RIYADH: Saudi Arabia has committed over SR3.5 billion ($932 million) to develop 17 tourism projects in Al-Ahsa, positioning the region as a key destination in the Kingdom’s growing travel sector, according to a senior official.  
 
During a meeting with investors and entrepreneurs as part of his broader tour across Saudi regions, Tourism Minister Ahmed Al-Khateeb outlined plans to enhance the governorate’s tourism infrastructure.  
 
The projects will add more than 1,800 hotel rooms, leveraging Al-Ahsa’s natural and cultural assets to attract domestic and international visitors, the Saudi Press Agency reported.  
 
The initiative aligns with the Kingdom’s National Tourism Strategy, which aims to attract 150 million visitors annually by 2030 and increase the tourism sector’s contribution to Saudi Arabia’s gross domestic product from 6 percent to 10 percent.  
 
Al-Khateeb highlighted investment opportunities in the sector, reaffirming the ministry’s commitment to providing comprehensive services and facilities to encourage further private sector involvement.  
 
As part of the tour, the minister visited the SR200 million Radisson Blu Hotel in Al-Ahsa. Spanning over 10,000 sq. meters and featuring more than 180 rooms, the hotel — supported by the Tourism Development Fund — combines international luxury with local authenticity, serving as a model for future developments in the region. 

Other regions across the Kingdom are also experiencing significant growth in the tourism sector. 

Earlier this month, the Ministry of Tourism announced that Saudi Arabia’s Hail region welcomed over 1.1 million tourists in the first half of 2024, including 170,000 international visitors, reflecting the Kingdom’s growing appeal as a travel hub. 

The ministry also reported that over 907,000 visitors were domestic travelers, showcasing the region’s popularity among residents. Licensed hospitality facilities in Hail now offer around 2,600 rooms, meeting increasing demand. 

The surge aligns with Saudi Arabia’s Vision 2030, which focuses on enhancing tourism infrastructure and attracting global travelers. 

The Kingdom plans to develop Hail as the fifth destination under the Saudi Tourism Investment Co., known as ASFAR, a Public Investment Fund-owned entity. 

According to the latest UN Tourism report, Saudi Arabia climbed 15 places to rank 12th globally in tourist spending for 2023 — the largest jump among the top 50 countries. 

This follows a September report from the UN Tourism, which highlighted the Kingdom’s leadership among G20 nations with a 73 percent increase in international visitor growth and a 207 percent rise in international tourism receipts from January to July, compared to the same period in 2019.  

SINGAPORE: Oil prices edged higher in early trade on Tuesday after falling in the previous session as investors took stock of a potential ceasefire between Israel and Hezbollah, weighing on oil’s risk premium.

Brent crude futures rose 15 cents, or 0.21 percent, to $73.16 a barrel as at 10:05 a.m. Saudi time, while US West Texas Intermediate crude futures were at $69.09 a barrel, up 15 cents, or 0.22 percent.

Both benchmarks settled down $2 a barrel on Monday following reports that Lebanon and Israel had agreed to the terms of a deal to end the Israel-Hezbollah conflict, which triggered a crude oil selloff.

Market reaction to the ceasefire news was “over the top,” said senior market analyst Priyanka Sachdeva at Phillip Nova.

While the news calmed fear of disruption to Middle Eastern supply, the Israel-Hamas conflict “never actually disrupted supplies significantly to induce war premiums” this year, Sachdeva said.

“The vulnerability of oil prices to geopolitical headlines lacks foundational backup and, coupled with the inability to maintain recent gains, reflects weakening global demand for oil and suggests a volatile market ahead.”

Iran, which supports Hezbollah, is an OPEC member with production of around 3.2 million barrels per day, or 3 percent of global output.

A ceasefire in Lebanon would reduce the likelihood that the incoming US administration will impose stringent sanctions on Iranian crude oil, said ANZ analysts.

If President-elect Donald Trump’s administration returned to a maximum-pressure campaign on Tehran, Iranian exports could shrink by 1 million bpd, analysts have said, tightening global crude flows.

In Europe, Ukraine’s capital Kyiv was under a sustained Russian drone attack on Tuesday, Mayor Vitali Klitschko said.

Hostilities between major oil producer Russia and Ukraine intensified this month after US President Joe Biden allowed Ukraine to use US-made weapons to strike deep into Russia in a significant reversal of Washington’s policy in the Ukraine-Russia conflict.

Elsewhere, OPEC+ may consider leaving its current oil output cuts in place from Jan. 1 at its next meeting on Sunday, Azerbaijan’s Energy Minister Parviz Shahbazov told Reuters, as the producer group had already postponed hikes amid demand worries.

On Monday, Trump said he would sign an executive order imposing a 25 percent tariff on all products coming into the US from Mexico and Canada. It was unclear whether this would include crude oil.

The vast majority of Canada’s 4 million bpd of crude exports go to the US Analysts have said it is unlikely Trump would impose tariffs on Canadian oil, which cannot be easily replaced since it differs from grades that the US produces.

“Contrary to today’s sell-off in risk assets, I think the tariff announcements are actually risk-positive because they are lower than consensus expectations,” said market analyst Tony Sycamore at IG.

Trump’s proposed additional 10 percent tariffs on Chinese imports are “well below” the 60 percent level he threatened pre-election, Sycamore said.

For the time being, markets are eyeing Trump’s plan to increase US oil production, which has been near record levels throughout 2022 to 2024 and absorbed supply disruption from geopolitical crises and sanctions, Phillip Nova’s Sachdeva said.