Saudi Arabia looks to the future — by stepping 5,000 years into the past
Kingdom developing tourism sector as part of economic diversification strategy
Vision 2030 foresees 1.2 million new tourist jobs by 2030
Updated 22 April 2018
ANNA PUKAS
LONDON: It is the leading global event for Middle Eastern tourism and it opens on Sunday in Dubai. The Arabian Travel Market attracts the big players of the industry and the wannabes. It showcases 2,800 products to more than 28,000 potential buyers and generates deals worth more than $2.5 billion.
No wonder the world wants to be there, from spas to safaris, from Armenia to Zanzibar and all points between in both the globe and the alphabet.
But this year, one destination is set to attract more attention than any other: Saudi Arabia.
The Kingdom’s tourism industry has hitherto centered primarily on the holy cities of Makkah and Madinah; last year’s Hajj attracted around 2.35 million pilgrims, with about 1.75 million of those coming from abroad.
When it comes to non-religious tourism however, it is in the unique position of creating that industry more or less from scratch, which is an enviable place to be.
“It means we are able to learn from the mistakes of others and we can take the best from everywhere,” said Amr Al-Madani, CEO of the Royal Commission for Al-Ula, Saudi Arabia’s archaeological treasure house and home to the Unesco-listed Madain Saleh.
“And we are determined to offer the best in every way,” he added.
Al-Madani recently returned from presenting the plans for Al-Ula at a high-profile gala at the Museum of Decorative Arts in Paris, an occasion that coincided with the visit of Crown Prince, Mohammed bin Salman, the driving force behind Vision2030, the ambitious program designed to revamp not only the national economy but Saudi society as a whole.
Once regarded as practically off-limits to visitors and particularly Westerners (although that was never true), Saudi Arabia is throwing open the gates, as part of plans to diversify its economy and create jobs for its citizens.
The Kingdom’s Vision 2030 economic development plan, designed to create new revenue streams to lower its reliance on oil, envisages the creation of 1.2 million new jobs in the tourism sector by 2030.
Saudi Arabia’s General Entertainment Authority in February said it planned to invest $64 billion in its entertainment sector in the coming 10 years. This investment will include the development of a countrywide network of cinemas, following the lifting of a ban last year.
As well as opening up the 5,000-year-old wonders of Al-Ula, there are plans to develop 34,000 square kilometers of Red Sea coastline and 50 outlying islands into luxury beach resorts.
The scheme has already attracted Sir Richard Branson, founder and boss of the Virgin Group, as its first international investor. He is involved in developing the islands — which he described as “breathtakingly beautiful” — as luxury destinations, and has also visited Madain Saleh.
“This is an incredibly exciting time in the country’s history and I’ve always felt that there is inothing like getting a first-hand impression,” he said after his visit.
He praised the Crown Prince for his vision, telling Arab News, “If you want to succeed you should have an idea and a plan to implement it and just do it. He is doing that and his heart is in the right place.”
Though he is overseeing the development of the Al-Ula sites, Amr Al-Madani said one plan was to offer two-center holidays: “Some days exploring the archaeology and the nature in Al-Ula and then a few days relaxing at the beach,” he said.
As well as unspoilt beaches, the Red Sea coast also enjoys the best climate in Saudi Arabia with pleasant sea breezes offsetting the heat.
The Red Sea project is expected to generate 35,000 jobs.
The Royal Commission has already recruited the first 200 future employees who will work in Al-Ula. The group — half boys, half girls — are all high school-leavers or university students from the region. They have already begun three months of training in Riyadh, learning languages and undergoing assessment by psychologists and careers advisers and will later be dispatched to several locations in Britain and the US to continue learning.
Al-Madani said Al-Ula should be ready to receive its first tourists in three to five years, eventually accommodating a million to 1.5 million a year.
Global Markets — stocks fall, gold gains after Trump sets tariff sights on Canada
Updated 11 July 2025
Reuters
SYDNEY/LONDON: Global stocks fell on Friday after US President Donald Trump ramped up his tariff war against Canada, leaving Europe squarely in the firing line, sparking a modest investor push into safe havens like gold, while bitcoin hit a new record high.
The Canadian dollar fell after Trump issued a letter late on Thursday that stated a 35 percent tariff rate on all imports from Canada would apply from August 1, adding the EU would receive a letter by Friday.
The US president, whose global wave of tariffs has upended businesses and policymaking, floated a blanket 15 percent or 20 percent tariff rate on other countries, a step up from the current 10 percent baseline rate.
This week he surprised Brazil, which has a trade surplus with the US, with duties of 50 percent, and hit copper, pharmaceuticals and semiconductor chips.
Aside from pockets of volatility in target currencies, stocks or commodities, markets have offered little in the way of reaction to the onslaught, leaving the VIX volatility index at its lowest since late February.
In Europe, the STOXX 600, which has risen 2.2 percent this week, fell 0.7 percent. Futures on the S&P 500 and the Nasdaq fell 0.6 percent, pointing to a retreat from this week’s record highs at the open later.
“The market is becoming a bit numb to these (tariff) announcements, and perhaps it’s not until we see hard data showing an impact that we (will) start to see the market reacting,” City Index strategist Fiona Cincotta said.
“Obviously, we’re getting more information through that does bring with it an element of clarity. Because there is so much uncertainty, there is still this idea that Trump could be open to negotiation, nothing feels ‘final’ still,” she said.
The dollar rose 0.3 percent against the Canadian dollar to $1.3695. The euro, which has lost nearly 1 percent in value since the start of July, was down 0.2 percent at $1.1683.
Earlier in the week, Trump pushed back his tariff deadline of July 9 to August 1 for many trading partners to allow more time for negotiations, but broadened his trade war, setting new rates for a number of countries, including allies Japan and South Korea, along with a 50 percent tariff on copper.
Joseph Capurso, head of international economics at the Commonwealth Bank of Australia, said the tariff rate of 35 percent on Canada was not as bad as feared because most of the imports are still subject to exemptions under the US-Mexico-Canada Agreement.
“Now the tariff rate on imports from the EU ... That’s what we don’t know as yet,” Capurso said. “If you get something similar to (the US-China trade war in April), that’s going to be very destabilising.”
Wall Street indexes posted record closing highs on Thursday as AI chip maker Nvidia made history, bagging a market valuation above $4 trillion.
Gold rose for a third day in a row, up 0.6 percent to $3,342 an ounce, bringing gains for July so far to 1.2 percent. Treasuries got less of a safe-haven boost, as investor concern about the fragility of long-term US government finances prompted a selloff that pushed yields up.
Benchmark 10-year yields rose 3 basis points to 4.38 percent, adding to Thursday’s rise on the back of data that showed jobless claims unexpectedly fell last week.
The yen, which also typically behaves like a safe-haven, has been steadily weakening as the prospects dim for a US-Japan trade deal. The dollar was up 0.4 percent on Friday at 146.76 yen , set for a weekly gain of 1.6 percent, the biggest this year.
Bitcoin jumped 3.8 percent to $117,880, the highest on record.
Investors will be watching second-quarter corporate earnings next week to gauge the impact of Trump’s tariffs from April 2. JPMorgan Chase is due to release results on Tuesday, essentially kicking off the reporting period.
World oil market may be tighter than it looks, IEA says
Updated 11 July 2025
Reuters
VIENNA: The world oil market may be tighter than it appears despite a supply and demand balance pointing to a surplus, the International Energy Agency said on Friday, as refineries ramp up processing to meet summer travel demand.
The IEA, which advises industrialized countries, expects global supply to rise by 2.1 million barrels per day this year, up 300,000 bpd from the previous forecast. World demand will rise by just 700,000 bpd, it said, implying a sizeable surplus.
Despite making those changes, the IEA said that rising refinery processing rates aimed at meeting summer travel and power-generation demand were tightening the market and the latest supply hike from OPEC+ announced on Saturday had not had much effect.
“The decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals,” the agency said in a monthly report.
“Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances.”
Earlier this week, ministers and executives from OPEC nations and bosses of Western oil majors said the output increases are not leading to higher inventories, showing that markets are thirsty for more oil.
Next year, the IEA sees demand growth averaging 720,000 bpd, some 20,000 bpd lower than previously thought, with supply growth rising by 1.3 million bpd, also implying a surplus.
Saudi Arabia’s road to 30% EVs by 2030 — will Tesla be the game-changer?
Updated 11 July 2025
Miguel Hadchity
RIYADH: Tesla’s arrival in Saudi Arabia signals a turning point in the Kingdom’s ambitious electric mobility strategy, with close to half of its citizens now open to purchasing an electric vehicle.
With a target of 30 percent EV adoption by 2030 under Vision 2030, Saudi Arabia has gained a powerful ally in Tesla — one that could accelerate progress through competitive pricing, charging infrastructure investments, and potential local manufacturing deals.
This move not only brings one of the world’s most recognizable EV brands to Saudi consumers but also supports the nation’s broader push toward sustainable mobility.
This is also set to be boosted with the launch of the Kingdom’s first homegrown EV brand, Ceer, with production set to begin in 2026.
In an interview with Arab News, Alessandro Tricamo, partner at Oliver Wyman’s transportation and services practice, noted that while EVs currently make up just over 1 percent of vehicle sales, consumer interest is rising. “Nearly half of Saudi citizens say they are considering an EV purchase in the coming years,” he said.
A win-win proposition
Tesla’s arrival comes at a critical time for the company and the Kingdom alike. The American automaker, facing increasing competition from Chinese rivals like BYD and declining sales in traditional markets, sees Saudi Arabia as a promising new frontier.
Tricamo explained: “Tesla’s entry into the Saudi market is potentially a significant win-win situation. With its leadership position increasingly challenged by BYD and other manufacturers — and with sales declining in the US and Europe — Tesla is looking to open up new markets.”
He added: “Saudi Arabia, while investing heavily in public transport and mass transit, remains a car-centric country where Tesla’s brand is resonant. This makes the Kingdom a promising growth opportunity for the OEM (Original Equipment Manufacturer).”
Tesla’s Riyadh showroom and service center, along with pop-up stores in Jeddah and Dammam, introduce Saudi drivers to the Model 3, Model Y, and Cybertruck — a clear signal of the company’s long-term commitment to the region.
Alessandro Tricamo, partner at Oliver Wyman’s transportation and services practice. Supplied
Fixing infrastructure gap
One of the biggest roadblocks to mass EV adoption is Saudi Arabia’s underdeveloped charging network. With just 101 public charging stations in 2024 — behind the UAE’s 261 — range anxiety remains a major deterrent for potential buyers.
Oliver Wyman’s Tricamo underscored the urgency of infrastructure expansion, saying: “Expanding the Kingdom’s charging infrastructure is arguably the single most critical factor in accelerating EV adoption. As of 2024, Saudi Arabia has around 100 public charging stations, primarily concentrated in Riyadh.”
He added: “For comparison, the UAE has nearly three times as many, despite having only a third of Saudi Arabia’s population.”
To address this, Saudi authorities are rolling out high-speed charging stations along key routes, including the 900 km Riyadh-Makkah corridor, which currently lacks any charging points. Tesla’s planned Supercharger network — open to other brands — could be a game changer if deployed swiftly.
However, rapid infrastructure expansion brings its own risks. Taline Vahanian, placement leader at Marsh UAE, an insurance broker and risk adviser, warned that high-speed charging stations, by their nature, handle significant electrical loads and integrate advanced digital control systems.
“This exposure brings a range of liability risks — from electrical malfunctions that might result in fires or physical injuries to property damage caused by system failures or cyberattacks,” she told Arab News, adding: “Additionally, integrating an array of new charging stations into an evolving power grid presents operational challenges such as voltage fluctuations, grid stability issues, and the necessity for specialized, regular maintenance.”
A new EV manufacturing hub?
Lucid is majority owned by the Public Investment Fund. Getty
While Tesla makes its retail debut, Lucid Motors — backed by Saudi Arabia’s Public Investment Fund — is already establishing local production, with a Jeddah factory set to manufacture thousands of EVs annually. This positions the Kingdom as a potential regional EV production hub, reducing reliance on imports.
Vahanian highlighted the challenges of local production, saying: “On the supply chain front, vulnerabilities arise as the industry remains heavily dependent on imported components and critical raw materials. These dependencies are susceptible to international trade disruptions or logistical bottlenecks.”
She added: “Harmonizing standards and streamlining certification processes on the regulatory front will be crucial; any delays or misalignments with international standards could disrupt production schedules and cause cascading delays.”
Can EVs survive Saudi summers?
Extreme temperatures pose another major challenge for EV adoption. Lithium-ion batteries degrade faster in heat, raising concerns about long-term durability.
Tesla and Lucid are countering this with advanced liquid cooling systems and heat-resistant materials, while Saudi researchers are exploring solid-state batteries for better performance.
Vahanian emphasized the risks, saying: “In Saudi Arabia’s harsh desert climate, battery safety is a paramount concern. EV batteries rely on sophisticated thermal management systems, yet extreme ambient temperatures can accelerate degradation and — even in rare cases — trigger thermal runaway or fire incidents.”
She added that compounding this risk is the “nascent state” of the charging infrastructure, which must contend with sand, dust, and persistent heat stress — all of which elevates the possibility of technical failures and unexpected downtime.
Taline Vahanian, placement leader at Marsh UAE. Supplied
Tricamo offered a more optimistic view: “I believe the impact of extreme heat on EV performance is often overstated. While high temperatures can pose challenges for batteries, such conditions are limited to certain periods, and battery technology is improving rapidly to support performance across a wide temperature range.”
He added: “EVs have been operating in the region for several years with virtually no performance issues. A more relevant environmental concern may be sand and dust, which can affect charging stations and equipment. But even here, mitigation measures are relatively straightforward and already well understood.”
Insurance and cost
Another hurdle is the higher cost of insuring EVs compared to traditional vehicles.
Vahanian explained that unlike traditional cars powered by internal combustion engines, EVs rely on sophisticated battery systems, state-of-the-art electronics, and specialized components that require expert handling.
“When collisions or mishaps occur, repairing these systems can be significantly pricier than conventional repairs. Limited availability of repair facilities and trained technicians — particularly in emerging markets like KSA — exacerbates these costs,” she said.
The Marsh UAE official added that insurers are adapting but warns of potential premium hikes: “Insurance companies, which traditionally set premiums based on anticipated claim payouts and repair costs, are therefore likely to face higher liabilities. In anticipation, we can expect a recalibration of premiums, reflecting a more accurate risk profile and the amplified repair costs associated with EVs.”
Vahanian went on to say: “Higher repair costs inevitably feed into the economics of risk assessment for insurers. As claims tend to rise with the complexity and expense of EV repairs, premium rates may correspondingly increase to maintain the insurers’ financial stability.”
She noted that higher EV insurance premiums could have a dual effect — while buyers are attracted by lower fuel costs and environmental benefits, steep insurance rates might weaken their appeal, particularly given the already high upfront costs.
The road to 2030
Despite these challenges, Saudi Arabia’s EV revolution is undeniably gaining momentum. Tricamo stressed that government intervention will be crucial. “To accelerate the transition, targeted government intervention will be essential — both to level the playing field and to fast-track the decarbonization of mobility,” he said.
Tricamo added that petrol vehicles remain significantly cheaper to operate in the region due to low fuel prices and a lack of EV incentives, while limited charging infrastructure further hinders widespread adoption.
Vahanian echoed this sentiment, calling for collaboration between policymakers and insurers, saying: “By collaborating with insurance providers, policymakers can create schemes that provide favorable premium rates or bundled services, thereby alleviating consumer concerns and accelerating market penetration.”
Full speed ahead
With Tesla’s market entry, Lucid’s local production, and government-backed infrastructure investments, Saudi Arabia is fast-tracking its EV transition. Yet hurdles like charging deserts, affordability, battery resilience, and insurance costs must be overcome to reach the 30 percent adoption goal.
LONDON: Oil prices rose by around 1 percent on Friday as investors weighed a tight prompt market against a potential large surplus this year forecast by the IEA, while US tariffs and possible further sanctions on Russia were also in focus.
Brent crude futures were up 76 cents, or 1.11 percent, at $69.40 a barrel as of 2:53 p.m. Saudi time. US West Texas Intermediate crude ticked up 82 cents, or 1.23 percent, to $67.39 a barrel.
At those levels, Brent was headed for a 1.6 percent gain on the week, while WTI was up around 0.6 percent from last week’s close.
The IEA said on Friday the global oil market may be tighter than it appears, with demand supported by peak summer refinery runs to meet travel and power-generation.
Front-month September Brent contracts were trading at a $1.11 premium to October futures at 2:53 p.m. Saudi time.
“Civilians, be they in the air or on the road, are showing a healthy willingness to travel,” PVM analyst John Evans said in a note on Friday.
Prompt tightness notwithstanding, the IEA boosted its forecast for supply growth this year, while trimming its outlook for growth in demand, implying a market in surplus.
“OPEC+ will quickly and significantly turn up the oil tap. There is a threat of significant oversupply. In the short term, however, oil prices remain supported,” Commerzbank analysts said in a note.
Further adding support to the short-term outlook, Russian deputy prime minister Alexander Novak said on Friday that Russia will compensate for overproduction against its OPEC+ quota this year in August-September.
Longer term, however, rival forecasting agency OPEC cut its forecasts for global oil demand in 2026 to 2029 because of slowing Chinese demand, the group said in its 2025 World Oil Outlook published on Thursday.
Both benchmark futures contracts lost more than 2 percent on Thursday as investors worried about the impact of Trump’s evolving tariff policy on global economic growth and oil demand.
“Prices have recouped some of this decline after President Trump said he plans to make a ‘major’ statement on Russia on Monday. This could leave the market nervous over the potential for further sanctions on Russia,” ING analysts wrote in a client note.
Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress on peace with Ukraine and Russia’s intensifying bombardment of Ukrainian cities.
The European Commission is set to propose a floating Russian oil price cap this week as part of a new draft sanctions package, but Russia said it has “good experience” of tackling and minimizing such challenges.
Saudi non-oil trade surplus with GCC jumps over 200% in April
Updated 10 July 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia’s non-oil trade surplus with fellow Gulf Cooperation Council countries jumped by more than 200 percent in April 2025, driven by a sharp rise in re-exports and strengthening regional economic ties.
According to the latest figures released by the General Authority for Statistics, the Kingdom posted a trade surplus of SR3.51 billion ($935 million) with GCC nations during the month, compared to just SR1.16 billion in April 2024 — a year-on-year increase of 203.2 percent.
The total value of non-oil trade, which includes re-exports, between Saudi Arabia and the GCC bloc reached SR18.03 billion in April, reflecting a robust 41.3 percent growth from SR12.76 billion in the same month last year.
This momentum is attributed to the accelerated pace of regional economic integration, supported by strategic initiatives such as Saudi Arabia’s Vision 2030 and similar diversification programs across the Gulf. These frameworks aim to reduce dependence on hydrocarbons by fostering growth in sectors like logistics, finance, tourism, and manufacturing.
Non-oil exports — encompassing both national products and re-exported goods — saw a notable rise of 55 percent year on year to SR10.77 billion. Within this category, re-exports surged by 81 percent to SR7.74 billion, highlighting Saudi Arabia’s growing role as a regional re-export hub. National-origin exports also rose by 13.3 percent, totaling SR3.03 billion.
Imports from GCC countries also registered an increase, climbing to SR7.26 billion in April — a 25.2 percent rise compared to SR5.80 billion in the previous year.
Among individual member states, the UAE continued to dominate Saudi Arabia’s regional trade portfolio, accounting for SR13.53 billion — or 75.1 percent — of the Kingdom’s total non-oil trade with the GCC. Bahrain followed with SR1.8 billion (10 percent), while Oman recorded SR1.45 billion (8.1 percent). Kuwait and Qatar contributed SR819.9 million (4.5 percent) and SR422.1 million (2.3 percent), respectively.
The data reflects not only Saudi Arabia’s growing non-oil export capacity but also a broader regional shift toward more diversified, interconnected Gulf economies.
Once regarded as practically off-limits to visitors and particularly Westerners (although that was never true), Saudi Arabia is throwing open the gates, as part of plans to diversify its economy and create jobs for its citizens.
