FIFA World Cup 2034 a ‘game changer’ for Saudi tourism, experts say

The World Cup will showcase Saudi Arabia to the world. Shutterstock
Short Url
Updated 25 April 2025
Follow

FIFA World Cup 2034 a ‘game changer’ for Saudi tourism, experts say

RIYADH: Hosting the FIFA World Cup in 2034 is expected to transform Saudi Arabia's tourism sector and accelerate the nation’s economic diversification, experts said. 

The Kingdom was awarded the competition by the sport’s international governing body in December, and is set to hold the event in 15 stadiums across five cities. 

Saudi Arabia’s sports tourism sector has been witnessing rapid growth since the launch of Vision 2030 nine years ago, with the Kingdom drawing 2.5 million visitors through 80 international events in the last four years, Tourism Minister Ahmed Al-Khateeb said in February. 

Bolstering the tourism sector is one of the crucial goals outlined in Saudi Arabia’s Vision 2030 initiative, as the Kingdom is steadily diversifying its economy by reducing its decade-long reliance on oil revenues. 

Saudi Arabia’s ambitious National Tourism Strategy aims to attract 150 million visitors by the end of this decade. 




Cristiano Ronaldo is one of a host of footballing superstars who now play in the Saudi league. Getty

Speaking to Arab News, Federico Pienovi, chief business officer and CEO of New Markets at Globant, said that the mega football event presents immense opportunities for the Kingdom to develop multiple sectors.

“Hosting the FIFA World Cup is a game-changer for Saudi Arabia’s tourism sector. For Saudi Arabia, FIFA World Cup 2034 represents a key milestone in its Vision 2030 strategy, accelerating economic diversification beyond oil by boosting tourism, hospitality, infrastructure, and smart city development,” said Pienovi. 

He added that the tournament accelerates the Kingdom’s tourist number ambitions by putting Saudi Arabia on the map for future leisure and business tourism.

Guillaume Thibault, partner and head of sports and entertainment at Oliver Wyman for India, the Middle East and Africa, echoed similar views and said the football gala will be a major catalyst for Saudi Arabia’s economic diversification, attracting over 10 million international visitors.

Thibault added that the event is also expected to accelerate Saudi Arabia’s national strategies in tourism, transport, and quality of life, creating opportunities in construction, hospitality, fan engagement, and talent development — all while mobilizing private sector investment. 




Argentina won the World Cup the only other time the competition was held in the region — Qatar in 2022. Getty

The Oliver Wyman official further said that hosting events such as the FIFA World Cup could boost the gross domestic product of Saudi Arabia, as well as creating immense job opportunities. 

“On a macroeconomic level, past World Cups have contributed up to 10 percent GDP growth, as seen in South Africa 2010, while creating tens of thousands of jobs. Saudi Arabia can maximize its investment impact by aligning with local businesses and PIF-backed companies, ensuring long-term economic gains and positioning itself as a global sports and business hub,” said Thibault. 

Max Klante, managing director and partner of Boston Consulting Group, said that major sporting events such as the 2034 World Cup, Formula 1, and the upcoming Asian games, will serve as an entry point for global audiences, showcasing Saudi Arabia as a travel destination.

“They provide a platform to highlight the Kingdom’s culture, heritage, and landscapes to the world while showcasing new and exciting entertainment and cultural experiences such as eSports and adventure extreme sports. The integration of sports, media, entertainment, and culture boosts international visibility and fosters long-term tourism growth,” said Klante. 

Saudi Arabia has already hosted several major sporting events, including the WWE Super Showdown, the Saudi Pro-Golf Championship, Battle of the Champions, and Formula E. 

The Kingdom has also witnessed E-Prix, the International Handball Federation Super Globe and the Saudi International Meeting for Disabilities Sport, as well as organizing the auction of players for the 2025 Indian Premier League, a major cricketing event which features 10 professional clubs. 

Long-term impacts

According to Pienovi, hosting major sporting events will not only boost tourism in the Kingdom but will also support the country’s infrastructure growth for the long term. 

“Beyond the tournament, the country will benefit from long-term infrastructure improvements, smart venue advancements, and the rise of new entertainment hubs that will attract visitors for years to come,” said Pienovi. 

Thibault said that hosting such events will help Saudi Arabia establish itself as a premier sports destination globally, strengthen global ties, attract international business, and enhance the Kingdom’s geopolitical influence. 

 “When executed strategically, major sporting events leave a lasting impact beyond the tournament itself. Mega-events drive billions in tourism, investment, and job creation. The 2012 London Olympics, for example, contributed $17 billion to the UK economy, proving their long-term financial impact,” said Thibault. 

He added: “In terms of urban transformation, such events accelerate infrastructure development and reshape cities. The Sochi 2014 Winter Olympics revitalized an entire region, turning legacy resorts into prime real estate. Saudi Arabia’s smart city and transport investments will ensure similar long-term benefits.” 

Elevating diplomatic and bilateral relationship

The Oliver Wyman official further said that hosting such global events could help Saudi Arabia strengthen its bilateral relationship with several countries. 

Saudi Arabia is already a diplomatic leader, ranking 18th in the Global Soft Power Index 2024 and has already hosted key forums including the G20 Summit and the World Economic Forum. 

“Mega-events further enhance global ties by bringing nations together through sport, fostering cultural exchange, trade, and investment partnerships. By attracting global leaders, Saudi Arabia can deepen international collaborations, expand economic alliances, and position itself as a key player in global sports diplomacy,” said Thibault. 

Klante also expressed identical views and said that successfully hosting global tournaments will enhance Saudi Arabia’s standing as a reliable and capable partner on the world stage.

“The ability to deliver top-tier sporting events creates unique opportunities for diplomatic engagement and strengthens economic and cultural ties with other nations. Stronger ties promote global understanding, security and prosperity,” added the BCG official. 

Klante added that hosting major international events will establish Saudi Arabia’s credibility in sports management and global event organization, while also opening opportunities for developing long-term partnerships with international teams, leagues, and sports federations.

He further said that such events in Saudi Arabia could also boost the morale in the Kingdom, and the country will see more sporting heroes in the coming years. 

“The ability to host major events inspires our youth to follow in the footsteps of their sports heroes. This strengthens engagement in sports, be this football, eSports, athletics or formula car racing. By inspiring the youth of today we lay the foundation for the top athletes of tomorrow,” said Klante. 




A drone show in Riyadh after Saudi Arabia was announced as the host nation for the FIFA World Cup 2034 on December 11. Getty

Potential challenges

Experts who talked with Arab News also talked about the potential challenges Saudi Arabia could face as the Kingdom gears up to face global sporting events. 

According to Pienovi, the challenge for the Kingdom lies in integrating cutting-edge technology for seamless fan interactions — whether it’s AI-driven crowd management, frictionless ticketing, or hyper-personalized digital experiences. 

“Fans now expect an immersive, waitless, and contactless experience, powered by AI, AR/VR, and digital personalization. Implementing biometric entry, tech-driven loyalty programs and real-time engagement solutions will be key to delivering a next-level experience,” said Pienovi. 

He added: “The challenge is not just in adopting these technologies but in making them intuitive, frictionless, and scalable across multiple venues.”

The Globant official believes that ensuring seamless connectivity across all platforms — from real-time streaming to AR-powered second-screen experiences — will be crucial for reaching international audiences and keeping fans engaged beyond the stadium. 

Klante underscored the vitality of strengthening the transport systems in the Kingdom, as well as, bolstering the logistical prowess, and said that “world-class events require complex logistical planning, complex integration and seamless execution.”

He added: “Ensuring global accessibility, efficient transport, and a smooth visitor experience will be critical to success. A focus must always be placed on how the visitor journey interacts with the various city and intercity transport solutions — creating a unified experience like no other.” 

Thibault also expressed similar views and said that logistics, crowd management and infrastructure development are crucial for Saudi Arabia to seamlessly host mega events like FIFA World Cup. 

The Oliver Wyman official added that managing transport, security, and emergency response requires advanced planning, with mega-projects including NEOM and Qiddiya integrating AI-driven security and real-time crowd monitoring. 

“The challenge lies in balancing speed with sustainability. Legacy planning is key to avoiding underutilized venues, ensuring stadiums transition into training hubs, community centers, or professional league facilities,” added Thibault.


Saudi Arabia issues over 80k new commercial licenses in Q2 as business activity accelerates

Updated 06 July 2025
Follow

Saudi Arabia issues over 80k new commercial licenses in Q2 as business activity accelerates

JEDDAH: Saudi Arabia issued more than 80,000 new commercial registrations in the second quarter of 2025, pushing the total number of valid business records across the Kingdom to nearly 1.72 million, official data showed. 

The surge was driven by activity in high-growth industries, including artificial intelligence, blockchain, and big data analytics, as well as financial services, insurance, gaming, and entertainment, according to the Ministry of Commerce’s quarterly Business Sector Bulletin. 

The pickup in business activity underscores Saudi Arabia’s drive to diversify its economy under Vision 2030, with sweeping reforms aimed at boosting the private sector and reducing its reliance on oil. Through the National Transformation Program, the Kingdom is investing in infrastructure, digitalization, and regulatory improvements to attract investment and spur entrepreneurship nationwide. 

Citing Minister of Commerce Majed Al-Qasabi, the bulletin stated: “He explained that this rectification is part of a broader set of measures aimed at combating commercial concealment, which remains one of the key challenges hindering the growth of the local economy.” 

It added that the minister said the ministry has recently worked on rectifying the status of commercial registrations and updating their data to ensure compliance with regulations and to enhance market transparency. 

Riyadh accounted for the largest share of new registrations during the quarter with 28,181 licenses, followed by Makkah with 14,498, the Eastern Province with 12,985, and Qassim with 4,920. Asir, which has been gaining prominence as an investment destination, recorded 3,875 new commercial records. 

The second quarter also saw the implementation of the newly approved Commercial Register Law and Trade Names Law. These reforms have eliminated the need for separate subsidiary registrations by allowing businesses to operate under a single commercial record across the nation, regardless of their geographic location.  

The changes are intended to simplify licensing, reduce administrative burden, and improve the overall ease of doing business in the Kingdom. 
  
Women’s participation in the commercial sector continued to rise, with female entrepreneurs accounting for 49 percent of newly issued commercial records. Limited liability companies remained the dominant form of business structure, with 10,954 LLCs registered during the quarter. Partnerships and joint stock companies also showed solid activity, further diversifying the business landscape. 

Several sectors experienced strong year-on-year growth. Registrations related to cloud data storage and analytics increased by 48 percent, reaching 5,894 records, with Riyadh leading the way at 3,775. 
 
Activities related to artificial intelligence increased by 34 percent, resulting in 14,409 new records, of which 8,909 were registered in the capital. The franchise sector expanded significantly as well, with activity up 64 percent compared to the same period last year, totaling 2,863 new registrations, driven largely by the food and beverage, retail, and services segments. 
 
Investor interest from abroad also surged, with registrations by foreign and GCC investors rising by 38 percent in the second quarter to more than 70,000 new records. Of these, 38,640 registrations were made by foreign nationals and 31,488 by regional Gulf investors. The majority of this investment was directed toward non-residential construction and building development, signaling sustained demand in real estate and infrastructure. 
 
The ministry also reported 39,366 active commercial records in e-commerce by the end of the second quarter, underscoring the Kingdom’s rapid digitalization.  
 
Meanwhile, gaming, leisure, and entertainment activities continued to gain traction, with a growing number of licenses issued in these sectors. 


Saudi Arabia rolls out skill-based work permits to attract global talent

Updated 06 July 2025
Follow

Saudi Arabia rolls out skill-based work permits to attract global talent

JEDDAH: Expatriates seeking employment in Saudi Arabia will now be assessed under a newly introduced skill-based work permit system as the Kingdom moves to streamline its labor market and attract global talent. 

The decision, issued by Minister of Human Resources and Social Development Ahmed Al-Rajhi, classifies foreign workers into three categories — high-skill, skilled, and basic — based on qualifications, experience, technical ability, wage level, and age. The system took effect for new incoming workers on July 1, while the reclassification of existing expatriates began on June 18, according to the Saudi Press Agency and a ministerial notice. 

The Kingdom’s demand for skilled professionals is growing amid a wave of giga-projects, including NEOM, the Red Sea Project, Qiddiya, and Diriyah Gate, which span sectors ranging from construction and design to technology and tourism. These developments require a high concentration of specialized foreign talent to meet tight delivery timelines and global standards. 

The move is part of a broader strategy to enhance productivity, mitigate skill mismatches, and support Saudi Arabia’s long-term economic objectives under Vision 2030. 

“The measure aims to enhance worker performance, attract global talent to transfer expertise and experience to the Saudi labor market, improve operational efficiency, benefit from international experience, and build an environment that supports innovation and the development of business models,” the SPA report stated. 

Designed to match worker capabilities with market needs, the reform introduces a unified digital evaluation mechanism via the Qiwa platform, aligned with the Unified Saudi Classification of Professions and Educational Levels. 

The new classification is expected to enhance transparency in workforce planning and help businesses access better-qualified workers while encouraging a gradual shift away from reliance on low-skilled labor. 

The move comes amid improving employment indicators. The overall unemployment rate, which includes both Saudis and expatriates, fell to a record low of 2.8 percent in the first quarter of 2025, a 0.7 percentage point decrease from the previous quarter, according to the General Authority for Statistics. Among non-Saudis, the rate declined to 0.8 percent, reflecting strong private sector demand and targeted recruitment aligned with workforce needs.

Expatriates remain a critical part of the labor market, accounting for 15.7 million people, or 44.4 percent of the total population, according to GASTAT data for 2024. Among the working-age group — 15 to 64 years — 89.9 percent of non-Saudis fall within this range, underscoring their role in the Kingdom’s productive sectors. 

The reclassification also ties into the Professional Verification Program, launched in 2021 and expanded in 2024. The initiative, currently covering 128 countries and set to expand to 160, verifies the educational and professional credentials of foreign workers in key fields, such as engineering, healthcare, and education, before they enter the Kingdom. 

Alongside labor market reforms, the government is also monitoring the financial outflows tied to foreign workers. In February alone, remittances by expatriates in Saudi Arabia totaled SR12.78 billion ($3.41 billion), according to the Saudi Central Bank, reflecting the continued economic contribution of foreign workers to the Kingdom’s economy.

Employers are urged to review their workforce composition and reclassify staff through Qiwa, while workers may submit reassessment requests if they meet the criteria for higher categories, according to the ministry’s guidance manual. A points-based system will ensure flexibility by allowing strengths in certain areas, such as hands-on experience, to offset limitations in formal education. 

The ministry stated that the full guidance manual on the work permit classification system is available on its official website, detailing implementation steps, compliance rules, and evaluation procedures. 


Saudi Aramco raises August Arab light crude OSP for Asia

Updated 06 July 2025
Follow

Saudi Aramco raises August Arab light crude OSP for Asia

RIYADH: Saudi Aramco has raised its official selling price for its flagship Arab Light crude oil destined for Asia in August, the company confirmed in an official statement on Sunday.

The state-owned company raised the price of its benchmark oil to $2.20 per barrel above the average of Oman and Dubai crude prices.

The August price for Arab Light crude oil has risen by $1 per barrel from July, reaching its highest level since April, when it was priced $3.50 above the Oman/Dubai average.

Saudi Aramco prices its crude oil across five density-based grades: Super Light (greater than 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29).

The company’s monthly pricing decisions impact the cost of around 9 million barrels per day of crude exported to Asia and serve as a pricing benchmark for other major regional producers, including Iran, Kuwait, and Iraq.

Aramco also raised August prices for Arab Extra Light by $1.30 per barrel and Arab Heavy by $0.90. The price hikes follow a decision by eight OPEC+ members to increase production by 548,000 barrels per day in August, further accelerating output growth.

In the North American market, Aramco set the August OSP for Arab Light at $3.90 per barrel above the Argus Sour Crude Index.

Aramco determines its OSPs based on market feedback from refiners and an evaluation of crude oil value changes over the past month, taking into account yields and product prices.


Closing Bell: Saudi main index edges up to close at 11,315

Updated 06 July 2025
Follow

Closing Bell: Saudi main index edges up to close at 11,315

RIYADH: Saudi Arabia’s Tadawul All Share Index closed higher on Sunday, gaining 71.28 points, or 0.63 percent, to end the session at 11,315.73.

Trading turnover for the day stood at SR4.32 billion ($1.15 billion), with 169 stocks advancing and 76 declining. The MSCI Tadawul Index also registered gains, rising 7.94 points, or 0.55 percent, to close at 1,451.40.

Meanwhile, the parallel market, Nomu, edged down by 30.41 points, or 0.11 percent, to 27,257.09, with 32 stocks in the green and 43 in the red.

ACWA Power Co. emerged as the session’s top performer, with its shares surging 7.97 percent to SR265.60. Naseej International Trading Co. followed with a 6.60 percent rise to SR106.60, while Saudi Public Transport Co. climbed 5.64 percent to SR14.79.

On the other hand, Sahara International Petrochemical Co. posted the steepest decline, falling 1.81 percent to SR19.50. Shares of Saudi Industrial Export Co. and Alistithmar AREIC Diversified REIT Fund also slipped, dropping 1.72 percent and 1.42 percent to SR2.29 and SR8.34, respectively.

Meanwhile, Almarai Co. announced a net profit of SR646.8 million for the first half of 2025, marking a 4 percent year-on-year increase. The company attributed the improved results to a 3 percent growth in revenue, alongside disciplined cost control measures, a favorable product mix, and lower funding costs.

Knowledge Economic City Co. signed a 25-year development and leasing agreement with Riyadh Schools Holding Co., a subsidiary of the Mohammed bin Salman Non-Profit Foundation, to build an educational complex in Madinah valued at SR399.3 million.

The project will include a 20,000 sq. meter facility designed to accommodate 1,800 students, with lease payments starting at SR13.7 million in the first year and increasing progressively. The initiative is expected to support Madinah’s educational development and bolster KEC’s long-term financial sustainability and urban goals.

Future Vision for Health Training Co. also announced a 24-month agreement with Aliens Zone LLC to develop a smart e-learning and training platform.

The deal, valued at over 5 percent of the company’s 2024 revenue, will cover system design, content development, and AI-driven training solutions. The platform is expected to launch in the fourth quarter of 2025 and is part of Future Vision’s broader digital transformation strategy in line with Saudi Vision 2030.


ACWA Power plans selective mergers to boost profits, secures $15.4bn in financing over 2 years

Updated 06 July 2025
Follow

ACWA Power plans selective mergers to boost profits, secures $15.4bn in financing over 2 years

  • 77% of the rights issue was subscribed by major shareholders
  • Capital raise aims to fund new projects and expand company’s global footprint

RIYADH: Saudi Arabia’s energy and water desalination giant ACWA Power has drawn investor attention regarding its expansion strategy, following the approval of its shareholders for a SR7.1 billion ($1.8 billion) rights issue.

In an interview with Al-Eqtisadiah, Abdulhameed Al-Muhaidib, the company’s chief financial officer, outlined ACWA Power’s growth plans, financing approach, and future targets.

ACWA Power has been actively expanding its global presence, securing $500 million in new US agreements and reinforcing its position as Uzbekistan’s top energy investor with $15 billion committed to 19 projects, including 18 in renewables.

Strategic expansion and capital increase 

Al-Muhaidib said over 77 percent of the rights issue was subscribed by major shareholders, reinforcing confidence in ACWA Power’s strategy.

The capital raise aims to fund new projects and expand the company’s global footprint, particularly in renewables, water desalination, and green hydrogen. 

“This move supports our long-term strategy to triple managed assets to $250 billion by 2030,” Al-Muhaidib told Al-Eqtisadiah. The company expects annual equity contributions of $2 to $2.5 billion from 2024 to 2030, up from $1 to $1.3 billion in previous years. 

Selective mergers and global targets

ACWA Power is eyeing selective mergers and acquisitions in key markets to accelerate profitability and secure stable cash flows. “M&A opportunities allow us to fast-track earnings while maintaining financial discipline,” Al-Muhaidib said. 

The firm is actively exploring investments in Malaysia, Africa, and other Asian markets with high infrastructure demand. 

The proceeds from the rights issue will primarily fund new projects in the Kingdom and strategic international markets, including the Middle East, Central Asia, Southeast Asia, and China. 

2030 goals: renewables, water, and green hydrogen 

By 2030, ACWA Power aims to exceed 175 gigawatts in power generation capacity, up from 78.9 GW today, produce 15 million cubic meters of desalinated water daily, and generate 1 million tonnes of green hydrogen annually, with potential for an additional 1 million tonnes under new contracts. 

Balancing debt and equity 

Despite securing SR58.6 billion in project financing over the past two years, Al-Muhaidib said that the capital increase does not signal a reduction in borrowing. 

“We maintain a balanced approach, leveraging both project debt and equity to sustain growth,” he added. 

ACWA Power’s net debt-to-operating cash flow ratio stands at 6.4 times, which is deemed healthy for growth-focused firms. 

Asia expansion and China entry 

ACWA Power’s recent acquisition in China marks its broader ambitions in Asia. “China is a strategic market, and we are evaluating opportunities in Malaysia and Africa,” Al-Muhaidib said. The company has an 80-person team in China and a 1 GW renewable pipeline there. 

Rapid execution and financing success 

The SR58.6 billion in project financings reflects ACWA Power’s strong lender relationships and execution capabilities. “Our integrated model — combining development, investment, and operations — ensures timely delivery,” Al-Muhaidib added. 

With a focus on disciplined growth, ACWA Power remains committed to its 2030 targets while maintaining environmental, social and governance standards.