LONDON: The ancient Saudi city of AlUla is rapidly becoming one of the Kingdom’s top destinations for local and international travelers, officials say, but mass tourism is not their top priority.
“We are growing, and we are growing very fast (but) part of our mission is to respond to sustainable and responsible tourism,” Rami Al-Moallim, vice president of the destination management and marketing office at Royal Commission for AlUla, told Arab News. “We are not yet open for mass tourism, and it is not the focus.
“We need people to experience AlUla, to feel AlUla, to enjoy AlUla, to have unforgettable memories in AlUla, so we’re growing responsibly.”
In terms of targets, he said the aim this year was to attract 250,000 visitors, which is already being achieved, and 292,000 next year.
“We believe this steady growth will be reached very soon (and) we are (targeting) around 1.2 million visitors by 2030,” Al-Moallim said. “We are growing steadily year over year (and providing) very good experiences for people to enjoy.”
The commission took part in the World Travel Market in London last week. It was the second time it has participated in the annual event under the banner of the Saudi Tourism Authority but the first in which it had a separate booth within the Kingdom’s pavilion.
According to Al-Moallim, the decision to expand its presence at the event this year was made because of the growing interest in AlUla in the international travel market, its increased tourism capacities, higher direct investments from travel partners, including hotel operators and activity providers, and greater numbers of partners who want to showcase what they offer.
The commission’s booth, which was larger than the entire presence of some countries at the event, showcased eight partners in particular, including hotel companies; Live Nation, which manages the Maraya concert hall; and tours and tourism operators Hero Adventure Experiences, Pangea Club and Warrior for Adventures.
The main established hospitality partners in AlUla, which is in Madinah province, currently include Habitas, Banyan Tree, Shaden and Cloud7, Al-Moallim said, but in London the commission also showcased new collaborators, including Dar Tantoura, an eco-friendly boutique hotel with 30 rooms. As plans for hospitality and accommodation in AlUla continue to expand, more will follow soon, he added.
“Dar Tantora will be followed by Hegra Heritage Boutique Hotel, which is another 30-room hotel, in Hegra, then Autograph Collection is also coming in 2025, followed by Six Senses in 2026,” Al-Moallim said.
“In addition to that, Cloud7 is (working on) an expansion currently to double the room capacity by this year-end.”
From an environmental perspective, the four pillars of sustainability — social, human, economic and environmental — are at the heart of the commission’s operations, he added, and it has adopted several initiatives under the banner of the Saudi Green Initiative.
“The newest project that we have, which is the Experiential Tram, is a low-carbon-emission tramway (covering a distance) of 22 kilometers,” Al-Moallim said. “It has 17 stations, so it takes you from the north to the south of AlUla, visiting the whole Journey Through Time master plan.”
On the social and economic fronts, he added, the Madrasat Addeera initiative offers workshops on handicrafts, art and education, with the aim of preserving and reviving local culture, heritage and traditions.
“Looking at the numbers and the key source markets, of course (Saudi Arabia) and the GCC (Gulf Cooperation Council) markets are the key for us” he said, adding that 72 percent of tourists who visited only AlUla in the Kingdom in 2022 came from these areas.
The rest of the world therefore accounted for 28 percent of visitors last year, with 11 percent from Europe alone, Al-Moallim said. The UK was a major source market, followed by France, Italy and Germany. Places outside of Europe, including the US and China, were lower on the list.
Antony Doucet, chief experience officer at Kerten Hospitality, participated in the World Travel Market, where he represented AlUla’s Dar Tantora House Hotel and the Cloud7 Residence. The latter opened in December last year and is set to increase its capacity to 300 rooms, which will make it the largest hotel in AlUla, while the former is set to open on Jan. 15, with 30 keys, he said.
“We don’t like to call (Dar Tantora) a hotel, rather a ‘hospitality experience’ because we’re inviting people to slow down and go back through different times of AlUla,” he said.
It will have a community and cultural manager, Doucet said, who can suggest activities inside and outside the hotel for visitors during their stay, culinary experiences that offer a chance to try traditional Saudi cuisine with a modern twist, and a spa that explores Arabian beauty secrets using natural ingredients from the area, including Peregrina oil.
“It’s also a very personalized and custom-made experience,” he added, as guest will be contacted a week before arrival to help staff better understand the purposes of their stay, their personalities, and their tastes in music and literature.
“It’s also important to note that we have limited electricity,” said Doucet. “We will have only two electric plugs per room, no air conditioning but natural ventilation, and we will be, I think, the first hotel to have drinkable water from the tap,” which will be purified on site.
This reflects the hotel’s commitment to sustainable tourism in AlUla and to the protection of the UNESCO World Heritage Site, he added.
Art will also play an important role at Dar Tantora, where a unique art collection, including bespoke pieces currently being created, will be on display. In addition, it will offer about 10 retail spaces.
Husaak Adventures was one of the tour operators promoting its activities in AlUla during the event in London where, for a second year, it was part of the Kingdom’s pavilion.
The company is an “activator” that works with the Royal Commission and other Saudi government entities to create a range of experiences and services, said Nikki McDonnell, its director of sales and marketing. These include hiking and mountain-biking trails, “glamping” resorts, visitor centers, accommodation solutions, stargazing events, and other adventures and cultural experiences designed to appeal to local and international visitors.
The Saudi-registered business was founded about 10 years ago when there were relatively few tourists or any significant adventure-tourism sector in the region, she said, but now the Kingdom has become a “pioneer” in the field, and the growth and “development they have had in the last couple of years is amazing, and there’s so much opportunity to develop further jewels of Saudi Arabia.”
She added: “We have since developed, and now we offer, over 14 different daily experiences for visitors, as well as the glamping and accommodation solutions that offer affordable accommodation within what is known as a luxury destination.”
AlUla has incredible history, McDonnell said, and one of its key tourist attractions is the ancient Incense Road in Hegra, also known as Mada’in Saleh.
“There’s a big misconception that Saudi Arabia is very hot and it’s only a seasonal destination — it’s not,” she said. The climate and landscape are so diverse that travelers can visit all year round to explore the country’s “rich heritage,” she added.
McDonnell said part of Husaak’s focus is on increasing consumer awareness of AlUla, so while it works with other destination-management and travel companies to package its experiences and programs for visitors, it also carries out a lot of digital marketing in its own right.
“We are on Tripadvisor, our glamping is on Booking.com, we invest in Google heavily to target visitors before they come into the country, (we are) on social media to drive our traffic, and we also advertise annually with National Geographic,” she said.
“Can we develop more experiences, more unforgettable experiences? Yes, and that’s our goal as a company, just to continue to drive and build those experiences and build a legacy for visitors.”
Imad Sulaiman, the general manager of Athaar Arabia, a pioneering destination-management company in the Kingdom, said: “Despite the COVID years, Saudi Arabia is an amazing destination, and with Vision 2030 announcing the (introduction of the) tourist visa, (the country) has strongly found its way onto the tourist map around the world, so this has been a very good achievement over the past three years.
“We are lucky because everybody is talking about Saudi Arabia; the gigaprojects, sports activities and other huge efforts which the Saudi Tourism Authority is doing with other stakeholders … to show Saudi Arabia to the world. They went beyond our expectations.”
Tourism Minister Ahmed Al-Khateeb announced at the Future Investment Initiative forum in Riyadh this month an increased target of attracting 150 million tourists a year by 2030. Sulaiman said it is a target that can “be achieved because Saudi Arabia is a new destination to travelers” and is attracting a lot of interest due to the massive development projects that are helping to support businesses in the tourism sector.
“I call Saudi Arabia a hidden jewel because it’s not shown to the world,” he said, but now “we have a huge demand from different tour operators requesting different types of business or traveler packages to their clients,” from high-end experiences to adventure holidays.
Thanks to the “good news” about the Kingdom’s potential and in-progress bids to host World Expo 2030, the 2034 FIFA World Cup and the Winter Olympics, together with the major sporting events it already hosts, including Formula One and Formula E, “all these projects give us big power to work hard to be able to achieve this target,” Sulaiman said.
He added that he is “proud of all these things” because he worked in the sector in the days before Vision 2030, and all the developments that have followed since it was announced in 2016 have been “beyond our expectation — it’s amazing.”
Ancient Saudi city of AlUla focusing on sustainability not mass tourism, officials say
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Ancient Saudi city of AlUla focusing on sustainability not mass tourism, officials say
- The UNESCO World Heritage Site is becoming one of the Kingdom’s top tourist destinations but a top Royal Commission for AlUla official tells Arab News ‘We’re growing responsibly’
- The commission took part in the World Travel Market in London last week where, for the first time, it had its own booth within the Kingdom’s pavilion at the event
Saudi industry minister begins visit to Hong Kong
- Alkhorayef’s visit is part of a wider tour of East Asia, which also includes visits to China and Singapore.
HONG KONG: Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef began his official visit to Hong Kong on Saturday, the Saudi Press Agency has reported.
Alkhorayef will hold meetings with officials from Hong Kong’s Department of Trade and Industry, the Office of Innovation, Technology, and Industry, the Department of Trade and Economic Development, and the Global Research Collaboration Center InnoHK, and will discuss increased industrial cooperation with Hong Kong, investment in the Kingdom, and mutual opportunities in automation, innovation, and technology solutions, according to the SPA.
Alkhorayef will also meet with representatives from commercial and industrial companies.
Hong Kong, as a special administrative region of China, maintains economic relations with the Kingdom separate to Beijing.
In 2023, the volume of Saudi non-oil exports to Hong Kong amounted to SR1 billion ($266.3 million), while the value of its imports from Hong Kong reached SR6.6 billion.
Alkhorayef’s visit is part of a wider tour of East Asia, which also includes visits to China and Singapore.
Education Transformation: A Catalyst for Economic Breakthrough in the GCC
RIYADH: Education quality needs to be improved across the Gulf if the region is to truly unlock its economic potential, experts have told Arab News.
Leading figures from the World Bank and regional consultancy firms, together with a range of recent reports and studies, argue that it is not just access to schooling that needs to increase, but the standard of education.
A report from the World Bank in May highlighted that according to its Human Capital Index, a child born today in the Gulf Cooperation Council region is expected to reach only 62 percent of their full potential productivity, mainly held back by low education quality
Speaking to Arab News, Safaa El-Tayeb El-Kogali, World Bank country director for the GCC: “Improving the quality of education is critical for fostering long-term economic growth and prosperity in the GCC.”
GCC countries are currently undergoing a significant transformation, driven by the need to diversify their economies in response to rapid technological advancements and escalating regional and global challenges.
This dynamic environment necessitates economies that are diversified and resilient, where knowledge and skills play a critical role, and El-Kogali said: “Quality education is critical for GCC countries in reaching their ambitious development goals.”
In recent years, governments across the region have made notable strides in expanding access to schooling and improving student learning outcomes. However, foundational literacy and numeracy skills still elude many students in the region, posing a major obstacle to human capital development and global competitiveness.
El-Kogali highlighted the importance of early investments in quality learning, saying: “Realizing the full potential of human capital in GCC countries requires smart and early investments in the quality of learning that children receive.”
Building solid foundational skills from an early age is crucial as they form the cornerstone of future learning and skills acquisition. Without this, children risk falling behind, becoming disengaged from school, and failing to acquire the advanced skills demanded by today’s labor market.
Effective teaching is pivotal in enhancing learning outcomes at all levels, making it essential to provide educators with the right knowledge and support mechanisms.
“Education contributes to long-term development and prosperity by improving people’s well-being and labor market prospects, leading to better employment opportunities and higher wages,” added El-Kogali.
Education also boosts individual productivity, propelling economic growth and building resilient economies that can adapt to a constantly changing environment.
The potential of education to spur economic growth is only achieved when it is of good quality and improves relevant skills and knowledge.
Increasing access to education is vital, but it is ultimately the skills people develop through high-quality education that determine its contribution to economic growth.
In a study conducted by El Mostafa Bentour for the Arab Monetary Fund in 2020, the contribution of human capital to GDP growth in 12 Arab countries was compared to Asian and OECD developed countries.
It found that Arab countries fell short, especially when compared to OECD economies, where a 1 percentage point increase in human capital leads to a 0.9 percentage point increase in GDP.
In contrast, the Arab world sees only a 0.5 percentage point increase, while Asian countries see a 0.6 percentage point increase.
A 2008 research paper published in Journal of Economic Literature also found that a 100-point improvement in standardized test scores is associated with a GDP increase of up to 2 percentage points.
Academics Gabriel Heller-Sahlgren and Henrik Jordahl further extended this analysis to 2016, revealing a 1.3 percentage point increase in GDP per capita for each 100-point improvement in test scores.
The role of private education
The GCC K-12 private education market is experiencing significant growth, driven by population increases, rising income levels, government initiatives, and a growing expatriate population.
Increased awareness of the importance of primary education and the need for high-quality options are key drivers of this growth.
Mansoor Ahmed, executive director for healthcare and education at Colliers in the MENA region, told Arab News: “Government initiatives such as Saudi Vision 2030 aim to enhance the quality and accessibility of education.”
Despite these positive trends, the market faces challenges such as high construction costs and the affordability of tuition fees, which limit accessibility for lower-income families.
However, opportunities for growth abound through technological advancements, partnerships with international institutions, and the development of specialized education programs in areas such as science, technology, engineering, and mathematics as well as artistic endeavors.
Mansoor Ahmed, executive director for healthcare and education at Colliers in the MENA region, told Arab News: “The GCC K-12 private education market presents a lucrative opportunity for investors, educators, and stakeholders aiming to capitalize on the region’s growing demand for high-quality education.”
Saudi Arabia’s educational landscape
Among the GCC nations, Saudi Arabia stands out due to its size and demographic trends. The Kingdom, with a population of 32.2 million in 2022, has a higher proportion of nationals compared to expatriates. This demographic reality suggests that K-12 education operators should focus primarily on Saudi nationals to attract sustainable demand, a Colliers report told.
Despite vast resources and investments, Saudi Arabia has the lowest total student penetration rates in the region for private sector K-12 education, with only 15 percent attending such institutions.
Saudi Arabia’s private education sector holds significant potential for growth, particularly by targeting the Kingdom’s nationals. The growing population and young demographics underscore the need for additional schools, with projections indicating that the school-going population will increase from 7.5 million to almost 9.4 million by 2030.
Opportunities are particularly on offer in second-tier cities such as Makkah, Madinah, and Al-Ahsa, as well as Abha, and Taif.
These cities currently lack high-quality private schools but are undergoing major expansion plans, creating increased demand for K-12 education.
The rise in white-collar expatriate populations and the opening of international branded schools in main cities are expected to drive the growth for private education.
Affordability remains a crucial factor, with average tuition fees in the GCC region and Saudi Arabia ranging from $10,000 to $30,000 per annum.
According to Ahmed: “The sweet spot for international private schools would range between $15,000 to $20,000 per annum.”
The transformation of education in the GCC is paramount for unlocking the region’s economic potential.
By focusing on quality education, the region can build a skilled workforce capable of driving long-term economic growth and prosperity.
This strategic investment in human capital is essential for the region to navigate the challenges of a rapidly changing global economy and to achieve its ambitious development goals.
Startup Wrap – Saudi ecosystem flourishes with funding and acquisitions
RIYADH: Saudi Arabia’s startup ecosystem continues to gain momentum, with multiple companies across diverse sectors securing significant funding.
From fintech to auto tech, these startups are attracting substantial investments, reflecting the growing confidence in the Kingdom’s entrepreneurial landscape.
One such company to pick up investment is Saudi Arabia-based autotech Syarah, which secured $60 million in a series C funding round led by Artal Capital, with participation from Elm, Impact46, Tawuniya, and Derayah Ventures.
This latest round brings the company’s total investment to more than $82 million.
Founded in 2015 by Salah Sharef and Fayez Al-Anazi, Syarah enables customers to purchase new and used cars online and have them delivered to their doorstep.
The company’s platform also offers used cars with a free inspection report, a five-day return policy, and a one-year warranty.
The funds will be used to drive Syarah’s continued expansion and growth in the Saudi automotive market.
Saudi fintech Malaa secures $17.3 million in Series A
Saudi fintech Malaa has closed a $17.3 million Series A round, led by SNB Capital, with additional support from Derayah Financial, Khwarizmi Ventures, Impact46, and WKN.
Established in 2021 by Ali Al-Oraini and Faisal Al-Qarni, Malaa provides a wealth management platform designed to help users make informed financial decisions through data-driven solutions.
The company plans to leverage the new funding to introduce a range of investment and savings products, enhancing its financial services offerings. Malaa previously raised $1.7 million in a seed round in 2022.
Saudi-based Thakaa Med secures seed funding for AI healthtech solutions
Saudi Arabia-based healthtech startup Thakaa Med has raised an undisclosed amount in seed funding from the Falak Angels syndicate.
Founded in 2022 by Al-Waleed Al-Badr, Thakaa Med specializes in AI-driven health care technologies aimed at providing predictive, preventive, and personalized medical solutions.
The funds will support the development of the company’s AI models and the market launch of its core products, Dental IQ and Chest IQ, which aim to revolutionize diagnostic capabilities in health care.
Tabby acquires digital wallet Tweeq
Saudi Arabia-based buy now pay later fintech Tabby has finalized its acquisition of Tweeq, a digital wallet licensed by the Saudi Central Bank.
Founded in 2019 by Hosam Arab, Tabby handles over $6 billion in annual transaction volume.
Tweeq, launched in 2020 by Saeed Albuhairi and Abdulaziz Almalki, offers a digital spending account that allows users to manage their finances efficiently.
The acquisition enables Tabby to expand its financial product suite by adding digital wallets, spending accounts, and money management tools. Tabby closed a $200 million Series D round in November 2023, crossing a $1.5 billion valuation.
Speaking to Arab News, Arab explained that the acquisition will open an array of services that tap into customer needs.
“We have really grown and seen extremely strong demand and appetite from the consumer for what we have offered. But we believe that the consumer needs are a lot broader and a lot wider,” he said.
“Tweeq’s acquisition really helps us to make the next step in our journey of starting to offer more than just a buy now, pay later solution and really getting into the financial needs of our everyday consumer,” Arab added.
Tarabut strengthens position with Vyne acquisition
Open banking platform Tarabut has acquired London-based fintech Vyne to expand its global reach.
Founded in Bahrain in 2019 by Abdulla Al-Moayed, Tarabut connects banks and fintechs through a universal application programming interface.
Vyne, established in 2019, offers real-time account-to-account payments for businesses. The acquisition will enhance Tarabut’s ability to deliver faster and more interconnected financial services across the region.
Earlier in 2023, Tarabut raised $32 million in a Series A round led by Pinnacle Capital.
In an interview with Arab News, Al-Moayed highlighted the reasons behind the acquisition.
“Vyne’s account-to-account payment technology brings a level of depth and efficiency to the region that’s unmatched by anything currently available,” he said.
“By enabling faster transactions and offering a comprehensive tech stack, we’re not just speeding up payments — we’re adding significant value with features like seamless reconciliation. This will make payments not only quicker but also more cost-effective, setting a new standard in the financial services sector across the Middle East, especially in Saudi Arabia,” he added.
Wattnow closes multi-million dollar funding round
Tunisia-based clean tech Wattnow has completed a multi-million dollar funding round, led by Lateral Frontiers and 216 Capital.
Other investors include Outlierz Ventures, Satgana, Octerra Capital, and strategic angels such as Karim Beguir, founder of InstaDeep, and Guillaume Amblard.
Founded in 2018 by Issam Smaali, Wattnow helps businesses optimize their energy usage through a combination of hardware and software solutions.
The fresh capital will support Wattnow’s global expansion and enhance its technology offering. The firm raised $1.3 million in a pre-series A round in 2022.
Cercli raises $4 million in seed funding
UAE-based HR tech Cercli has raised $4 million in a seed round led by Silicon Valley’s Afore Capital, with additional participation from COTU Ventures, Y Combinator, and Rebel Fund.
The round also included notable angels such as Karim Atiyeh, Sebastian Mejia, and Tony Jamous.
Founded in 2023 by Akeed Azmi and David Reche, Cercli offers businesses tools to reduce human error and compliance costs across different markets. The new funding will support the company’s growth and help attract top-tier talent.
This round marks Afore Capital’s debut in the Middle East and North Africa as it aims to tap into the region’s hidden potential.
Ziina closes $22 million series A
UAE-based fintech Ziina has raised $22 million in a series A round led by Altos Ventures, alongside Fintech Collective, Avenir Growth, and Activant Capital.
Founded in 2020 by Faisal Toukan and Sarah Toukan, Ziina allows users to send and receive payments via phone number, without the need for IBAN or Swift codes.
The funding will support the company’s plans to evolve from a payments platform into a full-suite financial services provider for both consumers and businesses, starting with the introduction of its new ZiiCard.
Hulexo secures seed investment for ERP expansion
UAE-based enterprise resource planning provider Hulexo has raised an undisclosed seed round from Arzan VC.
Launched in 2021, the firm provides customized ERP solutions to retailers, helping them streamline their operations through subscription-based services.
The investment will fund Hulexo’s expansion into the Kuwaiti and Saudi markets.
Verofax secures $3 million bridge round
UAE-based Web3 services provider Verofax has raised $3 million in a bridge round led by King Abdullah University for Science and Technology, Plug & Play Tech Center, Navig8 Group, and Trove Capital UK.
Verofax, founded in 2018 by Wassim Merheby and Jamil Zablah, uses Web3 technologies such as augmented reality, blockchain, and AI to enhance user experiences in tourism, retail, and brand marketing.
The funding will support Verofax’s expansion in the Middle East and Europe, including projects involving AI-powered guides for tourists and sports fans.
Construction licenses drive investment surge in Saudi Arabia; Egypt secures 30% of total share in Q2
Construction licenses drive investment surge in Saudi Arabia; Egypt secures 30% of total share in Q2
RIYADH: Construction permits led Saudi Arabia’s investment licenses in the second quarter of 2024, with 737 issued, representing 27 percent of the total, according to official data.
Figures from the Kingdom’s Ministry of Investment quarterly report also revealed that this number represents a 32.1 percent increase compared to the same period last year.
Saudi Arabia is aiming to increase foreign direct investment inflows by SR388 billion annually by the end of the decade, contributing 5.7 percent to GDP, as part of its Vision 2030 economic diversification strategy.
Additionally, the goal is to achieve overall gross fixed capital formation of SR2 trillion, accounting for a 30 percent contribution to GDP.
Analyzing the latest figures, Albara’a Al-Wazir, economist at the US-Saudi Business Council, told Arab News: “The prominence of construction permits in Saudi Arabia is driven by the Kingdom’s Vision 2030 initiative, which includes mega projects like NEOM and the Red Sea Project.”
He added: “The need for new infrastructure due to population growth, urbanization, and the push to attract foreign investment also contribute.
“Additionally, regulatory reforms have simplified the permit process, encouraging more construction activity in both residential and commercial sectors.
“These factors underscore the construction sector’s key role in Saudi Arabia’s economic diversification efforts.”
The manufacturing sector followed with 469 licenses issued, reflecting a 68.1 percent growth.
Permits for professional, scientific, and technical services reached 318, up by 48.6 percent. Information and communication had 232, while accommodation and food services secured 216, and wholesale and retail trade accounted for 214 licenses.
Collectively, these six sectors represented around 80 percent of the total investment licenses for the quarter, according to the ministry.
In terms of distribution by country, Egypt received the highest number of licenses, with 789 issued in the second quarter of 2024. This marked a 71 percent growth rate from the same period last year.
India followed with 264, Yemen with 251, then Pakistan with 168, and Syria with 141 licenses.
Alwazir explained that significant investments from Egypt, India, and Yemen reflect their recognition of Saudi Arabia’s economic potential under Vision 2030.
These nations are drawn to opportunities in construction, tourism, and technology, and see the Kingdom as a strategic gateway to the Middle East and North Africa.
Strong bilateral relations and the Kingdom’s efforts to foster a favorable investment climate through reforms and incentives further encourage these countries to look to Saudi Arabia, viewing the Kingdom as a key hub for regional expansion and high returns.
The two countries with the highest increase in investment licenses during this period were Bangladesh, which saw a 406 percent rise to 91 licenses, and China, where licenses grew by 217 percent to 133.
Alwazir told Arab News that China’s Belt and Road Initiative aligns with Saudi infrastructure goals, boosting Chinese investment across multiple sectors. Bangladesh is also increasing its involvement, particularly in construction, trade, and services, driven by the Kingdom’s demand for labor and goods.
Saudi Arabia aims to diversify its economy and achieve sustainable development by fostering investments in key economic sectors.
Guided by Vision 2030, the Kingdom has introduced several national strategies, initiatives, and programs to empower and grow these sectors.
These include attracting investors by organizing and participating in international events and investment forums with various countries, and enhancing investment laws and procedures in collaboration with government entities to strengthen the legislative and regulatory framework.
Additionally, the Kingdom launched the Regional Headquarters program for multinational companies, designed to support and accelerate their growth in the region.
This program offers significant financial incentives, including a 30-year exemption from corporate income tax for foreign companies that establish their Gulf bases in Saudi Arabia.
In the second quarter of 2024, the Ministry of Investment made significant strides in supporting the investment ecosystem and enhancing the investor experience.
According to its quarterly report, 57 licenses for regional headquarters were issued in the second quarter of 2024, marking an 84 percent increase compared to the same period in the previous year.
Additionally, the ministry processed 4,709 applications for the business visit visa, also known as the Visiting Investor, which allows foreign businesspeople to explore opportunities in Saudi Arabia.
The e-platform provided over 58,000 services, reflecting a 31 percent growth from the previous year, while more than 61,000 services were delivered through outreach centers.
The ministry also addressed 38 investor challenges, including legislative and procedural issues. The One Stop Service Center saw impressive growth, offering more than 25,000 services — a 146 percent increase from the same period in the previous year.
In August this year, Saudi Arabia introduced a new Investment Law, set to replace the Foreign Investment Law from 2000.
According to Alwazir, this new law introduces several important provisions to boost investor confidence. It guarantees equal treatment for foreign and domestic investors, eliminating previous barriers and ensuring equal opportunities.
The law also offers stronger protections against expropriation without adequate compensation, addressing a key concern for foreign investors.
Additionally, it streamlines regulatory processes for obtaining licenses and permits, making it easier and faster to enter and operate in the market.
Enhanced dispute resolution mechanisms provide clearer pathways for resolving conflicts, while incentives for strategic sectors like technology, renewable energy, and tourism make investment more attractive.
“By addressing key concerns such as regulatory clarity, protection of assets, and equal treatment, the new law is expected to attract a broader range of global investors and significantly contribute to achieving the FDI target of SR388 billion annually by 2030,” Alwazir said.
Saudi Arabia signs MoU with Italian defense company Elettronica
RIYADH: The Ministry of Investment and the General Authority for Military Industries have signed a memorandum of understanding with Italian defense firm Elettronica, the Saudi Press Agency reported on Saturday.
The MoU “increased tie ups related to investment in the Saudi defense sector and positioning the country as a key player in the global value chain,” according to the SPA.
Minister of Investment Khalid A. Al-Falih and Mohammad Alathel, the GAMI’s deputy governor for localization, attended the signing ceremony during the Ambrosetti Forum in Como, Italy.
The Ministry of Investment participated in several dialogue sessions during the Ambrosetti Forum, discussing investment opportunities in the Kingdom, introducing the ministry’s services in support of investors and investments, and highlighting the incentives offered to local and international investors.
