Saudi Arabia committed to embracing sustainability-driven growth in tourism sector, minister says at WEF

Saudi Arabia committed to embracing sustainability-driven growth in tourism sector, minister says at WEF
The Maraya, the world’s largest mirrored building, in Ashar Valley in AlUla desert. (AFP)
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Updated 22 January 2025
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Saudi Arabia committed to embracing sustainability-driven growth in tourism sector, minister says at WEF

Saudi Arabia committed to embracing sustainability-driven growth in tourism sector, minister says at WEF
  • Ahmed Al-Khateeb spoke in Davos ahead of launch of briefing paper on the future of travel and tourism sector
  • He said Saudi Arabia continues to place a strong emphasis on supporting SMEs and entrepreneurs

DAVOS: The tourism sector in Saudi Arabia, which has undergone a transformative shift in recent years, must continue to grow with sustainable practices front and center, according to the country’s tourism minister.

Speaking at a media briefing on Monday attended by Arab News at the World Economic Forum’s annual meeting in Davos, Ahmed Al-Khateeb said it was vital the tourism industry embraced a sustainable agenda if it was to continue its upward trajectory without impacting natural environments and the communities living in them.

The Kingdom has been working with major global organizations, including the WEF, UN Tourism, and the World Travel and Tourism Council in order to achieve this, the minister said.

Al-Khateeb was speaking ahead of the launch of a WEF briefing paper on the future of the travel and tourism sector, as well as a new investor whitepaper from the Ministry of Tourism on investments in the sector, which showcases Saudi Arabia’s position as one of the fastest-growing tourism destinations globally.

He emphasized that the Kingdom was approaching sustainability from three key perspectives: environmental, economic and social. He added that focusing on the environment alone would not garner satisfactory results.




Saudi Tourism Minister Ahmed Al-Khateeb spoke at a media briefing on Monday, attended by Arab News, at the Saudi House on the sidelines of the World Economic Forum’s annual meeting in Davos. (SPA)

He said: “People travel to explore other peoples and cultures and to enjoy nature and the environment. If we don’t protect the environment, presented by nature, people will not travel. We need to ensure sustainability across all sectors — environmentally, economically, and socially.

“In 2019 we commissioned a study with the WTTC and Oxford Intelligence to analyze the sustainability of our industry, which revealed that our sector contributes to about 8 percent of global greenhouse gas emissions.

“While this isn’t as high as initially feared, it’s still a concern. If we don’t come up with the right tools to reduce this in the best-case scenario, or at least maintain this, with the very high and fast growth of our industry in the next decade, we’re afraid this number will double to 15 or 16 percent in the worst-case scenario.”

The Kingdom has already begun addressing these concerns by launching campaigns to reduce food and water waste, in conjunction with hospitality chains like Hilton and Marriott. And in 2023 it spearheaded initiatives such as the Sustainable Tourism Global Center, working with international organizations like the UN and the WTTC to promote responsible tourism practices worldwide.




Mist covers the sky at an elevation 2800 metres above sea level, at the Jabal Marir (Mount Marir) park in Al-Namas in Saudi Arabia's Asir Province, on August 16, 2022. (AFP)

From the economic perspective, Al-Khateeb highlighted how important small and medium-size enterprises were to the sector, making up 80 percent of the global tourism industry.

Ensuring the viability of these SMEs was crucial as the sector grows, especially thanks to their job-creation potential, he said. This was increasingly the case for women, including in Saudi Arabia where a milestone 25 percent of tourism sector jobs in 2023 were held by females, he added.

Saudi Arabia continues to place a strong emphasis on supporting SMEs and entrepreneurs, which includes initiatives to train and support the next generation of tourism leaders, with 100,000 Saudis being trained annually through a partnership with UN Tourism, Al-Khateeb said.




This picture shows a view of the ancient town of Hegra in Saudi Arabia’s AlUla desert on January 27, 2024. (AFP)

He added: “We’ve funded over 1,500 small businesses through the Saudi Tourism Development Fund over the past two years, and we continue to make the sector more attractive as a viable business opportunity for entrepreneurs.

“I am very optimistic. We want to further promote the sector, for it to prosper and to grow. We want to make this sector more important in Saudi Arabia, and we took a decision to invest in the sector to open it up.”

With the value of the global tourism industry expected to grow to $11 trillion by 2030, Al-Khateeb said that Saudi Arabia recognized the importance of both government and private sector collaboration, adding: “(Governments) design, but (the private sector) implement, they invest, they take the risk.”

He added: “The private sector is very important in our industry: It’s run by the private sector and we believe and we know in Saudi Arabia how important it is. That’s why we invited the private sector for the first time to join the G20 meetings held in Riyadh, and since then they have been joining all of them.”

Sports tourism – and football, in particular – will drive record numbers of visitors to Saudi Arabia, the minister said, as it prepares to host the FIFA World Cup in 2034.

He added: “Sport is extremely important, people travel for sport. People can cut their spending in many things – but they will not cut their spending to go watch a game. It's recession-proof. We believe in it, and we'll continue to invest in sport.”

 


Makkah’s licensed hospitality facilities surge 80% in 2024

Makkah’s licensed hospitality facilities surge 80% in 2024
Updated 12 sec ago
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Makkah’s licensed hospitality facilities surge 80% in 2024

Makkah’s licensed hospitality facilities surge 80% in 2024
  • Makkah and Madinah have 17,646 and 20,079 rooms, respectively, in various stages of development
  • Kingdom recorded 30 million inbound tourists in 2024, up from 27.4 million in 2023

RIYADH: The number of licensed hospitality facilities in Makkah reached 1,030 by the end of 2024, marking an 80 percent increase compared to the previous year, according to Saudi Arabia’s Ministry of Tourism. 

The surge positions Makkah as the leader in the Kingdom for the highest number of licensed facilities and rooms, underscoring the region’s dedication to enhancing visitor experiences, the Saudi Press Agency reported. 

The move highlights the region’s commitment to enhancing the visitor experience while reinforcing the ministry’s dedication to protecting the rights of visitors and Umrah pilgrims using hospitality services in Makkah, as part of its ongoing efforts to improve service quality. 

“The ministry’s inspection teams conduct regular monitoring and inspection visits throughout the year to ensure that all facilities comply with licensing requirements, detect violations, and impose fines under the Tourism Law and Regulations of Tourist Accommodation Facilities,” SPA said. 

Saudi Arabia’s hospitality sector is growing beyond Makkah. By the end of the third quarter of 2024, the total number of licensed hospitality facilities across the Kingdom surpassed 3,950, marking a 99 percent increase from the third quarter of 2023. Licensed rooms climbed to 443,000, a 107 percent jump from the 214,000 recorded a year earlier. 

According to CoStar, a global real estate data provider, Makkah and Madinah have 17,646 and 20,079 rooms, respectively, in various stages of development in 2025. 

This comes as Saudi Arabia recorded 30 million inbound tourists in 2024, up from 27.4 million in 2023, government data shows. The Kingdom aims to attract 150 million visitors annually by 2030, with plans to raise the tourism sector’s gross domestic product contribution from 6 percent to 10 percent. 

Ahead of the 2024 Hajj season, the Ministry of Tourism said Makkah’s licensed hospitality facilities reached 816, providing 227,000 rooms to accommodate pilgrims. Authorities have also introduced new initiatives, including enhanced crowd management, digital meal distribution, and an expanded electric golf cart fleet at the Grand Mosque. 

The General Authority for the Care of the Grand Mosque and the Prophet’s Mosque has further implemented spatial guidance systems and multilingual support to improve visitor navigation, ensuring a seamless pilgrimage experience. 

Saudi Arabia’s aggressive expansion in hospitality and tourism underscores its ambition to position itself as a global travel hub, catering to both religious and leisure visitors. 


Saudi Arabia’s seaports see 18.25% rise in exported containers

Saudi Arabia’s seaports see 18.25% rise in exported containers
Updated 6 min 19 sec ago
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Saudi Arabia’s seaports see 18.25% rise in exported containers

Saudi Arabia’s seaports see 18.25% rise in exported containers

JEDDAH: Saudi Arabia’s seaports reported an 18.25 percent increase in exported containers for February compared to the same period last year, signaling a growing demand for the Kingdom’s products.

According to the Saudi Ports Authority, also known as Mawani, a total of 215,491 twenty-foot equivalent units were exported in February 2025, up from 182,229 TEUs in February 2024.

In contrast, the number of imported containers saw a decline of 4.95 percent, totaling 215,741 TEUs, down from 226,968 TEUs in the previous year.

The overall number of containers processed in Saudi seaports amounted to 552,490 TEUs, showing a slight decrease of 1.8 percent from 562,644 TEUs in 2024. Transshipment containers also dropped by 21.03 percent, totaling 112,193 TEUs, compared to 142,071 TEUs in February 2024.

These trends align with Mawani’s objective to foster a sustainable and robust maritime sector that drives both trade and economic growth in the Kingdom.

The developments further support the National Transport and Logistics Strategy, which aims to position Saudi Arabia as a global logistics hub, linking three continents, in line with the nation’s Vision 2030.

The surge in non-oil exports is a clear indication of Saudi Arabia’s successful economic diversification efforts, as the Kingdom seeks to reduce its reliance on oil revenues.

Mawani also reported that the total tonnage handled by Saudi seaports in February was 22,540,434 tonnes, reflecting a 3.66 percent decline from 23,397,237 tonnes during the same period last year.

The breakdown includes 983,027 tonnes of general cargo, 4,027,930 tonnes of bulk solid cargo, and 11,677,568 tonnes of bulk liquid cargo. The ports also received 698,035 heads of livestock, which marks a 22.38 percent decrease compared to 899,293 heads in February 2024.

On a positive note, maritime traffic saw a modest increase of 0.33 percent, with 913 vessels arriving at the ports, compared to 910 vessels in the same period last year.

Passenger traffic surged by 37.85 percent, reaching 93,400 passengers, up from 67,754 the previous year. The number of vehicles handled also rose by 3.43 percent, reaching 78,482 vehicles compared to 75,877 vehicles in February 2024.

In a broader view, Mawani reported a 14.44 percent increase in the total number of containers handled from January to February 2025, reaching 1,270,776 TEUs, compared to 1,110,440 TEUs in the same period last year.

A major step in enhancing Saudi Arabia’s global trade position is the launch of the state-of-the-art South Container Terminal at Jeddah Islamic Port. This initiative, part of DP World’s SR3 billion ($800 million) expansion program, is aimed at upgrading the terminal and reinforcing Saudi Arabia’s status as a key player in international trade.

In addition to this, several key projects have been unveiled, including agreements to establish eight new logistics parks and hubs at Jeddah Islamic Port and King Abdulaziz Port in Dammam. These developments, backed by an estimated SR2.9 billion in private sector investment, are poised to further strengthen the Kingdom's logistics infrastructure.


Egypt’s annual inflation drops sharply to 12.8%

Egypt’s annual inflation drops sharply to 12.8%
Updated 35 min 59 sec ago
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Egypt’s annual inflation drops sharply to 12.8%

Egypt’s annual inflation drops sharply to 12.8%
  • Slowdown mainly attributed to an 8.2 percent dip in vegetable prices

RIYADH: Egypt’s annual urban consumer price inflation fell sharply to 12.8 percent in February, down from 24 percent in January, according to the latest data from the country’s statistics agency.

The Central Agency for Public Mobilization and Statistics  attributed the decline to the base effect, noting that the exceptionally high price increases observed over the past two years are no longer influencing the inflation rate.

A Reuters survey of 15 analysts had predicted a median inflation rate of 14.5 percent, meaning February’s actual figure was significantly lower than anticipated.

On a month-to-month basis, consumer prices increased by 1.4 percent in February, a slight decrease from January’s 1.5 percent rise. This marks the fourth time in the last seven months that inflation has slowed, following a period of acceleration that began in August 2023.

Last year’s inflationary pressures were primarily driven by rising fuel prices, higher public transportation fares — including for trains and the metro—and a 300 percent hike in the price of subsidized bread in May, marking the first such increase in over 30 years.

The February slowdown was mainly attributed to an 8.2 percent drop in vegetable prices, while costs for water, electricity, and gas remained stable. On the other hand, grain and bread prices rose by 0.8 percent, meat and poultry saw a 3.2 percent increase, and fruit prices climbed by 3 percent.

Egypt’s economic foundations have been showing positive results. The banking sector saw a significant 26.9 percent increase in total deposits for the 2023/2024 fiscal year, compared to the previous 12-month period.

Earlier in February, CAPMAS reported that total banking deposits reached 11.99 trillion Egyptian pounds ($237 billion), reflecting a surge in banking activity across various sectors.

The country’s fiscal year runs from July 1 to June 30 of the following year.

This growth in banking deposits comes amid high inflation, which peaked at 38 percent in September 2023, prompting both individuals and businesses to deposit more money in banks as a safeguard against currency devaluation.

The central bank’s attractive interest rates, along with financial inclusion initiatives under Egypt's Vision 2030 plan, also played a significant role in encouraging deposit growth.

CAPMAS data indicated that the household sector dominated Egypt’s banking deposits, accounting for 7.03 trillion pounds—an increase of 27.5 percent from the previous year. Individual depositors represented 95.9 percent of household deposits, underscoring strong saving trends among Egyptians. Overall, the household sector controlled 58.6 percent of total banking deposits.

Meanwhile, the business sector also experienced notable growth, with deposits rising to 1.99 trillion pounds—up 37.6 percent from the previous fiscal year.


Tadawul approves Morgan Stanley Saudi Arabia as market maker for 8 listed securities

Tadawul approves Morgan Stanley Saudi Arabia as market maker for 8 listed securities
Updated 53 min 23 sec ago
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Tadawul approves Morgan Stanley Saudi Arabia as market maker for 8 listed securities

Tadawul approves Morgan Stanley Saudi Arabia as market maker for 8 listed securities

RIYADH: Tadawul has approved Morgan Stanley Saudi Arabia to serve as a market maker for eight securities on the main trading platform and the parallel index, Nomu.

The decision allows the financial services company to enhance market liquidity and improve price efficiency in accordance with regulations and procedures.

Among the securities listed on the main index, the firm will act as a market maker for Arabian Internet and Communications Services Co., where it will ensure a minimum presence of orders at 80 percent, maintain a size of SR150,000 ($39,982), and adhere to a maximum spread of 0.65 percent, with the lowest value traded of 5 percent.

Similarly, it will provide services for Electrical Industries Co., ensuring an 80 percent minimum presence of orders, a minimum size of SR75,000, a maximum spread of 0.65 percent, and a value traded of 5 percent.

Elm Co. is also among the approved securities, with Morgan Stanley Saudi Arabia committing to the same trading obligations as Electrical Industries Co.

Meanwhile, the Co. for Cooperative Insurance will have a minimum order presence of 80 percent, a minimum size of SR150,000, a maximum spread of 0.65 percent, and a value traded of 5 percent.

On Nomu, Morgan Stanley Saudi Arabia was approved as a market maker for National Environmental Recycling Co., International Human Resources Co., Almuneef Co. for Trade, Industry, Agriculture, and Contracting, as well as Aqaseem Factory for Chemicals and Plastics Co.

In each of these cases, it will ensure a minimum presence of orders at 50 percent, maintain a minimum size of SR50,000, and adhere to a maximum spread of five percent, with no minimum value traded requirement.

Morgan Stanley Saudi Arabia’s participation in market making is expected to contribute to greater liquidity and a more efficient trading environment, reinforcing the development of the country’s capital market.

In November, the investment bank was granted approval to establish its regional headquarters in the Kingdom, as the nation continues to attract international investment.

This move aligns with Saudi Arabia’s regional headquarters program, which offers businesses various incentives, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities, as well as access to discounts and support services.

Morgan Stanley first entered the Saudi market in 2007, launching an equity trading business in Riyadh, followed by the establishment of an equity fund in 2009.


Syria’s inflation drops sharply as new leadership seeks economic recovery, international support

Syria’s inflation drops sharply as new leadership seeks economic recovery, international support
Updated 53 min 56 sec ago
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Syria’s inflation drops sharply as new leadership seeks economic recovery, international support

Syria’s inflation drops sharply as new leadership seeks economic recovery, international support
  • Monthly inflation rate for January stood at 8.7%, an improvement from the 13.8% rate recorded in December
  • Food prices generally declined, with the overall index dropping 12.5% in February

RIYADH: Syria’s annual inflation rate plummeted to 6.4 percent in January, down from 118.9 percent in the same month last year, driven by an improved local supply chain.

According to the latest Directorate of Economic Research, General Statistics, and Planning report at the Central Bank of Syria, the overall inflation rate from February 2024 to January 2025 stood at 46.7 percent.

The analysis attributed the decline to an improvement in the exchange rate following the liberalization process and a notable increase in the supply of goods and materials in the local market, significantly easing inflationary pressures.

On Dec. 8, Syrian President Bashar Assad was ousted, ending over five decades of family rule. Since then, Syria’s new leadership has focused on rebuilding and reviving the economy, with the EU easing sanctions to support reconstruction. Still, 90 percent of Syrians live in poverty, according to a recent UN report.

Syria’s monthly inflation rate for January stood at 8.7 percent, an improvement from the 13.8 percent rate recorded in December. This progress was similarly driven by reduced inflationary pressures due to the increase in supply and exchange rate stability.

The report also highlighted sectoral developments, showing mixed trends across different categories. Food prices generally declined, with the overall index dropping 12.5 percent in February. Dairy and eggs decreased by 3.4 percent, followed by oils, which fell by 14.5 percent, and vegetables, which saw a decline of 18 percent. Meat was the only category to rise, increasing by 17.6 percent.

On Feb. 24, Syria’s economy minister met with the Middle East director of the World Bank and discussed resuming cooperation with the lender, which was suspended under the toppled government of Assad.

Minister Bassel Abdel Hanan emphasized with Jean-Christophe Carret the resumption of relations between the bank and Syria as well as the prospects for their development, the official SANA news agency reported. 

Abdel Hanan proposed the establishment of a “joint committee between the ministry and the bank to evaluate a new start.” He added that “the nature of the financing granted by the bank will determine the type of projects that will be financed,” pointing to the energy, agriculture, industry, and infrastructure sectors.

The World Bank had provided Syria with technical assistance and development advice before suspending its operations following the outbreak of the civil war in 2011. Since Assad’s fall, Syria has been urging the international community to lift the sanctions imposed on the former government.

Syrian Foreign Minister Asaad Al-Shaibani called the EU’s decision to ease sanctions on the energy, transport, and banking sectors “a step toward alleviating the suffering of our people.”