KSA Market Watch: $3B AI Expansion, Nitaqat 2.0, and the $2.5T Mineral Opportunity

From the desk of TASC KSA

Saudi Arabia’s economic momentum continues to shift from long-term vision toward active execution. Across sectors, we are seeing faster rollout of policy, infrastructure, and investment decisions supporting non-oil growth. From major AI investments to expanding mining activity and workforce localisation reforms, the latest developments signal a business environment that increasingly rewards speed, compliance, and operational readiness. For leadership teams, the message is clear: expansion in the Kingdom now requires both strategic timing and strong local execution.

General Business & Economy

Featured Insight: Precision Partnering in the New Saudi Talent Market

Market Pulse

As industrial and technology sectors accelerate, demand for specialised talent is increasing. Success in Saudi Arabia now depends on working with partners who understand frameworks such as the Private Sector Data Protection Law (PDPL) and Regional Headquarters (RHQ) requirements.

Why It Matters

With labour processes increasingly managed through digital government platforms, recruitment decisions now carry operational and compliance implications. Misalignment in data residency or labour registration can lead to onboarding delays and regulatory issues.

The Way Forward

• Compliance Audit: Ask potential partners how candidate data is managed and localised to meet PDPL standards.
• Strategic Vetting: Ensure your recruitment partner understands Saudization requirements specific to your sector, not just general hiring.

Labor Law: Nitaqat 2.0 to Create 340,000 Private Sector Jobs

Market Pulse

The Ministry of Human Resources and Social Development has launched the second phase of the Nitaqat Al-Mutawar Program, aiming to generate 340,000 jobs for Saudi nationals over the next three years. The programme builds on the previous phase, which successfully supported large-scale employment growth among citizens.

Why It Matters

The updated framework introduces more targeted, sector-based localisation benchmarks, providing companies with clearer visibility on workforce compliance expectations as they scale.

The Way Forward

• Establishment Strategy: Review your hiring roadmap against updated sector benchmarks.
• Digital Integration: Use platforms such as Qiwa and Mudad effectively while ensuring local compliance oversight.

Digital Economy & Technology

Investment: Humain Backs xAI with $3 Billion Series E Funding

Market Pulse

PIF-backed Humain has committed $3 billion into xAI’s Series E funding round. The investment supports Saudi Arabia’s ambition to strengthen its position in advanced computing infrastructure and artificial intelligence development.

Why It Matters

The move highlights the Kingdom’s broader push to expand digital infrastructure capacity, which is expected to drive demand for data centres, high-performance computing facilities, and specialised technical talent.

The Way Forward

• Infrastructure Strategy: Technology providers should assess local data infrastructure opportunities.
• Talent Planning: Companies may need to secure specialised digital and engineering talent earlier as competition increases.

Mining & Industrial Energy

Mining: Saudi Issues 61 New Licenses, Up 220% Year-On-Year

Market Pulse

The Ministry of Industry and Mineral Resources reported a 220% increase in new mining exploitation licences in 2025. Saudi Arabia’s estimated mineral resources are valued at approximately $2.5 trillion, attracting growing investment across exploration and production.

Why It Matters

Mining is becoming an increasingly important contributor to industrial diversification and is creating opportunities across supporting industries such as logistics, equipment services, and industrial technology.

The Way Forward

• Supply Chain Positioning: Industrial service providers should explore opportunities linked to mining expansion.
• Workforce Planning: Companies may need to secure technical skills early as activity increases.

Energy: Aramco’s $7.7 Billion Fadhili Gas Plant Expansion

Market Pulse

Saudi Aramco has awarded Engineering, Procurement, and Construction contracts worth $7.7 billion to expand the Fadhili Gas Plant. The expansion will increase processing capacity and support domestic energy supply.

Why It Matters

Large-scale energy projects continue to underpin industrial growth and infrastructure development, generating ongoing demand across contracting, logistics, and workforce mobilisation.

The Way Forward

• Contractor Positioning: Firms may benefit from aligning resources with Eastern Province project activity.
• Recruitment Planning: Major projects often require early workforce preparation to meet mobilisation timelines.

Infrastructure, Transport & Logistics

Logistics: Private Sector Investment Passes SAR 280 Billion

Market Pulse

Investment in Saudi Arabia’s transport and logistics sector has surpassed SAR 280 billion, alongside continued growth in air cargo volumes and logistics infrastructure development.

Why It Matters

The sector is playing an increasingly important role in enabling trade, supply chain efficiency, and non-oil economic growth.

The Way Forward

• Operational Readiness: Companies may need to strengthen supply-chain capabilities and logistics partnerships as trade flows increase.

Tourism & Hospitality

Hospitality: Minister Inaugurates Largest Ultra-Inclusive Resort

Market Pulse

The Minister of Tourism inaugurated Rixos Murjana, Saudi Arabia’s largest ultra-all-inclusive resort in King Abdullah Economic City. The development forms part of the Kingdom’s wider tourism growth strategy.

Why It Matters

As tourism infrastructure expands, demand is expected to grow for hospitality professionals, service operators, and tourism-ready workforce capabilities.

The Way Forward

• Workforce Development: Hospitality operators may need to prioritise training pipelines to meet rising operational demand.

The Bottom Line

Saudi Arabia continues to present significant opportunities across technology, infrastructure, workforce development, and industrial sectors. For companies operating in the Kingdom, the advantage increasingly lies with those who combine market insight with strong local execution and compliance readiness.

Ready to mobilise?
TASC KSA provides on-ground expertise across recruitment, outsourcing, and HR operations to help organisations act on these market developments with confidence.

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