Saudi Arabia’s Economic Playbook: Stability, Reform and Global Integration

Welcome to this week’s summary, highlighting the Kingdom of Saudi Arabia’s strategic efforts to balance deeper international economic integration with strong domestic financial oversight. From high-level engagement at the World Economic Forum in Davos to the implementation of new real estate ownership controls and banking fee regulations, the Kingdom continues to demonstrate a disciplined and forward-looking approach to economic management. These developments, supported by recent international credit affirmations, further reinforce Saudi Arabia’s position as a resilient and competitive global investment hub. 

Fiscal Sustainability Through Strategic Capital Allocation 

During the World Economic Forum in Davos, Saudi Minister of Finance Mohammed Al-Jadaan emphasized that fiscal sustainability should not be misconstrued as reducing government spending, but rather as allocating expenditure more intelligently toward sectors and projects capable of delivering structural economic transformation. He highlighted that Saudi Arabia’s fiscal framework is designed to support long-term growth while maintaining financial discipline, drawing on the Kingdom’s experience in managing economic cycles and reform momentum. 

The Minister also reaffirmed the continued peg of the Saudi riyal to the US dollar, stressing that there is no intention to alter the exchange rate regime. He further noted that the management of foreign reserves is conducted by the Saudi Central Bank (SAMA) in accordance with its established investment policies, underscoring confidence in the Kingdom’s monetary stability and institutional governance. 

Together, these messages from Davos underscore Saudi Arabia’s commitment to prudent fiscal management, monetary stability, and strategic capital deployment key pillars supporting investor confidence and sustainable economic growth. 

Davos 2026 with Global Initiatives and Strategic Economic Partnerships 

Saudi Arabia concluded its participation in the 2026 Annual Meeting of the World Economic Forum in Davos (19–23 January) by reinforcing its role as a global convenor and catalyst for international economic cooperation. The Kingdom announced that it will host a World Economic Forum international meeting on cooperation and growth in Jeddah on 22–23 April, under the theme “Building Common Ground and Advancing Growth”, further positioning Saudi Arabia as a platform for global dialogue. 

The Saudi delegation, led by Prince Faisal bin Farhan bin Abdullah, Minister of Foreign Affairs, actively engaged in high-level public and private dialogues, bilateral meetings, and global media engagements. The delegation also oversaw the launch of several major international initiatives aimed at addressing global challenges and unlocking economic opportunities. 

As part of its participation, the Ministry of Economy and Planning organized the “SAUDI HOUSE” pavilion for the second consecutive year — the largest program since its inception. The pavilion hosted the NextOn dialogue series, bringing together global experts, policymakers, and thought leaders across more than 20 strategic sessions focused on future-oriented economic and social themes. 

The discussions were structured around six core pillars aligned with Vision 2030: Ambitious Vision, Data for Impact, Human Capital Development, Quality of Life, Investment and Cooperation, and Welcome to the World. These sessions were supported by key government entities and national programs, including Invest Saudi, Vision 2030, the Quality of Life Program, the Human Capability Development Program, and the Saudi Data Platform. 

CMA Strengthens Regulatory Framework for Real Estate Ownership  

On 22 January 2026, the Capital Market Authority (CMA) approved new Controls governing the ownership of real estate in the Kingdom by listed companies, investment funds, and special purpose entities (SPEs), including properties located in Makkah and Madinah. The Controls will take effect in line with the implementation of the Law of Real Estate Ownership by Non-Saudis, issued under Royal Decree No. (M/14). 

The new framework replaces the previous exclusions granted to listed companies under earlier regulations and establishes a unified, transparent mechanism for real estate ownership and real rights acquisition by regulated capital market entities. The CMA confirmed that the Controls do not introduce new regulatory obligations, but rather align existing requirements with the updated law, while preserving full compliance with applicable regulations during both operational and liquidation phases. 

SAMA Issues New Fees Guide for Financial Institutions’ Services 

Saudi Central Bank (SAMA) has introduced a comprehensive Fees Guide for Financial Institutions’ Services, replacing the legacy Banking Tariff framework. The new guide establishes a modern regulatory standard aimed at enhancing consumer protection, transparency, and financial inclusion across the banking and payments sector. 

By setting maximum fee caps on commonly used services  including administrative financing charges, international withdrawals, and electronic transfers the framework reduces cost burdens on customers while improving price clarity. The initiative also supports digital transformation within the financial sector by encouraging fair, standardized pricing for electronic and payment services.

Sources

• Saudi Central Bank (SAMA) – Fees Guide for Financial Institutions’ Services 

• Capital Market Authority (CMA) – Controls on Real Estate Ownership by Listed Companies, Investment Funds, and Special Purpose Entities 

• Saudi Central Bank (SAMA) – Real Estate Liquidation Circular 

• Ministry of Economy and Planning & Ministry of Foreign Affairs – Saudi Arabia’s Participation in the World Economic Forum 2026