Saudi Tourism: A Unique Blend of Authentic Heritage and Modernity Fueling an Exceptional Development Journey

Tourism Development Fund: Support and Empowerment

The Kingdom has a rich history and civilization, making it a distinctive global tourist destination. This diversity has compelled the Saudi government to focus on boosting this promising sector. A royal decree established the Tourism Development Fund in 2020, aligning with Saudi Vision 2030, to act as a strategic partner in the tourism sector's development.

The Fund, operating within the development ecosystem supervised by the National Development Fund, aims to facilitate attracting foreign investors to the main destinations in the kingdom, support and empower them in substantial projects while collaborating with public and private financiers and supporting the national tourism ecosystem.

One of Saudi tourism's primary objectives is for the tourism sector to contribute 10% to the Gross Domestic Product by 2030 and to provide approximately one million extra job opportunities across various sectors within the tourism industry. Saudi Vision 2030 aims to optimize the tourism sector’s potential by providing captivating experiences grounded in a rich heritage, mega projects, and stunning natural landscapes. Saudi Arabia seeks to draw 30 million pilgrims by 2030, positioning itself as the foremost destination for Muslim religious tourism globally.

AI-Fakhri: 137 projects, valued at SAR 40 billion, have been facilitated by the Tourism Development Fund.

Qusai AI-Fakhri, CEO of the Tourism Development Fund, stated that the Fund provides business solutions and financing products for large, medium, and small tourism projects. He explained that since its inception in 2020, the Fund has facilitated over 137 eligible tourism projects, amounting to approximately SAR 40 billion to enhance the tourism infrastructure throughout several regions in the Kingdom. He noted that the TDF will enhance competitiveness, stimulate domestic investment, and attract international investments to foster non-oil economic growth in the forthcoming period. He stated that the Fund executed a Memorandum of Understanding with Ennismore to establish a SAR 1.5 billion investment fund that will bring at least 12 Ennismore lifestyle hotels to Saudi Arabia, offering approximately 2,000 hotel rooms and improving tourism infrastructure.

Divehood Platform: A Digital Innovation Boosting the Tourism Sector

Deep within the oceans, an ambitious dream was conceived: to establish a platform that connects underwater adventure enthusiasts with local and international dive service providers for exploration experiences. Divehood is a digital platform designed to foster innovation within the tourism sector. Supported by the Tourism Development Fund, the platform was established to provide access to the underwater realm.

Platform founder Haitham Khayat shares his success story: "We successfully realized our vision for the platform in an unprecedented timeframe due to the support from the Tourism Development Fund. They provided funding and were a true collaborator in our pursuit of success."

Tourism Sector Sees High Visitor Numbers and Spending Rates

According to the most recent data for the first seven months of 2024, Saudi Arabia maintains its position as the leading G20 nation in growth for international tourist arrivals and tourism revenue compared to the equivalent period in 2019. The Kingdom has experienced a 73% increase in tourist arrivals, while international tourism revenue surged by 207%, as reported in the UN World Tourism Barometer published in September 2024.

In its September report subsequent to the "2024 Article 4 Consultations," the International Monetary Fund praised the accomplishments of Saudi Arabia's tourism sector, where its contribution to the Gross Domestic Product reached 11.5% in 2023. The report forecasted that this contribution will increase to 16% by 2034.

Hotel & Hospitality Expo Saudi Arabia 2024: A Hub for Industry Experts

The Hotel and Hospitality Expo Saudi Arabia 2024 was held at the Riyadh Front Exhibition & Conference Center from September 17 to 19. The event convened a varied gathering of companies and institutions to exhibit their latest innovations and solutions, addressing the swiftly growing demands of the Saudi hospitality sector. Over 750 participants of local and international exhibitors from over 40 countries.

This exhibition, the preeminent commercial event for hospitality professionals in the Kingdom, provided an optimal platform for knowledge exchange, developing partnerships among diverse industry stakeholders, tackling contemporary challenges, exploring opportunities, fostering innovation in a swiftly changing market, and improving the Kingdom’s hospitality sector to support its ambitious tourism objectives.

Aljadaan: The government is executing strategic projects to achieve sustainable development

The Ministry of Finance has released the preliminary statement of the general state budget for the fiscal year 2025, projecting total expenditures of approximately SAR 1,285 billion and total revenues of about SAR 1,184 billion.

His Excellency the Minister of Finance, Mohammed Aljadaan, reiterated the government’s commitment to enhancing spending on vital services and executing strategic projects to stimulate economic growth. Aljadaan emphasized the National Development Fund’s crucial role and the role of associated development funds and banks in fostering financial stability. The budget statement commended the Fund’s efforts since the launch of Saudi Vision 2030. It highlighted the Fund’s role in ensuring optimal investment of capital and its allocation to sustainable and promising projects. This was achieved through its oversight of development funds and banks, which have increased from six at the inception of the Vision to 12, contributing over SAR 30 billion to the national GDP in 2023.

SIDF to Increase Loans to SMEs By 80%

Prince Sultan bin Khalid bin Faisal, CEO of the Saudi Industrial Development Fund, affirmed that the Fund aims to provide support to SMEs at a rate of 80% annually from the total financing portfolio. He explained that SMEs account for 77% of the Fund’s financing portfolio, exceeding 10 billion Saudi Riyals.

ADF Approves Over SAR 2 Billion in Financing Loans

The Board of Directors of the Agricultural Development Fund held its third meeting of the current fiscal year. It approved financing loans and credit facilities surpassing SAR 2 billion across various regions of the Kingdom. These included development loans and project funding across multiple sectors to bolster local production and guarantee food security. Key sectors benefiting from these funds include red meat production, broiler chicken, egg production, protected vegetable cultivation, and fish farming.

Wahdan Alkadi Appointed CEO of EIF

The Board of Directors of the Events Investment Fund has appointed Mr. Wahdan Suliman Alkadi as Chief Executive Officer. This appointment will substantially contribute to fulfilling the Fund’s objectives as a pivotal catalyst for progressing the national events sector. Furthermore, it will expand the scope of this global industry and bolster the Kingdom’s ability to host international events, aligning with the goals of the Quality of Life Program, a component of the Saudi Vision 2030.

AlJawini: Significant Wage Growth for Saudis in the Private Sector

Turki bin Abdullah AlJawini, Director General of the Human Resources Development Fund, underscored the critical role of human capital as a fundamental catalyst for global development plans. He emphasized that Saudi Vision 2030 prioritizes this aspect, asserting that the Fund aims to develop, qualify, and employ national talent.

In a comprehensive interview with media personality Abdullah Al Mudaifer on the “In the Picture” program, he clarified that Saudi personnel have been employed across diverse sectors, resulting in a notable 15% wage increase by the end of 2023, relative to the end of 2021.

He specified that, according to reports from the National Labor Observatory, the number of private sector employees in the Kingdom earning over SAR 20,000 has increased to 202,000 in 2023.

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