Saudi Arabia reiterates commitments toward sustainable tourism at G20 ministers’ meeting

Saudi Arabia’s Tourism Minister Ahmed Al-Khateeb addressed the G20 ministers’ meeting in Brazil. X/@AhmedAlKhateeb
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Updated 23 September 2024
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Saudi Arabia reiterates commitments toward sustainable tourism at G20 ministers’ meeting

  • Minister said bolstering tourism sector will help countries grow their economies and allow individuals to connect culturally
  • Ahmed Al-Khateeb held talks with several officials on the sidelines of the meeting in Brazil

RIYADH: Saudi Arabia’s tourism minister has reaffirmed the Kingdom’s commitment to creating a sustainable tourism sector and utilizing it to forge closer cultural links between nations globally. 

Ahmed Al-Khateeb addressed the G20 ministers’ meeting in Brazil, confirming that bolstering the tourism sector will help countries grow their economies and allow individuals to connect culturally. 

Saudi Arabia has been making significant strides in the tourism industry since the launch of Vision 2030, with the Kingdom steadily diversifying its economy by reducing its dependence on oil. 

Affirming the nation’s progress in the field, a report released by UN Tourism in September revealed that the Kingdom has emerged as a leader in the sector, experiencing a remarkable 73 percent increase in international visitors in the first seven months of 2024 compared to 2019. 

According to the release, the country welcomed 17.5 million international tourists during the seven-month timeframe, showcasing its growing appeal as a global travel destination. 

“Saudi Arabia shares and celebrates the G20’s dedication to boost tourism growth and to put sustainability at the heart of our work,” said Al-Khateeb. 

He added: “There is more than just an economic benefit from the strides we are making to improve connectivity. They also provide the chance for people from around the world to explore the rich culture of Saudi Arabia and for our people to experience the wonders of other countries and cultures.” 

Al-Khateeb meets global leaders 

During the event in Brazil, Al-Khateeb also met with ministers and senior political figures from India, Italy, Spain, and Japan, where he discussed ways to bolster tourism between these nations and Saudi Arabia. 

“We discussed cooperation between our friendly countries and the importance of international efforts to build a prosperous and sustainable tourism future,” wrote Al-Khateeb on X.

The minister also met with Zurab Pololikashvili, secretary-general of UN Tourism, and Julia Simpson, president and CEO of the World Travel and Tourism Council. 

In addition to meeting with global leaders, Al-Khateeb joined a public-private dialogue session organized by WTTC, which analyzed the impacts of the pandemic on the tourism sector, as well as other areas including employment trends in the industry with a focus on youth and women. 

The G20 meeting in Brazil brought together tourism ministers of the group, of which Saudi Arabia is the only permanent member of the Gulf Cooperation Council, as well as 32 additional guest countries and international organizations. 

The Kingdom had approved the creation of the G20 Tourism Working Group during its presidency in 2020. This year’s meeting in Brazil also worked to finalize a report by the Working Group that details measures taken by its members to promote robust, sustainable, and balanced global tourism growth.

Saudi Arabia progresses in tourism sector

Having already surpassed the initial target of welcoming 100 million visitors, the nation aims to attract 150 million visitors by the end of this decade, aligned with the Kingdom’s National Tourism Strategy. 

The approach also aims to boost tourism’s contribution to the Kingdom’s gross domestic product from 6 percent to 10 percent by 2030. 

The latest UN Tourism report revealed that Saudi Arabia’s international tourism revenues also surged by 207 percent in the first seven months, compared to the same period in 2019. 

The country’s tourism sector is also crucial in reducing unemployment in the Kingdom, with the industry employing 925,000 people last year, of whom 45 percent were women. 

On Sept. 18, Saudi Arabia’s Crown Prince and Prime Minister, Mohammed bin Salman, inaugurated the first year of the ninth session of the Shoura Council and highlighted the progress made by the nation in various sectors, including tourism. 

“In the field of tourism, achievements preceded the target date, as the national tourism strategy, which was launched in 2019, set a target of 100 million tourists in 2030, and this target was exceeded and reached 109 million tourists in 2023,” he said. 

Another report released by Moody’s in September also highlighted that Saudi Arabia’s banking division is benefiting from the sector, as industries like tourism and construction provide attractive lending opportunities. 

In August, the Saudi Tourism Authority partnered with digital payment service provider Visa to launch a Tourism Data and Campaigns Management Hub in the Kingdom.

According to a press statement, this hub, touted to be the first of its kind in the Middle East region, is expected to accelerate the Saudi government’s efforts to the Kingdom’s tourism sector and visitor experience. 

The lab will also offer data-driven insights on travel and tourism trends, thus enabling the authority to make informed decisions to conduct campaigns and initiatives to strengthen the country’s sector. 


Saudi non-oil exports jump 12.7% to $6.76bn in October: GASTAT

Updated 42 sec ago
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Saudi non-oil exports jump 12.7% to $6.76bn in October: GASTAT

RIYADH: Saudi Arabia’s non-oil exports surged 12.7 percent year on year in October, reaching SR25.38 billion ($6.76 billion), underscoring the Kingdom’s push to diversify its economy away from oil dependence. 

According to the General Authority for Statistics, chemical products led the non-oil export categories, accounting for 26.8 percent of the total, while plastics and rubber products followed, contributing 23.7 percent.

The rise in non-oil exports is a cornerstone of Saudi Arabia’s broader Vision 2030 strategy, which aims to transform the Kingdom’s economic landscape and reduce reliance on oil revenues.

“The ratio of non-oil exports (including re-exports) to imports increased to 35.2 percent in October 2024 from 30.1 percent in October 2023. This was due to a 12.7 percent increase in non-oil exports and a 3.8 percent decrease in imports over that period,” GASTAT said in its report.

While non-oil trade climbed, total merchandise exports fell 10.7 percent in October, primarily driven by a 17.3 percent drop in oil exports. The share of oil in overall exports declined to 72.6 percent from 78.3 percent a year earlier, reflecting the Kingdom's ongoing commitment to reducing its dependence on crude sales.

Saudi Arabia implemented a voluntary oil production cut of 500,000 barrels per day in April 2023, a measure that remains in place until December 2024 to stabilize global markets.

China remained Saudi Arabia’s largest trading partner, importing goods worth SR14.95 billion, or 16.1 percent of the Kingdom’s total exports in October. Other major destinations included India with SR8.79 billion, Japan with SR8.70 billion, and South Korea with SR8.31 billion.

On the import side, Saudi Arabia’s inbound shipments fell 3.8 percent year on year to SR72.01 billion. Machinery and equipment topped the list, comprising 25.7 percent of total imports, marking a 6.9 percent annual increase. However, transportation equipment imports declined 21.6 percent, representing 15.3 percent of the total.

China also dominated Saudi imports, sending goods worth SR17.58 billion in October, followed by the US with SR5.69 billion and the UAE with SR4.34 billion.

King Abdulaziz Sea Port in Dammam served as the leading entry point for imports, processing goods valued at SR21.16 billion, or 29.4 percent of total inbound shipments.

Saudi Arabia’s latest trade data highlights its progress in bolstering non-oil sectors while navigating global oil market challenges, aligning with its long-term economic transformation goals.


Saudi Arabia raises $3.09bn in sukuk issuances for December

Updated 24 December 2024
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Saudi Arabia raises $3.09bn in sukuk issuances for December

RIYADH: Saudi Arabia’s National Debt Management Center has successfully concluded its riyal-denominated sukuk issuance for December, raising SR11.59 billion ($3.09 billion).

This marks a substantial 239.88 percent increase from the previous month, when the Kingdom raised SR3.41 billion in sukuk. Saudi Arabia had raised SR7.83 billion in October and SR2.6 billion in September.

Sukuk, which are Shariah-compliant Islamic bonds, provide investors with partial ownership of the issuer’s assets until the bonds mature. The rise in sukuk issuance aligns with positive global market projections.

A Moody’s report released in September forecasted that the global sukuk market would remain robust in 2024, with total issuance expected to reach between $200 billion and $210 billion, an increase from just under $200 billion in 2023.

The December sukuk issuance by NDMC was structured into four tranches, each with varying maturities. The largest tranche, valued at SR5.58 billion, is set to mature in 2027. Another tranche, worth SR3.90 billion, will mature in 2029, while a third tranche, valued at SR706 million, is due for repayment in 2031. The final tranche, amounting to SR1.4 billion, will mature in 2034.

This surge in sukuk issuance comes as the Kingdom is expected to lead the Gulf Cooperation Council region in bond and sukuk maturities between 2025 and 2029.

A report by Kamco Invest, released earlier this month, projected that Saudi Arabia’s total bond and sukuk maturities during this period would reach $168 billion, with government-issued bonds and sukuk accounting for $110.2 billion of that total.

In December, Fitch Ratings also highlighted that the GCC debt capital market crossed the $1 trillion threshold in outstanding debt by the end of November.

Earlier in October, Fitch had noted that the growth in sukuk issuance was driven by improving financing conditions, especially after the US Federal Reserve’s rate cut to 5 percent in September. Looking ahead, Fitch expects interest rates to decline further, reaching 4.5 percent by the end of 2024 and 3.5 percent by the end of 2025, which is likely to spur more sukuk issuances in the short term.


Saudi, Nigerian ministers hold talks to strengthen economic relations

Updated 24 December 2024
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Saudi, Nigerian ministers hold talks to strengthen economic relations

RIYADH: Saudi Arabia and Nigeria held high-level talks to discuss financial and economic developments, focusing on regional and global challenges, as well as opportunities for collaboration. 

The meeting, led by the kingdom’s Minister of Finance Mohammed Al-Jadaan, included a delegation from the African country headed by Finance Minister Wale Edun and Budget and Economic Planning Minister Abubakar Atiku Bagudu.

The discussions aimed to strengthen economic ties and explore joint strategies to navigate evolving financial landscapes. 

This comes as trade between Nigeria and Saudi Arabia showed a significant imbalance in 2023, with Nigeria exporting goods worth $76.29 million to the Kingdom, while imports from Saudi Arabia amounted to $1.51 billion, according to the UN COMTRADE database on international trade.


Closing Bell: Saudi main index closes in red at 11,914

Updated 24 December 2024
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Closing Bell: Saudi main index closes in red at 11,914

  • Parallel market dropped by 0.11% to 30,920.40
  • MSCI Tadawul Index shed 3.17 points to close at 1,496.90

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 34.84 points, or 0.29 percent, to close at 11,913.95. 

The Kingdom’s parallel market also dropped by 0.11 percent to 30,920.40, while the MSCI Tadawul Index shed 3.17 points to close at 1,496.90. 

The total trading turnover of the benchmark index was SR3.83 billion ($1.02 billion), with 64 of the listed stocks advancing, while 168 declining. 

The best-performing stock of the day was Al-Baha Investment and Development Co., as its share price surged by 9.09 percent to SR0.48. 

Other top performers were Saudi Chemical Co., increasing 4.66 percent to SR9.66, and Shatirah House Restaurant Co., rising 4.44 percent to SR21.30. 

The share price of United Electronics Co. slipped by 6.77 percent to close at SR92.20. 

First Milling Co. announced the successful expansion of its Mill A, boosting production capacity from 300 tonnes to 550 tonnes per day. 

In a Tadawul filing, the company, which produces flour, feed, and bran, said that the financial impact of the expansion will be reflected in the fourth quarter of this year. 

The company’s share price gained 1.35 percent, closing at SR59.90. 

Banque Saudi Fransi announced that its shareholders approved a 107.4 percent capital increase, raising its capital from SR12.05 billion to SR25 billion. 

The bank said that the decision was finalized during an extraordinary general meeting held on Dec. 23. 

Banque Saudi Fransi’s share price dropped 0.62 percent to close at SR15.94. 

Meanwhile, retail investors began subscribing to 3.47 million shares of Saudi-based online beauty brand Nice One on the main market. 

The company announced on Dec. 16 that it set the final offer price for its initial public offering at SR35 per share, aiming to raise SR1.2 billion. 

The retail subscription period, which started on Dec. 24, will run through Dec. 25. 

Saudi Arabia’s Capital Market Authority approved Ejada Systems Co.’s request to float 20.05 million shares, representing 45 percent of its share capital. 

In a statement on Tadawul, the company said that its prospectus will be published well ahead of the subscription period. 

It will provide investors with key information, including financial statements, business activities, and management details to support informed investment decisions. 

The CMA approved a request by Umm Al Qura for Development and Construction Co. to float 130.78 million shares, representing 9.09 percent of the firm’s share capital. 

The authority also approved Ratio Specialty Co. to float 5 million shares, equal to 25 percent of the company’s share capital, on the Kingdom’s parallel market. 


EBRD supports Africa’s largest onshore wind project in Egypt with $275m loan

Updated 24 December 2024
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EBRD supports Africa’s largest onshore wind project in Egypt with $275m loan

  • 1.1 GW wind farm in Egypt will reduce annual CO2 emissions by more than 2.2 million tonnes
  • Loan to Suez Wind consists of $200 million A loan from the EBRD and $75 million in B loans from Arab Bank and Standard Chartered

JEDDAH: The European Bank for Reconstruction and Development is supporting Egypt in launching Africa’s largest wind farm, backed by a $275 million syndicated loan.

The loan to Suez Wind consists of a $ 200 million A loan from the EBRD and $ 75 million in B loans from Arab Bank and Standard Chartered, the international financial institution said in a press release.

It added that the initiative is being co-financed by the African Development Bank, British International Investment, and Deutsche Investitions- und Entwicklungsgesellschaft, as well as the OPEC Fund for International Development and the Arab Petroleum Investments Corporation.

The wind farm in the Gulf of Suez will have an installed capacity of 1.1 gigawatts, delivering clean, renewable energy at a lower cost than conventional power generation. It is expected to produce over 4,300 GWh of electricity annually and reduce CO2 emissions by more than 2.2 million tons per year, supporting Egypt’s energy sector alignment with its commitments under the Paris Agreement.

Rania Al-Mashat, Egypt’s minister of planning, economic development, and international cooperation, said that her country is committed to advancing its renewable energy ambitions, aiming to derive 42 percent of its energy mix from renewable sources by 2030, in line with their nationally determined contributions.

“Through our partnership with the EBRD, a key development partner within the energy sector of Egypt’s country platform for the NWFE program, we are mobilizing blended finance to attract private-sector investments in renewable energy,” said Al-Mashat, who also serves as governor of the north African country to the EBRD

The minister added: “So far, funding has been secured for projects with a capacity of 4.7 gigawatts, and we are working collaboratively to meet the program’s targets to reduce Egypt’s fuel consumption and expand clean energy projects.”

Managing Director of the EBRD’s Sustainable Infrastructure Group, Nandita Parshad, expressed pride in the bank’s role as the largest financier of the landmark 1,100-megawatt wind farm in the Gulf of Suez, which is also the largest onshore wind farm in EBRD’s operational countries to date.

“Egypt continues to be a trailblazer for large-scale renewables in Africa: first with the largest solar farm and now the largest windfarm on the continent. Great to partner on both with ACWA power and to bring new partners in this project, Hassan Allam Utilities and Meridiam,” she said.

Suez Wind is a special project company jointly owned by Saudi energy giant ACWA Power and HAU Energy, a recently established renewable energy equity platform that the EBRD is investing in alongside Hassan Allam Utilities and Meridiam Africa Investments.

The EBRD, of which Egypt is a founding member, is the principal development partner in the republic’s energy sector under the Nexus of Water, Food, and Energy program, launched at COP27. This wind farm is one of the first projects within NWFE’s energy pillar, advancing progress toward the country’s 10-gigawatt renewable energy goal.

It plays a vital role in supporting Egypt’s efforts to decarbonize its fossil fuel-dependent power sector and achieve its ambitious renewable energy targets.

Since the EBRD began operations in Egypt in 2012, the bank has invested nearly €13.3 billion in 194 projects across the country. These investments span various sectors, including finance, transport, and agribusiness, as well as manufacturing, services, and infrastructure, with a particular emphasis on power, municipal water, and wastewater projects, according to the same source.

Last month, EBRD announced it was supporting the development and sustainability of Egypt’s renewable-energy sector by extending a $21.3 million loan to Red Sea Wind Energy.

The loan was established to fund the development and construction of a 150-megawatt expansion to the 500-megawatt wind farm currently being constructed in the same region.