer between the bark and the main trunk. (Supplied)

Then comes the larva, the longest stage of the beetle’s life cycle, lasting almost a year.

“The larva lives inside the tree for one to two years, eating the layer between the bark and the main trunk,” Alouni said.

After that, it goes through a shorter stage, as a pupae, that lasts about 20 days.

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Finally, it reaches the adult stage and is known for chewing through the wood and emerging from trees, forming a small, D-shaped exit hole about 3 to 4 mm wide. This stage of its life is usually short, lasting about 20 days.

The pest is now attacking olive trees in the US, Alouni said.

“In Ohio, I believe, it has begun to invade olive trees terrifyingly. This insect is very dangerous.”

The life cycle of Agrilus planipennis Fairmaire involves multiple stages before reaching adulthood. The first stage is the egg stage, during which females lay 40-53 eggs. (Supplied)

Among the factors that enabled this insect population to increase nationwide is the hunting of birds, especially migratory birds, because they usually feed on insects.

However, the biggest threat to the ecosystem is ignorance, Alouni said, as many people believe the insect is part of the Kingdom’s native environment and that protecting it contributes to a balanced ecosystem.

“There are still people who say, ‘Leave it alone; it’s part of the ecological balance,’ which is, of course, incorrect. This insect is an invasive species in our environment,” he said.

Oubaid Alouni, an environmental consultant and former consultant at the National Center for Vegetation Cover Development and Combating Desertification. (Supplied)

He also believes that pruning trees leaves branches exposed and vulnerable to this insect entering the tree, and that transferring wood from one location to another may provide an opportunity for the larva to expand and increase its numbers.

To address this environmental issue, Alouni told Arab News about the efforts being made to safeguard and protect the Kingdom’s natural treasures, including organizing discussions and workshops to explore the issue and exchange potential solutions among experts.

Also, he believes that a particular bird species, the woodpecker, is one of the most effective ways to reduce the numbers of the beetle.

The pest is a highly destructive wood-boring beetle feeding on the phloem of ash trees. (Supplied)

“It’s called the Arabian woodpecker, yet it only exists in Asir and in small populations, too,” he said.

According to Alouni, the Arabian woodpecker hears the insect inside the tree, hits the branch with its beak and removes it.

Arabian woodpecker. (James Eaton photo / via Wikimedia Commons)

One of the strongest methods to contain pests is biological control, which uses other species to help the ecosystem naturally protect and restore its balance.

One animal feeds on another to keep the environment balanced, such as using Orussidae — a parasitic wood wasp — or placing large numbers of chickens and other birds in forests and farms.

The Orussidae or the parasitic wood wasps, along with birds, are better alternatives to harmful pesticides in fighting the destructive beetle. (Wikimedia Commons)

“It is called Orussidae in the United States … it kills insects very fast.”

Chemical methods can also be used, but Alouni does not endorse these due to their environmental risks.

Topics: Green & Blue Editor’s Choice acacia tree Oubaid Alouni

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