LONDON: Saudi Arabia’s decision to allow women behind the wheel has laid the foundations for a growth spurt in the Kingdom’s tourism sector, analysts forecast.
The country has the ambitious target to attract 1.5 million visitors by 2020 as the country reduces its dependence on oil.
Apart from pilgrimages, Saudi Arabia attracts relatively few international tourists, with the sector dominated by the domestic market. But with tourism earmarked to become a major driver of growth, the Kingdom is looking to widen its appeal.
“Ending the ban on women driving will help to change Saudi Arabia’s image around the world, and will make both men and women more likely to travel to Saudi Arabia,” said Jane Kinninmont, a senior research fellow and deputy head of the Middle East and North Africa program at the Chatham House think-tank in London.
“Previously (the driving ban) was one of the best-known facts about Saudi Arabia and was seen as a symbol of the oppression of women — so much so that many people didn’t realize Saudi women could study, work and do many other things,” Kinninmont said.
The move to allow women to drive comes as part of a program of reforms designed to curb restrictions and facilitate female access to employment, with the aim to raise the level of women’s participation in the labor force to 30 percent from 22 percent.
Crispin Hawes, managing director for the Middle East and North Africa at advisory firm Teneo Intelligence, said that while much remains to be done to develop the Kingdom’s tourism sector to appeal to the global market, lifting the ban on women driving represents “a significant step forward.”
“In the past five years the issue of women driving has taken on a life of its own and frequently comes top in external perceptions of the Kingdom. What the Saudi (government) has done is neuter that issue, which of itself is an important visual gesture,” he said.
“It’s part of a longer-term process that will make Saudi more attractive to people who might consider spending money and time visiting the country, but this is one element in a multi-stage journey.”
The decision also bodes well for domestic tourism, which stands to benefit from the increased mobility of Saudi families. “One implication is that households will no longer have to pay out for drivers, giving them more disposable income, which could be used for trips,” said Jason Tuvey, Middle East economist at Capital Economics.
Women will also be able to carry out their share of driving errands, freeing up family leisure time which could be used for domestic tourism purposes.
Tourism currently accounts for around 2.5 percent of Saudi Arabia’s gross domestic product (GDP) compared to the vast 50 percent contribution generated by the oil and gas sector, according to the World Travel and Tourism Council (WTTC). Plans to increase investment in tourism from $8 billion to almost $46 billion by 2020 will see a significant shake-up of the industry, as a series of high-profile projects get underway, according to the WTTC.
These include the ambitious Red Sea resort development, which will transform a 200 km stretch of coastline into a luxury tourism destination complete with an airport, seaport, hotels, residences and transport infrastructure.
The project, which is set to create 35,000 jobs and add SR15 billion ($4 billion) to the Saudi economy, will target foreign visitors with relaxed rules within a specified tourism zone.
According to Saudi Arabia’s Public Investment Fund (PIF), which will finance the initial stages of the project, “It will set new standards for sustainable development and bring about the next generation of luxury travel to put Saudi Arabia on the international tourism map.”
Last week PIF announced the launch of the Entertainment Investment Company with SR10 billion to support development of the sector and encourage Saudis to spend their leisure money at home rather than seeking amusement abroad.
“The Saudi Arabian government has been a great example to the travel and tourism public sector in prioritizing tourism growth in the country in order to generate further economic wealth and jobs as the country diversifies their income streams,” said Gloria Guevara, WTTC president and CEO, in a recent statement.
Another major project in the pipeline will include a Six Flags theme park, safari and recreational facilities as part of a 334 square kilometer city south of Riyadh.
Saudi tourism set to accelerate as ban on women driving lifted
Saudi tourism set to accelerate as ban on women driving lifted
Oil Updates — crude falls as concerns about demand amid US tariff upheaval return
SINGAPORE: Oil prices fell 1.5 percent on Monday as investors once again focused on concerns US tariffs on its trading partners will create economic headwinds that will reduce fuel demand growth, according to Reuters.
Brent crude futures slipped 97 cents, or 1.4 percent, to $66.99 a barrel at 09:40 a.m. Saudi time after closing up 3.2 percent on Thursday. US West Texas Intermediate crude was at $63.72 a barrel, down 96 cents, or 1.5 percent, after settling up 3.54 percent in the previous session. Thursday was the last settlement day last week because of the Good Friday holiday.
“The broader trend remains tilted to the downside, as investors may struggle to find conviction in an improving supply-demand outlook, especially amid the drag from tariffs on global growth and rising supplies from OPEC+,” said IG market strategist Yeap Jun Rong.
OPEC+, the group of major producers including the Organization of the Petroleum Exporting Countries and allies such as Russia, is still expected to hike output by 411,000 barrels per day starting in May, though some of that increase may be offset by cuts from countries that have been exceeding their quotas.
Prices also declined as some supply worries eased following signs of progress in nuclear talks between the US and Iran progressed on Saturday.
In the talks, the US and Iran agreed to begin drawing up a framework for a potential nuclear deal, Iran’s foreign minister said, after talks that a US official described as yielding “very good progress.”
The progress follows further sanctions by the US last week against a Chinese independent oil refinery that it alleges processed Iranian crude, ramping up pressure on Tehran amid the talks.
Concerns about tightening Iranian oil supply and hopes for a trade deal between the US and the EU, pushed Brent and WTI up about 5 percent last week, their first weekly gain in three weeks.
Still, markets remain worried about the effects of the aggressive US tariff policy and its trade war with China, with the dollar and Asian equity markets dropping on Monday.
A Reuters poll on April 17 showed investors believe the tariff policy will trigger a significant slowdown in the US economy this year and next, with the median probability of recession in the next 12 months approaching 50 percent. The US is the world’s biggest oil consumer.
Investors are watching for several US data releases this week, including April flash manufacturing and services PMI, for direction on the economy.
“This week’s series of PMI releases could further underscore the economic impact of tariffs, with both manufacturing and services conditions across major economies expected to soften,” IG’s Yeap said, adding oil prices face resistance at the $70 level.
China warns countries against striking trade deals with US at its expense
BEIJING: China on Monday accused Washington of abusing tariffs and warned countries against striking a broader economic deal with the US at its expense, ratcheting up its rhetoric in a spiralling trade war between the world’s two biggest economies.
Beijing will firmly oppose any party striking a deal at China’s expense and “will take countermeasures in a resolute and reciprocal manner,” its Commerce Ministry said.
The ministry was responding to a Bloomberg report, citing sources familiar with the matter, that the Trump administration is preparing to pressure nations seeking tariff reductions or exemptions from the US to curb trade with China, including imposing monetary sanctions.
President Donald Trump paused the sweeping tariffs he announced on dozens of countries on April 2, except those on China, singling out the world’s second-largest economy for the biggest levies.
In a series of moves, Washington has raised tariffs on Chinese imports to 145 percent, prompting Beijing to slap retaliatory duties of 125 percent on US goods, effectively erecting trade embargoes against each other. Last week, China signalled that its own across-the-board rates would not rise further.
“The United States has abused tariffs on all trading partners under the banner of so-called ‘equivalence’, while also forcing all parties to start so-called ‘reciprocal tariffs’ negotiations with them,” the ministry spokesperson said.
China is determined and capable of safeguarding its own rights and interests, and is willing to strengthen solidarity with all parties, the ministry said.
“The fact is, nobody wants to pick a side,” said Bo Zhengyuan, partner at China-based policy consultancy Plenum.
“If countries have high reliance on China in terms of investment, industrial infrastructure, technology know-how and consumption, I don’t think they’ll be buying into US demands. Many Southeast Asian countries belong to this category.”
Pursuing a hardline stance, Beijing will this week convene an informal UN Security Council meeting to accuse Washington of bullying and “casting a shadow over the global efforts for peace and development” by weaponizing tariffs.
Earlier this month, US Trade Representative Jamieson Greer said nearly 50 countries have approached him to discuss the steep additional tariffs imposed by Trump.
Several bilateral talks on tariffs have taken place since, with Japan considering raising soybean and rice imports as part of its talks with the US while Indonesia is planning to increase US food and commodities imports and reduce orders from other nations.
CAUGHT IN CROSSFIRE
Trump’s tariff policies have rattled financial markets as investors fear a severe disruption in world trade could tip the global economy into recession.
On Monday, Chinese stocks inched higher, showing little reaction to the commerce ministry comments, though investors have generally remained cautious on Chinese assets due to the rising growth risks.
The Trump administration also has been trying to curb Beijing’s progress in developing advanced semiconductor chips which it says could be used for military purposes, and last week imposed port fees on China-built vessels to limit China’s dominance in shipbuilding.
AI chip giant Nvidia said last week it would take $5.5 billion in charges due to the administration’s curbs on AI chip exports.
China’s President Xi Jinping visited three Southeast Asian countries last week in a move to bolster regional ties, calling on trade partners to oppose unilateral bullying.
Beijing has said it is “tearing down walls” and expanding its circle of trading partners amid the trade row.
The stakes are high for Southeast Asian nations caught in the crossfire of the Sino-US tariff war, particularly given the regional ASEAN bloc’s huge two-way trade with both China and the US.
Economic ministers from Thailand and Indonesia are currently in the US, with Malaysia set to join later this week, all seeking trade negotiations.
Six countries in Southeast Asia were hit with tariffs ranging from 32 percent to 49 percent, threatening trade-reliant economies that have benefited from investment from levies imposed on Beijing by Trump in his first term.
ASEAN is China’s largest trading partner, with total trade value reaching $234 billion in the first quarter of 2025, China’s customs agency said last week.
Trade between ASEAN and the US totalled around $476.8 billion in 2024, according to US figures, making Washington the regional bloc’s fourth-largest trading partner.
“There are no winners in trade wars and tariff wars,” Xi said in an article published in Vietnamese media, without mentioning the US.
Closing Bell: Saudi benchmark index edges up to close at 11,626
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 73.62 points, or 0.64 percent, to close at 11,626.60.
The total trading turnover of the benchmark index was SR3.57 billion ($953 million), as 199 of the stocks advanced and 37 retreated.
Similarly, the Kingdom’s parallel market, Nomu, gained 264.47 points, or 0.92 percent, to close at 28,978.19. This comes as 46 of the listed stocks advanced while 34 retreated.
The MSCI Tadawul Index gained 5.14 points, or 0.35 percent, to close at 1,474.53.
The best-performing stock of the day was Alistithmar AREIC Diversified REIT Fund, whose share price surged 10.00 percent to SR7.26.
Other top performers included Saudi Cable Co., whose share price rose 9.90 percent to SR135.40 as well as Saudi Printing and Packaging Co., whose share price increased 9.89 percent to SR11.56.
Riyadh Cement Co. led the declines, dropping 3.15 percent to SR33.80.
Leejam Sports Co. slipped 2.03 percent to SR135.20, while Almoosa Health Co. edged down 1.21 percent to SR163.20.
On the announcement front, Almarai Co. reported a first-quarter net profit of SR731.19 million for 2025, up 5.62 percent year on year, driven by a 6 percent rise in revenue, according to a Tadawul filing.
The company noted that higher energy costs partially offset the earnings growth. Almarai shares closed 1.90 percent higher at SR53.30.
Jarir Marketing Co. posted a net profit of SR217.3 million in the first quarter of 2025, down 0.91 percent from the same period a year earlier, according to a Tadawul filing.
The marginal decline came despite a 2.7 percent increase in both sales and gross profit, as well as a rise in other income, with higher selling and marketing expenses weighing on earnings.
Its shares closed flat at SR12.82.
Altharwah Albashariyyah Co. signed a binding agreement to acquire 100 percent of Amjad Watan through a mix of cash and share issuance, pending regulatory and shareholder approvals, the company said in a Tadawul filing.
The deal includes SR7 million in cash, 95,804 shares worth SR5 million, and 536,501 conditional shares valued at SR28 million, to be transferred upon meeting performance targets.
Shares of Altharwah Albashariyyah closed 3.57 percent lower at SR46.05.
Gulf, China exchanges sign deal to boost commodity ties
JEDDAH: Relations between the Middle East and China’s derivatives markets are set to deepen following a new cooperation agreement signed between the Gulf Mercantile Exchange and the Shanghai Futures Exchange.
Under the agreement, GME — the Middle East’s leading international energy and commodities futures exchange — and SHFE — one of China’s primary commodity trading platforms — will collaborate on a range of strategic initiatives.
These include joint product development, market research, the exchange of insights on market trends, and investor education efforts, according to a joint statement released by both exchanges.
“This partnership is a key step toward strengthening alignment between China and the Gulf in commodities trading,” said Raid Al-Salami, managing director of GME.
“We value our cooperation with SHFE and look forward to the opportunities this agreement will unlock for both sides.”
The agreement comes on the heels of a strong performance year for GME. In January, the exchange reported a 12 percent increase in total trading volume for 2024, reaching 1.32 million contracts — up from 1.18 million the previous year. Front-month contract volumes surged 20 percent to a record 959,565 contracts, while total physical exposure rose by 11 percent, reflecting GME’s commitment to enhancing market accessibility and supporting sustainable growth.
Formerly known as the Dubai Mercantile Exchange, GME has a long-standing reputation as a key player in the region’s commodities sector. Established with the vision of creating internationally accessible derivatives markets for Middle East commodities, the exchange has continued to evolve in scope and ambition.
A major milestone came in 2024 when the Saudi Tadawul Group acquired a third strategic stake in the exchange. This acquisition led to a rebranding from DME to GME, signaling a renewed focus on building out commodity markets in Saudi Arabia and across the wider GCC as part of a long-term strategic roadmap.
With this new partnership, GME and SHFE are poised to play a central role in shaping the future of commodity trading between two of the world’s most dynamic economic regions.
Saudi Arabia advances in 2025 Global Intellectual Property Index
RIYADH: Saudi Arabia has made notable progress in the 2025 Global Intellectual Property Index, with its score rising by 17.5 percent, placing it among the fastest-improving economies out of the 55 countries evaluated.
According to the 13th edition of the index, published by the US Chamber of Commerce, the Kingdom now ranks 40th globally—a reflection of the substantial reforms driven by its Vision 2030 strategy. These reforms aim to enhance intellectual property protection, foster innovation, and support the growth of a knowledge-based economy.
Since 2019, Saudi Arabia’s overall score has increased from 36.6 percent to 53.7 percent in 2025, marking a cumulative improvement of over 40 percent in just six years.
This progress stems from a comprehensive transformation of the nation’s IP ecosystem, including the strengthening of legal frameworks and enforcement mechanisms.
Key milestones noted in the report include the extension of design protection from 10 to 15 years, the establishment of a specialized prosecution office for IP-related cases, and the launch of advanced online enforcement tools for copyrights and trademarks.
These developments highlight Saudi Arabia’s growing institutional capacity and ongoing regulatory modernization, led by the Saudi Authority for Intellectual Property.
The report also highlighted significant advancements in public awareness initiatives, inter-agency collaboration, and Saudi Arabia’s accession to key international intellectual property treaties. These developments have helped align the Kingdom’s IP framework more closely with global standards.
Notably, Saudi Arabia achieved higher scores in enforcement, international treaty participation, and the efficiency of its copyright enforcement system. These improvements reinforce the Kingdom’s ambition to become a regional and global center for innovation and creativity.
By fostering a more transparent and dependable intellectual property environment, Saudi Arabia is attracting increased foreign investment while also empowering local entrepreneurs to develop innovative ideas, products, and technologies.
The US Chamber of Commerce commended the Kingdom’s efforts to institutionalize intellectual property rights as a core component of its economic diversification strategy, positioning Saudi Arabia as a model among emerging markets.
Meanwhile, the UAE also performed strongly in the 2025 index, ranking 26th globally with an overall score of 60.66 percent. The UAE was praised for its robust patent and trademark protections, consistent judicial enforcement, and strong commitment to digital transformation.
