Latest news with #economicdiversification
Arab News
13 hours ago
- Business
- Arab News
Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year
RIYADH: Saudi Arabia welcomed 116 million tourists in 2024, exceeding its annual visitor target for the second year in a row, the official data showed. According to the Ministry of Tourism's latest annual statistical report, the figure includes 29.7 million inbound tourists, an 8 percent increase year on year, and 86.2 million domestic trips, up 5 percent from 2023. The milestone reflects the continued acceleration of the Kingdom's Vision 2030 strategy, which positions tourism as a central driver of economic diversification. After surpassing its original 100 million visitor goal six years ahead of schedule in 2023, Saudi Arabia has revised its ambitions upward, now aiming to attract 150 million tourists annually by 2030. This figure is split between 70 million international and 80 million domestic visitors. In a post on X, Minister of Tourism Ahmed Al-Khateeb said: 'The 2024 Annual Statistical Report showcases the sector's remarkable growth and its role in enabling Saudi Vision2030, a record performance achieved with the support and guidance of the Kingdom's visionary leadership.' Total tourism spending in 2024 hit SR283.8 billion ($75.6 billion), with inbound tourists contributing SR168.5 billion, up 19 percent from 2023, while domestic tourist expenditure reached SR115.3 billion, a 1 percent rise. 'The tourism sector continued to achieve record growth, reaffirming its transformation into a key driver of economic development and a fundamental pillar in advancing and diversifying the national economy,' the minister said. Inbound tourism also reached a record monthly peak in March with 3.2 million visitors. The average international tourist stayed 19 nights and spent SR5,669 per trip. A standout development in 2024 was the continued rise in non-religious tourism, now representing 59 percent of inbound visits compared to 44 percent in 2019. Leisure and holiday travel topped this category, with related spending reaching SR36.4 billion. Makkah remained the top destination, drawing 17.4 million overnight visitors, and Egypt was the leading source market with 3.2 million arrivals. Regional analysis revealed that Asia and the Pacific accounted for the largest share of inbound tourists, at 33 percent, followed by the Middle East and North Africa at 28 percent, and the Gulf Cooperation Council at 27 percent. Europe contributed 8 percent, while both the Americas and Africa each made up 2 percent of total visitors. The sustained growth reflects the Kingdom's continued focus on developing its tourism infrastructure and global outreach. The ministry noted that this report highlights the exceptional and accelerated growth achieved by the sector through targeted marketing campaigns and support programs, contributing to the sector's record-breaking performance.
Times of Oman
16 hours ago
- Business
- Times of Oman
Concession agreement inked for natural salt production in Concession Area 'I-51' in Al Wusta
Muscat: The Ministry of Energy and Minerals on Sunday signed a mining concession agreement with the Global Integrated Engineering Company for Concession Area "I-51" in Al Wusta Governorate. The project has an estimated production capacity of 1.2 million tonnes annually, covering an area of 15 square kilometres. The agreement was signed on behalf of the government of the Sultanate of Oman by Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, and on behalf of the Company by Ali Salim Al Junaibi, Chairman of the company's Board of Directors. The agreement aims to increase the production capacity of salt compounds from the existing plant and establish additional facilities to boost natural salt output. The process involves extracting salt from the area by constructing seawater storage ponds, allowing natural evaporation through wind and solar heat, followed by drying, refining, purifying, and packaging the salt. The expected investment value is OMR200 million. Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, emphasised that this project represents a significant strategic step that will effectively contribute to advancing economic diversification in Oman. He added that the project is expected to generate numerous job opportunities for Omani citizens. He noted that the primary objective is to enhance natural salt production and develop its industrial derivatives for use in diverse projects that support sustainable development. He further highlighted that this project is the third of its kind for sea salt production in Oman, reflecting the ministry's efforts to promote local industries, maximize the utilization of natural resources, and reduce reliance on imported products. Ali Salim Al Junaibi stated that securing the concession rights for Area I-51 in Al Wusta Governorate will increase the plant's production capacity to one million tons annually. This is expected to meet the needs of the local market and emerging downstream industries currently under development as part of the economic projects under "Oman Vision 2040." He added that the company will produce multiple salt derivatives required by both local and global markets, particularly those used in food processing, animal feed, and pharmaceutical industries. He explained that this agreement reinforces the government's approach toward localizing industries, optimising natural resource utilisation, and reducing dependence on imported products. This will enhance the performance of the national economy and generate diverse employment opportunities for Omani professionals, as well as subcontracting prospects for small and medium enterprises.
Arab News
17 hours ago
- Business
- Arab News
Gulf visitor spending to hit $224bn by 2034, GCC-Stat says
RIYADH: Visitor spending in Gulf Cooperation Council nations is projected to reach $223.7 billion by 2034, driven by economic diversification, mega-projects, infrastructure upgrades, and relaxed visa policies, new data showed. According to the GCC Statistical Center, as reported by Emirates News Agency – WAM, inbound visitor spending is expected to contribute 13.4 percent to the region's total exports — underscoring tourism's growing role in Gulf economies seeking to reduce dependence on oil. This comes as GCC countries, led by Saudi Arabia, ramp up efforts to diversify their economies by investing in tourism. Central to Saudi Vision 2030 is a goal to raise tourism's share of gross domestic product from 3 to 10 percent and attract 150 million annual visits, with mega-projects like NEOM spearheading the shift. The WAM report stated: 'The centre also indicated that GCC countries are achieving steady progress in many tourism-related indicators.' It added: 'The data demonstrate that total international visitor spending in GCC countries amounted to $135.5 billion in 2023, with a 28.9 percent increase compared to the figures recorded in 2019.' GCC countries also lead the Middle East and North Africa region in safety and security, outperforming the regional average of 5.86 points on a scale of 1 to 7. Additionally, all six Gulf states rank among the top Arab nations in terms of passport power, reinforcing their global travel competitiveness. The findings underscored the GCC's growing appeal as a premier tourism and business destination. This tourism boom aligns with broader economic diversification plans as oil-reliant nations shift their focus toward hospitality, entertainment, and business travel. Additionally, more flexible visa policies and improved infrastructure — such as modern airports and strong safety standards — are helping the region gradually become more attractive to international tourists, offering an alternative to traditional destinations like Europe and Asia. The GCC's geographic advantage as a bridge between East and West, coupled with investments in aviation, has turned the region into a global transit and tourism hotspot. All GCC nations are collectively transforming into a global tourism powerhouse, each leveraging unique strengths under ambitious national strategies. According to a report by consultancy firm Roland Berger, Saudi Arabia leads with Vision 2030, combining religious pilgrimage with giga-projects like NEOM. The UAE counters with its Tourism Strategy 2031, doubling down on its established formula of luxury experiences and cultural fusion, aiming for 40 million hotel guests. Qatar, building on its World Cup, is refining its urban tourism appeal, while Oman bets on natural beauty to attract 11 million annual visitors. Even smaller players like Bahrain and Kuwait are making strategic moves — Bahrain by leveraging Formula 1 to boost leisure tourism and Kuwait through investments in entertainment infrastructure.
Arab News
a day ago
- Automotive
- Arab News
Formula 1 turbocharges Saudi economic diversification drive
JEDDAH: Saudi Arabia is accelerating its push to diversify its economy by turning to major international events such as Formula 1, as the Kingdom uses global motorsports to support its non-oil goals. Since hosting its first Grand Prix in 2021, the Kingdom has funneled more than $6 billion into its sports industry, part of a broader plan to boost tourism, create jobs, and raise non-oil activities to 52 percent of gross domestic product — a 20 percent jump since the launch of Vision 2030. With plans underway to move the race to Qiddiya City between 2027 and 2029, the Kingdom is deepening its investment in the sport as part of a broader strategy to stimulate economic activity and position itself as a global hub for elite sports and entertainment. High-profile events such as the Formula 1 Grand Prix in Jeddah exemplify how international sporting platforms are being used to stimulate tourism and highlight the Kingdom's economic transformation. Tamer Al-Sayed, chief financial officer at the Future Investment Initiative Institute, told Arab News that Formula 1 was never just about cars on a track. 'It was a high-velocity statement. A signal to the world that Saudi Arabia is playing a new game — and playing to win,' he said. Formula 1 has experienced a significant rise in popularity, with its global fan base reaching 826.5 million and viewership climbing to 1.6 billion in 2024, according to a recent report by PwC titled 'Saudi Arabia's motorsport ambition – Technology, investment and the future of racing.' The global consultancy firm's report noted that beyond Formula 1, motorsports are expanding into electric racing and other formats such as sports car and off-road competitions, driven by technological innovation and a worldwide push for sustainability. Global popularity surged after Liberty Media's 2017 acquisition of Formula 1 and the 2019 Drive to Survive series, which drew younger, more diverse audiences — doubling US viewership on ESPN and boosting sponsorship revenue to $632 million in 2024, according to PwC. Economic impact Flagship international events in Saudi Arabia, like the Formula 1 Grand Prix, are playing a pivotal role in driving tourism, stimulating local commerce, and showcasing the Kingdom's growing appeal as a global destination. According to PwC's report, Saudi Arabia's strategic investments in motorsports are positioning the Kingdom as a key player in the industry's future. The report said Saudi Arabia is aggressively cementing its role in motorsports' future. 'The Kingdom has committed over $6 billion to its sports industry since 2021, fueling the development of world-class venues like the Jeddah Corniche Circuit and the upcoming Qiddiya Speed Park,' it added. This global expansion reflects the sport's soaring popularity, especially among younger audiences and emerging markets. Saudi Arabia has managed to secure a long-term position in that landscape. Yaseen Ghulam, associate professor of economics and director of research at Al-Yamamah University However, the report emphasized that the success of a modern motorsport circuit relies not only on financial investment but also on innovation in fan engagement, race operations, and digital broadcasting to ensure long-term success. With the Kingdom and the wider region increasing their investment in motorsports, new opportunities for economic growth and innovation are unfolding. 'As Saudi Arabia and the broader MENA region invest in motorsports and advanced racing technologies, the opportunity to commercialize and expand these innovations into other industries grows exponentially,' the PwC's report said. Al-Sayed noted that the economic ripple effects of events like Formula 1 have moved beyond anecdotal observations and are now supported by measurable data. 'In pure numbers: Since the first Saudi Grand Prix in 2021, tourism linked to the event has driven six-figure visitor volumes annually. Hotels hit peak occupancy. Flights sell out. Local businesses — from luxury brands to food trucks — ride that wave. These aren't soft indicators; they're measurable economic inputs,' he added. More importantly, Al-Sayed said, this is not a one-off surge but rather a case study in how a flagship event can anchor a broader sector. 'Entertainment and tourism — both once peripheral — are now pushing serious weight in the non-oil GDP mix. You can see the reflection in the Ministry of Tourism's own targets: 150 million annual visitors by 2030, with sports and cultural events as core levers,' he added. As for the event's impact on employment, the chief officer said that it extends beyond temporary jobs, highlighting the emergence of an entire ecosystem encompassing event production, hospitality, and logistics, as well as digital media, security, and sponsorship management. 'Each Grand Prix fuels demand across this chain, and each year the local capability strengthens. So yes, F1 was expensive. But so was missing out on the future,' he said. Al-Sayed expressed confidence that in a decade, the question will not be why Saudi Arabia invested heavily in sports and entertainment, but rather how it anticipated the trend ahead of the rest of the world. Yaseen Ghulam, associate professor of economics and director of research at Al-Yamamah University in Riyadh, said that Formula 1 is more than just a sport — it serves as a global platform for economic influence and visibility. 'The Las Vegas Grand Prix generated over $1.2 billion in economic activity, with racegoers spending nearly three times more than average tourists,' he said, noting that similar benefits are beginning to emerge in Saudi Arabia. He also mentioned that hotel prices in Jeddah during the 2021 Formula 1 race exceeded $450 per night, reflecting high demand and a significant impact on the local tourism and hospitality sectors. 'This global expansion reflects the sport's soaring popularity, especially among younger audiences and emerging markets. Saudi Arabia has managed to secure a long-term position in that landscape,' Ghulam added. The associate professor went on to say that global sports events, such as Formula 1 or the Olympics, bring pride, increased productivity, and deliver higher well-being to nations through buzz, branding, and business potential. 'However, economic analysis of the costs and benefits, as well as financial risks, of hosting F1 is often overlooked. Saudi Arabia has been hosting F1 events exceptionally well since 2021,' he said. From Jeddah to Qiddiya The Qiddiya megaproject in Riyadh, announced in March 2024, will feature one of the world's most innovative motorsport tracks, with the configurable Speed Park Track located at the heart of Qiddiya City, positioning the Kingdom as a global racing destination. Al-Sayed called Jeddah the proof of concept and Qiddiya the blueprint for Saudi Arabia's motorsports strategy. He elaborated further on the success of the Jeddah circuit, noting: 'When we launched the Jeddah circuit, the global motorsports community raised its eyebrows — and then had to admit it delivered. The fastest street circuit in F1, with a breathtaking Red Sea backdrop, timed perfectly with the Kingdom's rising international profile.' Al-Sayed called Qiddiya a masterstroke — a vision beyond a venue — designed to place Formula 1 at its core while driving growth in infrastructure, real estate, tourism, and creative industries. 'It is one of those projects where the economic spillover is the point,' he said. Echoing Al-Sayed's remarks, Ghulam noted that when Qiddiya hosts its first Saudi Grand Prix — possibly in 2029 — it will undoubtedly make waves, following the strong precedent set by Jeddah. 'It would not be surprising if Saudi Arabia opted to hold two races in the near future in accordance with Saudi Vision 2030, since F1 now hosts three races in the US – Miami, Austin, and Vegas,' Ghulam concluded.
Times of Oman
2 days ago
- Business
- Times of Oman
Oman reports major strides in implementing Tenth Five-Year development plan
Muscat: The Ministry of Economy has reported significant progress in implementing the Tenth Five-Year Development Plan (2021–2025), which aligns with Oman Vision 2040. Notably, development project funding has surged to OMR 11 billion, up 72% from the initial OMR 6.4 billion. This growth follows the completion and launch of numerous infrastructure and economic diversification initiatives across various service and social sectors. These efforts are supporting the Vision 2040 goals of comprehensive, balanced development by upgrading public services, improving infrastructure, and boosting investment in all governorates. According to the Ministry, 95% of the plan's 412 strategic programs are already underway, spanning 14 national priorities and covering all four pillars of the vision. A breakdown of program progress and objectives includes: - Youth Sector: All 3 programs implemented, focused on sector governance, youth engagement, and skill development. - Health Priority: All 6 programs in motion—building hospitals, enhancing health coverage, and implementing digital transformation. - Education and Scientific Capacity: 65 of 70 programs active, including capacity building, governance reforms, career guidance, and innovation promotion. - Citizenship, Heritage, and Culture: 43 of 45 programs launched, such as tourism data systems, national talent training, and international cultural events. - Social Welfare: 25 of 26 programs operational, with housing support, disability-inclusive festivals, sports promotion, and social insurance sustainability efforts. Under the Economy and Development pillar, 152 programs are underway, with 98% already being implemented. These include: - Advanced urban services, community organisation roles in housing, land development for investment, and decentralised economic management. - All 17 programs targeting the private sector, investment, and international cooperation are live—featuring loan guarantees, SME growth programs, and cost optimization in oil and gas. The ICT priority has activated all 20 programs, encompassing the national digital economy strategy, smart city networks, cyber awareness campaigns, and digital upskilling programs. The flagship initiative 'Makeen' has trained over 8,200 Omanis through 126 sessions and set the groundwork for Oman's future tech talent hubs. Under the Economic Leadership and Management Priority, all six associated programs are currently being implemented. These include developing a more advanced and efficient public finance management system, establishing a national registry for government assets, creating an empowered and effective body responsible for coordinating economic decisions and preparing a national policy guide, and updating economic legislation to stimulate activity and enhance competitiveness. Additionally, 60 out of 62 programs under the Economic Diversification and Financial Sustainability Priority have entered the implementation phase. They include initiatives such as empowering startups in Fourth Industrial Revolution technologies, expanding national data center and government cloud services, strengthening innovation and operational efficiency in public institutions, unified global software licensing management, reviewing government service fees, monitoring the performance and competitiveness of the logistics sector, and maximizing local value in transport, communications, and IT projects. Other notable initiatives include support for national industries and Omani products, modernization of financial legislation in the mining sector, updating the Mineral Resources Law, promoting investment in mining, developing a digital mining platform, enhancing local company and SME participation in the energy and mining sectors, and advancing digital transformation in government services. As for the Labor Market and Employment Priority, 17 out of 18 programs are active. These focus on drafting the National Employment Strategy, improving labor policies and legislation, implementing an effective nationalization (Omanization) mechanism, rolling out replacement-linked training initiatives, offering specialized entrepreneurship programs in cooperation with relevant agencies, and cultivating a culture of empowerment for national talent in the energy and mining sectors. Under the Sustainable Environment pillar, a total of 56 programs have been outlined, with 95% (53 programs) already in implementation. These include key initiatives such as updating environmental policies and legislation, sustainable biodiversity management, a national strategy for chemical and agricultural soil conditioner management, regulation of pesticides and fertilizers, enhancement of palm productivity, the establishment of a national environmental monitoring and control system, development of a national environmental information system to support decision-making, and programs to support fishing vessels and equipment. In the Governance and Institutional Performance pillar, 54 programs are aligned with its priorities. As of Q1 2025, 87% are in execution. Notably, 13 out of 14 programs in the legislative, judicial, and oversight areas have been launched—covering anti-corruption, public fund protection, oversight capacity-building, governance of national resources and projects, and improving civil aviation security in line with international standards. Within the Public Administration Governance Priority, 34 out of 40 programs are active. These include ensuring governmental compliance, evaluating governance in state-owned enterprises, and developing legal, regulatory, and policy frameworks for the telecom and IT sectors. Other ongoing efforts include establishing a national innovation and change management system, an innovation lab for performance improvement, integration of e-government services, performance measurement systems, and upgrading the infrastructure and technical support for national networks. As for development projects under implementation*during the 2021–2025 plan, notable progress has been made: - In the infrastructure sector, Phase 1 of Sultan Haitham City is 80% complete, with Phase 2 at 45%. The structural planning for Greater Muscat, Salalah, Nizwa, and Haima stands at 25%. - Road sector projects show varied completion rates: Khasab–Daba–Lima road at 40%, Adam–Thumrait dualization at 32%, Al-Amirat's Al-Joud Street at 79%, Dhofar's Darbat tunnel at 90%, Sultan Qaboos Street dualization in Salalah at 81%, and various others ranging from 20% to 86%. In the social services sector, construction of health facilities is progressing strongly: Sultan Qaboos Hospital (Salalah) is 58% complete, Madha Hospital 86%, Suwaiq Hospital 77%, and other facilities such as Wadi Bani Khalid, Samail, Falah, and Namah Hospitals progressing between 3% to 82%. The new Infectious Diseases Lab has reached 91%. In the education sector, 69 new schools are being built across the Sultanate, with an average completion rate of 50%. In productive sectors: - Date palm weevil eradication is at 80%, palm seedling productivity at 95%, desert locust control at 90%, agricultural and fisheries development at 59%, and animal disease surveillance at 95%. - Fishing port infrastructure upgrades are ongoing, with Daba Port (86%) and Kumzar Port (45%) undergoing improvements. Additionally, data preservation in the oil and gas sector and smart monitoring of mineral output are also underway. Finally, in the productive services sector, major projects are nearing completion: the Oman Botanical Garden (95%), municipal service improvements in Dhofar tourist areas (95%), coastal development in Shuwaymiyah and Taqah (20%), and multiple urban promenade and tourism marketing initiatives all contributing to enhanced service quality, tourism appeal, and housing aid delivery, with some projects like the housing assistance program achieving 92% completion.
