Geopolitical Briefing: Saudi Arabia
3 May 2025
- Saudi Arabia’s real GDP grew by 2.7% in Q1 2025, driven by a 4.2% expansion in the non-oil sector, while the oil sector contracted by 1.4%.
- The U.S. approved a preliminary $3.5 billion arms sale to Saudi Arabia, including 1,000 AIM-120C-8 missiles, ahead of President Trump’s planned visit.
- Saudi Arabia condemned an Israeli airstrike near Syria’s Presidential Palace, calling it a violation of Syrian sovereignty.
- Bank of New York Mellon received a license to establish a regional headquarters in Riyadh, joining other global banks expanding their presence in Saudi Arabia.
- Canelo Álvarez is set to headline a major boxing event in Riyadh on May 3, 2025, facing William Scull for the IBF super-middleweight title. (Nasser Saidi & Associates, AP News, Arab News, Reuters, talkSPORT)
Saudi Arabia’s economy demonstrated resilience in Q1 2025, with a 2.7% year-on-year GDP growth, primarily driven by a 4.2% expansion in the non-oil sector. This growth reflects the Kingdom’s ongoing efforts to diversify its economy under Vision 2030, reducing reliance on oil revenues. (Nasser Saidi & Associates)
In a significant defense development, the U.S. granted preliminary approval for a $3.5 billion arms deal with Saudi Arabia, encompassing 1,000 AIM-120C-8 advanced medium-range air-to-air missiles. This move precedes President Trump’s upcoming visit to the Kingdom and underscores the strategic defense ties between the two nations. (AP News)
On the diplomatic front, Saudi Arabia strongly condemned an Israeli airstrike targeting the vicinity of the Presidential Palace in Damascus, labeling it a blatant violation of Syrian sovereignty and a threat to regional stability. This stance aligns with Saudi Arabia’s broader commitment to regional security and its support for Syrian sovereignty. (Arab News)
In the financial sector, Bank of New York Mellon secured a license to establish a regional headquarters in Riyadh, joining other global financial institutions like Goldman Sachs and Citigroup. This development is part of Saudi Arabia’s strategy to position itself as a key financial hub in the Middle East, attracting foreign investment and diversifying its economy. (Reuters)
Culturally, Saudi Arabia continues to enhance its global presence by hosting major sporting events. On May 3, 2025, Riyadh will host a high-profile boxing match featuring Canelo Álvarez and William Scull, marking Canelo’s first fight in the Kingdom. This event underscores Saudi Arabia’s commitment to becoming a premier destination for international sports and entertainment. (talkSPORT)
