LONDON: A London jury has been discharged in a landmark fraud trial of four former Barclays executives accused of paying Qatar undisclosed fees to help rescue the bank at the height of the credit crisis in 2008.
Judge Robert Jay told the jury at Southwark Crown Court on Monday he was required to discharge them. No further details could be published due to continued reporting restrictions.
Former chief executive John Varley, Roger Jenkins, Tom Kalaris and Richard Boath are charged with conspiring to commit fraud by false representation when Barclays raised more than 11 billion pounds ($14 billion) from investors in 2008, allowing the British bank to avoid a state bailout.
Prosecutors allege the bankers excluded from public documents and hid from other investors around 322 million pounds in fees paid to the Qatari investors through so-called advisory service agreements (ASAs).
The defendants deny wrongdoing and said they had relied on legal advice.
The prosecution, brought by the UK Serious Fraud Office, is the first jury trial of a leading bank’s CEO over conduct during the financial crisis.
Qatari investors plowed around 4 billion pounds into Barclays during two fund raisings in June and October 2008.
London judge discharges jury in landmark Barclays Qatar case
London judge discharges jury in landmark Barclays Qatar case
- Jury discharged in landmark trial
- Reporting restrictions in place
‘Retailtainment’ shaping growth of shopping malls in Saudi Arabia
- Shopping centers thrive as they evolve into social venues rather than mere shopping destinations
RIYADH: Shopping malls in Saudi Arabia have strong growth prospects, as consumers increasingly prefer the convenience of retail and entertainment offerings combined under one roof, experts have told Arab News.
Strengthening the Kingdom’s retail sector, including the development of shopping destinations, is one of the crucial goals outlined in the Vision 2030 program, as Saudi Arabia aims to become a global hub of business and tourism by the end of the decade.
In June, a report by global real estate consultancy Knight Frank revealed that Riyadh is leading the Kingdom’s retail transformation, with mall rents up 4 percent in a year and 2.2 million sq. meters of new retail space planned by 2030.
According to the analysis, average mall rent in the Saudi capital rose to SR2,848 ($765) per sq. meter by the end of March, with occupancy rates up 5 percent to reach 92 percent in the first quarter of 2025.
Speaking to Arab News, Olivier de Cointet, senior adviser at management consulting firm Arthur D. Little, said that shopping malls are set to thrive in the Kingdom as they evolve into social venues rather than mere shopping destinations.
“With retailtainment, which is the fusion of retail and entertainment, becoming an essential part of the customer experience, malls play a significant role in supporting the Kingdom’s vision to become a business and tourist destination hub,” said Cointet.
He added: “These destinations enhance Saudi Arabia’s appeal as a business and tourism hotspot and keep more consumer spending within the Kingdom.”
Anthony Spary, head of retail, leasing, and offices at CBRE for the Middle East and North Africa region, echoed similar views, saying that shopping malls in the Kingdom could serve as social hubs for both locals and visitors, promoting cultural exchange and providing a platform for both international and homegrown brands.
Today’s consumer expects seamless integration between all channels, and this benefits physical as well as digital retail in terms of driving footfall, experience, and convenience.
Sundeep Khanna, partner at ADL
“Malls often feature concepts such as family entertainment centers, cinemas, cultural events as well as unique anchor attractions, all of which will draw tourists and encourage repeat footfall with residents,” said Spary.
Joe Abi Akl, partner and head of Oliver Wyman’s Retail and Consumer practice for India, the Middle East and Africa, said that shopping malls in Saudi Arabia have allocated nearly half of their gross leased area to non-retail activities, which could help them serve as social and entertainment destinations.
“Shopping malls, with a pipeline exceeding 6 million sq. meters of GLA, play a vital role in this vision by offering integrated, experience-led environments. With more than 40 percent of mall space planned for non-retail activities, they’re not just commercial centers, but social and cultural anchors that enrich the Kingdom’s appeal as a leisure and lifestyle destination,” said Abi Akl.
These comments align with Saudi Arabia’s efforts to become a global hub for tourism and business by the end of the decade, with the Real Estate General Authority projecting the property market to reach $101.62 billion by 2029, representing a compound annual growth rate of 8 percent from 2024.
Shaping retail spending
CBRE’s Spary said the rising number of shopping malls in the Kingdom is expected to boost retail spending as they provide consumers with convenience and a wide variety of product choices.
“Saudi Arabia offers a unique retail landscape in the region, providing a blend of strip malls, line retail, as well as community and regional shopping districts. This new wave of shopping malls will only add to this offering and create a more varied mix for the consumer,” added Spary.
These views regarding consumer spending align with the findings of a recent report published by global consulting firm AlixPartners, which said the Kingdom’s consumer market is evolving rapidly, characterized by adaptability, shifting spending patterns, and resilience in the face of global economic challenges.
AlixPartners noted that the groceries and clothing categories are expected to remain key spending sectors in 2025, with consumers prioritizing value-driven deals and savings.
Craig Watson, head of retail at JLL in the Kingdom, stated that the development of several high-quality retail centers will transform the consumer experience across Saudi Arabia, offering a wide array of choices and ultimately boosting overall spending.
“When regions go through extensive and rapid growth, the consumer is always the winner, with increased supply providing new and exciting concepts to experience. The retail mix, success, and execution of these places will ultimately determine the share of wallet and who benefits most,” said Watson.
In February, during the Retail Leaders Circle, Abdellah Iftahy, senior partner at McKinsey and Co., said that the Kingdom’s retail sector is undergoing a significant transformation, driven by a digitally savvy young population and increasing consumer confidence.
He added that by 2035, 75 percent of retail spending is expected to come from the Saudi youth.
E-commerce vs. shopping malls
Although the growth of e-commerce in Saudi Arabia may pose challenges for traditional retail formats, it can also complement the development of malls in the Kingdom, according to experts.
Watson notes that the Kingdom has emerged as a major e-commerce hub in the Middle East and North Africa, driven by its young, tech-savvy population and expanding internet coverage.
He believes the growth of the e-commerce sector will not negatively impact the operations of shopping malls nationwide.
FASTFACTS
• Strengthening the Kingdom’s retail sector, including the development of shopping destinations, is one of the crucial goals outlined in the Vision 2030 program.
• Riyadh is leading the Kingdom’s retail transformation, with mall rents up 4 percent in a year and 2.2 million sq. meters of new retail space planned by 2030.
“As is the case with every region, the overwhelming majority of retail sales is derived from brick-and-mortar transactions. Malls will need to adapt by integrating technology, enhancing the customer experience and offering unique in-person experiences that cannot be replicated online,” said Watson.
According to Spary, many consumers still prefer the tactile experience of shopping in person, and malls can integrate e-commerce by offering click-and-collect services.
“Malls can serve as experiential spaces where brands showcase their products, attracting customers who enjoy the physical shopping experience. Taking into account both cultural shopping preferences as well as the impact of the climate on consumer behavior, increasing e-commerce penetration will add to the overall omnichannel approach that retailers are adopting across the region,” said Spary.
Sundeep Khanna, partner at ADL, said that the growth of the e-commerce sector is not cannibalising shopping malls, but is actually complementing them.
“Today’s consumer expects seamless integration between all channels, and this benefits physical as well as digital retail in terms of driving footfall, experience, and convenience,” said Khanna.
Attracting international brands
Spary told Arab News that the transformation and upgrade of retail offerings in the market of Saudi Arabia will pave the way for new international brands to enter and grow within the Kingdom, contributing to the country’s wider economic goals.
According to the CBRE official, the entry of new brands will not only enhance consumer choices but also stimulate a competitive environment that encourages brand expansion and attracts investment.
“CBRE is currently seeing record levels of demand from international brands looking to expand into the region. This demand is likely to continue given the robust and ever-maturing nature of this market,” said Spary.
Cointet noted that Saudi Arabia has become an attractive destination for global fashion, luxury, and food and beverage retailers, drawn by the population’s strong spending power and the rise of premium mall spaces such as Riyadh Park and Mall of Arabia.
“Mall expansion goes hand-in-hand with pro-investment reforms — for example, Saudi Arabia now allows 100 percent foreign ownership in the retail sector, encouraging international companies and developers to invest directly,” added Cointet.
The Arthur D. Little official further stated that the expansion of shopping malls in the Kingdom will also provide local brands with unprecedented opportunities to establish a national and international footprint.
“This is critical for developing the Saudi economy and I anticipate we will see more Saudi-owned brands enter the world stage in the coming years,” added Cointet.
Potential challenges
The experts also highlighted some of the challenges in Saudi Arabia’s retail landscape, particularly surrounding shopping malls, including oversupply.
“Whilst there’s certainly a risk of oversupply with many large projects due to be delivered over the course of the next two to three years, the need for continuous innovation and adaptation to changing consumer trends will be crucial for the sustainability of shopping malls in the Kingdom,” said Spary.
The CBRE official further said that new attractions, entertainment options, and cultural elements will play a pivotal role in reshaping the retail landscape in the market.
Spary added that the integration of these features will create a more engaging and immersive experience for consumers, ultimately redefining how shopping is perceived and enjoyed in the Kingdom.
Cointet expressed a slightly different view, stating that the demand for malls in Saudi Arabia is expected to rise in the coming years due to population growth.
He explained that this challenge could be addressed by developing large-format mega malls that serve as destinations in themselves, alongside smaller community malls designed to offer convenience at the local level.
In April, a separate analysis by S&P Global said that oversupply, changing retail preferences, and pressure on rental yields amid elevated capital expenditure by landlords could exert pressure on the Kingdom’s retail sector.
According to the US-based agency, the volume of retail projects in the pipeline raises the risk of potential oversupply, particularly in secondary locations where demand may not be sufficient to absorb new retail spaces.
Discussing the risk of oversupply, Cointet said: “Saudi Arabia’s aggressive development pipeline of new retail space underway — raises the risk of too much supply coming to market, which could pressure occupancies and rents in some areas, or even threaten the launch of some of the programs.”
He added: “Landlords and developers may need to differentiate their properties with unique experiences, dining, and entertainment offerings — and even offer lease incentives — to avoid saturation and keep shoppers engaged in an evolving retail landscape.”
Saudi Arabia leads bold transformation to tackle water scarcity
- Kingdom takes decisive steps to secure water availability for future generations
RIYADH: Saudi Arabia is confronting one of the world’s most urgent environmental challenges: water scarcity.
Faced with limited natural freshwater resources and a rapidly expanding population, the Kingdom is taking decisive steps to secure water availability for future generations.
Central to this ambitious transformation is a strategic focus on the “Three As” of water management: availability, accessibility, and affordability.
In recent years, Saudi Arabia has become a global leader in water desalination, investing heavily in cutting-edge technologies and large-scale infrastructure projects.
These efforts are not only reshaping the nation’s water landscape but also setting an example for other arid regions grappling with similar issues.
Speaking to Arab News, Tariq Nada, executive vice president of the Center of Excellence at ACWA Power, highlighted the Kingdom’s dominant role in the water sector.
“The Kingdom’s current desalinated water supply capacity stands at over 12 million m3/day with a target to reach approximately 20 million m3/day by 2030,” Nada explained.
He further noted: “As of 2024, the Kingdom had committed $6.28 billion in ongoing projects focused on water distribution, water treatment plants, wastewater collection projects and wastewater treatment plants.”
Nick Strange, principal at Arthur D. Little, pointed out Saudi Arabia’s massive achievements over the past five decades.
“The country plans to more than double its desalination capacity to around 20 million m³/d by 2030. New mega plants are under development in strategic locations including the Eastern Province, Makkah, Jazan and Madinah (regions). In parallel, the transmission network will also be expanded in scale and reach to accommodate the growing demand and new production hubs,” he told Arab News.
Strange added: “However, the Kingdom is not relying on desalination alone. Recognizing the importance of water sustainability, Saudi Arabia is also accelerating efforts in wastewater treatment and reuse. Current treated water capacity is 6-7 million m³/d, with approximately 30 percent being utilized.”
Saudi Arabia’s approach includes deploying advanced, energy-efficient technologies such as reverse osmosis systems and integrating renewable energy sources into desalination and wastewater treatment plants.
Meanwhile, the reuse of treated wastewater is gaining momentum as part of a wider push for sustainable resource management.
Public-private partnerships have been instrumental in driving this transformation, accelerating investments and expediting the development of critical infrastructure.
Nicolas Boukhalil, PwC Middle East’s energy, resources and sustainability deals leader, emphasized the benefits of opening the sector to international competition.
HIGHLIGHTS
• Saudi Arabia is poised to make major strides in water infrastructure, innovation, and resource management — key to securing supplies, boosting the economy, and advancing Vision 2030.
• Saudi Arabia’s approach includes deploying advanced, energy-efficient technologies such as reverse osmosis systems and integrating renewable energy sources into desalination and wastewater treatment plants.
“These partnerships are introducing new technology, improving efficiency, and making water more affordable for homes, businesses, and farmers alike. The result: a more sustainable financial model that eases pressure on public budgets and supports long-term economic growth,” he said.
He also stressed the importance of distribution networks, stating, “Producing water is only half the battle, getting it where it’s needed is just as critical. That’s why major investments are also going into water transmission networks, storage reservoirs, and smart management systems.”
Hani Tohme, partner and Middle East and Africa sustainability lead at Kearney, shed light on the current wastewater situation.
“Saudi Arabia treats over 6.5 million cubic meters of municipal wastewater each day, yet only around 25 percent of that is reused, with wastewater network coverage reaching approximately 65 percent,” he said.
The National Water Strategy aims to boost treatment and reuse significantly by 2030 — targeting treatment of up to 10 million cubic meters daily and reuse rates of 70 percent.
Tohme explained: “This enables groundwater preservation, supports industrial and agricultural reuse, and reduces dependency on energy-intensive desalination — which still provides 60 percent of urban water supply today.”
Enhancing water security
Saudi Arabia’s expansion of desalination and water purification is a cornerstone of Vision 2030, reinforcing national water security and the Kingdom’s broader transformation goals.
Nada from ACWA Power sees investment in advanced desalination as a critical response to water scarcity that also promotes economic growth through job creation and industry development.
“Since its inception, ACWA Power has consistently been an early adopter of new technologies, in full cooperation and collaboration with the full ecosystem, led by KSA Water offtaker, SWPC, achieving 87 percent reduction in specific power consumption over the last decade. This commitment to innovation is reflected in the company’s ongoing efforts to integrate sustainable and cost-effective water solutions,” Nada said.
From Arthur D. Little’s perspective, these initiatives boost economic diversification and elevate Saudi firms globally.
The Kingdom’s current desalinated water supply capacity stands at over 12 million m3/day with a target to reach approximately 20 million m3/day by 2030.
Tariq Nada, executive vice president of the Center of Excellence at ACWA Power
“For businesses, this presents significant opportunities across engineering, clean technology, and supply chain localization — while for the nation, it reinforces resilience, global competitiveness, and leadership in addressing one of the 21st century’s most pressing challenges: the sustainable management of water,” Strange explained.
PwC also notes the alignment between the Kingdom’s water strategy and Vision 2030’s goals of economic diversification and sustainability.
“As global demand for desalination and sustainable water solutions rises, Saudi Arabia has the tools, talent, and ambition to become a world leader in water technology, creating new revenue streams while solving a shared global issue,” Boukhalil said. Kearney’s Tohme emphasized the wastewater sector’s growing role in attracting private investment.
“For businesses, this creates significant opportunities in EPC contracting, localization of technologies including membrane technologies, operations and maintenance, and treated water offtake agreements, particularly in industrial zones and giga developments,” he said.
Evolution of water purification
In 2025, Saudi Arabia is poised to make major strides in water infrastructure, innovation, and resource management — key to securing supplies, boosting the economy, and advancing Vision 2030.
Highlighting upcoming developments, Nada said: “In 2025, we anticipate an increased integration of renewable energy, with water desalination plants increasingly powered by solar energy and battery energy storage systems, further reducing their environmental impact and operational costs.”
He added: “We also expect to see a rise in the deployment of advanced membrane technologies, where next-generation membrane technologies will improve the efficiency and effectiveness of RO plants, reducing energy consumption and increasing water recovery rates.”
Nada also pointed to the role of digital technologies: “Digital technologies, such as AI, including machine learning, (will) enable real-time monitoring, optimization, and predictive maintenance of water purification plants.”
Kearney’s Tohme foresees three major shifts by 2025. He expects accelerated deployment of decentralized purification plants in underserved and remote areas, adoption of digital twins and predictive maintenance technologies to reduce operational costs and non-revenue water, and the strategic integration of treated water into agriculture and district cooling systems.
He concluded: “These trends are not just technical — they enhance Saudi Arabia’s economic resilience by separating water supply from climate stress.”
Rabbit’s quick commerce model takes off in Saudi Arabia
- Strong early traction points to a positive start for Cairo-based startup
RIYADH: Early users of quick commerce company Rabbit in Riyadh are already showing promising signs of engagement, with weekly reorder rates comparable to those in the company’s more mature Egyptian market, Arab News has been told.
This strong early traction points to a positive product-market fit as the Cairo-based startup expands into Saudi Arabia.
Rabbit officially launched operations in the Kingdom in early 2024 and is aiming to replicate its hyper-growth strategy by tailoring its model to each city — starting with Riyadh.
“A more indicative, and exciting, insight is that we are seeing early users in Saudi Arabia already having a reorder rate of around one order a week,” said Ahmad Yousry, co-founder and CEO of Rabbit, in an interview with Arab News.
“This is in line with our much more established customer base in Egypt, which is a compelling sign for us,” he added.
Rabbit has already delivered more than 40 million items to 1.4 million users in Egypt, a market that has served as a foundational blueprint. However, the company is taking care not to simply copy and paste its strategies.
“Hence, we adopt a tailored approach, focused on building city-by-city and being highly nimble as a company, which has already proven key,” said Yousry.
Within six weeks of launching in Riyadh, Rabbit built a network of dark stores covering half of the city. Its goal is to expand across the remainder of the capital and into additional cities over the next 24 months. Dark stores — also known as micro-fulfillment centers or dark warehouses — are retail or distribution hubs designed exclusively to handle and process online shopping orders.
Known for its ultra-fast service, Rabbit is maintaining its performance standards in Saudi Arabia.
“Our goal is to deliver over 94 percent of our orders within the promised time frame,” Yousry said, referring to Rabbit’s 20-minute delivery commitment.
Rabbit aims to deliver 20 million items in Saudi Arabia by 2026, forecasting exponential — not linear — growth. While the company has not disclosed current delivery volumes or active user numbers in the Kingdom, Yousry emphasized the importance of retention over vanity metrics.
“We focus on methodically growing the number of households that depend on Rabbit on a weekly basis,” he said.
A more indicative, and exciting, insight is that we are seeing early users in Saudi Arabia already having a reorder rate of around one order a week.
Ahmad Yousry, co-founder and CEO of Rabbit
In Egypt, Rabbit recorded 2.5 times year-on-year growth in the first quarter of 2025, highlighting the scalability of its operational model.
Yousry cautioned against direct comparisons, saying: “The unit economics for both markets are quite different. We try not to base our growth strategy on comparative analytics, but rather on adapting the operational learnings from one market to another and building a sustainable business model around them.”
According to Yousry, increasing customer numbers and basket sizes are central to sustainable growth.
“There are two fundamental ways to grow the business in a sustainable and organic manner: acquire more customers and, or, increase the basket value per customer. We aim to focus on both of these elements,” he said.
A major element of Rabbit’s regional strategy is local sourcing. In Egypt, over 60 percent of products are sourced from local suppliers, and the company is pursuing a similar — or higher — ratio in Saudi Arabia.
“In Saudi Arabia, we are currently on track to have even more local brands on the platform,” Yousry said.
“Our partner-first focus, and our commitment to growing local brands and empowering local entrepreneurs, has significantly paid off in Egypt and we expect to see the same in Saudi Arabia.”
Beyond fulfillment, Rabbit is prioritizing customer experience, emphasizing both convenience and reliability.
“While speed is incredibly important, to be successful in the e-grocery market, you must also focus on the other key elements of the customer experience: convenience and reliability,” said Yousry.
“Our customers know they can count on us to deliver speed, convenience, and consistency.”
Technology, particularly artificial intelligence, plays a critical role in Rabbit’s operations. The company is applying AI to enhance inventory management, logistics, and user engagement.
“AI is a fundamental enabler of our operations and future growth in Saudi Arabia,” Yousry said.
FASTFACTS
• Within six weeks of launching in Riyadh, Rabbit built a network of dark stores covering half of the city. Its goal is to expand across the remainder of the capital and into additional cities over the next 24 months.
• Rabbit aims to deliver 20 million items in Saudi Arabia by 2026, forecasting exponential — not linear — growth.
• Rabbit has already delivered more than 40 million items to 1.4 million users in Egypt, a market that has served as a foundational blueprint.
“We are leveraging AI for sophisticated inventory management to predict demand accurately and minimize stockouts, ensuring product availability for our customers.”
Rabbit also uses machine learning to personalize the shopping experience within the app. “We are utilizing proprietary machine-learning solutions to provide tailored product recommendations and a more engaging shopping experience for our users in the Kingdom,” Yousry added.
The decision to launch regionally with Saudi Arabia was driven by the size and structure of its grocery sector.
“The food and grocery market is valued at $60 billion, yet the current online grocery transactions in Saudi Arabia are at a lower rate, sitting at 1.3 percent, than the likes of the UAE and the US,” said Yousry.
“Riyadh is transforming at lightning speed, providing us with the opportunity to meet the shift in customer behavior and demands.”
Understanding and adapting to local consumer behavior has been central to Rabbit’s entry into the market.
“Consumers in Saudi Arabia prioritize convenience, quality, and new technologies for a seamless shopping experience,” said Yousry.
He added that, unlike Egypt — where purchases tend to be daily and need-based — Saudi shopping habits are more occasion-driven.
“In Egypt, the pattern leans more toward daily or impulse-driven purchases, often tied to single packs for immediate needs or smaller households.”
Rabbit’s mission is closely aligned with Saudi Arabia’s Vision 2030, particularly in areas such as digital infrastructure development and support for small and medium enterprises.
“We are helping to accelerate the growth of the digital economy in a growing sector that is yet to reach its digitization potential,” said Yousry, adding: “We are building and leveraging state-of-the-art technology across our entire supply chain, aligning directly with the Kingdom’s vision for a diversified and digitally empowered future in two key sectors: logistics and retail.”
Supporting local entrepreneurs remains a central pillar of Rabbit’s regional operations.
“Our commitment to local sourcing and partnerships with SMEs provides a platform for these businesses to reach a wider customer base and scale their operations,” he said.
“We hire local and build locally. We pride ourselves on being a hyperlocal company. We are not bringing Rabbit to Saudi Arabia; we are instead building Rabbit Saudi Arabia by Saudi hands.”
Looking ahead, Rabbit sees Saudi Arabia not only as a key growth market but also as a launchpad for broader expansion.
“We are very excited for the future of Rabbit in the GCC region,” said Yousry.
“We are already profitable in our first market, Egypt, and we look forward to building on this as we expand,” he stated.
“We see Saudi Arabia as a champion market for the reasons already mentioned. We are focused on growing sustainably and expanding our footprint in the Kingdom, ultimately reaching profitability,” the CEO added.
Saudis dig deep into their wallets as Eid Al-Adha drives spending surge
RIYADH: Saudi Arabia’s Eid Al-Adha holiday is proving to be a major economic driver, fueling robust growth across the Kingdom’s livestock, retail, and domestic tourism sectors.
Coinciding with the annual Hajj pilgrimage, the extended public holiday channels billions of riyals into the economy as businesses ramp up operations to meet soaring seasonal demand.
Livestock markets are bustling, shopping centers are teeming with eager consumers, and hotels and resorts across the Kingdom are reporting high occupancy rates — all pointing to a dynamic shift in consumer behavior and an increasingly diversified economic landscape.
Retail activity, in particular, is experiencing a seasonal boom. From glittering gold souqs and fashion boutiques to thriving e-commerce platforms, shoppers are on the lookout for Eid gifts, festive attire, and high-end products.
A recent survey by Toluna and MetrixLab shows that 47 percent of Saudi consumers expect to spend more this Eid than last year. Over half (51 percent) are boosting their shopping budgets, while 44 percent are allocating more for dining out.
Among the most in-demand items this season are fashion apparel, gold and diamond jewelry, perfumes, and electronics. In response, retailers are rolling out aggressive promotions, with 49 percent of consumers attracted to price discounts, 40 percent favoring bundled deals, and 33 percent looking for cash-back incentives.
The digital retail landscape is also witnessing significant momentum. The survey highlights that 31 percent of consumers now fall into the “heavy digital shopper” category — individuals who make purchases daily or several times a week.
“Eid gifting remains a core element of celebrations, with 89 percent of KSA residents planning to give gifts in 2025,” the report stated.
The report added: “Luxury gifting continues to rise, with 41 percent opting for fashion cloths, up from 36 percent in 2024, dates, and sweets 45 percent, and major electronic devices gaining popularity, rising from 22 percent to 24 percent.”
Fragrances and gourmet items such as dates and chocolates also continue to dominate gifting choices, reflecting cultural values and the desire to present meaningful and luxurious tokens of appreciation.
The trend of self-gifting, while slightly down from 2024, remains strong, indicating the growing role of Eid as a moment for personal indulgence.
The tourism and hospitality sector stands out as one of the biggest winners during Eid Al-Adha, with hotels, resorts, and travel operators across Saudi Arabia witnessing a surge in demand.
JS Anand, founder and CEO of Leva Hotels, told Arab News that the holiday’s timing alongside the Hajj pilgrimage makes it a uniquely impactful season, not only for spiritual observance but also for economic momentum driven by both local and international tourism.
“Eid Al-Adha will increasingly serve as a key driver for business and consumption, benefiting both local and regional markets. Beyond its economic impact, the holiday is also a time for spiritual reflection, generosity, and community, while highlighting Saudi Arabia’s vibrant culture and hospitality,” Anand said.
He added: “Increased consumer spending during this period benefits industries such as transportation, hospitality, and retail, while the extended holiday period further amplifies economic activity.”
Speaking on shifting consumer behaviors, Anand noted that travelers are becoming more discerning and value-conscious. While they are not necessarily looking for the cheapest option, they want to ensure they’re getting meaningful value for what they pay.
He added: “Guests increasingly expect hotels to deliver not just a place to stay, but a personalized, experience-rich offering that resonates with their lifestyle and preferences.”
Domestic tourism continues to thrive, but international travel has surged in popularity among Saudi residents.
According to Wego, 96.12 percent of Eid-related travel searches in the Kingdom are now for international destinations, up from 87.34 percent last year.
Top destinations include Egypt, India, and the UAE, as well as Pakistan, Turkiye, and Bangladesh, along with a rising interest in European and Southeast Asian locales such as Italy, Thailand, and Malaysia.
Despite the international travel boom, domestic destinations like Jeddah, Riyadh, and Madinah, alongside Dammam and Abha, remain popular for their cultural attractions and spiritual experiences.
Wego data suggests that cultural exploration is becoming a primary driver in destination selection, as travelers seek meaningful connections during the holiday.
Anand affirmed this trend: “The hospitality sector must be agile, crafting offerings that cater not only to the loyal domestic traveler but also to the rising wave of international visitors.”
He continued: “For hotels, this means providing thoughtfully tailored packages, seamless digital booking experiences, and culturally resonant, memorable stays that appeal to both local guests and the growing base of inbound international tourists discovering Saudi Arabia during the festive Eid season and beyond.”
Businesses are also preparing for the holiday through targeted promotions and operational enhancements. “Today, it’s all about creating value-added, memorable, immersive experiences and curating unique, personalized offerings to meet the surge in demand and deliver exceptional value.”
Mohammed Al-Mu’ajil, a tourism expert, told Arab News that Saudi Arabia is seeing remarkable shifts in travel and consumer behavior this Eid season.
“In 2025, Saudi Arabia witnessed a significant rise in consumer spending, with total expenditure reaching approximately SR148 billion ($39.46 billion) in March, the highest level since May 2021, reflecting a 17 percent increase compared to the previous year. This growth is attributed to the Ramadan and Eid Al-Fitr seasons, in addition to the Umrah season,” Al-Mu’ajil said.
With more people shopping and traveling, businesses are also recalibrating their approach to Eid.
Al-Mu’ajil also highlighted the increasing role of technology and digital outreach stating: “Companies are increasingly relying on digital channels to engage with customers, with 94.03 percent of internet users in the Kingdom active on social media platforms such as X, TikTok, and Snapchat.”
He also explained that domestic hotel nights increased by 14 percent, while international hotel nights rose by 13 percent.
The Kingdom recorded a 48 percent increase in international visitors during the first quarter compared to the previous year, driven by Vision 2030 initiatives and relaxed visa regulations.
International destinations are seeing strong demand from Saudi tourists, particularly Egypt, Turkiye, and Dubai, due to their geographic proximity, cultural similarities, and diverse tourism offerings,” he said.
“Red Sea cruises have also emerged as a new and appealing option, offering luxurious and comprehensive travel experiences.”
He added that domestic travel remains a strong draw, stating: “On the domestic front, cities such as AlUla, Abha, Al-Baha, Jeddah, and Riyadh have become favored destinations for Saudi travelers. These cities are distinguished by their natural and cultural diversity as well as advanced infrastructure, making them attractive to families and holidaymakers during the Eid season.”
Al-Mu’ajil added that digital platforms are increasingly central to consumer engagement, noting that the number of e-commerce users in Saudi Arabia is projected to reach 34.5 million by the end of 2025.
“With Internet penetration expected to rise from 66.7 percent in 2023 to 74.7 percent by 2027, digital engagement is reshaping how Saudis prepare for Eid, from online bookings to promotional offers,” he said.
Increased spending
More than half — 51 percent — of consumers in the Kingdom said they are willing to spend more on Eid gifts this year.
According to the Toluna and MetrixLab report, this is driven by a mix of improved financial confidence and a desire to make the holiday more special after years of pandemic-related limitations.
About 38 percent of consumers expressed a desire to make this Eid more special to compensate for pandemic-era limitations, while 36 percent noted improved financial standing.
In addition, 35 percent plan to expand their gift lists to include more people, and 30 percent expressed a desire to be more generous with their families and friends.
These sentiments are reflected in higher spending across multiple categories. Fashion apparel, fragrances, and electronics have seen a significant bump, while gold and diamond jewelry purchases have also increased slightly.
The trend underscores Eid’s growing role not just as a religious and cultural moment, but as a peak period of emotional expression through gifting and consumer engagement
With 89 percent of consumers planning to give gifts, and significant growth in retail and travel expenditures, Eid Al-Adha is proving to be not just a spiritual cornerstone — but a vital pillar of the Kingdom’s economy.
The economic impact of Eid Al-Adha is particularly evident in the livestock sector, which sees a surge in demand — particularly in sheep and goats.
Local farmers, traders, and international suppliers navigate challenges such as rising feed costs and supply chain constraints while ensuring a steady supply.
Although the Kingdom’s livestock market remains robust, escalating feed prices have put upward pressure on animal prices, prompting some households to consider shared sacrifices or smaller livestock options.
Seasonal livestock markets are also set up across major cities to accommodate the peak demand period.
The evolving behavior of Saudi consumers — seeking quality, cultural relevance, and immersive experiences — indicates broader societal shifts and economic resilience.
As Vision 2030 continues to reshape the Kingdom’s economic landscape, seasonal events like Eid Al-Adha serve not only as cultural milestones but also as indicators for consumer confidence and economic diversification.
MENA startup funding grows in May as Egypt rebounds
RIYADH: Startups across the Middle East and North Africa secured $289 million across 44 deals in May, marking a 25 percent rise from April and a 2 percent increase year-on-year.
While equity dominated the deal flow, debt financing represented just 9 percent of the total.
Egypt led regional fundraising with $125 million, bolstered by Nawy’s $75 million round and seven other deals totaling $50 million.
The UAE followed with $86.7 million from 14 deals, while Saudi Arabia came third with $69 million from 15 transactions.
Kuwait made a rare appearance in the top four, with two startups securing a combined $6 million.
Despite the hype around artificial intelligence, fueled by a high-profile visit from US President Trump and Silicon Valley executives, funding in the sector was limited.
AI startups attracted just $25 million across two deals, underscoring a gap between public narrative and private capital flows.
Fintech maintained its lead among sectors, drawing $86.5 million through 14 rounds. Property technology followed, lifted by Nawy, while media technology firms raised $32 million.
Construction technology firm WakeCap raised $28 million, one of the few notable later-stage rounds.
Early-stage funding dominated the month, accounting for $161 million, with just one pre-series C deal recorded at $12 million.
Business-to-business startups continued to command investor attention, raising $157 million across 29 deals.
Hybrid startups secured $79 million, while B2C companies collected $53 million.
The gender gap in startup funding persisted, with male-founded teams receiving 82 percent of capital, compared to 7 percent for women-led firms and 11 percent for mixed-gender teams.
Stride Ventures doubles down on GCC with Saudi expansion
Stride Ventures, a global venture debt firm, is deepening its presence in the Gulf Cooperation Council, centering its growth strategy on Saudi Arabia.
The firm announced the opening of a second regional office, the doubling of its local team, and the release of the inaugural Global Venture Debt Report 2025, developed in partnership with Kearney.
The report reveals that the GCC’s venture debt market has grown at a compound annual growth rate of 54 percent—quadruple the global average—reaching $500 million in 2024 from $60 million in 2020.
As part of its regional ambitions, Stride aims to triple its assets under management in the GCC by 2026 and is targeting $500 million in commitments over the next three to five years.
“Saudi Arabia is shaping the future of venture capital and private credit with intention and scale,” said Fariha Javed, partner at Stride Ventures, adding: “We are seeing a new generation of founders who understand the value of non-dilutive capital to scale responsibly and an equally ambitious set of investors in the region ready to fuel their growth.”
Javed said that Saudi Arabia is moving from being a capital source to becoming a capital magnet.
Badir Fund backs Shorooq’s Nahda Fund II to unlock SME credit
The UAE-based Arab Fund for Economic and Social Development has committed capital to Shorooq Partners’ Nahda Fund II through its Badir Fund for small and medium-sized enterprises.
Founded in 2017, Shorooq is known for offering structured financing to growth-stage companies.
Recent recipients include fintech firm Abhi and self-storage platform The Box, which received $15 million and $12.5 million in debt financing, respectively.
“This collaboration with the Badir Fund is a significant step towards empowering SMEs in the Arab region,” said Nathan Kwon, partner and credit head at Shorooq.
“By combining our expertise in structured financing with the Badir Fund’s commitment to economic development, we can provide SMEs with the necessary resources to thrive.” Essam Al-Quorashy, secretary general of the Badir Fund.
“This investment from the Arab Fund will unlock vital growth opportunities for small businesses, promote their growth and foster financial inclusion of underserved segments across the Arab region,” Al-Quorashy added.
ShipBee secures $235k to digitize logistics in Qatar
Doha-based logistics startup ShipBee has closed a $235,000 pre-seed round, valuing the company at $1 million.
The funding was led by Qatar’s GrowthX, with contributions from two angel investors and $40,000 in founder capital.
Founded in March 2024 by Tamer Raafat and Amer Azani, ShipBee provides a tech-enabled logistics platform integrating a digital marketplace, AI-powered software, mobile applications, and international express shipping.
The funds will be used to grow the team, enhance the product, and expand regionally.
“This funding empowers us to scale our vision of simplifying logistics through cutting-edge technology,” said Tamer Raafat, co-founder and CEO.
“ShipBee’s vision is to build a smart logistics ecosystem in Qatar and MENA using the power of AI and new technologies.” Hamad Al-Hajri, CEO and founder of GrowthX and Snoonu.
“ShipBee perfectly aligns with Qatar’s strategic goals by combining innovation with logistics excellence. I firmly believe ShipBee has the potential to become a leading technology-driven logistics platform, both regionally and globally,” Al-Hajri added.
Kumulus Water raises $3.5m to scale atmospheric water tech
Kumulus Water, a startup headquartered between France and Tunisia, has secured $3.5 million in seed funding to scale its off-grid water production systems.
The round included support from Bpifrance, through the France 2030 SGPI initiative and the Ile-de-France Region, as well as regional VCs Khalys Venture, Flat6Labs, PlusVC, and beverage company Spadel.
Several family offices and founders from Europe and North Africa also participated.
Co-founded by Iheb Triki and Mohamed Abid, Kumulus develops atmospheric water generators that extract drinking water from air humidity — offering infrastructure-free solutions for underserved communities.
The new capital will fund the launch of its industrial-grade Kumulus Boks machines and expand operations across France, Spain, and Tunisia, with Saudi Arabia identified as the next market entry point.
EightClouds closes $20m round early, eyes consumer sector growth
UAE-based alternative investment firm EightClouds has completed its $20 million capital raise ahead of schedule, closing the round in 11 months instead of the planned 24.
The firm plans to deploy the funds into strategic acquisitions and initiatives targeting scalable, consumer-focused brands across the Gulf.
EightClouds, which focuses on transforming capital into economic prosperity, is concentrating its activities in the food, beverage, and hospitality sectors.
These industries, the firm notes, are driven by evolving consumer preferences and digital innovation.
The company’s expansion strategy will focus on the UAE and Saudi Arabia, markets it views as primed for rapid growth due to policy support and infrastructure readiness.
Khwarizmi Ventures eyes $120m for second MENA-focused fund
Saudi venture capital firm Khwarizmi Ventures is planning to raise up to $120 million for its second fund, aimed at supporting early-stage startups across the Middle East and North Africa.
The fund will target investments from seed to series A stages and is expected to close by the end of 2025.
Speaking to Alarabiya Business, managing partner Abdulaziz Al-Turki described the regional climate as a “golden opportunity” for early-stage investors.
“The number of unicorns in MENA has grown from zero a decade ago to eight today,” he said, adding: “By 2035, that number could reach 60.”
Khwarizmi Ventures’ strategy is designed to place capital early in companies with strong scaling potential ahead of larger funding rounds.
Edtech startup Taawoni raises $1.6m to expand training platform
Saudi-based education technology company Taawoni has closed a $1.6 million investment round led by M Capital and supported by undisclosed investors.
The startup, founded in 2021 by Aliyah Al-Ghubayn, operates a platform focused on cooperative training and professional development.
Taawoni enables collaboration between universities and employers to deliver co-op training programs that provide students nearing graduation with real-world work experience.
The new funds will be used to drive growth and integrate more deeply into both the education and human resources technology ecosystems across the region. Expansion into new regional markets is also planned.
