Drones drive innovation and efficiency in Vision 2030

Drone are improving safety and efficiency in the energy sector by inspecting pipelines, refineries, and critical infrastructure. (saadef.com)
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Updated 07 December 2024
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Drones drive innovation and efficiency in Vision 2030

JEDDAH: Drone technology is emerging as a central pillar of Saudi Arabia’s push toward economic diversification, as the Kingdom leverages its Vision 2030 initiative to foster innovation across key industries.

From construction and oil to logistics and agriculture, drones are not only enhancing operational efficiency but are also central to achieving sustainability goals.

With strong government backing, the drone market in Saudi Arabia is poised for significant growth. Strategic investments and regulatory reforms are providing a conducive environment for drone technology, positioning the Kingdom as a regional leader in aerial innovation.

Rabih Bou Rached, founder and CEO of Dubai-based Falcon Eye Drones, a leader in Middle Eastern drone operations, emphasized that the unmanned aircraft are essential for Vision 2030, particularly in revitalizing industries, boosting operational efficiency and meeting sustainability objectives.

“The Saudi government’s commitment to technology adoption and strategic investments is facilitating drone integration across various sectors, creating new opportunities and innovations,” he said.

The drone sector is growing rapidly, supported by regulatory advancements and increasing demand from multiple industries. He cited a MarketsandMarkets report forecasting that the Middle East drone market would reach $5.54 billion by 2025, with Saudi Arabia driving much of this growth.

The report attributes this to sectors like construction, oil and gas, agriculture and logistics, which are leveraging drone technology to enhance productivity and reduce costs.

Drone impact on key sectors

In construction, drones are revolutionizing project management and site inspections. Bou Rached said the Saudi construction market, valued at $70.33 billion in 2024, was set to grow to $91.36 billion by 2029, with drones playing a key role in driving efficiency.

In the oil and gas sector, drones are used for inspection, monitoring and maintenance, helping reduce costs and improve safety by minimizing human intervention in hazardous environments.




Rabih Bou Rached, founder and CEO of Dubai-based Falcon Eye Drones. (Supplied)

“According to a report by PwC, drones can reduce inspection costs by up to 85 percent and enhance safety by minimizing human intervention in hazardous environments. Drones provide an effective solution for inspecting gas flares, monitoring pipelines, and detecting leaks, ensuring operational continuity, and improving safety,” Bou Rached added.

Despite the rapid growth, regulatory challenges persist. Bou Rached pointed out that while Saudi Arabia has made significant strides in developing drone-friendly regulations, there are still areas for improvement.

The General Authority of Civil Aviation is revising regulations to balance safety and innovation, with new efforts to streamline licensing and create clearer guidelines for commercial drone operations.

“As with most of the Middle East though, there are focus areas for development. The existing regulations concerning operational limits, airspace usage, and licensing requirements are under scrutiny by the powers that be, to allow for improved usage and development,” he said.

He stressed regulatory clarity was essential for maximizing drone capabilities across sectors: “Recent efforts include streamlined licensing processes and clearer guidelines for commercial drone operations.”

Job creation and future prospects

The integration of drones is expected to spur job creation and skills development, particularly in fields such as manufacturing, maintenance and data analysis.

Bou Rached foresees increased educational opportunities as universities offer programs focused on drone technology, robotics and artificial intelligence: “This technology is poised to be a catalyst for job creation and skills development,” he said.

Alhussain Al-Hazmi, CEO of Riyadh-based Lensic Drone Solutions, echoed Bou Rached’s optimism and highlighted the rapid adoption of drones across various sectors in Saudi Arabia.




Alhussain Alhazmi, CEO of Lensic Drone Solutions. (Supplied)

“Drone technology is playing a vital role in helping Saudi Arabia achieve its Vision 2030 goals, particularly in driving economic diversification and enhancing efficiency across key sectors,” Al-Hazmi said.

He noted the success of drones in defense, particularly for real-time surveillance and reducing human risk in dangerous environments.

The CEO also highlighted their growing use in logistics, citing a pilotless air taxi initiative during the 2024 Hajj to manage congestion and improve transport efficiency. “The logistics sector is also benefiting from drone technology. During the 2024 Hajj, the government successfully trialed pilotless air taxis to manage congestion and transport people more efficiently,” he said.

In the mining sector, Al-Hazmi’s company collaborates with Royal Road Arabia to enhance mineral exploration using advanced drones. These drones are equipped with hyperspectral scanners and other technologies to gather high-precision data, aiding in the exploration of copper and gold mines.

“These results demonstrate the power of drone technology in enhancing the discovery and exploration of valuable mineral resources,” he said.

Regulatory and infrastructure challenges

Despite the excitement surrounding drone technology, regulatory hurdles persist. Alhazmi pointed out that the approval process for drone operations, especially for advanced or heavy drones, can be cumbersome. The GACA restricts drones heavier than 24.99 kg, limiting their use to government projects, which restricts the private sector’s potential.

However, Al-Hazmi sees promise in the government’s ongoing efforts to streamline regulatory frameworks and foster collaboration with the private sector. “Clearer guidelines and faster approval processes are being developed to help companies operate more efficiently,” he said. “Collaboration between the government and the private sector is being actively encouraged to develop smoother, more efficient regulations that better meet industry needs.”

Both Bou Rached and Al-Hazmi agreed that drone technology holds immense potential in helping Saudi Arabia achieve its economic and technological goals.

As the industry matures, drones are expected to become integral to sectors such as public safety, urban planning, and energy. The integration of artificial intelligence and automation will further enhance the capabilities of drones, enabling them to handle data analysis, predictive maintenance, and autonomous operations.

“In the energy sector, drones inspect pipelines, power lines, and conduct environmental assessments, enhancing safety and efficiency,” said Al-Hazmi. “Drones assist farmers by monitoring crop health, optimizing water use, and promoting sustainable farming practices. Drones will also play a critical role in the development of Saudi Arabia’s smart cities, including NEOM, Qiddiya, and the Giga projects on the Red Sea.”

A bright future for drone technology

As Saudi Arabia moves toward its Vision 2030 objectives, drones are becoming a driving force for innovation and efficiency across key sectors. While challenges remain, the Kingdom’s commitment to developing a drone-friendly regulatory environment and fostering private-sector collaboration signals a promising future for the industry.

Both Bou Rached and Alhazmi are confident Saudi Arabia’s drone industry is poised for rapid growth, with the potential to lead not only in the Middle East but globally.

“The next decade could see drones becoming an integral part of key industries and economic evolution in Saudi Arabia,” Bou Rached said.

With continued regulatory reforms and strategic investments, Saudi Arabia is well-positioned to harness the full potential of drone technology as a key enabler of Vision 2030’s economic transformation. 


GCC offering investors ‘safe’ PPP deals; Saudi pipeline nears 300: FII

Updated 20 February 2026
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GCC offering investors ‘safe’ PPP deals; Saudi pipeline nears 300: FII

RIYADH: Global investors can find a “safe harbor” in the Gulf Cooperation Council as the bloc’s public-private partnerships pipeline offers “compelling” opportunities, according to a new report.

The latest document from the Future Investment Initiative Institute highlights how economies in the region are currently driving the next wave of PPP growth. 

It cites findings from Partnerships Bulletin, which ranks Saudi Arabia as second in the global emerging markets pipeline for PPP projects up to July 2025, and also places Dubai in the top 10.

While that analysis claims the Kingdom has 98 PPP projects either formally published or announced, FII says Saudi Arabia has a further 200 currently awaiting approval.

The findings align with the goals outlined in the Kingdom’s National Privatization Strategy, launched in January, which aims to raise satisfaction levels with public services across 18 target sectors, create tens of thousands of specialized jobs, and exceed 220 PPP contracts by 2030. 

The strategy also aims to increase private sector capital investments to more than SR240 billion ($63.99 billion) by 2030.

The FII report says that around 90 percent of FDI into Saudi Arabia now flows into non-oil sectors, from advanced manufacturing and tourism to green energy and digital infrastructure. 

“That shift reflects deliberate policy choices to open markets, standardize regulatory frameworks and use public capital to de-risk new value chains,” says the document, adding: “The result is a kind of safe harbor in an otherwise low-growth, high-uncertainty world.”

It continues: “While global FDI has stagnated or declined in many regions, the GCC’s pipeline of planned infrastructure and industrial projects now exceeds $2.5 trillion, according to Boston Consulting Group data, with PPPs playing a central role in structuring and financing them. For global investors searching for yield, diversification and inflation-linked income, this represents a compelling proposition.”

Commenting on the FII Institute report, Sally Menassa, partner at international management consulting firm Arthur D. Little, said PPPs are a strategic necessity for delivering infrastructure at speed and scale, and described Saudi Arabia’s pipeline as a “powerful execution and financing tool.” 

She added: “The Kingdom’s PPP momentum must remain focused on impact, value creation and execution excellence. PPPs should not be viewed merely as a funding mechanism, but as a structural tool to enhance infrastructure performance, attract investment and support sustainable economic growth in line with Vision 2030.” 

Menassa said that Saudi Arabia’s National Privitization Strategy marks a shift from a project-by-project approach to institutionalization of efforts and value creation.

“By clarifying sector priorities, strengthening project selection criteria, and formalizing governance and investor pathways, the Strategy reduces uncertainty. This clarity enhances investor confidence and improves pipeline quality,” said the Arthur D. Little official. 

Sally Menassa, partner at international management consulting firm Arthur D. Little. Supplied.

She added: “PPP and privatization efforts in Saudi Arabia are not about divestment or the state shifting execution to the private sector, it is really about becoming more productive as a nation. It enhances efficiency, raises service standards, mobilizes private and SME participation, and attracts capital.” 

Menassa further said that the strategy could help the Kingdom achieve stronger fiscal sustainability and higher private sector GDP contribution, both of which are critical components to accelerate the Kingdom’s economic transformation under Vision 2030.

Vijay Valecha, chief investment officer at Century Financial, believes input from the private sector across all stages, from design to construction and operations, improves the efficiency of project delivery and long-term operations in Saudi Arabia. 

“Tighter governance through centralized management at the National Center for Privatization and PPP and a more streamlined process, including template contracts, a clearer regulatory environment, and a transparent pipeline, is likely to improve delivery speed,” said Valecha. 

He added: “This means faster delivery of big projects like Red Sea resorts or Neom, with private firms handling operations to drive innovation. Ultimately, the strategy supercharges diversification by making the private sector the main engine of growth, aligning perfectly with Saudi Arabia’s push for a vibrant, non-oil economy.” 

The FII Institute added that the global flow of FDI is increasingly concentrated in the Gulf Cooperation Council region, driven by ambitious national transformation agendas and deep pools of sovereign wealth.

Tony Hallside, CEO of STP Partners, outlined several factors that are boosting the PPP landscape in the region, which include large infrastructure demand from Vision-level programs and urbanization. 

“Government frameworks that standardise PPP procurement are making projects bankable. Strong regional capital pools and sovereign support will mitigate risk and attract global players. In the GCC, Saudi Arabia’s pipeline itself is one of the largest in the Middle East, indicating strong investor interest,” added Hallside. 

Underscoring the role of growing PPP in Saudi Arabia, the FII report said: “A decade ago, the Kingdom’s solar capacity was negligible, despite its vast solar resource. Through early anchor investments, long-term power purchase agreements and support for national champions, the state seeded a competitive renewables market that now attracts global players on purely commercial terms.” 

Valecha said that clearer PPP laws, standardised contracts and dedicated PPP units have reduced execution risks and made projects more bankable for global infrastructure funds and developers in the GCC region. 

He added that rapid urbanization, a young and growing population, rising data center power demand and energy transition projects create predictable, long-duration cash flows in the region. 

“This combination of policy support, fiscal necessity and structural growth is why the GCC is emerging as one of the fastest-growing PPP markets globally,” said Valecha. 

Vijay Valecha, chief investment officer at Century Financial. Supplied

Key Saudi PPP projects

Yanbu 4 Independent Water Project - supplying water to Medina and Makkah

Location Yanbu, Red Sea coast

Companies involved: Engie, Mowah, Nesma, Saudi Water Partnership Co.

Cost: $826.5 million

Expected delivery date: Operational as of 2024

Hadda Independent Sewage Treatment Plant

Location: Makkah Province

Companies involved: Metito Utilities, Etihad Water and Electricity, SkyBridge Limited Co., Saudi Water Partnership Co.

Expected delivery date: 2028 

As Sufun Solar PV Independent Power Project

Location: Hail region

Companies involved: TotalEnergies, Aljomaih Energy & Water, Saudi Power Procurement Co.

Expected delivery date: Expected to connect to the grid in 2027

Construction of greenfield international airports

Location: Taif, Abha, Qassim, and Hail

Companies involved: Currently in the planning stage; investors are being sought

One-Stop Station Project

Location: Intercity road network across the Kingdom

Companies involved: Saudi Arabia’s Roads General Authority and National Center for Privatization & Public-Private Partnership announced a full list of qualified bidders in February.

King Salman Park

Location: Riyadh

Companies involved: King Salman Park Foundation, Ajdan Real Estate, Sedco Capital

Cost: $1 billion

Project: Madinah-3, Buraydah-2, and Tabuk-2 Independent Sewage Treatment Plants

Location: Madinah, Buraydah, and Tabuk

Companies involved: Acciona Agua, Tawzea, Tamasuk, Saudi Water Partnership Co.

Cost: $627 million combined

Riyadh Metro Line 2 Extension

Location: Riyadh

Companies involved: Royal Commission for Riyadh City, Arriyadh New Mobility Consortium, led by Webuild. Riyadh Metro Transit Consultants (JV between US Parsons and France’s Egis and Systra) as project management and construction supervision consultant.

Cost: Up to $900 million

Expected delivery date: 2032


The crucial role of emerging markets

According to the FII Institute report, the ability to deliver resilient infrastructure, expand digital connectivity and accelerate the energy transition will increasingly depend on the strength and legitimacy of PPPs, as fiscal space tightens and investment needs rise. 

FII estimates a $5 trillion global infrastructure financing gap by 2040. It also points to significant regional shortfalls, including an estimated $3.7 trillion gap in the US and an annual $130 billion to $170 billion gap across Africa. In this context, PPPs are moving from a transactional procurement route to a central model for financing and delivery.

The report highlighted that emerging markets, including Saudi Arabia, are currently driving the next wave of PPP growth, with spending across low-and middle-income countries reaching $100.7 billion in 2024, up 16 percent year on year, according to figures from the World Bank. 

Moreover, emerging markets now represent around 61 percent of global PPP activity by gross domestic product share.

According to Partnerships Bulletin’s findings up to July 31 2025, the Philippines leads the emerging-market pipeline with 230 projects, followed by Saudi Arabia with 98, Kyrgyzstan with 80, Bangladesh with 71, and Peru with 54 projects.

Greece has 42 projects in the pipeline, followed by Dubai at 28, Kenya at 25, Colombia at 24, and Pakistan at 14. 

PPP: An engine of growth

When capital was cheap, PPPs were often treated as an optional extra – a way to shift specific projects off the public balance sheet, or to import private-sector efficiency into construction and operations, the FII report said. 

However, now, nations consider PPPs as a central hub of their economic strategy, as they enable the state to stretch every dollar of public investment using private capital, while retaining strategic control over what gets built, where and to what standard.

“The real differentiator is complexity. When a project presents significant financial uncertainty or unpredictable demand, or if there’s a high level of climate exposure or technological risk, a PPP can give leaders the tools to manage those issues without slowing things down,” said Bob Willen, global managing partner and chairman of Kearney, said in the FII report. 

Erik Ringvold, chief business development officer at Regional Voluntary Carbon Market Co., was quoted in the report as saying that carbon markets will benefit through PPPs, as deepened public-private partnerships could help achieve progress toward national emissions targets, while simultaneously creating economic opportunity and catalyzing new green industries. 

“Saudi Arabia has made large strides toward an emissions compliance system, with an operational carbon standard in place, and an emissions trading system announced to be launched over the coming few years,” said Ringvold. 

He added: “At VCM, we see a clear future carbon vision for Saudi Arabia. One ecosystem. One marketplace. One iconic collaboration – with the PPP model at the heart of its success.” 

PPPs for investors and citizens 

For investors, infrastructure-backed PPPs offer long-duration, often inflation-linked cash flows at a time when public markets are volatile and dominated by a narrow set of mega-cap technology stocks. 

For citizens, well-designed PPPs can mean better services, more resilient infrastructure and faster progress toward climate and development goals, without unsustainable tax rises or austerity. 

FII, however, cautioned that public consent is becoming decisive. Across seven countries, only 23 percent of citizens agree that PPPs “equally benefit everyone”, compared with 41 percent of business and government leaders.

Tony Hallside, CEO of STP Partners. Supplied

Hallside said that public consent hinges on transparency, accountability, and visible service outcomes. 

He added that governments should publish clear procurement frameworks, communicate cost-benefit and performance expectations in plain language, and measure user satisfaction and service quality over time — “reinforcing that PPPs deliver tangible improvements in infrastructure and services.” 

Menassa echoed similar views and said that communication with the public is not sufficient, but the performance and execution phase holds the key to PPP projects. 

“Winning public opinion for PPPs is rather a marathon not a race. It starts with building awareness and trust by providing transparency and demonstrating value for money, ensuring affordability and service quality of public services is maintained through strong regulatory oversight, and ensuring competitive, transparent procurement processes,” added Menassa. 

According to the Arthur D. Little official, the public must see tangible improvements in service reliability, efficiency and accountability, and acceptance will follow.

“The world can’t afford to delay the infrastructure and energy transition investments that will determine prosperity – and planetary stability – for decades to come. Nor can it fund them through public budgets alone. Financing the future is, by definition, a joint endeavour,” added the FII report.