Saudi Arabia looks to the future — by stepping 5,000 years into the past

The archaeological treasure house of Madain Saleh (above); the Arabian Travel Market’s global reach (below).
Updated 22 April 2018
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Saudi Arabia looks to the future — by stepping 5,000 years into the past

  • Kingdom developing tourism sector as part of economic diversification strategy
  • Vision 2030 foresees 1.2 million new tourist jobs by 2030

LONDON: It is the leading global event for Middle Eastern tourism and it opens on Sunday in Dubai. The Arabian Travel Market attracts the big players of the industry and the wannabes. It showcases 2,800 products to more than 28,000 potential buyers and generates deals worth more than $2.5 billion.

No wonder the world wants to be there, from spas to safaris, from Armenia to Zanzibar and all points between in both the globe and the alphabet.

But this year, one destination is set to attract more attention than any other: Saudi Arabia.

The Kingdom’s tourism industry has hitherto centered primarily on the holy cities of Makkah and Madinah; last year’s Hajj attracted around 2.35 million pilgrims, with about 1.75 million of those coming from abroad.

When it comes to non-religious tourism however, it is in the unique position of creating that industry more or less from scratch, which is an enviable place to be.

“It means we are able to learn from the mistakes of others and we can take the best from everywhere,” said Amr Al-Madani, CEO of the Royal Commission for Al-Ula, Saudi Arabia’s archaeological treasure house and home to the Unesco-listed Madain Saleh.

“And we are determined to offer the best in every way,” he added.

Al-Madani recently returned from presenting the plans for Al-Ula at a high-profile gala at the Museum of Decorative Arts in Paris, an occasion that coincided with the visit of Crown Prince, Mohammed bin Salman, the driving force behind Vision2030, the ambitious program designed to revamp not only the national economy but Saudi society as a whole.

Once regarded as practically off-limits to visitors and particularly Westerners (although that was never true), Saudi Arabia is throwing open the gates, as part of plans to diversify its economy and create jobs for its citizens.

The Kingdom’s Vision 2030 economic development plan, designed to create new revenue streams to lower its reliance on oil, envisages the creation of 1.2 million new jobs in the tourism sector by 2030.

Saudi Arabia’s General Entertainment Authority in February said it planned to invest $64 billion in its entertainment sector in the coming 10 years. This investment will include the development of a countrywide network of cinemas, following the lifting of a ban last year.

As well as opening up the 5,000-year-old wonders of Al-Ula, there are plans to develop 34,000 square kilometers of Red Sea coastline and 50 outlying islands into luxury beach resorts.

The scheme has already attracted Sir Richard Branson, founder and boss of the Virgin Group, as its first international investor. He is involved in developing the islands — which he described as “breathtakingly beautiful” — as luxury destinations, and has also visited Madain Saleh.

“This is an incredibly exciting time in the country’s history and I’ve always felt that there is inothing like getting a first-hand impression,” he said after his visit.

He praised the Crown Prince for his vision, telling Arab News, “If you want to succeed you should have an idea and a plan to implement it and just do it. He is doing that and his heart is in the right place.”

Though he is overseeing the development of the Al-Ula sites, Amr Al-Madani said one plan was to offer two-center holidays: “Some days exploring the archaeology and the nature in Al-Ula and then a few days relaxing at the beach,” he said.

As well as unspoilt beaches, the Red Sea coast also enjoys the best climate in Saudi Arabia with pleasant sea breezes offsetting the heat.

The Red Sea project is expected to generate 35,000 jobs.

The Royal Commission has already recruited the first 200 future employees who will work in Al-Ula. The group — half boys, half girls — are all high school-leavers or university students from the region. They have already begun three months of training in Riyadh, learning languages and undergoing assessment by psychologists and careers advisers and will later be dispatched to several locations in Britain and the US to continue learning.

Al-Madani said Al-Ula should be ready to receive its first tourists in three to five years, eventually accommodating a million to 1.5 million a year.

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Saudi minister Al-Falih says Aramco IPO likely in 2019

Updated 25 May 2018
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Saudi minister Al-Falih says Aramco IPO likely in 2019

  • Energy Minister Khalid Al-Falih: “We are ready, the company (Saudi Aramco) essentially has ticked all the boxes. We’re simply waiting for a market readiness for the IPO.”
  • Khalid Al-Falih: “Most likely it will be in 2019 but we will not know until the announcement has been made. All I could say is stay tuned.”

RIYADH: Saudi Arabia is most likely to hold the initial public offering (IPO) of oil giant Aramco in 2019, Energy Minister Khalid Al-Falih said on Friday, confirming a delay from the initial plan to list the company this year.

“The timing I think will depend on the readiness of the market, rather than the readiness of the company or the readiness of Saudi Arabia,” Khalid Al-Falih, who’s also the company’s chairman, said at the St. Petersburg International Economic Forum in Russia on Friday.

“We are ready, the company essentially has ticked all the boxes,” he said. “We’re simply waiting for a market readiness for the IPO.”

For almost two years, Saudi officials said the IPO was “on track, on time” for the second half of 2018. But for the first time in March they suggested it could be delayed until 2019.

“Most likely it will be in 2019 but we will not know until the announcement has been made,” Al-Falih said. “All I could say is stay tuned.”

The Aramco IPO would be a once-in-a-generation event for financial markets. Saudi officials said they hope to raise a record $100 billion by selling a 5 percent stake, valuing the company at more than $2 trillion and dwarfing the $25 billion raised by Chinese retailer Alibaba Group Holding Ltd. in 2014.