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UN Tourism Applauds Saudi Arabia's Historic Milestone of 100 Million Tourists

• All Regions
• 26 Feb 2024

In a testament to its strategic vision and robust sector growth, the Kingdom of Saudi Arabia has welcomed over 100 million tourists, marking a significant milestone in its journey to become a global tourism powerhouse.

In an exceptional achievement, the Kingdom of Saudi Arabia has welcomed over 100 million tourists , a milestone celebrated by the World Tourism Organization (UN Tourism). This remarkable accomplishment achieved seven years ahead of its original schedule, not only underscores Saudi Arabia's emergence as a global tourism powerhouse but also highlights its leading role in the economic diversification and sustainable development of the tourism sector worldwide. This milestone, marked by the arrival of over 27 million international tourists and over 79 million domestic tourists with a combined total spend of over USD 67 billion, not only showcases the Kingdom's robust tourism sector but also underscores the Saudi Ministry of Tourism's commitment to advanced data gathering and statistical analysis, a priority echoed by UN Tourism.

The Kingdom's success story is built on a foundation of strategic initiatives and reforms that have propelled its tourism sector to new heights. With a staggering 390% increase in demand for tourism activity licenses in 2023 and the contribution of tourism to the non-oil GVA estimated to exceed 7%, Saudi Arabia's vision for the future is clear. With the tourism sector's direct contribution to the GDP estimated to exceed  4 %, the country has showcased its resilience, innovation, and commitment to excellence.

Strategic Partnerships and Global Leadership

UN Tourism has closely collaborated with Saudi Arabia, recognizing its efforts in developing a robust tourism infrastructure and statistical analysis capabilities. The inauguration of UN Tourism's Regional Office for the Middle East in Riyadh in 2021 marked a significant step towards fostering tourism innovation, education, and rural development. This partnership has been instrumental in positioning Saudi Arabia as a leader in sustainable tourism practices and statistical excellence.

Elevating its global position in the tourism sector, Saudi Arabia has distinguished itself by leading the G20 in international tourist growth rate in 2023 compared to 2019. This recognition underlines the Kingdom's pivotal role in the global tourism sector's recovery following the pandemic. Moreover, the Middle East has emerged as the sole region not only to rebound but also to outpace pre-pandemic tourism levels , with a 122 percent recovery in international tourist arrivals in 2023 compared to 2019. At the forefront of this remarkable growth, Saudi Arabia witnessed a staggering 156 percent recovery in international tourist arrivals compared to 2019, underscoring its central role in the region's tourism boom.

A Testament to Resilience and Innovation

The Kingdom's tourism sector has shown remarkable resilience, with inbound spending reaching over USD 37 billion in 2023 and a significant increase in hotel keys across the kingdom. These achievements are a testament to Saudi Arabia's commitment to creating a prosperous and sustainable tourism sector.

Empowering the Workforce

The employment opportunities created by the tourism sector are a cornerstone of Saudi Arabia's success. As of 2023, with 925.5 thousand jobs in the tourism sector and significant investments in training, the Kingdom is on track to make tourism the second-largest employer by 2030. This focus on workforce development ensures that the benefits of tourism growth are shared widely and sustainably.

Gratitude and Future Vision

UN Tourism extends its congratulations to the Kingdom of Saudi Arabia for this historic achievement. We commend the leadership, the Ministry of Tourism, and all partners for their unwavering support and dedication. As Saudi Arabia continues to drive towards its goal of 150 million tourists by 2030, UN Tourism looks forward to supporting its journey, celebrating its successes, and promoting a more resilient, sustainable, and inclusive future for global tourism.

Saudi Arabia's achievement of welcoming over 100 million tourists in 2023 is a beacon of what is possible through collaboration, innovation, and a clear vision for the future. The Kingdom not only promises a diverse and rich tourism experience but delivers on that promise, paving the way for a brighter future for the global tourism industry.

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• International Tourism to Reach Pre-Pandemic Levels in 2024

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Saudi Arabia’s ambitious tourism projects attract foreign investment

Saudi Arabia | Tourism

Saudi Arabia is rolling out a broad tourism offering across the country as a central part of its Vision 2030 national transformation strategy. Following the launch of the tourist visa programme in September 2019 and the subsequent downturn associated with the Covid-19 pandemic, 2021 and 2022 have featured an ambitious calendar of events ranging from the Formula 1 Grand Prix, to arts and cultural festivals. In October 2021 the Ministry of Tourism announced a $1trn investment package for the sector over the next 10 years. This reflects the Kingdom’s ambitions to become one of the top tourist destinations both regionally and globally.

Leisure tourism offerings, with a particular focus on medium- and high-income tourists, are set to expand as a series of mega-project destinations come on-line through to 2030. Saudi Arabia is developing an array of destinations, tailored to the geographic and environmental variety of the country. Many of the Kingdom’s new tourism destinations are along the west coast, bringing newfound importance to this part of Saudi Arabia, following the previous development focus on the east as the centre of the energy economy.

The Kingdom’s new giga- and mega-projects are driving the sector’s growth, in addition to a series of projects focused on heritage and upgrading existing destinations. To facilitate the rapid growth of tourism, significant infrastructure is currently under development, including new hotels, commercial facilities and transport networks. The recent expansion of the tourism sector represents one of the most visible signs of the country’s transformation, in line with its efforts to attract more tourists and investment.

In addition to unlocking significant international tourism potential, one of the sector’s central aims is to capture the domestic tourism market while enhancing the quality of life of Saudi Arabia’s population through a range of new attractions. The industry is being seen as key to both creating more job opportunities for Saudi citizens and harnessing new revenue streams.

Structure & Oversight

There have been a number of structural changes as the tourism sector has grown and developed in recent years. In 2020 three new tourism entities were established to oversee the sector and support its expansion: the Ministry of Tourism, the Saudi Tourism Authority and the Tourism Development Fund. The Ministry of Tourism, formerly the Saudi Commission for Tourism and National Heritage, is responsible for defining strategy and policy in addition to regulating the sector. The Saudi Tourism Authority is responsible for promoting Saudi Arabia as a global tourism destination and developing the country’s tourism brand. The authority is also charged with developing the sector by building commercial partnerships and coordinating with local tourism destinations to attract more tourists to the country. The Tourism Development Fund, meanwhile, is responsible for executing the ministry’s investment strategy, which includes designing investment plans and providing funding for the sector. The fund has a $4bn endowment to invest in the sector and provides support for businesses operating in and seeking to enter the Saudi tourism market.

Diversification 

The country aims to make tourism one of the biggest industries after energy, with the national leadership viewing it as vital to the realisation of Vision 2030. The Kingdom has an official target to raise the contribution of the sector from 3% of GDP in 2016 to 10% by 2030. In 2022 public officials announced that the sector is expected to exceed this target and account for up to 15% of GDP by 2030.

The Kingdom has a target of 100m overnight visitors per year by 2030, 45% of which are expected to be domestic and 55% international. According to a 2022 report by Entrepreneurship Middle East, by 2030, 50% of tourists are expected to visit for leisure, 32% for religious tourism, 10% for visiting friends and family (VFR), and 9% for business tourism. In comparison, there were a total of 45m visits in 2019, 40% of which were leisure tourists, at approximately 18m, 38% religious tourists, 13% VFR tourists and 9% business tourists. In this breakdown, visits include any domestic or international tourist arrival, meaning that a single tourist may account for multiple visits to different locations. To accommodate these arrivals, the Kingdom seeks to add 500,000 hotel rooms across the country by 2030.

The tourism sector will also be highly important for job creation. In March 2022 Qusai Al Fakhri, CEO of the Tourism Development Fund, said at an event in Riyadh that the tourism sector is expected to create 1m new tourism jobs by 2030. New jobs in adjacent sectors such as construction and transport are also expected to be created as the sector expands.

Saudi Arabia’s National Tourism Strategy identified 10 key destinations in the Kingdom that present opportunities for investors across the tourism value chain. These are Jouf, Hail, Al Ula, Medina, Riyadh, Eastern Province, Jeddah, Taif, Al Baha and Aseer. Meanwhile, the Tourism Development Fund has identified six high-growth segments with opportunities for investors. These are tourism destinations and attractions, tourism and travel services, accommodation, tourism experiences and activities, food and beverages at tourist destinations, and tourism retail.

In February 2022 the Kingdom launched its Digital Tourism Strategy, designed to deliver the next stage of the sector’s expansion and development, and accelerate progress towards the goals of the National Tourism Strategy. The strategy aims to implement agile digital and technology procedures throughout the sector in order to provide tourists and stakeholders with a more seamless experience. The strategy focuses on a number of areas, including promoting a Kingdom-wide culture of innovation and future-proof regulations, pioneering new digital business models to increase market demand for service providers, and upskilling and reskilling the country’s tourism workforce. The strategy consists of nine programmes and 31 initiatives that are set to be implemented over a period of three years.

In line with job creation, human capital is an important strategic focus for the sector. In June 2022 the Ministry of Tourism launched a new programme that will see 100,000 Saudis trained in key hospitality skills needed for the tourism sector throughout 2022.

Size & Performance

Saudi Arabia’s tourism sector is forecast to grow by an average of 11% annually over the next decade, according to a 2022 report from the World Travel & Tourism Council, making it the fastest growing in the Middle East. As the world emerges from the pandemic, the tourism sector is seeing a return to growth and resuming the path towards expansion established in 2019. According to the Saudi Tourism Authority, the tourism sector accounted for 5.3% of GDP, with 836,000 jobs created as of 2022.

Record domestic travel was registered in 2021. In May 2022 Fahd Hamidaddin, CEO of the Saudi Tourism Authority, reported the country witnessed 62m tourist visits in 2021. Of this figure, 32.5m were domestic visits and 29.5m were international arrivals. Hamidaddin also noted that visits were up 130% in the first quarter of 2022 compared with the fourth quarter of 2019.

This performance has been supported by sustained efforts to finance expansion. In November 2021 the Tourism Development Fund told local press that between June 2020 and September 2021 it had deployed $533m, with an additional $1.1bn of funding coming from the private sector.

In the hotel industry, the number of branded keys reached approximately 61,400 in the first quarter of 2022, representing an increase of more than 4% compared to the same period in 2021, according to real estate consultancy Colliers. The firm expects the market to increase at a compound annual growth rate of 11% from 2022 to 2024, with an additional 23,300 keys expected to be added to the market. Moreover, the Kingdom moved up 10 places in the 2021 World Economic Forum Travel and Tourism Development Index, ranking 33rd compared to 43rd in 2019. The index covers some 117 countries.

A number of major global hotel chains have announced new expansion plans in the Kingdom. In June 2021 hotel group Accor announced it had 33 properties in the pipeline, with 10,060 keys to be added to its existing 39 properties in the Kingdom. Hilton also announced in 2021 that it had 46 hotels under development, which would add to its existing 15 hotels in the country. It plans to expand its operations to more than 75 properties over the next few years. IHG, meanwhile, announced in December 2021 that it had 23 hotels in the development pipeline, to add to the 37 hotels it already operates. The company’s developments are expected to open between 2025 and 2027.

Global property consultancy Knight Frank reported in 2022 that this was the biggest hotel supply pipeline ever seen in the region. The firm forecasts a 63.2% surge in four- and five-star hotel rooms by 2030.

Giga-projects

Growing demand for leisure tourism dovetails with the development of giga-projects. A number of these mega-developments are being purpose built for the domestic and international tourism markets. According to Knight Frank, giga-projects account for nearly 73% of the hotel supply pipeline.

In March 2022 NEOM – the $500bn smart and sustainable city project spearheaded by the Public Investment Fund on the north-west coast – announced a new global destination for mountain tourism called Trojena. Situated in the centre of NEOM, the year-round destination will consist of a ski village, a man-made freshwater lake, ultra-luxury family and wellness resorts, a nature reserve, retail stores and restaurants, and water sports and mountain biking activities. The project is expected to be completed by 2026 and attract 700,000 visitors and 7000 permanent residents by 2030. It is estimated the project will create more than 10,000 jobs and add $800m to GDP by 2030. Trojena’s climate is designed to be one of the project’s most attractive features. The average temperature throughout the year is 10 °C lower than other cities across the region and temperatures drop below zero in winter. The area is situated in a mountain range with peaks that reach 2600 metres.

Elsewhere in the Kingdom, phase one of The Red Sea Project is set for completion in 2024, and will include 16 hotels with 3000 rooms across four islands and two inland sites. The first three hotels are set to open in early 2023. Once the site is fully operational in 2030, the project is expected to include 50 hotels with 8000 hotel rooms and more than 1000 residential properties across 22 islands and six inland sites. It is forecast to contribute $5.9bn to GDP and cap visitors to 1m per year by 2030, in line with sustainability efforts. The 28,000-sq-km site on the west coast includes more than 90 islands, kilometres of desert dunes, dormant volcanoes and mountain landscapes.

Amaala, another giga-project under Vision 2030, is being constructed further north along the Red Sea coast. The family wellness destination will be composed of three parts: Triple Bay, The Coastal Development and The Island. Phase one of Triple Bay is under way and is set to be complete in 2024. It will consist of eight resorts offering upwards of 1300 hotel keys. As of September 2022 more than 300 contracts had been awarded, worth more than SR6.6bn ($1.8bn).

Once complete, Amaala will be home to more than 3000 hotel rooms across 25 hotels, and approximately 900 residential villas, apartments, and estate homes, alongside retail and dining establishments, wellness centres and recreational facilities.

Meanwhile, construction on Diriyah gate, the Kingdom’s $50bn heritage and tourism project, officially began in 2021. Located 15 minutes north-west of Riyadh’s city centre, the 7-sq-km development will be a mixed-use cultural, heritage and lifestyle destination with a series of luxury restaurants, hotels, residences, museums and cultural attractions. Diriyah’s buildings, inspired by traditional Arab architecture, will be in a pedestrianised zone. At its centre is the At-Turaif mudbrick city, the historic home of the Al Saud family and a UNESCO World Heritage site that has been preserved and restored over recent years. The project is set to have a phased opening starting in 2022 and continuing through to 2030. Diriyah is expected to put Riyadh on the global tourism map, with a target of 30m local and international visitors by 2030.

The Diriyah project will include 180,000 sq metres of retail space and 110,000 sq metres of office space, as well as more than 3000 luxury apartments, townhouses and villas. In December 2021 the first 14 of the project’s planned 38 hotel brands were announced. The development is expected to have a permanent population of 100,000 upon completion.

New Destinations

In April 2021 a new tourism master plan was announced for Al Ula, one of the country’s flagship tourist destinations located in north-west. Al Ula is home to ancient ruins, 2000-year-old rock-cut tombs, date farms, and a landscapes similar to the Petra archaeological site in Jordan and its neighbouring Wadi Rum desert. In 2008 UNESCO designated Hegra, a Nabataean archaeological site, also known as Mada’in Saleh, as Saudi Arabia’s first World Heritage site. The region is located along the historic incense route, a 2000-year-old trading route that transported frankincense and myrrh from Yemen and Oman to areas along the Mediterranean Sea.

Al Ula’s new master plan, Journey Through Time, aims to turn the area into a global destination for travellers focused on heritage, nature, art and culture. It envisages Al Ula becoming a living museum by showcasing 200,000 years of natural and human history. At the centre of the development will be a historical tram line inspired by the Hijaz Railway, that will connect five distinct districts across the area.

Al Ula officially opened to international travellers in 2020. In March 2021 Al Ula’s airport opened to international flights following an expansion project that quadrupled its capacity to 400,000 travellers a year. Much larger expansions of the airport are due to be implemented in the coming years to facilitate an expected influx of visitors. In February 2022 Amr Al Madani, the CEO of the Royal Commission for Al Ula, told local press that the destination aims to draw 250,000 visitors by 2023. Al Ula has an ultimate goal of attracting 2m visitors by 2035.

In order to accomplish its aims, the government launched a $13.3bn strategy for the development of its south-western Aseer region under the title of the Arabian Highland. The strategy aims to turn the region into year-round international tourism destination and attract more than 10m visitors annually by 2030. Earlier in 2021 Saudi Arabia launched the Soudah Development Company to develop a luxury mountain destination in the south-western Aseer region around Saudi Arabia’s highest mountain, Al Soudah, at 3015 metres. The mountain currently attracts around 1m visitors a year but the new development aims to increase this to 2m annual visitors and make the Soudah area an international tourist destination. Approximately $3bn is being invested in the project, which will see the development of 2700 hotel rooms, 1300 residential units, and 30 commercial and entertainment attractions. It will cover an area of 627 sq km and focus on sustainable tourism and environmental preservation. The destination is set to be launched at the end of 2023 and is expected to contribute $7.7bn to GDP by 2030.

Tourism is helping to reposition and reshape Saudi Arabia. The country’s diverse offering – from the ancient history and cultural heritage of Al Ula, to the coast of the Red Sea – offers a unique experience for tourists. The array of projects under development demonstrate its aspirations to become a more diverse destination for both foreign investment and visitors.

Tourism will continue to be important over the coming decade, particularly because a thriving tourism sector is central to the Kingdom’s plans to create a more diversified and sustainable economy. Continued government support for the sector demonstrates the importance of tourism in efforts to help the Kingdom reduce its reliance on hydrocarbons and diversify sources of revenue. If the country’s ambitions are realised, the sector will be well positioned to be at the centre of diversification efforts in the coming years.

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Saudi Arabia leads in commitment to sustainable tourism

The kingdom has seen record-breaking growth within the travel sector this year.

Saudi Arabia's Red Sea destination has begun welcoming its first tourists. Photo: Red Sea Global

Saudi Arabia has become a “must-see destination”, Zurab Pololikashvili, secretary-general of the United Nations World Tourism Organisation, said in Riyadh during the opening ceremony of World Tourism Day this weekend.

“This is a country that always looks forward, and in big ways,” he continued. “Saudi Arabia is now the second-biggest place for foreign direct investment projects in all the Middle East and Africa. I’m proud to say we count on the support of Saudi Arabia.”

The UNWTO has celebrated World Tourism Day in September since 1980. Every year, world leaders meet to discuss objectives and milestones to further boost the tourism sector, and this year was no different as about 500 top officials from 145 countries convened at the Four Seasons Hotel Riyadh to talk about the industry's latest developments, with a focus on sustainability, humanity and prosperity.

Winston Duke speaks in Saudi Arabia for World Tourism Day

“This World Tourism Day, we focus on the vital need to invest in building a more sustainable sector for people, planet and prosperity,” said Pololikashvili. “The day also makes clear why UNWTO underscores the need for investment in education and for greater innovation as the foundations for long-term growth and transformation.”

The kingdom's dynamic tourism industry was also under the microscope, as leaders congratulated the country on its vision and discussed issues of climate change, governance and empowering people across the world.

Saudi Arabia is the chair of the UNWTO Executive Council this year as Riyadh is home to the organisation's first regional office for the Middle East. Last year, Saudi Arabia also hosted the 116th session of the UNWTO Executive Council with a focus on advancing sustainability across the board, from governance to investing in infrastructure and youth.

The fastest growth in the Middle East

Around the world, the tourism sector accounts for 1 in 10 jobs, the World Travel & Tourism Council (WTTC) said, although it's an industry that was significantly affected by the pandemic. Saudi Arabia, however, has seen unprecedented growth over the past few years, since it opened its borders to recreational visitors.

“Since embarking on our tourism journey, Saudi Arabia has been committed to enhancing the sector and generating an impact that extends beyond borders,” said Saudi Arabia's Minister of Tourism Ahmed Al Khateeb.

Fahd Hamidaddin, chief executive of Saudi Tourism Authority, said the country is “blessed to experience a growth like no other”.

“The last seven months have seen a record-breaking growth for Saudi Arabia. We are experiencing an economic revolution … and all of this is a manifestation of a new leadership,” he said.

The value of the tourism sector in Saudi Arabia is expected to reach $93.4 billion in 2023, said Arnold Donald, chairman of WTTC. He said it makes up 10 per cent of Saudi Arabia’s GDP and they expect the sector to “grow at the fastest pace in the Middle East”.

By 2030, the country hopes to welcome more than 100 million visitors annually.

The sector will also add one million jobs over the next 10 years, the Ministry of Tourism announced earlier this month. At the event, Al Khateeb also unveiled plans for the Riyadh School for Tourism and Hospitality, an ambitious project that will cost more than $1 billion. It aims to be a student-centric facility, which will span five million square metres in Qiddiya and offer a hybrid curriculum that aims to bridge the global tourism skills gap.

“The Riyadh School of Tourism and Hospitality is Saudi Arabia’s gift to the world,” he said. “Through its pioneering curriculum, that will offer comprehensive higher education courses covering all aspects of the tourism and hospitality industry, the school represents Saudi Arabia’s commitment to providing comprehensive, progressive education that empowers individuals, both domestically and internationally.

“As we invest in the next generation of tourism professionals, we are not only securing the industry’s future, but also fostering a legacy of excellence that will drive prosperity, stimulate individual growth of citizens and foster cultural exchange for years to come.”

Saudi Vision 2030 focuses on sustainability and regenerative tourism

The $500 billion megacity Neom in Tabuk , north-western Saudi Arabia, will be the country's first city to have zero carbon emissions and 95 per cent of the development will remain untouched for nature and conservation.

Sunset in Neom's Hisma Desert. All photos: Getty Images / Unsplash

In a major step in Saudi Arabia's shift away from an oil-based economy, Neom will also be powered entirely by clean energy, with no carbon-emitting vehicles.

Elsewhere, Red Sea Global is pioneering regenerative tourism with its Red Sea project, located on Saudi Arabia's western coast, as it aims to preserve the kingdom's pristine and untouched waters, coast and to further enhance coral reefs. The development, which is already in the first stage of opening , spans 28,000 square kilometres of land, including an archipelago of more than 90 islands, promising turquoise-lined coastlines, unrivalled marine life and a variety of upscale accommodation options.

The under-construction King Salman International Airport in Riyadh will also incorporate green technology in its design and aims to achieve LEED (Leadership in Energy and Environmental Design) platinum certification, the Saudi Press Agency said, which means it generates less waste, consumes less energy, water and other resources, making it more resilient and environmentally friendly.

A sustainable hospitality industry

Hotels in the kingdom have also aligned with the Saudi Vision 2030, to lead and build with the most sustainable practices.

Guests are paying more attention than ever to how a hotel leaves its mark on the world around it, with an increasing number deciding to book a stay based on a property’s carbon footprint and how it supports the communities in which it operates, said Haitham Mattar, managing director at IHG Hotels & Resorts, which currently operates 40 hotels across Saudi Arabia.

“New destinations such as the Red Sea Development and Neom, for example, are incorporating key initiatives to ensure environmental sustainability.

“With a massive footprint across the globe, the tourism and hospitality sectors play an important role in working towards a sustainable future. As one of the world’s leading hotel companies, we embrace our responsibility and opportunity to make a positive difference and help shape the future of responsible travel.”

Guenter Gebhard, regional vice president and general manager at the Four Seasons Hotel Riyadh, told The National on the sidelines at World Tourism Day that the hotel takes its sustainability initiatives seriously. “The hotel does not use plastic water bottles, we only use glass. We will have a hydroponic plantation, we will start growing tomato, salads, herbs and more higher up rather than on ground,” he explained.

“We have changed our lighting systems into LED to reduce our electricity load and we intend to do the same with ACs,” he added. “We're just finishing off our water bottling plant, which will go active hopefully by either December this year or January of next year. That means we're not even bringing water in any more. We have our own water purification system – that will then be bottled as still and sparkling and will go out into the restaurants and into the rooms. This will be free.”

Radisson Hotel Group also aims to remain steadfast in its commitment to a sustainable future, with a goal to become net zero by 2050, said Basel Talal, the group's managing director for Saudi Arabia, Kuwait and the Levant.

Park Inn by Radisson Makkah Al Naseem hotel, for example, utilises a state-of-the-art food recycling system, transforming 75kg of daily food waste into organic compost, reducing waste volume by about 90 per cent.

“It is imperative to strategise on how tourism can be a catalyst for fostering opportunities for people, spearheading a green transformation, and manifesting sustainability for the planet, thus paving the way for inclusive prosperity,” said Talal.

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16 June ‎ 2020 | TDF in the News

Saudi arabia's new tourism development fund.

Saudi Arabia's Vision2030 is a strategic framework to reduce Saudi Arabia's dependence on oil, diversify its economy, and develop public service sectors, including tourism. Under Vision2030, the NTP, a coordinating unit involving 24 Saudi government entities, aims to develop the government capacity and capabilities required to establish the necessary legal and physical infrastructure to achieve Vision2030's goals.

In the context of the Saudi tourism sector, the NTP aims at marketing Saudi Arabia as a tourist destination regionally and globally through the development of advanced infrastructure, the preparation of the necessary regulations and legislation, and the building of institutional capacities, all of which should contribute to creating jobs and increasing the contribution of the tourism sector to the Kingdom's economy. But the NTP recognizes that the development of the Saudi tourism sector faces a number of challenges, including:  

• The lack of diverse tourist destinations and services in the Kingdom and the disparity in their qualities;
• The need to increase tourist infrastructure readiness, such as transportation and hotels, to meet the needs of different segments;
• The tourism sector's inability to meet the increasing demand for tourism services; and
• Inadequate infrastructure of a number of national heritage sites to accommodate tourists. 

The Tourism Development Fund  

Preliminary Comments. The Tourism Development Fund Law ("Law") provides in part that the Law will not come into force until 90 days after the Law's publication in the Saudi Arabian Official Gazette. The Law was published on June 26, 2020, and therefore came into force on September 23, 2020. 

Investment, Financing, and Advice. The authority of the Fund includes (but is not limited to) the authority to invest its funds in assets, to provide financing to businesses operating in the tourism sector or related sectors, and to provide advice to businesses operating in the tourism sector or related sectors. 

• Investment. The Law gives the Fund the authority invest in, own, and dispose of assets; to invest in securities; and to contribute to the development of tourist areas, either on its own or in partnership with the public or the private sector. The Fund therefore has the authority and the means to act by itself or in cooperation with others to invest in projects to address any of the challenges facing the Saudi tourism sector as identified by the NTP. 
• Financing. The Law gives the Fund the authority to provide financing to businesses operating in the tourism sector, operating in fields supporting the tourism sector, or developing technology and infrastructure that serves different tourist activities, in each case subject to controls set by the Fund's Board of Directors as headed by the Minister of Tourism ("Board"). 

The Board is the authority responsible for establishing the Fund's policies. Until such policies are established, the terms upon which the Fund may provide financing will remain unknown. However, we would speculate (and this is only speculation) that the Fund will be to the Saudi tourism industry what the Saudi Industrial Development Fund is to Saudi industry: a source of medium- and long-term soft loans whose terms will vary with the location and the size of the project being financed. 

• Advice. The Law gives the Fund the authority to provide consulting services to businesses operating in the tourism sector, operating in fields supporting the tourism sector, or developing technology and infrastructure that serves different tourist activities. While the terms upon which such consulting services will be provided are currently unknown, it seems likely that such consulting services will be provided on a commercial basis, given that the Law provides that funding for the Fund will come from (among other sources) the financial consideration received for the services and works it provides. 

Conclusion 

Tourism is a key driver of Vision2030, and the Fund can reasonably be expected to play an important role in attracting and supporting investments, incentivizing the development of, and overcoming some of the challenges facing the Saudi tourism sector. Businesses (whether domestic or international) involved in the tourism sector or related sectors should closely follow the development of the Fund.

18 May ‎ 2023 | TDF in the News

Saudi tourism development fund collaborates with hyatt to develop hospitality focused destinations in saudi arabia.

Expanding its roster of collaborators, the Tourism Development Fund (TDF) has announced the signing of a Memorandum of Understanding with an affiliate of Hyatt Hotels Corporation to establish luxury hotels across the Kingdom of Saudi Arabia.

17 May ‎ 2023 | TDF in the News

Tdf announces partnership with radisson hotel group to develop several hotels and resorts across saudi arabia.

The Tourism Development Fund (TDF) has announced the signing of a Memorandum of Understanding (MoU) with the Radisson Hotel Group to develop hospitality and tourism projects across the Kingdom of Saudi Arabia. The first project under this memorandum is expected to be announced in H2 of 2023.

16 May ‎ 2023 | TDF in the News

Saudi tourism development fund announces future partnership with minor hotels to develop multiple hospitality projects across ksa.

Saudi Arabia’s Tourism Development Fund (TDF) announces the signing of a memorandum of understanding (MoU) with MINOR Hotels, a hotel owner, operator, and investor. The MoU aims to jointly develop and operate high-quality hospitality and lifestyle projects focused on mountain resorts, wellness resorts, and urban hotels within the Kingdom. The first project under this partnership is expected to be announced in the second half of 2023.

09 May ‎ 2023 | TDF in the News

Tdf signs financing agreement with shada development company to develop a contemporary 4-star heritage hotel in jeddah.

Saudi Arabia’s Tourism Development Fund (TDF) announced today the signing of a financing agreement with Shada Real Estate Development and Investment Company.

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Opening Up To The World: Saudi Arabia's Tourism Goals Gateway industries such as tourism, local manufacturing and smart services are generating jobs for future Saudi youth –and for the first time– opening Saudi Arabia to the world.

Edited by Aby Thomas Aug 7, 2022

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

This article is a part of Bringing the World to Saudi , a special report sponsored by Saudia and developed by Entrepreneur Middle East in partnership with Lucidity Insights.

In 2016, the Kingdom of Saudi Arabia announced that it was embarking on a unique and transformative economic and social reform called Saudi Vision 2030 that would open up Saudi Arabia to the world.

Vision 2030 is a deeply ambitious plan to unlock the Kingdom's vast potential, by creating a diversified, innovative, and world-leading nation. It has been designed to free the Kingdom from its dependence on oil exports, ushering in a new era of economic diversification and opportunity, driven by investment into key strategic sectors.

Vision 2030 works on three major areas of focus: creating a vibrant society, developing a thriving economy, and ensuring an ambitious nation. To shed light on just how far-reaching the implications of implementing the strategy across the country, here is just a small sample of the many ambitions set out in the Vision 2030:

To increase the share of non-oil exports in non-oil gross domestic product (GDP) from 16% to 50%. Non-oil revenues in the Kingdom have grown from US$45 billion in 2015 to $98.3 billion in 2020; though 2020 was a contraction year due to the COVID-19 pandemic and the collapse of oil prices, non-oil revenues made up 47% of the government's revenues, the highest portion in Saudi's recent history.

Have three Saudi cities recognized in the top 100 cities in the world by 2030

To increase capacity to welcome 30 million religious pilgrims by 2030 (up from 8 million pilgrims received in 2016); in 2019, Saudi welcomed over 21.66 million domestic and foreign pilgrims to Mecca)

To increase private sector contribution to GDP to 65% by 2030 (from 40% in 2016). Since 2016, the Kingdom has seen a 40% rise in the number of SMEs, and 16% growth in industrial sector investment.

To lower unemployment from 11.6% to 7% by 2030. After a few years of rising unemployment, reaching a high of 13.7% in 2020, the Kingdom has managed to lower unemployment down to 11.3% by Q3 2021.

To increase women's participation in the workforce from 22% to 30%. Saudi Arabia has already met this 2030 target by 2020-year-end, when women's employment soared to 33%, driven primarily by the private sector. By Q3 2021, the figure had risen again to 34.1%. Furthermore, 38% of all small and medium sized businesses in the Kingdom are owned and operated by women.

To increase Saudi Arabia's sovereign wealth fund Public Investment Fund's (PIF) assets from SAR600 billion to SAR7 trillion (equivalent to nearly $1.9 trillion). By 2020-year-end, PIF had $400 billion assets under management.

To increase the ratio of individuals exercising at least one time a week to 40% by 2030 (from 13% in 2016). By 2020, >1,000 education and recreation clubs were established in the Kingdom, with more than 1.7 million residents utilizing their services.

To increase average life expectancy from 74 to 80 years.

To raise the Saudi government's ranking in the Government Effectiveness Index from 80th place to 20th place globally. In 2019, Saudi was ranked in 64th place.

To rally one million volunteers a year, up from 11,000 in 2016. 409,000 volunteers were engaged in 2020, and 84% of Saudi youth have expressed a strong desire to partake in volunteering opportunities in a poll conducted at the end of 2020.

To increase FDI from 3.8% to the international level of 5.7% GDP. Saudi Arabia has already witnessed foreign investment triple from $1.42 billion USD in 2016 to $4.7 billion in 2020.

To achieve the Vision 2030 objectives, a series of programs have been designed to translate the Vision's aims into action. These Vision Realization Programs act to bring key deliverables of the blueprint to life, in wide-ranging areas from fiscal sustainability to Saudi citizen's quality of life. Five years has passed since launching Vision 2030, and the Kingdom has delivered a wave of reforms that have transformed society, with particular benefits to women and youth, and economy– accelerating the growth of the non-oil economy. Gateway industries such as tourism, local manufacturing and smart services are generating jobs for future Saudi youth –and for the first time– opening Saudi Arabia to the world.

OPENING SAUDI ARABIA UP TO THE WORLD

One of the key strategic sectors for development mapped out in Saudi's Vision 2030 is tourism. By 2030, the Kingdom expects tourism to account for 10% of GDP (up from the current 3%), creating a new tourism economy in the Kingdom that will generate at least one million new jobs for Saudi youth.

Job creation is a critical strategic driver for the Kingdom and underpins many of the strategic objectives outlined in Vision 2030, as Saudi Arabia is a youthful population with what economists call a "youth bulge". This refers to the incoming young Saudis graduating from secondary and tertiary education that will be hungry for jobs– in a job market that needs to more than double the number of jobs available since 2016 by 2030, the number of jobs available in Saudi Arabia needs to increase even more significantly, when we consider the successful drive for Saudi to engage women in the workforce. In 2010, only 55,000 Saudi women were participating in the private sector workforce; at the end of 2021, nearly one million Saudi women were working in the private sector, and the percentage of women in the workforce is climbing steadily. In 2016, only 19% of the workforce in Saudi were women. In 2021, that number has climbed to over 34%.

There are many stakeholders responsible for stewarding the National Tourism Development Strategy in Saudi Arabia. All are working together to coordinate strategic implementation of initiatives to achieve the targets set out in Vision 2030. Coordination activities are across public and private sector entities, covering strategic direction, regulation, tourism development investment, transportation and logistics infrastructure development and management, branding and promotion, visitor experience, and many other initiatives.

Developing the tourism sector in the Kingdom directly and indirectly supports the achievement of many key strategic objectives of Vision 2030, as highlighted in the figure below. Tourism will strengthen Islamic values and national identity by promoting the Kingdom as a religious destination for over 30 million pilgrims annually, strengthen the private sector (which will be the main driver of future new job growth), attract foreign direct investment, and contribute to one million new tourism jobs, driving youth employment.

Today, Saudi Arabia's tourism economy employs just over half a million people, of which 22% are roles filled by Saudi nationals. Tourism will also, of course, contribute to government non-oil revenues, as a cornerstone of the Kingdom's economic diversification plan. Saudi Arabia aims to become one of the top global tourism destinations by 2030, welcoming over 100 million overnight visitors annually.

PUTTING MONEY WHERE THEIR MOUTH IS

As the entrepreneurial adage goes, "you must spend money, to make money," and in order for the Kingdom to increase tourism's contribution to the national GDP from 3% to 10% by 2030, the Kingdom is putting money where its mouth is. In less than a year of being established, the Saudi Tourism Development Fund stated that it had deployed $533 million on tourism projects worth a total of over $2 billion; the fund was initially established with $4 billion for investment.

Meanwhile, the PIF has announced a five-year strategy that aims to invest $40 billion each year into the domestic economy until 2025, with 1.8 million jobs expected to be created. Many, though not all, of PIF's investments are geared towards tourism development projects. In late 2021, the Minister of Tourism, H.E. Ahmed Al Khateeb, publicly announced that the Kingdom had committed to spend $1 trillion towards tourism projects over the next 10 years.

With this investment and the various tourism initiatives across the country, Saudi Arabia is looking for a return on investment that would see an increase of more than 5x on 2018 tourism spend in the Kingdom and contribute 10% to the Kingdom's GDP. In following with global tourism trends, the Kingdom expects more than half of those tourism revenues to come from leisure tourism– a tourism sector that was barely existent in the country a few short years ago.

Though Saudi Arabia is new to opening its borders to the general international public, the Kingdom's religious tourism has thrived for thousands of years. Once a year, Muslims of every ethnic group, color, social status, and culture gather in Mecca, the holiest site in Islam, and worship together. By no means is "welcoming foreigners" a new concept in Saudi. In 2019, Saudi Arabia welcomed over 21 million Muslim pilgrims inside its borders for Hajj and Umrah. Due to the prominence of these pilgrimages, the city of Mecca regularly lands itself on Mastercard's Global Destination Cities Index. In the 2019 ranking (which covers 2018 figures), Mecca was ranked as the 13th most visited city in the world, with 10 million overnight visitors, and ranked second for international visitor spend, at over $20 billion.

In September 2019, Saudi Arabia opened its doors to the world for the first time, as one of the few "final frontiers" of tourism. Prior to this, besides Muslim pilgrims, only business travelers invited by Saudi companies and organizations could gain entry to the Kingdom on a business visa. Within the first four months of accepting tourism visa applications, more than 300,000 applications were filed.

Unfortunately, shortly after the "grand opening," the newly opened borders were then subsequently closed in 2020, along with most of the borders around the world, due to the Covid19 Pandemic that affected mobility globally. Despite this, the Saudi Tourism Authority says that Saudi Arabia was able to garner 5% of its tourism revenue from the leisure tourism sector in 2019. In fact, Saudi Arabia's Tourism Minister told Bloomberg TV in an October 2021 interview that the country was on track to have tourism contribute to 4% of its GDP that year.

Related: Driving Economies: Breaking Down The Significance Of The Global Tourism Industry

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Is Saudi Arabia the Next Sustainable Tourism Destination?

The Kingdom of Saudi Arabia is looking to become the next sustainable tourism destination with the help of ambitious projects that combine luxury hospitality and environmental conservation and revitalisation efforts, and has a target of bringing in 100 million visitors per year by 2030. 

Saudi Arabia has long been a place of intrigue and mystery. 

For some, it’s a country to be wary of with its reputation for an indifferent approach to human rights, oppressive restrictions on women and fundamentalist Islamic beliefs that shape not only law and policy, but also the day-to-day lived experience of its citizens. For others, it’s one of the last frontiers of unexplored travel destinations; rich in cultural heritage and vast, majestic, natural landscapes.

Until recently, the country has been largely closed to tourists, with limited visas issued only to religious pilgrims, business people and expatriate workers.

However, in recent years, Saudi Arabia has been working behind the scenes on opening up the country to tourists as part of a broader plan to reduce the country’s economic dependence on oil. 

There are some eye-watering figures associated with this move. According to Trade Arabia , the Ministry of Tourism is aiming to secure foreign investment of USD $133 billion in tourism by 2030. This goal is just one component of the country’s colossal Vision 2030 – “an ambitious vision for an ambitious nation”.

In September 2019, the Kingdom of Saudi Arabia announced the launch of a visa program, allowing nationals from 49 countries to visit for the first time as tourists. Women would now be allowed to visit the country unaccompanied and no longer required to wear an abaya or headscarf, which must be worn in public by Saudi women. No relaxations are proposed on the ban on alcohol though, which many tourism industry analysts regard as an essential part of the tourism package.

Saudi Arabia is unperturbed by the martini factor. Ahmed Al-Khateeb, Minister for Tourism, told Arab News in 2020 that Saudi Arabia has “a lot more to offer other than alcohol”.  

You might also like: Can EcoTourism Save Coral Reefs?

So just how is Saudi Arabia planning on reaching its target of 100 million visitors per year by 2030 and situating themselves as the premier sustainable tourism destination? 

Enter: tourism giga-projects. Not just one, but many. 

The Red Sea Project, for example, is described as “ a regenerative tourism destination along Saudi Arabia’s west coast, one of three giga-projects announced by His Royal Highness Crown Prince Mohammad bin Salman bin Abdulaziz Al-Saud in 2017 ”.

Set to be one of the world’s most ambitious tourism and hospitality projects, The Red Sea Project is packing some impressive punches when it comes to environmental claims. 

On an archipelago of 90 islands, mountains, sand dunes and dormant volcanoes spanning an area the size of Belgium, The Red Sea Development Company is hard at work building 50 luxury hotels, an international airport and a range of leisure facilities. 

At face value, it doesn’t sound like it has the makings for a sustainable tourism destination. 

But The Red Sea Project is aiming to go a step further than simply counterbalancing any negative environmental impacts it might have. Instead, it is aspiring to a new standard termed “regenerative sustainability”, which is all about enhancing the environment and leaving it better than you found it. 

The project aims to achieve a 30% net positive conservation impact by 2040 through measurable improvements in biodiversity. Set to be the largest no-take marine protected area in the country covering 5,373 sq km, the goal is a 30% increase in fish biomass, a 30% increase in mangroves, sea grasses and native land vegetation, and a 30% increase in the abundance of coral reefs. 

Former CEO, John Pagano, has said “ The aim is to become a global reference for ecotourism, sustainable development, conservation and, more importantly, regeneration .”

The concept of regenerative travel centres on actions and processes that restore, revitalise and renew both ecosystems and communities in tourism destinations. Given the significant impacts travel can have on people and lands, Saudi Arabia’s regenerative approach to its tourism giga-projects is noteworthy.

Other projects under development include Soudah in the Asir region, which is set to become a luxury mountain destination with immersive cultural experiences and natural landscapes in newly created protected areas. Similarly, AMAALA on Saudi Arabia’s northwestern coast is aiming to create “transformative personal journeys” centered around arts, wellness, culture and conservation.

But what about the ethics of visiting a country like Saudi Arabia? Visitors who value regenerative travel are also likely to be conscious consumers and decision makers. Is it morally problematic to visit a country on principle because of its laws, beliefs or treatment of vulnerable groups?

This idea has parallels with the act of boycotting, a tactic commonly employed by consumers or activists to make a political statement against products or companies they believe to be unethical. Not-for-profit organisations face similar ethical problems when considering whether to accept donations from corporations in objectionable industries. 

Should the Cancer Council accept donations from tobacco companies? The Diabetes Society from Coca Cola? 

In fact, the British Museum was criticised for this recently. In February 2020, climate activists brought a trojan horse onto the site in central London to protest the institution’s sponsorship deal with oil giant, BP. The theatrical protest group ‘BP or not BP?’ wrote a letter to the museum’s administration. It said, “ Hundreds of people have helped to crowdfund this horse because they feel so strongly that the museum should not be promoting and giving legitimacy to an oil company when we are in the midst of a climate emergency ”.

Does partnering with some organisations, or buying some products – or visiting some countries – make you complicit in their crimes? Or does engaging on a deeper level provide opportunities to learn, understand and even influence the way things are done?

It’s fair that there are sceptics but given the scale and budget of Saudi Arabia’s sustainable tourism giga-projects there is an opportunity for the country to influence the development of cultural and ecotourism-based destination travel globally. Countries in the Middle East place high value on innovation and do not shy away from stretch-goals, so it will be interesting to see what emerges. 

In the end, the biggest problem for the travel industry might be the opposite of what it’s used to – that is, how will stakeholders in the travel industry scale down any lessons learned from Saudi Arabia’s giga-projects so that changes can be made in other contexts without the luxury of billion-dollar budgets.

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An uncertain world threatens saudi arabia’s tourism goals.

Jul 7, 2022 | 21:45 GMT

Muslim pilgrims walk at the Grand Mosque in Saudi Arabia's holy city of Mecca on July 6, 2022 during the annual hajj pilgrimage. 

(AFP via Getty Images)

New COVID-19 variants and global economic uncertainty could force Saudi Arabia to recalibrate its tourism development strategy, potentially leaving ongoing projects and plans either abandoned or delayed. Saudi Arabia’s post-pandemic hajj season is underway, with a reported 1 million foreign and domestic pilgrims visiting Mecca for the pilgrimage ahead of Eid al-Adha, which begins July 8. These numbers are an improvement from 2020 and 2021, when only 1,000 and 60,000 pilgrims were allowed to visit Mecca for the annual pilgrimage, respectively. But 1 million is still a far cry from the 2.5 million hajj pilgrims that Saudi Arabia welcomed in 2019 — due in part to continued COVID-19 restrictions, which include testing and vaccine requirements, capacity limits and age limits.

• Hajj is a major driver of tourism for Saudi Arabia and supports thousands of jobs around the country. The $12 billion generated by the 2019 hajj pilgrimage, for example, made up roughly 3.5% of Saudi Arabia’s non-oil revenue that year.
• Boosting religious tourism is also a major goal of Vision 2030, with Riyadh aiming to attract some 30 million pilgrims for hajj by the end of that year. Saudi Arabia wants to convert these pilgrims into regular tourists for the country as well as part kingdom’s long-term strategy to diversify its economy away from oil.
• Saudi Arabia was initially very concerned about the health impacts of COVID-19, given that many of its citizens have comorbidities like hypertension that increases the risk of severe infection. This saw Riyadh take a strict approach to containment in 2020 and 2021 (including restricting foreign arrivals for the annual hajj pilgrimage), as the monarchy saw the spread of a deadly virus as a more immediate challenge to their legitimacy than the prospect of derailing Vision 2030 goals. But with the majority of Saudis now vaccinated and/or able to access new COVID-19 treatments, Riyadh is less concerned about the impact of a hajj-induced spike in infections and is, in turn, taking a more relaxed approach to this year’s pilgrimage by dropping mask mandates and loosening travel restrictions. 

Despite the modest number of visitors in 2022, there is likely pent-up travel demand for the annual hajj pilgrimage, which could enable Saudi Arabia to capitalize on a larger hajj season next year. Pilgrims often save up for years before traveling to Mecca for the hajj, which for many is a once-in-a-lifetime experience. This means that pilgrims who planned on going in 2020-22 probably still have both the savings and intent to visit Mecca once Saudi Arabia opens up enough visas. With increased access to both vaccines and COVID-19 therapies that reduce the risk of severe infection, Riyadh could relax its restrictions further next year by easing testing, vaccine, or age requirements. The kingdom could also increase the number of visas up to and potentially even beyond the 2.5 million visitors who traveled to Saudi Arabia for the hajj pilgrimage in 2019. 

• Saudi Arabia is also boosting its conventional tourist sector , aiming for 70 million visitors this year from 19.8 million in 2019, some of whom are regional and domestic tourists. This sector is rapidly growing, as Saudi Arabia only began offering non-hajj tourist visas in 2019. 
• Because of this growth, Saudi Arabia’s ability to host more pilgrims has also increased, with the construction of more hotels and amenities. The kingdom has also eased social restrictions to attract more tourists from different cultures and areas of the world.

However, the emergence of more deadly variants of COVID-19 or a longer-than-expected global economic slowdown could still derail Saudi Arabia’s tourism strategy, exposing investors to losses and causing the government to again reframe its goals for Vision 2030. Riyadh’s perception of the threat of COVID-19 to its legitimacy as a steward of public health has changed because treatments have improved. But the potential emergence of a new variant that reduces the effectiveness of vaccines and treatments could still force Saudi Arabia to impose tough restrictions again . The loss of tourism and business activity would slow the kingdom’s progress toward building a post-hydrocarbon economy. However, the revenue Riyadh is racking up from the current surge in global oil prices would help soften the economic and political blow of another COVID-19 shutdown. But even if Saudi Arabia is able to keep its doors open, the state of the global economy could still dampen tourism rates, with fuel prices making flights unaffordable, and commodity and price shocks causing some visitors to use up their hajj savings at home rather than travel abroad. Lower-than-expected tourism revenue could cause Saudi Arabia to reduce its Vision 20230 goals, potentially leading to abandoned projects, failed ventures and unfinished construction. 

• Many countries around the world are currently seeing another surge in COVID-19 cases, fueled by a fast-spreading new subvariant of Omicron known as BA.5. The new strain is highly contagious and is able to bypass immunity created by vaccines and previous infections, including infections from earlier Omnicron subvariants. In the wake of this new surge, neighboring Abu Dhabi in the United Arab Emirates has recently started reimposing COVID-19 restrictions; Abu Dhabi’s risk aversion during the pandemic mirrored that of Saudi Arabia’s, though Riyadh has not yet imposed new restrictions in response to the new BA.5 threat. 
• In the United States, Florida and other states with popular tourism destinations have already begun seeing a drop-off in visitors amid growing concerns of a looming economic recession and inflation-induced increases in travel costs. Some major sources of hajj pilgrims like Egypt, Indonesia and Turkey are also grappling with economic challenges that are making citizens hesitant to use their savings on a trip abroad to Saudi Arabia.
• Saudi Arabia has changed some of its development goals in the past. It aimed for a fiscal surplus by 2020. But only now in 2022, led by high oil prices, does the kingdom appear ready to achieve that goal. Jeddah Tower, touted to be the world’s tallest building when completed, has already missed its 2020 completion target as the kingdom’s infrastructure goals appeared to shift to other projects, like the megacity NEOM. 

The story of transformation

Vision 2030 is creating a vibrant society in which all citizens can thrive and pursue their passions. A strong social infrastructure is underpinned by a society that values cultural traditions, national pride, and modern amenities all while embodying the spirit of modern Islam and providing effective social services.

Vision 2030 creates a thriving economy where everyone has the opportunity to succeed. By providing a supportive business environment for businesses of all sizes and investing in education to prepare for the jobs of the future, Saudi Arabia is creating an exciting and prosperous future for all.

Vision 2030 creates an ambitious nation committed to efficiency and accountability at all levels, including building a government that is effective, transparent, accountable, empowering, and high-performing.

Explore the Programs

Financial Sector Development Program

Fiscal Sustainability Program

Health Sector Transformation Program

Housing Program

Human Capability Development Program

National Industrial Development and Logistics Program

National Transformation Program

Pilgrim Experience Program

Privatization Program

Public Investment Fund Program

Quality of Life Program

Explore the Projects

The Red Sea

Saudi Genome Program

King Salman Energy Park

AlKhafji Desalination Plant

Low Power Research Reactor

Rabigh Desalination Plant

Solar PV Cell Plant

Mohammed bin Salman Project for Developing Historic Mosques

Green Riyadh

Sports Boulevard

King Salman Park

Jeddah Central Project

Soudah Development

Saudi Green Initiative

Middle East Green Initiative

Made in Saudi

Sakaka Solar Power Plant

Mohammed Bin Salman Nonprofit City

Saudi Downtown Company

Desert Rock

Boutique Group

New Murabba

Rua Almadinah

Masjid Quba

Coral Bloom

Royal Arts Complex

Jeddah Historic District

Special Economic Zones

Soudah Peaks

Saudi Arabia Stays One of the Top Travel Destination in 2024

S audi Arabia continues to stand out as a premier travel destination in 2024, according to recent insights from Wego, the leading online travel marketplace in the MENA region. Despite global shifts in travel trends, the Kingdom retains its #2 position, affirming its enduring allure among international travelers.

Read More: Can the Saudi Visit Visa be Renewed?

Analyzing data from millions of flight and hotel searches, Wego's report underscores Saudi Arabia's consistent popularity since opening its doors to tourism in 2019.

Beyond its renowned spiritual landmarks, Saudi Arabia boasts a wealth of cultural experiences, natural wonders, and historical treasures waiting to be explored.

With flexible visa schemes and a burgeoning entertainment scene, the Kingdom offers a diverse array of attractions, from vibrant festivals like Riyadh Season to UNESCO-listed marvels such as the Al Ahsa Oasis.

Luxurious resorts like the St Regis Red Sea and wilderness escapes in AlUla further elevate Saudi Arabia's appeal, while ambitious giga-projects like Qiddiya and Neom promise to redefine leisure and hospitality in the region, aligning with the country's Vision 2030 goals.

These developments are part of Saudi Arabia's ambitious Vision 2030 initiative, driven by the Public Investment Fund (PIF), aimed at transforming the country into a global tourism hub.

With plans to attract 100 million annual visits, Saudi Arabia's tourism sector is poised for significant growth, offering travelers an unparalleled blend of luxury, culture, and adventure.

From the ancient wonders of AlUla to the pristine beaches of the Red Sea, Saudi Arabia's diverse landscapes provide a captivating backdrop for unforgettable experiences. Whether exploring historic sites, indulging in world-class hospitality, or embarking on thrilling outdoor adventures, visitors to the Kingdom are sure to be enchanted by its rich tapestry of heritage and modernity.

Read More: All About Al Hajj Visa

This article was posted on saudimoments

Saudi Arabia needs peace in the Middle East for its $500 billion Neom megaproject to succeed

• Conflict in the Middle East is a threat to Saudi Arabia's ambitious Vision 2030 plans.
• Some Neom projects are located along the Red Sea coast, where tensions have been escalating.
• The renewed conflict in the region has left Saudi officials walking a difficult political line.

Escalating tensions in the Middle East are threatening the success of Saudi Arabia's ambitious Vision 2030 plans — especially its desert megacity called Neom .

The kingdom has announced grand plans to boost its tourism industry to 150 million visitors a year by 2030 , aiming to build new resorts and cities that will act as Dubai-style travel hubs in the region.

But many of these planned tourist destinations are located on the Red Sea coast, where tensions have been escalating since the October 7 Hamas attacks on Israel and the subsequent conflict in Gaza and beyond.

Iran-backed Houthis have launched numerous missiles and armed drone attacks at Israel and the threat of ongoing conflict has disrupted Red Sea shipping routes, with companies opting to avoid the area .

The conflict in the region has left Saudi officials walking a political tightrope.

Earlier steps toward normalizing relations with Israel have been derailed by a resurgence of local support for the Palestinian cause, while the threat of prolonged conflict risks hobbling officials lofty goals for Neom.

A de-escalating force

Before the October Hamas attacks, Saudi Arabia already appeared to be seeking de-escalation and normalization with its foreign policy in the region.

In March 2023, Iran and Saudi Arabia brokered a deal to re-establish diplomatic relations. With some help from China, the two nations agreed to reopen their embassies in their respective capitals.

In the months before October 7, Saudi Arabia was also reportedly edging toward a deal with the US that would have included a normalization agreement with Israel. According to a New York Times report , one reason is that it's hoping for a US security guarantee if it's ever attacked by Iran.

Progress on the deal appeared to stall after the Israeli offensive in Gaza sparked anger across the region, leaving Saudi officials caught between a wave of local support for the Palestinian cause and US pressure to normalize ties with Israel.

While Saudi Arabia has called for an end to the war in Gaza and accused Israel of committing war crimes , officials have continued to express interest in normalizing relations with the Jewish homeland as long as any deal includes the creation of a Palestinian state.

Related stories

The US and Saudi Arabia are in the final steps of a new agreement on security guarantees and civilian nuclear assistance, Reuters reported last week . Normalization of an Israeli-Saudi relations is still far from being agreed.

International optics

The conflict in the region poses a problem for Saudi's hopes of attracting millions of new foreign visitors.

Kristian Coates Ulrichsen, a fellow for the Middle East at Rice University's Baker Institute for Public Policy, told Business Insider: "The Saudis are so concerned about any potential escalation because they realize they have this largely untapped Red Sea coastline, which they are now developing and see a lot of potential in."

Many of Neom's projects aimed at capturing the luxury tourism market are located along the Red Sea coast. Set to open next year, Neom's luxury island resort of Sindalah is advertised as an "exclusive gateway to the stunning Red Sea."

Saudi officials need to show that the locations are safe from nearby conflict zones to be able to attract high-spending visitors.

"The optics of stray missiles and drones slamming into Saudi cities when they're trying to attract the sort of high-end luxury markets would be disastrous," Ulrichsen said.

The 2022 Formula 1 Grand Prix in Jeddah, which took place against a backdrop of thick black smoke after Houthi missiles hit a fuel depot five miles away from the racetrack, is unlikely to be far from officials' minds.

After the attack, plumes of black smoke were visible from the circuit and seen during the first practice session, sparking alarm from international drivers.

Supply chain issues

Conflict in the region may also cause issues when it comes to the construction of ambitious projects like Neom.

"The remote location of the project, combined with renewed tensions in the Red Sea, also pose specific issues around construction and delivery of equipment and materials," Robert Mogielnicki, a senior resident scholar at the Arab Gulf States Institute, told BI.

Officials will also need to convince firms and residents to buy into Neom and attract tourists to visit. Mogielnicki said these demand-related variables mean the Saudi government and planners have less direct control over Neom's success.

Saudi officials are already fighting to combat claims that Neom is facing delays and setbacks.

In recent months, Western media outlets have reported that the country is scaling back population estimates for The Line and seeking to borrow funds .

Last month, Bloomberg reported that the financial realities of the project, which could see cost spiral up to $1.5 trillion , have started to cause alarm within the Saudi government.

Difficulties getting construction materials to the Red Sea coast could further delay some Neom projects, which are essentially already "moving targets," according to Ulrichsen.

Neom did not respond to a request for comment from Business Insider.

Watch: Houthi rebels hijack ships in Red Sea, demanding cease-fire in Gaza

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Breaking News

With oil funds and Formula One, Saudi Arabia steamrolls its way onto sports’ hallowed grounds

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To understand the scope of Saudi Arabia’s ambitions in the sporting landscape, don’t look just to this spring’s Formula One race in Jeddah — which ended with a predictable one-two win for the Red Bull team. The revealing action was at the after-party.

Amid a bloom of fireworks over Jeddah’s coast, dozens of drones buzzed in synchronicity to spell out the kingdom’s goal: “Saudi Arabia. Home of Sporting Events.”

It’s a vision that increasingly seems within reach. Backed by funds from the state-owned oil giant Aramco and the vast endowment of its Public Investment Fund, the autocratic monarchy has in only a few years steamrolled its way onto the sporting world’s most hallowed grounds.

In soccer, it has lavished its local clubs with hundreds of millions of dollars, courted superstar players to its league and successfully lobbied to host the 2034 World Cup. Its bid to create a rival golf tournament rattled the genteel PGA enough to force it into a reluctant union. Tennis, boxing, cricket, pro wrestling, even eSports — all have been rocked by the sheer scale of investment the kingdom is wielding to transform itself into a sports and entertainment powerhouse.

But it is in motorsports, and Formula One in particular, where Saudi Arabia has made some of its most audacious and expensive moves, outpacing its regional rivals — Bahrain, Qatar and the United Arab Emirates, all host F1 races — amid a wider push to establish the Gulf as a racing hub.

“It’s amazing what they’re doing here,” said Jefferson Slack, commercial and marketing director for Aston Martin Aramco.

“No county in the world is investing in motorsports as much as Saudi Arabia.”

Slack would know. An executive with three decades of experience in sports investments and management of athletes such as Michael Jordan, he joined the team before Saudi Arabia came on board, when Canadian billionaire Lance Stroll bought the defunct Force India Formula One team and rebranded it as Aston Martin in 2021.

Since then, Aramco, the kingdom’s flagship oil company, has plowed money into the team, while the Saudi Public Investment Fund increased its stake in car manufacturer Aston Martin to more than 20%. As of January, Aramco became exclusive title sponsor and is signed on as a strategic partner until 2028. Rumors abound that Aramco may try to buy the team outright.

Critics charge that the massive investments are an attempt at “sportswashing,” calculated to distract from an abysmal human rights record — imprisonment and violence against commentators and activists, travel bans, and male guardianship laws over women.

The kingdom says it is merely modernizing and diversifying its economy, with F1 as an eager partner. Less than two years after Saudi henchmen killed and dismembered a Saudi Washington Post columnist and monarchy critic, the F1 and the kingdom’s flagship oil company entered into a 10-year partnership deal.

The deal, which began in 2020, is believed to have cost the Saudis some $45 million a year. Some whisper it’s only a matter of time before Saudi Arabia bids for the race series franchise as a whole, which Liberty Media Corp. bought for $4.6 billion in 2017 and whose valuation has since risen many times over — in no small part because the Netflix series “Formula 1: Drive to Survive” has supercharged the sport’s international popularity.

In addition, there’s a half-billion dollar racing circuit under construction in the city of Qiddiya, a mega project near the capital, Riyadh, intended to be part city and part tourism, sport and entertainment zone.

Plans are also in place to develop racing at a grassroots level, said Martin Whitaker, head of the Saudi Motorsports Company, the PIF-owned commercial entity charged with bringing motor sport events to the country.

“We’ve raised the bar in how the sport is seen globally,” he said. “Now we have to produce a concrete set of foundations and platforms so we can build it here.”

Creating that sort of ecosystem for racing is harder than it sounds. Soccer for example, can be played just about anywhere: Find an empty lot or quiet street, use whatever is available for goalposts, and that’s largely it.

Racing on the other hand requires infrastructure and major investment. Starting a pipeline of kids in karting — the gateway into circuit racing — can be painfully expensive; move up the ranks to the higher classes and you’re looking at $80,000 a race.

Without serious sponsorship, drivers have little hope of sustaining a career, restricting the sport to what Mercedes driver and F1 superstar Lewis Hamilton (who comes from a working-class background) said in 2021 was a “billionaire’s boy’s club.” Even with that advantage, the odds of getting a seat in an F1 car are astronomical.

One afternoon this spring, visiting journalists were given a tour of a new regulation karting circuit in Jeddah — the first of its kind in the country that could host internationally sanctioned events. The idea, according to Prince Khaled bin Sultan Al-Faisal, chairman of the Saudi Automobile and Motorcycle Federation, was to have many more such circuits across the country, with a focus on drawing children as young as 5.

“We’ve hosted events and championships, but we have to focus on the sport itself and serve its practitioners, and start with a young generation. A circuit like this is the first step,” he said, adding that he was expecting a 15- to 20-year-long timeline before a Saudi F1 driver appears on the grid.

Whitaker, standing nearby, said it wasn’t just about finding drivers of the future.

“It’s engineers, technicians, placing kids with internships with other teams, talking to international teams to base themselves here,” he said.

“It’s developing career paths for young people.”

That puts the endeavor in line with Vision 2030, Crown Prince Mohammad bin Salman’s all-encompassing plan to diversify the oil-rich kingdom’s economy and change its reputation from strict religious realm to tourism and sports hot spot, all while providing jobs for young Saudis.

But first you have to get people interested in F1.

Soccer remains far and away the most popular sport in Saudi Arabia and throughout the region, but Liberty representatives have identified the Middle East as one of F1’s fastest-growing markets.

About a third of F1’s roughly 1.55 billion fans worldwide became interested in the sport in the last four years, according to Salesforce data. Meanwhile, analysts at the World Economic Forum predict sport industries in the Middle East to grow by 8.7% in 2026 — more than double the global average.

The region, meanwhile, has gone all-in with Formula One. Races in the Gulf bookend the season — Bahrain in the beginning, Abu Dhabi at the end. The Gulf region is home to four races, the second most after Europe’s nine.

At F1’s top administrative levels you find Emirati former rally driver Mohammed Ben Sulayem heading the Federation Internationale de l’Automobile, or FIA, the sport’s governing body. Bahrain’s Sheikh Abdullah bin Hamad bin Isa Al Khalifa serves as the FIA’s vice-president of sport for the Middle East and North Africa.

Almost anyone who attends an F1 race, if they’re honest, will tell you it’s easier to understand what’s happening if you watch it on TV. But it’s not just about who’s leading the field.

In Jeddah, the rich and connected watch the race from the premium lounge, with a commanding view of the track and “grazing tables” loaded with precision-prepared pastries and concoctions such as caviar cheesecake. Extra perks include traversing the pit lane as the teams prepare or paddock access, all the way up to meet-and-greets with F1 ambassadors. The price tag on that sort of package? $13,999.

In the cheap seats — which at a cost of at least $200 for a three-day pass are hardly cheap and allow only the occasional glance at the cars as they scream by — the fans didn’t seem to miss the caviar cheesecake.

Before the Jeddah race, a DJ bounced among fans, riling up the crowd with impromptu quizzes or throwing F1 merch, and some of the drivers passed by and signed shirts. Above, the Saudi Falcons, the country’s jet aerobatics team, roared back and forth over the circuit.

Even in the stands farther from the track the sound of an F1 car is a multisensory affair: speed takes on physical proportions, the engine roar passes through your body.

“My friends and I are really into it. In my community, at least, there are a lot of F1 fans,” said Sireen Fataani, a 16-year-old wearing a Ferrari jacket. Beside her was Ibaa Qattan, also 16, and her sister, Shumookh Qattan, 22.

The three were walking around the pit lane after one of the non-F1 races at the track that weekend, gazing at the cars and hoping to catch a glimpse of some of their favorite drivers — McLaren’s Oscar Piastri for Sireen, Mercedes’ George Russell for Ibaa, and McLaren’s Lando Norris for Shumookh.

“I wanted something to be obsessed about one summer, and for me it was F1,” Ibaa said.

She insisted she didn’t get into it because of “Drive to Survive.” “Too much drama,” she said dismissively.

Both of the teens were enrolled in “F1 in Schools,” an Aramco-sponsored program that has students establishing and managing their own racing team as part of STEM and other lessons. Ibaa had taken on the role of head engineer for her team, while Sireen was doing marketing.

“Ours is called Fennec,” she said. “It’s a desert fox that lives in Saudi Arabia.”

Not everyone is convinced that the region’s plans to build up its racing bonafides are a good thing.

There have been grumblings over how the infusion of Gulf money has changed F1. Hosting a race is prestigious and a calling card for countries, but the high fees — Saudi Arabia pays an estimated $55 million for the honor — mean storied tracks in Europe (where the most die-hard fans reside) have to compete in ways they didn’t before, and without the coffers of a petrostate backing them up.

Aside from the fees, tracks such as Belgium’s Spa have been forced into upgrades and expensive face-lifts or risk being dropped from the F1 calendar.

Corruption charges have also been leveled at the FIA’s leadership under Ben Sulayem. He was accused in March of trying to block the Las Vegas circuit from being certified ahead of last year’s Grand Prix. That followed a previous accusation that he had interfered in the 2023 Saudi Arabia Grand Prix in favor of Aston Martin. The FIA’s ethics committee cleared him of both charges.

And then there are the accusations of sportswashing, as wealthy nondemocratic countries try to lure more sporting events to the Gulf.

During the last soccer World Cup, host Qatar, which had already bought the French team Paris Saint-Germain, was accused of trying to launder its repressive reputation. The monarchy’s human rights record and labor rights nevertheless edged into the spotlight.

Saudi Arabia’s efforts in soccer, Formula One and golf, among other sports, have kicked up similar criticism as Saudi money has continued to flow.

“The leaders of these autocratic nations strategically utilize sports, leveraging major events such as Formula One to operate beyond the conventional political stage,” said Stanis Elsborg, a Danish researcher with Play the Game, an initiative to promote democracy and transparency in international sports.

“While immediate changes may be subtle, the long-term ownership by an autocratic state poses substantial threats to the sport’s integrity and introduces conflicts of interest.”

Others allege that Saudi Arabia is leveraging its influence on F1 officials to have them lobby governments to weaken legislation that curbs usage of internal combustion engines and fossil fuels.

“If your goal is to diversify into other industries, it’s a little inconsistent that your sponsorship is all about the oil business,” said Frank Huisingh, founder of Fossil Free Football, a campaign organization that aims to remove high-polluting companies from soccer sponsorship.

“They need to work on their image to keep selling a product that is becoming very unpopular but also because they’re a country with a bad reputation for both human rights and climate reasons.”

In an interview with Fox News in September, Bin Salman dismissed such accusations, insisting his main concerns are domestic growth.

“If sportswashing is going to increase my GDP by way of 1%, then I will continue doing sportswashing,” he said.

“I don’t care... I’m aiming for another one-and-a-half percent. Call it whatever you want, we’re going to get that one-and-a-half percent.”

In that same interview, Bin Salman expressed shame at the country’s repressive laws, but said that dozens of laws had been amended and that he was “trying to prioritize the change day by day,”

“Do we have bad laws? Yes. Are we changing that? Yes,” he said.

F1 portrays its involvement in Saudi Arabia and the Gulf in general as a driver for that change. During the race weekend, F1 Academy, an all-women’s race series and training program run by Scottish former racing driver Susie Wolff, had its season opener in Jeddah. Wolff called the event “iconic.”

“I think to open here in a country where just six years ago women couldn’t drive really shows incredible progress,” she said at a panel on sports’ role in Saudi Arabia.

“Sometimes in life, you have to see it to believe it. And we are out there to show that this sport wants to provide opportunity to women and wants to make the sport more diverse in the long term.”

Drivers were also encouraging.

“We are not going to change the world at the end of the day as a sport, but we try to share positive values. And then, of course, it’s also up to the country to make positive changes,” Max Verstappen said at a post-race news conference. The Belgian-Dutch Red Bull driver added that he had already seen change in the kingdom and that it was a “work in progress.”

Ferrari driver Charles Leclerc, who is from Monaco, said F1 needed to go to different countries “in order to hopefully open minds.” Red Bull driver Sergio Pérez said it was important to expand beyond its traditional areas.

“I feel like in the past, Formula One was very centralized in Europe, not just with drivers, but also the people working in the paddock,” said Pérez, who is from Mexico, adding that now there were more nationalities at different levels of the sport.

Some in the Gulf are already on the yearslong journey to score a place on the F1 grid.

Sisters Amna, 24, and Hamda Al Qubaisi, 21, started karting in their home country of the United Arab Emirates as children with their father’s encouragement and are now part of F1 Academy. In 2021, Hamda became the first woman to win a podium finish in the history of the Italian F4 series.

When they started competing in races, they’d hear grumblings and anger from the Gulf region.

“In the beginning people were very unsupportive. They didn’t like the fact there was a girl competing in a male-dominated sport. We’d hear ‘Women belong in the kitchen. Women aren’t supposed to be playing a sport, they should focus on studies or something else,’” Amna Al Qubaisi said.

Now “everything switched, and people are happy and supportive of what we’re doing,” she added.

Their racing careers have encouraged other women and girls, Hamda Al Qubaisi said. “They tell their father ‘Amna and Hamda are racing,’ and then he says ‘Why not?’”

“Every time we go back to visit our karting team, we’re seeing it grow more and more with girls from the Middle East, which makes it even more special.”

When Saudi Arabia’s first female racer, Reema Juffali, 32, got her first regular driver’s license while studying in the U.S. in 2010, women in the kingdom weren’t allowed behind the wheel.

Seven years later, King Salman, Bin Salman’s father, issued a decree overturning the ban on women driving. That same year, Juffali — then working a finance job in the U.K. — got her racing license, the first Saudi woman to do so. She made her professional debut at the TRD 86 Cup in Abu Dhabi in 2018 — the same year the kingdom began issuing driver licenses to women.

Nearly six years later, Juffali sped through the turns in front of a home city crowd in the first F1 Academy race in Jeddah, also a significant and emotional milestone for her.

“I’ve been wanting to be able to share what I do with my friends, family, fans, people who have never really been able to come to my races,” she said.

But while there is progress on the track and some restrictions against women have been eased to much fanfare, women in Saudi Arabia are far from enjoying equal rights. Under the patriarchal government, women need a male guardian’s approval to get married or divorced. They are required by personal status laws to obey their husbands, and the law places fathers as the default guardians for children, among other limitations on women.

And though women are now able to drive, one activist who campaigned to overturn the driving ban is still caught up in Bin Salman’s crackdown on dissent.

Loujain al-Hathloul, who was imprisoned from 2018 until 2021, remains barred from leaving Saudi Arabia. Manahel al-Otaibi, 29, another women’s rights activist who had spoken in favor of Bin Salman’s reforms but called for more change to the male guardianship laws, was sentenced in January to 11 years for what the government labeled “terror offenses.”

Though Juffali acknowledges the criticism of her country, she says people need to come to Saudi Arabia and see the changes happening themselves.

“We’re not just advancing on sports, which speaks to me personally, but also to see young people who are so much more ambitious, so much more hungry and happy — I feel that when I’m here,” she said.

Juffali aims to boost Saudi participation in racing through the team she founded, Theeba Motorsport, named for her childhood nickname, which roughly translates as “she-wolf.” She hopes Theeba will become the first Saudi team to compete in the 24 Hours of Le Mans.

“The aim is to one day be a Saudi team — not just drivers, but mechanics, engineers, for all facets of the team be Saudi,” Juffali said.

“These events we have, they’re for Saudis as well. This is serving a bigger purpose than anyone realizes.”

More to Read

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Nabih Bulos is the Middle East bureau chief for the Los Angeles Times. Since 2012, he has covered the aftermath of the “Arab Spring” revolution as well as the Islamic State’s resurgence and the campaign to defeat it. His work has taken him to Syria, Iraq, Libya, Turkey, Lebanon, Jordan and Yemen as well as on the migrant trail through the Balkans and northern Europe. A Fulbright scholar, Bulos is also a concert violinist who has performed with Daniel Barenboim, Valeri Gergyev and Bono.

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