Qatar’s economy rises 2% on non-oil strength/node/2616155/business-economy
Qatar’s economy rises 2% on non-oil strength
The National Planning Council reported on Sept. 21 that real gross domestic product reached 181.8 billion Qatari riyals ($49.9 billion) at constant prices, up from 178.5 billion riyals in the same period last year. Shutterstock
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Updated 8 sec ago
MOHAMMED AL-KINANI
Qatar’s economy rises 2% on non-oil strength
Updated 8 sec ago
MOHAMMED AL-KINANI
JEDDAH: Qatar’s economy expanded by 1.9 percent in the second quarter of 2025, fueled by a 3.4 percent rise in non-hydrocarbon sectors, official data showed.
The National Planning Council reported on Sept. 21 that real gross domestic product reached 181.8 billion Qatari riyals ($49.9 billion) at constant prices, up from 178.5 billion riyals in the same period last year. Non-hydrocarbon activities accounted for 65.6 percent of real gross domestic product, with value added climbing to 119.3 billion riyals from 115.4 billion riyals a year earlier.
The growth underlines the effectiveness of Qatar’s economic diversification initiatives under the Third National Development Strategy and Vision 2030, reflecting wider trends across the Gulf region.
A World Bank report released in June projected GCC economic growth of 3.2 percent in 2025 and 4.5 percent in 2026.
Within the non-hydrocarbon economy, the fastest-growing sectors in Q2 2025 included agriculture, forestry, and fishing (up 15.8 percent); accommodation and food services (13.4 percent); arts, entertainment, and recreation (8.9 percent); wholesale and retail trade (8.8 percent); and construction (8.7 percent).
These gains reflect ongoing investment in tourism, services, and specialized infrastructure, further boosting the private sector’s role in the economy.
“In total, 11 of 17 economic activities recorded positive real growth in Q2 2025, demonstrating the resilience of Qatar's economic base. Service-related sectors such as accommodation, food services, and entertainment continued to expand strongly, reflecting sustained momentum in tourism and domestic demand,” the official news agency reported.
French investment in surges 180% amid strengthened bilateral ties
Updated 11 sec ago
MIGUEL HADCHITY
RIYADH: Saudi Investment Minister Khalid Al-Falih underscored the deepening strategic alignment between and France during his address at the French-Saudi Economic Roundtable in Paris.
He highlighted the significant progress achieved in fostering bilateral economic cooperation, particularly in the realm of foreign direct investment.
and France are strengthening economic ties, with non-oil trade surpassing SR20 billion ($5.33 billion) in 2024. The partnership was further reinforced during President Emmanuel Macron’s visit in December, when both sides endorsed a strategic partnership roadmap and signed a memorandum of understanding to establish a Strategic Partnership Council.
On his official X account, Al-Falih wrote: “I delivered the opening speech at the French-Saudi Economic Roundtable in Paris, in which I spoke about the strategic alignment in visions and the achievements accomplished.”
He added: “What confirms the strength of our investment relations is the 180 percent increase in the volume of French direct investments in over 5 years, reaching €16 billion ($18.79 billion).”
The surge in French investment follows a flurry of deals and opportunities across multiple sectors. In June, Saudi and French entities outlined potential investments exceeding SR10 billion ($2.6 billion) in the aviation sector, including airport infrastructure, air navigation, ground support technology, workforce training, and digital solutions.
During the Saudi-French Investment Forum in December, Al-Falih noted that bilateral trade exceeded €10 billion, with roughly €3 billion in French investment inflows in 2023, bringing total accumulated French FDI to around €17 billion.
This growth reflects the success of ’s Vision 2030 economic reforms, which have streamlined the investment environment and encouraged foreign firms to diversify into industrial, commercial, and service sectors.
The collaboration between and France spans various sectors, including energy, infrastructure, and technology.
Notably, during French President Emmanuel Macron's visit to Riyadh in December, TotalEnergies and EDF Renewables were awarded significant solar energy contracts, totaling 1.7 gigawatts in capacity. These projects are part of 's ambitious goal to achieve 130 GW of renewable energy capacity by 2030.
MODON, French pharma BPI sign $100m deal in Sudair Industrial City
Updated 21 September 2025
Mohammed Al-Kinani
JEDDAH: French pharmaceutical company BPI has signed a SR375 million ($100 million) agreement to establish its first manufacturing base in , securing a plot in Sudair City for Industry and Business.
The deal, signed with the Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, under the patronage of Industry and Mineral Resources Minister Bandar Alkhorayef, covers a site exceeding 51,000 sq. meters. MODON Chief Executive Majid bin Rafid Al-Arqoubi attended the signing ceremony, the Saudi Press Agency reported.
BPI’s facilities will produce pharmaceuticals for human and veterinary use, medicinal herbs, surgical dressings, chemical sugar, and blood sugar monitoring devices.
The investment aligns with the National Industrial Strategy and Vision 2030 goals to position the Kingdom as a regional hub for biomanufacturing and medical innovation.
“MODON aims to attract new industrial and logistical investments across its industrial cities through allocations that include land, ready-made factories, and projects that support the development of infrastructure and services, contributing to industrial and economic growth,” SPA reported.
Established in 2009, Sudair City spans 16.9 million sq. meters and hosts 421 industrial facilities, marking a 12 percent increase in 2024, with more than 34,000 employees working across the food, chemical, metal, and machinery sectors.
In a separate initiative, MODON signed an agreement with Asas for Developing and Operating Industrial Cities and Takween Information Technology to establish a Center of Excellence for Artificial Intelligence.
The initiative is part of MODON’s efforts to accelerate the adoption of modern technologies in the industrial sector, supporting the country's industrial ambitions by enhancing the digital economy and boosting competitiveness.
The AI center, attended by Al-Arqoubi and Takween CEO Ahmed Sulaiman, will also streamline administrative processes, enhance efficiency, and ensure compliance with best practices and regulations, while fostering innovation and continuous learning in artificial intelligence.
MODON currently manages over 8,000 factories across 40 industrial cities in the Kingdom and offers advisory services through platforms including Indeel, which provides open data and investment opportunities, and guidance on Fourth Industrial Revolution technologies to enhance production and efficiency.
New permit promises to revolutionize regional tourism and business mobility
Updated 21 September 2025
Miguel Hadchity
RIYADH: Two years after its initial approval, the Gulf Cooperation Council’s long-awaited unified visa has entered its final approval phase — and is positioned to emerge as its biggest winner, experts told Arab News.
The new permit, which will allow seamless travel across all six Gulf states, promises to revolutionize regional tourism and business mobility.
But while the entire bloc stands to benefit, the Kingdom’s unique advantages — from its booming religious tourism sector to its aggressive Vision 2030 economic reforms — could make it the visa’s prime beneficiary.
First proposed in 2023 and officially approved last year, the unified GCC visa will enable travelers to move freely between Bahrain, Kuwait, Oman, Qatar, , and the UAE under a single permit.
GCC Secretary General Jassem Al-Budaiwi confirmed earlier in September that the visa is in its final stages, marking a major leap toward a Schengen-style system for the Gulf.
For , the timing couldn’t be better. The Kingdom has been expanding its tourism infrastructure as part of Vision 2030, with mega-projects such as Neom, the Red Sea resorts, and AlUla’s cultural oasis.
The new visa will amplify these efforts by making it easier for travelers to combine Saudi stops with visits to Dubai’s luxury hubs and Qatar’s cultural landmarks — turning the Gulf into a multi-destination hotspot.
’s strategic edge
has a strong religious tourism base. As home to Islam’s two holiest sites in Makkah and Madinah, the Kingdom already hosts millions of Hajj and Umrah pilgrims each year. The unified visa creates an opportunity to extend their stays and attract them to explore ’s growing cultural and leisure offerings.
In an interview with Arab News, Raymond Khoury, partner and head of technology and innovation management practice at Arthur D. Little Middle East, said: “The GCC unified visa system offers to enhance the experiences of these visitors by encouraging longer stays and facilitating travel to other cultural and historical sites, such as AlUla, Neom, and Diriyah to name a few.”
Raymond Khoury, partner and head of technology and innovation management practice at Arthur D. Little Middle East. (Supplied)
He added: “Major airports such as Riyadh and Jeddah can serve as transit hubs offering short-stay cultural excursions to nearby sites like Diriyah or Qiddiya. The Kingdom can also promote multi-country itineraries — such as Jeddah to AlUla to Dubai or Muscat — using regional rail and low-cost air travel.”
The unified visa comes at a pivotal moment in ’s Vision 2030 tourism drive, aligning with the goal of attracting 150 million visitors a year by 2030.
Vijay Valecha, chief investment officer at Century Financial, told Arab News: “The Kingdom’s exceptional scale of tourism infrastructure, advanced digital and visa capabilities, and a calendar of globally recognized events collectively provide it with a competitive edge over its regional peers.”
He cited the “marquee events” of Formula 1 in Jeddah, Riyadh Season, and the Asian Winter Games in Trojena, as elevating the Kingdom’s global profile.
Khoury added that the unified visa is expected to accelerate ’s tourism and business diversification goals by attracting a larger number of international visitors. This would help fast-track the target of 150 million annual visits by 2030.
He noted that as traveling between various Gulf nations became easier, would likely capture a greater share of regional tourism, positively impacting non-oil revenue growth.
Geographic primacy as a regional hub is rooted in ’s central location in the Arabian Peninsula and its extensive land borders with multiple GCC states, making it the natural nexus for regional travel itineraries.
Khoury said: “Combined with its diversified offerings — from religious and cultural tourism to futuristic mega-developments — the Kingdom is set to gain the most from increased regional mobility and multi-country travel enabled by the GCC unified visa.”
Valecha noted that ’s strategic location enhanced its connectivity to the GCC and the Middle East and North Africa regions, being bordered by the UAE, Qatar, Bahrain, Oman, and the Red Sea — serving as a vital link to Egypt and Africa.
“Thus, KSA is well-positioned to capitalize on the GCC Unified Visa by serving as an indispensable connector between critical trade locations, tourism magnets, and other strategically significant destinations in the region,” Valecha added.
Infrastructure boost
The successful implementation of the unified visa’s potential requires substantial infrastructure development, and is making unprecedented investments in this area.
“The unified visa is expected to accelerate flagship initiatives such as the GCC Railway, smart borders, and regional transport corridors. The aviation sector will play a central role in enhancing KSA’s hub status,” said Valecha.
He added that King Salman International Airport aims to attract 120 million passengers by 2030. He also noted that Riyadh Air’s first commercial flight is set to launch this year, and maintaining high-frequency connections to major GCC hubs will be key to facilitating cross-border travel.
Khoury said: “Critical infrastructure developments, such as enhanced aviation networks and rail systems, within the Kingdom and across the GCC, will be essential for capitalizing on this opportunity, allowing seamless travel between major locations.”
He added: “This includes developing Riyadh, Jeddah, and Dammam airports into regional connectors, launching Riyadh Air in 2025, and enhancing low-cost carrier networks to support short-haul intra-GCC travel.”
Khoury stated that completing the GCC Railway and connecting it with domestic lines such as Haramain and Railways would enable seamless land mobility across the Kingdom and Gulf states.
Economic ripple effects
The implementation of the unified visa is expected to create widespread economic benefits extending far beyond the tourism sector.
“The tourism and hospitality sector is poised to witness significant growth due to heightened demand across hotels, transportation, and dining, boosting occupancy rates and spending per visitor,” Valecha said.
Vijay Valecha, chief investment officer at Century Financial. (Supplied)
He noted that the new visa would directly boost international arrivals, citing a UN Tourism report showing ’s 102 percent increase in the first quarter of 2025 in tourist arrivals compared to 2019.
Khoury added: “Beyond hospitality, sectors like logistics and entertainment stand to benefit significantly. The anticipated spike in travel will lead to increased demand for hotel capacity and mid-tier accommodations in key Saudi cities.”
He added that Saudi airlines and regional transport networks would likely expand routes and frequency, improving domestic and regional connectivity.
The ADL official also noted that integrated travel platforms, covering bookings, visas, and itinerary planning, would create opportunities for tech innovation, highlighting potential growth in experience-based tourism, with rising demand for curated cultural, wellness, adventure, and religious-leisure packages.
Strategic business opportunities
The unified visa presents numerous opportunities for investors and businesses positioned to capitalize on the expected surge in regional travel.
Valecha noted the visa reforms would ease business travel for multinationals across GCC states, boosting trade and regional logistics.
“The faster mobility of residents and nationals within the region would be conducive for business travel, significantly promoting the ease of doing business of GCC states globally,” he said.
Khoury emphasized the strategic implications, noting that businesses that deliver “seamless, cross-border offerings” will be best positioned to lead in this new era of regional tourism integration.
“Additionally, the unified visa can significantly advance the Kingdom’s broader strategic ambitions over the next decade by enhancing talent mobility, regional economic integration, and soft power positioning.”
He added that the visa would attract global professionals, easing cross-border recruitment of skilled talent for key sectors like tech, healthcare and finance, directly supporting ’s Vision 2030 goals to become a regional innovation hub.
Long-term implications
The unified visa’s impact may extend well beyond immediate tourism and business benefits, potentially reshaping the Gulf’s geopolitical and economic landscape.
On the economic front, Khoury explained, smoother cross-border access will facilitate trade, joint ventures, and supply chain integration, especially in logistics, manufacturing, and small and medium-sized enterprises, reinforcing the Kingdom’s push to lead in varied and resilient regional manufacturing and supply frameworks.
“Politically, can strengthen its geopolitical influence by positioning itself as the central node of a more interconnected, mobile, and economically unified Gulf — further amplifying its leadership in regional policy, investment flows, and digital infrastructure alignment,” he added.
As the GCC unified visa moves from concept to reality, stands at the threshold of a transformative opportunity to cement its position as the Gulf’s premier tourism and business hub.
With its unique combination of religious significance, geographic centrality, and visionary economic planning, the Kingdom is uniquely positioned to emerge as the primary beneficiary of this historic regional integration initiative.
Tencent Cloud accelerates Saudi expansion with new data region, AI services
Dowson Tong, senior executive vice president of Tencent and CEO of the Cloud and Smart Industries Group, said the new Saudi data region marks a “major growth opportunity”
Tencent’s expansion dovetails with ’s Vision 2030 goals to build a world-class digital economy
Updated 20 September 2025
Rahaf Jambi
RIYADH/SHENZHEN: Chinese technology giant Tencent is accelerating its cloud and AI push into , positioning the Kingdom as its primary hub for the Middle East under Vision 2030.
On the sidelines of the Tencent Global Digital Ecosystem Summit 2025 in Shenzhen, senior executives told Arab News that the company is finalizing the launch of its first Middle East cloud region in Riyadh, part of a $150 million investment announced earlier this year.
Riyadh data region: a strategic hub
Dowson Tong, senior executive vice president of Tencent and CEO of the Cloud and Smart Industries Group, said the new Saudi data region marks a “major growth opportunity” for the company.
“We already serve many Chinese companies that are increasing their investments in the Kingdom, and several of our partners are lined up to benefit from the new center,” Tong told Arab News. “This will allow us to expand not only within but across the region as a whole.”
He said Tencent is working to secure the necessary approvals and certifications to provide cloud services for both public and private sector clients in the Kingdom.
“We are pushing to accelerate this process because we want to move at full speed in serving the Saudi market,” Tong said. “ is central to our strategy in the region, and we see cloud as a foundation for broader digital transformation.”
Vision 2030 alignment
Tencent’s expansion dovetails with ’s Vision 2030 goals to build a world-class digital economy, expand its data infrastructure, and attract global technology leaders.
According to Tong, Tencent’s Saudi investment goes beyond infrastructure. “Localization is key,” he said. “We are adapting our technologies to serve sectors such as digital media, e-commerce, gaming, tourism, telecommunications, and financial services. We are also building local teams and working with system integrators to ensure our solutions are fully aligned with Saudi business and regulatory environments.”
He also praised the Kingdom’s fast-growing gaming and esports ecosystem, underscored by the Esports World Cup in Riyadh earlier this year.
“This is one of the main reasons we are accelerating the establishment of our data center — to provide lower latency, faster response times, and an overall better user experience for players and streamers,” Tong said.
Industrial AI
Eric Li, director of AI Global Commercialization at Tencent, highlighted how the company’s AI solutions could be applied to Saudi industries.
“Right now, we are building server rooms in . Once those are completed and ready for use, we will be fully equipped to serve local industries in , the wider Middle East, and beyond,” Li told Arab News.
He noted that Tencent is tailoring products that could be implemented in to meet demand in sectors prioritized under Vision 2030.
“For example, E-KYC could be adopted in finance and telecom operations, while Palm AI could be applied in cloud services as well as in the culture and tourism industry,” Li said.
He also revealed that Tencent will launch its new data center in by the end of the year, which will strengthen service delivery and integration for enterprises in the Kingdom.
Supporting startups, new markets
Li said Tencent Cloud’s AI Agent Development Platform will be particularly valuable for Saudi startups and SMEs, many of which lack in-house AI development teams.
“With our ADP platform, local enterprises and startups in places like can build and operate their own AI agents more easily,” he said. “It provides ‘brain support’ for generating ideas and implementing them on the ground.”
He added that such platforms could benefit not only large enterprises but also Saudi gaming startups and event-tech companies, helping them scale with advanced AI tools.
Tencent’s digital human technology, already deployed by Abu Dhabi’s tourism department, is another solution that could be replicated in to enhance cultural tourism experiences in multiple languages, Li said.
KSA as the main gateway
Dan Hu, vice president of Tencent Cloud International for the Middle East and North Africa, said will serve as the company’s “main gateway” into the region.
“The new cloud region represents a strategic pillar of our investments in the Kingdom, accelerating digital transformation and boosting smart city growth,” Hu said.
He cited advanced solutions such as edge computing and AI-powered analytics, which enable real-time applications in predictive maintenance, urban planning, and smart building management.
A milestone in Saudi’s digital journey
For Tencent, the Saudi launch is more than an infrastructure project; it is a chance to apply lessons from China’s AI and cloud commercialization to one of the world’s fastest-growing digital economies.
“ is not just another market — it is a partner in building the future of intelligent industry,” Li said.
As the Kingdom pushes ahead with Vision 2030, Tencent’s investment signals growing confidence that Riyadh is on track to become a global hub for cloud and AI solutions.
Startup wrap — Early stage funding maintains growth momentum in MENA
Startup funding witnessed a 74% year-on-year increase in August
Updated 21 September 2025
Nirmal Narayanan
RIYADH: Startups across the Middle East and North Africa region witnessed multiple funding rounds in the past week, as companies across a wide range of industries continue to expand their operations.
The sustained momentum in early stage funding reflects continued investor interest in the region amid global economic headwinds.
A report released by Wamda revealed that startup funding in the MENA region witnessed a 74 percent year-on-year increase in August, with $337.5 million secured across 47 deals.
led the region for the second consecutive month, attracting $166 million across 19 deals, while the UAE followed with $154 million raised by 11 startups.
Spare secures $5m
Riyadh-based Spare, an open banking infrastructure provider, raised $5 million in a pre-Series A funding round, led by anb Seed Fund, the venture capital fund of ANB Capital.
Other investors included Vision Ventures, SEEDRA Ventures, 500 Global, Boubyan Ventures, and Middle East Venture Partners, according to a press statement.
The company said that the new capital will be used to scale Spare’s Open Banking platform and API integrations, accelerate product development, and drive expansion across the Gulf Cooperation Council region.
“We’re building the financial rails for the next generation of businesses in MENA. This investment allows us to move faster, doubling down on product innovation, deepening our integrations with regional banks, and accelerating adoption of secure, localized fintech infrastructure solutions across the region,” said Dalal Al-Rayes, CEO and co-founder of Spare.
Omar Ardati of anb seed Fund said: “Spare is setting a new standard financial infrastructure in MENA. Their commitment to speed, simplicity, and security — combined with a deep understanding of local market dynamics — makes them a standout company in the region’s fintech landscape.”
HALA raises $157m
Saudi-based fintech firm HALA has raised $157 million in a series B round led by the Rise Fund, TPG’s multi-sector global impact investing strategy, and Sanabil Investments, wholly owned by the Kingdom’s sovereign wealth fund.
The funding round also witnessed the participation of QED, Raed Ventures, and Impact 46, as well as Middle East Venture Partners, Isometry Capital, Arzan VC, and BNVT Capital.
Other participants in the round were Kaltaire Investments, Endeavor Catalyst, Nour Nouf Ventures, Khwarizmi Ventures, and Wamda Capital.
In a press statement, the company said the funding will be used to position itself in the Saudi market and offer more embedded financial services and lending products catered to support the growth of MSMEs in the Kingdom.
The financial assistance will be also used to expand HALA’s presence regionally.
“This landmark investment is a turning point for HALA, reflecting on our relentless pursuit of innovation and excellence in serving small businesses. We are honored that our new investors recognize the potential of our vision and the impact we aspire to make in the MSME landscape. Our journey is just beginning, and this support fuels our drive to create meaningful change,” said Esam Alnahdi, co-founder and chairman of HALA.
“This investment underscores our belief in HALA’s potential to reshape the future of financial services for SMEs and aligns with Sanabil’s mission to support visionary companies with patient capital and strategic guidance. We look forward to partnering with HALA and the other investors in supporting their continued success and expansion,” said a spokesperson for Sanabil Investments.
LDUN secures $4.8m
LDUN, a -based fintech firm, raised $4.8 million in a seed round led by Sadu Capital, with participation from Suhail Ventures and Nomu Angel Investment.
The funding will be used to expand digital financial services for MSMEs across the Kingdom.
The financial assistance will also help LDUN grow its product suite, strengthen regional partnerships, and simplify complex financial processes with technology.
Founded in 2021 by Firas Al-Hamdan and Faisal bin Dukhail, LDUN focuses on offering factoring solutions for MSMEs.
The company also offers a range of financial services, including Shariah-compliant buy now, pay later, trade credit, factoring, and reverse factoring.
Fintologya closes $1m seed funding round
Bahrain-based Fintologya, a provider of cloud infrastructure solutions for payments, has successfully closed a $1 million seed funding round led by a Gulf holding company.
The funding is expected to help the company create secure, modular, cloud-native payment platforms that empower banks, fintechs, and financial institutions in the region.
The company is currently active in and Bahrain, and with such funding, it aims to expand further across Gulf markets.
Amaani raises $3m
Amaani, a beauty and wellness firm from the Middle East, has raised $3 million in seed funding for its debut Arab beauty brand AÏZA, according to a press statement.
The funding round was led by Peak XV’s Surge, formerly Sequoia Capital India & SEA, marking their first consumer and seed investment in the MENA region.
Founded by Shubham Poddar, a former Sequoia India investor who helped drive its expansion in the Middle East with investments across fintech, food tech, and property tech, Amaani is built on a vision to create global beauty brands from the Arab region.
“With the region boasting among the highest per capita beauty spend globally, growing online penetration, and an increasing demand for local relevance, Amaani is poised to meet a generational shift in how consumers shop and what they seek: brands that reflect their identity, values, and aspirations,” said Poddar.
GV Ravishankar, managing director at Peak XV, said that Amaani is well positioned to lead the beauty and personal care market in the Arab region.
“The GCC beauty and personal care market is already a $12 billion industry, growing at over 12 percent annually, with some of the highest per capita spends globally. We believe the region is now primed to produce the next wave of culturally resonant, globally admired consumer brands. Amaani is well positioned to lead this movement,” said Ravishankar.
Through the funding, Amaani plans to scale AÏZA across the region and globally, both online and through retail, while also developing a portfolio of future brands in the sector.
UAE-based Armoir raises $500k
UAE-based luxury luggage brand Armoir has raised $500,000 in a seed round led by Salica Oryx Fund, with participation from Plus VC and leading global angel investors.
The new capital will be deployed to launch additional collections, expand footprint across MENA and Europe, and scale the team to strengthen design innovation, customer experience, and global growth, according to a press statement.
“Partnering with Salica Oryx Fund, Plus VC, Chalhoub Group, and our angel investors brings world-class expertise in scaling consumer and lifestyle brands globally. This funding gives us the runway to accelerate design innovation, expand globally, and establish Armoir as a leading brand in premium travel,” said Martial Dahan, founder and CEO of Armoir.
