Saudi Arabia’s Northern Border Region set for investment takeoff

The Northern Border Region stands out as a vital economic hub among Saudi Arabia’s 13 regions, contributing around SR27 billion ($7.2 billion) annually to the Kingdom’s gross domestic product.

Serving as one of the Kingdom’s principal northern gateways, the region is endowed with vast mineral wealth, most notably phosphate reserves that account for about 7 percent of global supply. It also hosts significant natural gas resources, ranking among the largest worldwide. Together, these assets provide strong potential for downstream and value-added industries, particularly in phosphate-based manufacturing.

Strategically positioned along the international highway linking Saudi Arabia and the Gulf states with neighboring countries to the north — including Jordan, Syria, and Turkiye — the region connects directly to broader markets extending into Europe. 

This geographic advantage is further strengthened by the Kingdom’s only land border crossing with Iraq, the Jadidat Arar Border Crossing, located roughly 60 km north of Arar city.

The Northern Border Region’s distinctive location and competitive investment appeal were highlighted at the Annual Northern Borders Investment Forum 2025, held in Arar in December. The forum serves as a recurring platform to expand investment opportunities, attract local and international investors, and showcase the region’s untapped economic potential.

This year’s event, held under the patronage of Prince Faisal bin Khalid bin Sultan bin Abdulaziz, governor of the Northern Border Region, presented more than 240 investment opportunities with a total value of around SR40 billion.

Aligned with Saudi Vision 2030, the region aspires to emerge as a leading investment destination, linking investors with high-impact opportunities and contributing to long-term sustainable development. This ambition is supported by a mission to build a comprehensive investment ecosystem that facilitates opportunity discovery, strengthens strategic partnerships, and drives economic growth across the region.

At the forum’s main panel, titled “From gaudiness to empowerment: A national vision for future investment,” vice ministers and chief executives from key government entities explored ways to unlock the region’s full investment potential. Participants agreed that the Northern Border Region represents a high-potential destination, offering diverse opportunities across mining, energy, logistics, and tourism.

Deputy Minister of Environment, Water and Agriculture Mansour bin Hilal Al-Mushaiti described the region as one of the Kingdom’s most promising strategic areas, citing its natural and geographic advantages that make it attractive for investment across the environment, water, and agriculture ecosystem. 

These include abundant natural resources, varied topography, vast rangelands, rain-fed agriculture, rich biodiversity, and its strategic location anchored by the Arar Land Port, which supports trade and logistics services.

Al-Mushaiti highlighted significant progress achieved by the ministry in the region. In the environmental sector, degraded land was reduced from 167,000 hectares in 2015 to 89,000 hectares in 2023. More than 60,000 hectares were rehabilitated, nearly 1 million trees were planted, and nine tonnes of rangeland seeds were dispersed across more than 3,700 hectares.

He added that the rehabilitation of Mu‘aylah National Park has surpassed a 70 percent completion rate, transforming it into an investment opportunity covering more than 14 million sq. meters, alongside 18 additional environmental investment opportunities. Meanwhile, the water sector has seen the rollout of vital projects exceeding SR2.2 billion in value.

Al-Mushaiti concluded by stressing that the Northern Border Region offers a promising investment environment, backed by solid infrastructure and a wide range of opportunities across environment, water, and agriculture.

In sum, the Northern Border Region presents a compelling investment proposition, combining strategic location with expanding opportunities in mining, energy, logistics, and tourism — all supported by strong government commitment and an enabling investment ecosystem.

• Talat Zaki Hafiz is an economist and financial analyst.
X: @TalatHafiz