MENA Pulse – January 2026 Edition
Saudi Arabia’s Industrial Reset
From temporary support to permanent advantage.
On December 17, 2025, the Saudi Cabinet approved the permanent abolition of the expatriate worker levy for licensed industrial facilities, replacing a temporary exemption that had been in place since 2019.
This removes uncertainty that manufacturers had been operating under for six years.
What Changed
- Permanent reform: No annual renewals. No policy cliff. The levy is eliminated for good.
- Strategic impact: Since the exemption began in 2019, industrial GDP has grown ~56%, and the number of licensed factories has crossed 12,000.
- Reinvestment signal: Industry Minister Bandar Alkhorayef noted the reform gives factories the long-term visibility needed to reinvest savings into automation and productivity.
This isn’t a short-term incentive. It’s a structural cost advantage.
HSBC Bets on Riyadh
Capital markets decision-making is moving east.
On December 8, 2025, Saudi Arabia’s Ministry of Investment granted HSBC a Regional Headquarters (RHQ) license for its Capital Markets and Advisory business.
Why This Matters
- Regional control: The Riyadh RHQ will oversee equity, M&A, and debt advisory across the Middle East.
- Leadership signal: Faris AlGhannam will lead the regional entity—placing senior decision-making inside the Kingdom.
- First mover: HSBC is the first major global bank to formally base its investment banking RHQ in Riyadh under the HQ Program.
When global banks relocate where deals are run—not just booked—the market follows.
Oman: The Green Hydrogen First Mover
Execution beats ambition.
In December, it was confirmed that Phase 1 of Oman’s first commercial green hydrogen project, developed by ACME Group, remains on track for commissioning by Q4 2026.
Why This Matters
- First mover advantage: Oman is positioning itself to be the region’s first large-scale exporter of green molecules.
- Demand locked in: A binding 15-year offtake agreement is in place with Norwegian fertilizer major Yara, covering the full Phase 1 output—~100,000 tonnes of green ammonia annually—from 2027.
Oman isn’t piloting the transition. It’s executing it.
Abu Dhabi’s Cultural Milestone
Soft power, fully built.
After nearly two decades in development, Guggenheim Abu Dhabi confirmed in December that it will open in 2025.
First announced in 2006, the Frank Gehry–designed museum completes Saadiyat Island’s cultural triad.
What Sets It Apart
- Scale: ~320,000 sq ft — the largest Guggenheim globally
- Focus: Modern and contemporary art from West Asia, North Africa, and South Asia
- Design: Variable-height galleries plus an art & technology center
The bigger picture: Alongside the Louvre Abu Dhabi and Zayed National Museum, this cements Abu Dhabi’s ambition to be the region’s cultural capital.
Culture here isn’t decoration. It’s infrastructure.
December in Numbers
| Metric | Figure | Why It Matters |
|---|---|---|
| Saudi Industrial GDP Growth | +56% | Since 2019 levy exemption |
| Saudi Industrial Employment | +74% | Manufacturing job expansion |
| Licensed Saudi Factories | 12,000+ | Scale of industrial base |
| HSBC RHQ Location | Riyadh | Capital markets gravity shift |
| Guggenheim Abu Dhabi | 320,000 sq ft | Largest Guggenheim worldwide |
What’s Ahead: January Events (Post-Jan 10)
🇸🇦 Saudi Arabia
Big 5 Construct Saudi
📍 Riyadh Front | Jan 18–21
The Kingdom’s largest construction expo, featuring 1,100+ exhibitors across materials, facades, and urban design.
Diriyah Contemporary Art Biennale
📍 JAX District | January 2026
70+ international artists exploring movement, identity, and cultural exchange
🇦🇪 UAE
BAFT MENA Bank Forum
📍 Dubai | Jan 20–21
Senior banking leaders discussing trade, tariffs, and financial transformation.
The 2026 Signal
Three December stories define the year ahead:
- Permanent industrial reform: Saudi Arabia locks in manufacturing competitiveness
- Financial HQ migration: Riyadh emerges as a regional capital markets center
- Cultural infrastructure: Abu Dhabi proves diversification includes global soft power
The fundamentals are strong.
The reforms are structural.
The momentum is real.
The region enters 2026 with clarity, capital, and confidence.
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