How Saudi Arabia’s cultural boom is opening the door to international luxury labels

How Saudi Arabia’s cultural boom is opening the door to international luxury labels
The “Van Cleef & Arpels: Time, Nature, Love” exhibition was hosted at the National Museum of Saudi Arabia. (AN Photo by Abdulrahman Shalhoub)
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Updated 21 February 2024
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How Saudi Arabia’s cultural boom is opening the door to international luxury labels

How Saudi Arabia’s cultural boom is opening the door to international luxury labels

DUBAI: Over the past few years, Saudi Arabia has hosted multiple cultural events spanning art, film and fashion. As the Kingdom accelerates toward Vision 2030, it is fast establishing itself as one of the most significant cultural hubs in the Middle East and a new report titled “New Codes of Luxury in Saudi Arabia,” by the Together Group and The Future Laboratory, has surmised that the cultural boom is opening the door for international luxury brands to gain a stronger foothold in the Saudi market.

“The visibility of these events and publicity, especially for the Saudi public, should encourage luxury brands to participate in the way they seem fit,” Abdullah AlKhorayef, real estate development director at Abdullah Ibrahim Alkhorayef Sons Co., told Arab News.

The report surmises that Saudi Arabia’s creative economies and cultural sectors are in growth mode and states: “The domestic fashion industry, led by the Fashion Commission, is gaining international recognition. Events like Riyadh Season, the Diriyah Biennale and the Red Sea International Film Festival, and investments in the entertainment and video game sectors, are helping establish Saudi Arabia as a leisure hub.”

“I think, now, Saudi Arabia is the biggest cultural hub in the Middle East. Brands need to understand that and not compare it to other regional cities. They need to invest in understanding the Saudi culture, people, and vision,” explained AlKhorayef. He believes that plans for a diversified economy, as set out in Saudi Arabia’s Vision 2030 plan, are clearly defined and international brands need to take the program

 seriously by compounding their presence in the country. “Employing Saudis and investing in the country will give them a huge advantage over the competition,” he said.  

According to the report, luxury brands are beginning to take note. For instance, last year, German luxury e-tailer Mytheresa hosted an event in Riyadh and collaborated with Saudi influencer Nojoud Al-Rumaihi for its 2023 Ramadan and Eid campaign. Additionally, the e-tailer is ambitious to establish its footprint in the Kingdom and is increasing its on-ground presence via on-site personal shoppers, local PR initiatives and exclusive events for VIP customers. Also, in 2023, the National Museum of Saudi Arabia hosted the “Van Cleef & Arpels: Time, Nature, Love” exhibition featuring 280 important pieces – some of which belonged to royalty and iconic Hollywood celebrities.

Another local industry that is fast growing is fashion. According to the report, the nascent industry is a pivotal element of Vision 2030 and one expected to contribute 1.4 percent to the Kingdom’s GDP, according to Forbes. With the advent of fashion week, held last year in Riyadh, the exposure of homegrown designers is further amplified, offering ample opportunities for homegrown luxury brands to gain a foothold in the market. “The fashion industry has multiple advantages – from preserving and documenting to shaping the culture. Alongside providing employment, industrial manufacturing, and services. This will all eventually help the economy to become less reliant on oil,” AlKhorayef elaborated.


Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister

Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister
Updated 4 min 4 sec ago
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Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister

Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister

RIYADH: Turkiye’s efforts to tighten fiscal policy are being hampered by the financial burden of earthquake reconstruction, Finance Minister Mehmet Simsek said, as the government grapples with balancing spending and economic stability. 

Speaking during a closing panel at the AlUla Conference for Emerging Market Economies, Simsek said the country’s fiscal position remains under pressure due to ongoing rebuilding efforts. 

Turkiye was struck by a 7.8-magnitude earthquake and a powerful aftershock on Feb. 6, 2023, devastating 11 provinces, killing over 53,000, and causing $34.2 billion in damages — 4 percent of its 2021 gross domestic product, according to a World Bank rapid damage assessment report. The estimate covered direct physical damage but did not account for indirect or secondary economic impacts. 

“We have spent about $74 billion over the past two years, which is equivalent to just over 6 percent of GDP on earthquake reconstruction because we are building cities from scratch. Currently, 450,000 units are under construction; it’s the whole infrastructure,” Simsek said. 

“Last couple of years, fiscal deficit to GDP has been around 5 percent, which is relatively high by Turkish standards. This year, we aim to bring it down to about 3 percent, so fiscal adjustment is underway,” he added. 

The fiscal challenges come as Turkiye’s government pledged in March to continue tightening policy to curb inflation. The same month, Fitch Ratings upgraded Turkiye’s credit rating to “B+” from “B,” citing a more disciplined approach to monetary policy. 

Despite headwinds, Simsek said inflation expectations are improving, albeit slowly. 
 
“Inflation expectations are improving, but it’s been sluggish, in particular among households and among, you know, corporates, while markets obviously tend to have a better reading of what we are saying,” he said. 

He emphasized that there is no substitute for better policies, stressing that the key lies in sound policymaking and effective execution. “For this year, it’s a combination of tight monetary policy and tighter fiscal policy combined with a more supportive incomes policy,” he said, adding that these measures should help sustain disinflation, which is crucial for improving expectations. 

Macroeconomic stability 

During the panel, Egypt’s minister of planning, economic development, and international cooperation, Rania Al-Mashat, said investing in resilience is an investment in the future. 

“There are first principles that we all agree on, macroeconomic stability, this is a necessary condition if we want to move forward on privatization, if we want to move forward on confidence and credibility internally and externally,” Al-Mashat said. 

She pointed to recent reforms that have stabilized Egypt’s economy, particularly in the foreign exchange market, and noted a retrenchment in public investment. “Right after March, you can see the manufacturing non-oil sector moving forward. We can see more exports taking place once the intermediate inputs into production were actually pushed,” she added. 

Pakistan’s Finance Minister Muhammad Aurangzeb echoed the emphasis on fiscal responsibility, saying the country has achieved a primary surplus through disciplined management. 

“Our taxes to GDP ratio has been languishing between 9 to 10 percent. That sort of moved in the direction of 10.8 percent at the end of December. We have agreed to move it to 13.5 percent to join the committee of nations and to bring a certain level of sustainability to the primary surplus that we have,” Aurangzeb said. 

“On the other side, it’s also discussion on the expenditures and making tough policy choices with respect to what is a good cost and bad cost,” he added. 

Brazil’s economic outlook 

Brazil’s Finance Minister Fernando Haddad said the country’s central bank has played a key role in bringing inflation under control while maintaining growth. 

“We are growing in the last two years around 3.4 percent a year, contradicting all of the predictions both domestic and international,” Haddad said. 

“And we understand that the fiscal adjustment that we’re doing is not recessive because we’re guaranteeing a growth rate of 3.4 percent around a decline in inflation,” he added. 

Organized by the International Monetary Fund and Saudi Arabia, the first edition of the high-level annual conference in AlUla aimed to address global economic challenges. The two-day event brought together finance ministers, central bank governors, and policymakers, alongside leaders from the public and private sectors, international institutions, and academia. 


Authorities to dismantle all bunkers in clashes-hit northwestern Pakistani district by March 23

Authorities to dismantle all bunkers in clashes-hit northwestern Pakistani district by March 23
Updated 14 min 28 sec ago
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Authorities to dismantle all bunkers in clashes-hit northwestern Pakistani district by March 23

Authorities to dismantle all bunkers in clashes-hit northwestern Pakistani district by March 23
  • The development came as another aid convoy came under attack by unidentified men in Ochat area of Kurram district
  • Fresh feuding between Shiite and Sunni tribes began on Nov. 21 when gunmen ambushed a convoy and killed 52 people

ISLAMABAD: The government in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province has decided to dismantle all bunkers in the Kurram district, which has been the site of sectarian and tribal clashes over the last three months, by March 23, officials said on Monday.
Kurram, a tribal district of around 600,000 where federal and provincial authorities have traditionally exerted limited control, has frequently witnessed violence between its Sunni and Shiite communities over land and power. Travelers to and from the area often ride in convoys escorted by security officials.
Fresh feuding began on Nov. 21 when gunmen ambushed a convoy and killed 52 people, mostly Shiites. The assault triggered road closures and other measures that have disrupted people’s access to medicine, food, fuel, education and work and created a humanitarian crisis in the area, where authorities say at least 150 people have been killed in nearly three months of clashes.
On Monday, KP Chief Minister Ali Amin Gandapur presided over a provincial cabinet meeting, during which officials briefed participants about various measures taken by them to restore peace to volatile district, including the demolition of bunkers used by rival tribes to attack each other with both small and heavy weapons.
“So far, 151 bunkers have been demolished,” KP CM’s office quoted officials as telling the cabinet members. “The deadline for demolishing all bunkers in the area has been set for March 23.”
The warring tribes had agreed on the demolition of bunkers and handover of heavy weapons as part of a peace agreement reached on Jan. 1, but sporadic violence has continued and both sides have occasionally engaged in battles with machine guns and heavy weapons that have isolated the remote, mountainous region.
Shiite Muslims dominate parts of Kurram, although they are a minority in the rest of Pakistan, which is majority Sunni. The main road connecting Parachinar, the main town in Kurram, to the provincial capital of Peshawar has been blocked since sectarian fighting began in November.
Meanwhile, police said an aid convoy, comprising 52 vehicles, that was en route to the troubled district came under attack by unidentified men near Ochat, a hilly area on the outskirts of Parachinar.
“The area is remote and we’re collecting information about human and material losses,” Kurram police official Yaqoob Khan told Arab News.
Attacks on aid convoys and crossfire between rival tribes have injured two senior administration officials and a number of security men as well as drivers of vehicles carrying supplies over the last two months.
“Khyber Pakhtunkhwa cabinet has taken strict notice of the attack on a convoy in Kurram,” KP government spokesman Muhammad Ali Saif said in a statement.
“Some miscreants are making nefarious attempts to disrupt peace. Chief Minister Ali Amin Gandapur has directed to take strict action against the miscreants.”
Authorities have also been evacuating the injured and ailing from Kurram to Peshawar via helicopters since last month.
“So far, 153 flights have been conducted by two provincial government helicopters to Kurram and around 4,000 people have been provided air transport facility through these flights,” officials told the provincial cabinet.
“To overcome the shortage of essential medicines, 19 thousand kilograms of medicines have been delivered to Kurram so far.”


Jeddah conference highlights Saudi-French archaeological discoveries on Farasan Islands

Jeddah conference highlights Saudi-French archaeological discoveries on Farasan Islands
Updated 20 min 51 sec ago
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Jeddah conference highlights Saudi-French archaeological discoveries on Farasan Islands

Jeddah conference highlights Saudi-French archaeological discoveries on Farasan Islands

JEDDAH: French archaeologist and researcher Solene Marion de Proce hosted a conference titled “The Saudi-French Archaeological Project in the Farasan Islands: Past and Present” at the Alliance Francaise Saudi Arabia in Hay Jameel, Jeddah, on Sunday.

The conference explored the history and recent archaeological discoveries on the Farasan Islands, highlighting the outcomes of the unique scientific collaboration between France and Saudi Arabia.

In her presentation, Marion de Proce provided a comprehensive overview of the collaborative efforts between the Heritage Commission of the Ministry of Culture and the University Paris 1 Pantheon-Sorbonne as part of the Saudi-French archaeological mission on the Farasan Islands.

“We discussed the project’s history, sharing both past results and the most recent discoveries, as our team just completed the winter season of 2025,” she said. “The interest in the Farasan Islands began with the discovery of a Latin inscription by Farasani scholar, writer, and poet Ibrahim Miftah. The implications for understanding ancient maritime trade and Roman history were game-changing.”

She said that subsequent surveys and excavations led to the establishment of the Saudi-French mission on the Farasan Islands.

“The archipelago is a unique archaeological laboratory. The sites are well preserved, offering a window into the region’s cultural traits over time. It acts as a time capsule, a dream for every archaeologist."

French archeologist and researcher Solene Marion de Proce provided a comprehensive overview of the collaborative efforts as part of the Saudi-French archeological mission on the Farasan Islands. (Supplied)

The Saudi-French archaeological project has unearthed several significant discoveries, and Solene highlighted some key findings.

“The archipelago hosts many sites from the Late Bronze Age to Late Antiquity, which is the focus of our project. Led by Saudi archaeologist Mohammad Ali Al-Malki and myself, the team uncovered a South Arabian-style temple, long-duration settlements, and a Roman military camp — the southernmost ever discovered.”

Marion de Proce expressed optimism about the future of archaeological research in the region. “I am confident that the future of archaeological research in the Jazan/Farasan region is promising. It has so much to offer and much remains to be discovered. People are genuinely eager to learn more about their past.”

Larry Lamartiniere, managing director of Alliance Francaise Saudi Arabia, said: “Alliance Francaise, alongside the French Consulate in Jeddah, launched a series of conferences last month where French experts and scholars shared their research on Saudi Arabia and the Middle East with our community.

“This conference is a prime example of the excellence of the Saudi-French relationship, particularly through the ongoing archaeological project on the Farasan Islands. Our goal with these lectures is to make our space a hub for knowledge and discussion, providing experts with a platform to share their work. This time, we decided to present the lecture in English so that even non-French speakers could attend.”


Emerging economies must ‘punch their weight’ in global policy

Emerging economies must ‘punch their weight’ in global policy
Updated 28 min 35 sec ago
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Emerging economies must ‘punch their weight’ in global policy

Emerging economies must ‘punch their weight’ in global policy

RIYADH: Emerging economies must play a greater role in global economic discussions, Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan, said at the closing of the AlUla Conference for Emerging Market Economies. 

Organized by the Saudi Ministry of Finance and the International Monetary Fund, the forum highlighted the need for developing nations to assert their global influence, focusing on economic diversification, deregulation, and digital transformation. 

Al-Jadaan stressed that emerging markets play a crucial role in shaping international economic policies and must be confident in their contributions. 

“Emerging economies will need to punch their weight. They need to gain more confidence, they need to acknowledge, understand—even with humbleness—that they have something to say to the world,” he said. 

He also criticized the dominance of advanced economies in global decision-making forums, emphasizing that “advanced economies have a lot to say, but they cannot resolve a lot of the key global issues alone.” 

IMF Managing Director Kristalina Georgieva echoed this sentiment, highlighting that economic growth and dynamism are increasingly driven by emerging markets. 

“Where is the youth population? Where is the potential for high growth that benefits everybody? It also benefits advanced economies—it is in the emerging world,” she said. 

Georgieva outlined three critical steps for emerging markets: diversification, deregulation, and digitalization. 

“Diversify your economy, your trade relations, your engagement, your vision for how you move forward,” she urged. 

She also emphasized the role of government in facilitating economic growth by reducing unnecessary regulations. 

“The government should do that—give indication as to where, what is the direction to travel, and then get out of the way,” she said, calling for the removal of bureaucratic obstacles. 

Finally, she stressed the necessity of embracing digital transformation, particularly in artificial intelligence and financial transparency, to ensure competitiveness in a rapidly evolving global economy. 

The conference, described by Al-Jadaan as “possibly the first global forum” dedicated solely to the economic prospects of emerging markets, provided a platform for leaders to discuss pressing challenges and opportunities. 

“Bringing experts and discussing issues, challenges, and means of actually cooperating and working together to improve the lives of the people and the emerging economies and the world at large” was a core objective, he said. 

As the event concluded, Georgieva asked the audience if they would be interested in a second edition of the conference, receiving an enthusiastic applause. 

She confirmed that the IMF and the Saudi Ministry of Finance would document key takeaways and begin preparations for future discussions. 

“We will work with our regional office and the Ministry of Finance so we can publish proceedings from the conference. But also, we will start immediately on thinking about how we bring this forward,” she said, indicating prospects for another conference edition. 

Georgieva expressed optimism about the future of emerging economies, stating her vision for a world where developing nations are no longer seen as “emerging” but as equal players in the global economy. 

“My dream, by the time I finish my term, is that we retire the term ‘emerging’ because you will have fully emerged,” she said. 


Saudi fintech lite secures $3.2m in pre-seed funding

Saudi fintech lite secures $3.2m in pre-seed funding
Updated 34 min 28 sec ago
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Saudi fintech lite secures $3.2m in pre-seed funding

Saudi fintech lite secures $3.2m in pre-seed funding

Saudi-based fintech startup lite has announced the successful closure of its pre-seed funding round, raising a total of $3.2 million. The round was led by Scene Holding, with participation from prominent angel investors, marking a significant milestone in lite’s journey to redefine the payments ecosystem for businesses in Saudi Arabia.

Established by three seasoned co-founders with vast experience in payments — Fahad Anteet, Mohamed Faheem, and Soliman Aldukhil — lite is on a mission to become the leading payment solutions provider in the Saudi market, offering businesses a full-fledged suite of financial services to meet all their payment needs. With a strong focus on innovation, scalability, and localization, lite is committed to driving financial inclusion and enhancing the efficiency of payment ecosystems in the Kingdom. This is in line with Saudi Vision 2030’s goals of accelerating digital transformation and promoting a less-cash society.

Currently, lite is in the process of obtaining an electronic money institution license from the Saudi Central Bank, which will enable the company to fully operate and deliver its comprehensive suite of payment solutions to businesses across the Kingdom.

“We are deeply grateful to our investors for their trust in our vision and to the Saudi Central Bank, Fintech Saudi, and key ecosystem enablers for their support in fostering fintech innovation. This funding marks a major step forward in our mission to provide businesses with seamless, secure, and scalable payment solutions tailored to the Saudi market,” said Anteet, CEO of lite. “As we work toward obtaining our EMI license, we remain committed to innovation, compliance, and localization — empowering businesses and accelerating the shift toward a digital, less-cash economy in alignment with Vision 2030.”

“We are thrilled to support lite on its journey to reshape the payments ecosystem in Saudi Arabia,” said Sultan Ghaznawi, chairman and managing director, Scene Holding “The founding team’s expertise, vision, and commitment to innovation align perfectly with our investment philosophy at Scene Holding. We believe lite has the potential to drive meaningful impact in the fintech sector, empowering businesses and contributing to the Kingdom’s digital transformation goals.”