Saudi private sector sees steady expansion in second quarter of 2024

Saudi Arabia continues to cultivate an enabling environment for the private sector as Vision 2030 is poised to shape the Kingdom's future. File/Vision 2030
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Updated 25 August 2024
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Saudi private sector sees steady expansion in second quarter of 2024

  • Favorable performance of several sub-indices supported the ongoing expansion
  • Non-oil sector business cycle peaked post-COVID-19 at the end of 2022

RIYADH: Corporate stability fueled consistent growth in Saudi Arabia’s private sector in the second quarter of the year, with levels expected to remain steady through year-end, according to a government analysis.

The Ministry of Economy and Planning reported in its Private Sector Business Cycle Composite Index, or MEPX, that the favorable performance of several sub-indices has supported the ongoing expansion. 

The ministry said that the Saudi non-oil sector business cycle peaked post-COVID-19 at the end of 2022, with gradual rebalancing beginning since then.

Launched in 2022, MEPX monitors the performance of the Kingdom’s private sector by tracking 10 economic factors across four categories, including consumers, firms, finance, and trade. 

MEPX analyzes the business cycle using advanced econometric techniques and provides valuable insights for policy and decision-makers.

The ministry expected MEPX to remain stable over the next four months, barring major disruptions.

In a release, the ministry said that strong consumer-related indicators continued to boost the index’s value, adding that the points of sale and payments via the centralized SADAD system showed healthy annual growth of 5.9 percent and 9.7 percent, respectively.

The ministry also said that the 6.7 percent year-on-year increase in the money supply indicated gradual improvement in financial conditions, despite the expected delay in interest rate cuts this year.

Firm-related indicators have moderated due to a declining purchasing managers’ index and a slowing Saudi stock market index value, the report said, adding that trade-related indicators performed poorly, as reflected in the negative growth of new letters of credit for imports.

The Kingdom has launched several economic reforms to foster a supportive business environment and improve the quality, efficiency, and digitization of services provided to the private sector. 

Numerous programs, initiatives, funds, incubators, and accelerators have been established to help the private sector overcome challenges and position it as the main driver of the Kingdom’s economy.

Investments by the country’s Public Investment Fund in local companies have opened up new non-oil sectors, creating significant opportunities. 

As the government continues to cultivate an enabling environment for the private sector and its partners, Vision 2030 is poised to fulfill the Kingdom’s aspirations and shape its future.


Saudi Aramco achieves significant progress in its gas production plan

Updated 26 February 2026
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Saudi Aramco achieves significant progress in its gas production plan

RIYADH: Saudi Aramco has announced the achievement of significant progress in its plan to expand gas production, with the start of production at the Jafurah field, the largest unconventional gas field in the Middle East, and the commencement of operational activities at the Tanajib Gas Plant, one of the largest gas plants in the world.

The oil giant aims to increase its sales gas production capacity by approximately 80 percent by 2030 compared to 2021 production levels, reaching nearly 6 million barrels of oil equivalent per day from total gas and associated liquids production, according to the Saudi Press Agency.

This is expected to generate additional operating cash flows ranging between $12 billion and $15 billion in 2030, subject to future demand for sales gas and liquids prices.

President and CEO of Saudi Aramco, Amin Al-Nasser, said: “We are proud to commence production at the Jafurah field and begin operations at the Tanajib Gas Plant. These are major achievements for Saudi Aramco and the future of energy in the Kingdom. Our ambitious gas program is expected to become a key source of profitability.”

He affirmed that these mega-projects contribute to meeting the growing domestic demand for gas, supporting industrialization and development in several key sectors, in addition to producing significant quantities of high-value liquids.

Al-Nasser expressed his gratitude for the support, trust, and attention that Saudi Aramco receives from the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, crown prince and prime minister, noting that this has had the most profound impact on the company’s achievements and distinguished projects that serve the Kingdom’s Vision 2030.

The gas extracted from the Jafurah field is expected to support the Kingdom’s growth targets in key sectors such as energy, artificial intelligence, major industries, and petrochemicals, potentially providing a major boost to the Kingdom’s economy and strengthening its position among the world’s top ten gas producers.

Saudi Aramco began first producing unconventional shale gas from the Jafurah field in December 2025, with technology playing a pivotal role in unlocking the potential of the Jafurah field and establishing it as a global benchmark for unconventional gas development. 

Since its inception, the project has leveraged technology to help reduce drilling and stimulation costs and enhance well productivity, contributing to its strong economic prospects.

The Jafurah area covers 17,000 sq. km and is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion barrels of condensates. The Jafurah field project aims to produce 2 billion standard cubic feet per day of sales gas, 420 million standard cubic feet per day of ethane, and approximately 630,00 barrels per day of gas liquids and condensates by 2030.

The Tanajib Gas Plant is a key pillar in Aramco’s strategy to increase gas processing capacities and diversify its energy product portfolio, helping to foster long-term economic growth. 

Operations began in December 2025, and its raw gas processing capacity is expected to reach 2.6 billion standard cubic feet per day in 2026. The start of operations at the Tanajib Plant coincided with the commencement of production from the Marjan field expansion and development program. 

The plant is distinguished by its digital integration, enhanced operational efficiency, capability to execute complex projects, and optimal use of resources. It processes raw gas associated with crude oil production from the offshore Marjan and Zuluf fields.

Aramco’s gas expansion is expected to create thousands of direct and indirect job opportunities, generating significant added value and strengthening its position as a reliable energy provider. 

It also helps meet the growing demand for natural gas and enhances its supply to national industries. 

The expansion strategy supports efforts aimed at achieving the optimal energy mix for local electricity generation, advancing the Kingdom’s liquid fuel displacement program, which will have a positive environmental impact, supporting the Kingdom’s ambition to achieve net-zero emissions by 2060, enhancing energy security, and contributing to building a more diversified national economy.