Preserving the Past, Building the Future: Saudi Arabia’s cultural heritage and business synergy

Preserving the Past, Building the Future: Saudi Arabia’s cultural heritage and business synergy
Above, a tourist poses in front of a rose-colored sandstone in Madain Saleh, a UNESCO World Heritage site, near Saudi Arabia’s northwestern town of AlUla. (AFP)
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Updated 09 November 2024
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Preserving the Past, Building the Future: Saudi Arabia’s cultural heritage and business synergy

Preserving the Past, Building the Future: Saudi Arabia’s cultural heritage and business synergy

RIYADH: As Saudi Arabia embarks on an ambitious journey toward a thriving economy, the nation is uniquely positioned to harmonize the conservation of its rich cultural heritage with the development of vibrant business opportunities.

The Kingdom is committed to various initiatives, such as cultural tourism projects and the revival of artisanal craftsmanship, which not only safeguard its diverse cultural tapestry but also drive economic growth.

This approach showcases the symbiotic relationship between tradition and innovation, demonstrating how honoring cultural heritage can foster sustainable development and enhance Saudi Arabia's global influence.

Under the Vision 2030’s Quality of Life Program, the nation is transforming with rapid developments in the cultural sector among others.

This comes as the cultural sector is expected to contribute more than $47.9 billion to the Kingdom’s gross domestic product by 2030.

In the Quality of Life Program 2023 annual report, Saudi Crown Prince Mohammed bin Salman said that the Kingdom is striving to cultivate a deep sense of pride in the nation and actively contribute to global development and progress, across economic, environmental, cultural, and intellectual dimensions.

The report further revealed that in 2023, the Ministry of Culture targeted 108,010 employees in the Saudi cultural sector, but recorded 216,878 workers during the year, reflecting an achievement rate of 201 percent.

The Kingdom also aimed for nine Saudi participants in international cultural events, but actually witnessed 32.

When it comes to the number of cultural events days, Saudi Arabia was targeting 2,093 in 2023 but recorded 3,934 – reflecting an achievement rate of 188 percent.

As for the number of cultural facilities, the Kingdom was aiming for 41 in 2023 but achieved 45.

Cultural tourism’s contribution to economic development

Cultural tourism has been essential in diversifying the Kingdom's economy by boosting local hospitality, retail, and service industries, while also enhancing Saudi Arabia's global standing in cultural diplomacy.

“The revitalization of cultural landmarks such as AlUla, Diriyah, and UNESCO-listed sites has significantly enhanced Saudi Arabia’s international appeal, repositioning the Kingdom as a global destination not only for religious pilgrimage but also for its rich history, arts, and traditions,” Patrick Samaha, partner at Public Sector at Kearney Middle East & Africa told Arab News.

“With 30 million international tourists visiting in 2023, the influx has boosted local businesses in hospitality, retail, and services, generating new jobs, particularly in regions where tourism was previously underdeveloped,” Samaha added.

The Kearney partner went on to add that the Kingdom’s active participation in cultural diplomacy has resulted in stronger global relationships and a growing international appreciation for its rich heritage.

“This is reflected in the government’s significant investment in cultural landmarks, which will further open opportunities for hosting international events, forums, and conferences. Without a doubt, Saudi Arabia is well on its way to becoming a leader in cultural tourism,” he said.

There is no doubt that the Kingdom is working to diversify its economy by attracting visitors to explore its diverse landscape and rich cultural heritage.

Tamer El-Leisi, consulting partner at PwC Middle East told Arab News that the Kingdom has reported the highest growth among G20 countries in 2024, gaining international recognition, fostering cross-cultural understanding as well as enhancing the country's global image as an open and welcoming destination.

“It has also supported the preservation of historical sites and provided income opportunities for local artisans,” he added.




Tamer El-Leisi, consulting partner at PwC Middle East. (Supplied)

The PwC Middle East consulting partner said this work has a “profound impact” on economic growth, enhancing the labor market, and supporting local businesses.

“As cultural tourism grows, so does the demand for professionals in various sectors, such as hospitality, entertainment, and creative arts, which in turn boosts employment and economic growth,” El-Leisi added.

He highlighted that as a result of these efforts, the number of international and domestic tourists exceeded 100 million tourists in 2023, spending more than SR250 billion ($66.6 billion).

“These numbers have even increased during the first quarter of 2024 by 10 percent with an increase of around 17 percent in spending. By 2030, the tourism sector aims to account for over 10 percent of the country’s GDP,” he said.

As Saudi Arabia strives to become a global center for cultural tourism, building international partnerships with other nations, cultural institutions, and global organizations is crucial for success.

Balancing cultural heritage and business growth

The Saudi government has been crucial in safeguarding the Kingdom’s heritage while promoting an economically sustainable sector by supporting the heritage ecosystem, attracting private investment, and developing local talent.

According to Samaha, Saudi Arabia has recognized the importance of preserving its heritage at a time when it is embracing global cultural exchange, which is why heritage plays a central role in its Vision 2030.

“Rightfully so, key government initiatives have focused on boosting the socio-economic impact of heritage and the broader cultural sector, aiming to create a sustainable industry that appeals to younger generations. To achieve this, the Kingdom has developed a robust ecosystem, composed of both government and non-government entities, mandated to unlock the socio-economic potential of the sector and attract private investment,” the Kearney partner said.

He added: “For example, the creation of the Heritage Commission under the Ministry of Culture has enabled heritage sites to become catalysts for economic activity and offers various training programs to develop local talent in the heritage field.




Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at management consulting firm Arthur D. Little.

Samaha continued to note that the Royal Institute of Traditional Arts was established to nurture talent in local crafts and generate business opportunities for artists through incubators and apprenticeship programs.

“These are just two examples of the many impactful initiatives being implemented by the Saudi government,” he said.

Undoubtedly, the Kingdom has demonstrated a firm commitment to cultural heritage by employing innovative and forward-thinking strategies to safeguard and preserve it for future generations. Those efforts foster a strong connection between cultural preservation and economic development.

“This is evident in many ways. For instance, the rehabilitation, restoration and promotion of historic sites and cultural attractions is encouraging exploration of cultural sites. Meanwhile, an emphasis on cultural tourism is strengthening national identity, fostering unity and shared purpose among the population,” El-Leisi said.

He stressed that local communities are actively engaging with tourists, not only enriching visitors’ experiences but also supporting community development. 

“Furthermore, investing in sustainable tourism practices is ensuring that the country's cultural heritage is preserved for future generations while minimizing the environmental impact of tourism activities. The Saudi government is focusing on responsible tourism, implementing green initiatives, and supporting eco-friendly businesses in the tourism sector,” the PwC partner added.

Preservation cultural heritage to attract investments

The preservation of Saudi Arabia’s cultural heritage plays a key role in attracting investment, fostering sustainable growth, and enhancing the Kingdom’s global standing, aligning with Vision 2030.

“By protecting heritage sites, especially those recognized by UNESCO, Saudi Arabia boosts tourism and diversifies its economy. Traditional crafts and cultural practices also stimulate the creative industries, drawing investment into cultural and luxury sectors,” Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at management consulting firm Arthur D. Little, told Arab News.

“Globally, these efforts enhance Saudi Arabia's cultural diplomacy and soft power, strengthening its influence in international affairs. Through these initiatives, the Kingdom builds a sustainable, diversified future while positioning itself as a cultural leader on the world stage,” Khan added.

Ongoing initiatives that effectively blend the preservation of cultural heritage

Saudi Arabia is effectively merging the protection of its cultural heritage with economic growth through important initiatives outlined in Vision 2030.

“AlUla is being transformed into a global tourist destination, preserving ancient tombs and relics while generating jobs and revenue through luxury tourism. Similarly, Diriyah, the historic birthplace of the Saudi state, is undergoing restoration, combining heritage conservation with commercial and luxury developments,” Khan said.

“The Red Sea Project focuses on eco-tourism, safeguarding both natural and cultural heritage while creating employment and diversifying the economy,” he added.

The Arthur D. Little partner went on to note that in Jeddah, the restoration of its UNESCO-listed historic district is boosting tourism through traditional markets and cultural festivals.

“These projects illustrate how Saudi Arabia is harmonizing tradition with modern business opportunities to foster sustainable growth. The region can further draw inspiration from countries like Japan and Morocco, which have successfully promoted their cultural heritage while reaping significant economic benefits from tourism and cultural industries,” Khan said.


Closing Bell: Saudi main index closes in green at 11,725

Closing Bell: Saudi main index closes in green at 11,725
Updated 13 March 2025
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Closing Bell: Saudi main index closes in green at 11,725

Closing Bell: Saudi main index closes in green at 11,725

RIYADH: Saudi Arabia’s Tadawul All Share Index gained 20.95 points, or 0.18 percent, closing at 11,725.88 on Thursday. The total trading volume for the benchmark index reached SR6.20 billion ($1.65 billion), with 141 stocks advancing and 94 declining.

The MSCI Tadawul Index also saw an increase, rising by 2.36 points, or 0.16 percent, to close at 1,479.27.

In contrast, the Kingdom’s parallel market, Nomu, slipped by 37.56 points, or 0.12 percent, closing at 31,135.85. This decline came as 54 stocks rose, while 29 saw a decrease.

The top-performing stock of the day was Rasan Information Technology Co., which saw its share price surge by 9.87 percent to SR79.

Other strong performers included Saudi Chemical Co., whose share price climbed by 5.89 percent to SR8.45, and Saudi Research and Media Group, which gained 5.66 percent, reaching SR175.60.

On the other hand, Nice One Beauty Digital Marketing Co. was the worst performer, with its share price dropping by 4.99 percent to SR40.90.

National Shipping Co. of Saudi Arabia and Alandalus Property Co. also faced declines, with their shares falling by 4.29 percent and 3.55 percent, respectively, to SR29 and SR23.90.

On the announcements front, First Milling Co. reported a net profit of SR250.9 million for 2024, marking a 13.9 percent increase compared to the previous year.

The company attributed this growth to higher sales, improved product mixes and pricing, as well as the introduction of new products.

Additionally, continued growth in small-pack goods, which offer higher profit margins, alongside efficiency improvements, cost leadership, and enhanced cash management, contributed to the rise, with increased interest income from Shariah-compliant Murabaha deposits.

Despite the positive results, First Milling Co.’s share price remained unchanged at SR60.90 during today’s trading.

Umm Al-Qura Cement Co. also reported impressive results, with a net profit of SR47.7 million for 2024, a staggering 1,107 percent increase from the previous year’s SR3.9 million.

This growth was driven by higher sales volumes and values, as well as reductions in administrative expenses, financing costs, and zakat. Despite the strong performance, the company’s shares fell by 1.98 percent, closing at SR18.78.

Lastly, ADES Holding Co. announced that it had received a Shariah Evaluation Report confirming its compliance with Islamic guidelines for the year ending Dec. 31.

The report, issued by the Shariyah Review Bureau, affirmed that the company’s activities aligned with Shariah standards. ADES Holding’s shares closed 0.74 percent lower on the main market at SR16.10.


Saudi money supply up 9% to hit $791bn in January

Saudi money supply up 9% to hit $791bn in January
Updated 13 March 2025
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Saudi money supply up 9% to hit $791bn in January

Saudi money supply up 9% to hit $791bn in January

RIYADH: Saudi Arabia’s money supply climbed to SR2.97 trillion ($791 billion) in January, marking a 9 percent annual rise, official data showed. 

According to figures from the Saudi Central Bank, known as SAMA, demand deposits accounted for 48.75 percent of the total, reaching SR1.45 trillion. While still below the April 2021 peak of 60.21 percent, they edged up from 48.42 percent a year ago, reflecting shifting monetary conditions. 

Demand deposits are a crucial part of the money supply. When individuals deposit money into checking accounts, it increases the total amount of demand deposits, thereby expanding the overall money supply in the economy.

A demand deposit refers to money held in a bank account that can be withdrawn at any time, whenever the account holder requires it.

These funds are generally used for everyday expenses. Banks or financial institutions typically offer little to no interest on the balance in a demand deposit account.

Time and savings deposits — which surged during the US Federal Reserve’s aggressive rate hikes, mirrored by Saudi Arabia due to the riyal’s peg to the US dollar — reached SR985.03 billion in January, accounting for 33.21 percent of total deposits. 

As the Fed began easing monetary policy in September, lowering interest rates from their 6 percent peak to 5 percent by December, time deposits started to decline from their 33.61 percent high in November.  

This shift reflects a gradual return to shorter-term deposit preferences as rate-sensitive accounts adjust to a lower-yield environment.   

The third-largest category, other quasi-money deposits — including residents’ foreign currency accounts, marginal deposits for letters of credit, outstanding remittances, and bank repo transactions with the private sector — stood at SR301.28 billion, making up 10.16 percent of total deposits. Currency outside banks totaled SR233.71 billion. 

Over the past two years, the Fed’s aggressive rate hikes aimed at curbing inflation led to a rise in term deposits as customers sought higher-yielding accounts, but with benchmark rates now easing, demand deposits have started to regain share.   

Despite the 9 percent annual rise in money supply, deposit growth continues to lag behind bank lending, which surged 14.66 percent during the same period to exceed SR3 trillion for the first time. This growth has been driven by corporate credit expansion, particularly in real estate, infrastructure, and other key Vision 2030 sectors. 

As deposit inflows moderate, Saudi banks have increasingly turned to external borrowing to bridge funding gaps. Recent issuances of euro-denominated bonds highlight the evolving financing landscape, with the debt capital market playing an increasingly pivotal role. 

Speaking at the Capital Markets Forum 2025 in Riyadh in February, Mohammad Al-Faadhel, assistant deputy of financing at the Capital Market Authority, highlighted how Vision 2030 has transformed Saudi Arabia from a capital exporter to a credit-driven market, accelerating debt market growth. 

Al-Faadhel noted that the Sukuk and Development Capital Market Committee was established in collaboration with key stakeholders to remove obstacles and support market expansion.  

With ongoing structural reforms, Saudi Arabia’s financial ecosystem is evolving rapidly, setting the stage for continued growth in capital markets, corporate lending, and alternative financing mechanisms under Vision 2030.   

Loan-to-deposit ratio holds steady

Saudi Arabia’s loan-to-deposit ratio rose to 82.78 percent in January, up from 80.05 percent in the same month last year, yet slightly lower than December’s 83.24 percent, according to SAMA data. 

The LDR, a key banking metric, measures the proportion of loans issued by banks relative to their total deposits, indicating liquidity levels and lending capacity. 

The increase over the past year reflects strong credit demand, particularly from corporate borrowers in key Vision 2030 sectors such as real estate, infrastructure, and industrial expansion. 

However, the slight month-on-month decline suggests a stabilization in lending activity, as banks balance loan issuance with available deposit inflows. Despite the surge in credit, the LDR remains well below the regulatory cap of 90 percent, ensuring ample liquidity and financial stability within the banking system. 

This ratio is closely monitored by regulators and investors as it influences banks’ ability to extend new loans while maintaining a healthy funding base.  


BSF, Diriyah Co. ink $1.6bn financing deal to develop Wadi Safar project

BSF, Diriyah Co. ink $1.6bn financing deal to develop Wadi Safar project
Updated 13 March 2025
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BSF, Diriyah Co. ink $1.6bn financing deal to develop Wadi Safar project

BSF, Diriyah Co. ink $1.6bn financing deal to develop Wadi Safar project

JEDDAH: Banque Saudi Fransi has signed a financing deal worth SR6 billion ($1.6 billion) with Diriyah Co. to develop the Wadi Safar project, highlighting the private sector’s role in driving economic growth.

The development is a key cultural and tourism destination within the larger Diriyah area, which aims to attract over 50 million visitors by 2030 while supporting major initiatives, according to the bank, which rebranded as BSF in June after 48 years in the market.

During the signing ceremony, Bader Al-Salloom, CEO of BSF, and Jerry Inzerillo, CEO of Diriyah Co., emphasized the importance of this partnership in achieving sustainable development and enhancing Diriyah’s position as a prominent cultural and historical hub.

The agreement between the two parties aligns with Saudi Vision 2030’s goal of transforming the Kingdom into a global tourist destination. The Diriyah Gate Development Authority has set a precedent by blending respect for heritage with innovative, sustainable ventures, such as Al-Bujairi Terrace, which has become a major tourist attraction since its opening in 2022.

The deal is also part of BSF’s initiatives to back significant development projects that boost infrastructure, promote tourism, and drive economic growth in Saudi Arabia, the bank said in a statement.

The Wadi Safar project, introduced in December 2023 by the DGDA, is one of the three main initiatives under the Diriyah Co’s development plan.

It covers an area of approximately 62 sq. km and is set to become an upscale residential community, including high-end hospitality facilities, recreational and sports venues, and advanced commercial and retail spaces.

The project will offer premium real estate units designed to cater to the needs of both investors and visitors. Moreover, Wadi Safar’s gated community will serve as an oasis within Riyadh, featuring three major resorts: Six Senses, Aman, and Oberoi.

It is also the location for the ongoing development of the Greg Norman-designed championship signature golf course and Royal Diriyah Golf Club.

The Diriyah development project aims to generate around 178,000 job opportunities and is expected to contribute SR18.6 billion to the Kingdom’s gross domestic product upon completion.


UAE joins dividend surge as global payouts hit record $1.75tn in 2024

UAE joins dividend surge as global payouts hit record $1.75tn in 2024
Updated 13 March 2025
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UAE joins dividend surge as global payouts hit record $1.75tn in 2024

UAE joins dividend surge as global payouts hit record $1.75tn in 2024

RIYADH: The UAE was among 17 countries setting new dividend records in 2024 as global payouts surged to a record $1.75 trillion, marking a 6.6 percent increase from the previous year, a new report showed. 

According to research by trading platform eToro, UAE-listed companies maintained steady dividend distributions, driven by strong performances in the banking, energy, and real estate sectors.  

This comes as Saudi-listed companies also made significant dividend moves in 2024, with energy firm Aramco declaring a total payout of $85.4 billion despite a drop in net profit, while Al Rajhi Bank’s total shareholder payments reached SR10.84 billion ($2.89 billion), combining a first-half cash dividend of SR5 billion and a second-half payout of SR5.84 billion. 

“The financial sector has been a standout performer, with UAE banks benefiting from higher interest rates and economic expansion. Abu Dhabi Islamic Bank, for instance, raised its dividend payout to 50 percent of its annual profit, reflecting the sector’s robust earnings growth,” said Josh Gilbert, a market analyst at eToro. 

Energy companies also played a significant role, with ADNOC Gas announcing a $3.41 billion dividend, supported by high oil prices and a commitment to 5 percent annual dividend growth. 

In the real estate sector, Emaar Properties doubled its dividend to 8.8 billion dirhams ($2.4 billion), backed by record property sales and strong market demand.  

For income-focused investors, dividends remain a core element of long-term strategies, providing consistent cash flow and potential for compounding returns.  

“While 2024 saw record dividend distributions, certain increases, such as Emaar’s 100 percent payout of its share capital, may not be repeated annually. These sectors are cyclical, and dividends could fluctuate with market conditions,” Gilbert added. 

Despite concerns about sustainability, UAE companies’ focus on shareholder returns highlights the market’s resilience. The country’s dividend growth outlook remains positive, supported by strong corporate earnings, favorable government policies, and continued investor interest. 

Whether targeting high yields or steady income, the UAE remains an attractive market for global investors. 


Lebanon readies 22 deals for signing with Saudi Arabia during high-level visit

Lebanon readies 22 deals for signing with Saudi Arabia during high-level visit
Updated 13 March 2025
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Lebanon readies 22 deals for signing with Saudi Arabia during high-level visit

Lebanon readies 22 deals for signing with Saudi Arabia during high-level visit

RIYADH: Lebanon has prepared the final drafts of 22 cooperation agreements with Saudi Arabia, setting the stage for a high-level visit next month to strengthen economic ties. 

The delegation could be led by President Joseph Aoun, Prime Minister Nawaf Salam, or both, according to Lebanese Deputy Prime Minister Tarek Mitri in an interview with Asharq. 

This comes as Saudi Crown Prince Mohammed bin Salman hosted President Aoun at the Royal Court in Al-Yamamah Palace on March 3 — Aoun’s first foreign visit since taking office — where they discussed Lebanon’s ongoing crisis and regional developments. 

The agreements, covering sectors from agriculture to intellectual property, are seen as crucial to securing broader international aid for Lebanon’s struggling economy. 

“This is a legitimate approach, and we must earn the trust of Arab nations and the international community,” Mitri said, emphasizing that Saudi Arabia’s support is vital for unlocking further international aid. He confirmed that the 22 agreements are fully drafted and ready for signing. 

On his arrival, Aoun had expressed hope that his talks with the crown prince would pave the way for a follow-up visit to sign agreements aimed at strengthening cooperation between the two nations. 

The deals cover a wide range of sectors, including intellectual property, consumer protection, and environmental management, as well as agriculture and water resources, Rabih El-Amine, chairman of the Lebanese Executives Council, told Arab News earlier this month. 

El-Amine also pointed to agreements involving the Ministry of Information, the General Directorate of Civil Aviation, and Banque du Liban. 

Mitri further revealed that Lebanon is working on an independent fund — separate from government institutions handling refugee affairs — in partnership with international organizations to oversee post-war reconstruction efforts. This move aims to boost credibility with donors, especially in the wake of the recent Hezbollah-Israeli conflict. 

A World Bank report commissioned by the Lebanese government estimates the country needs roughly $11 billion for recovery and reconstruction. The report assessed damage across 10 key sectors, projecting infrastructure repairs at $3 billion to $5 billion in public sector funding, while housing, trade, industry, and tourism would require $6 billion to $8 billion in private investments. 

Mitri also noted that France has expressed willingness to host a conference to support Lebanon’s recovery. French officials have proposed preparatory meetings or merging them into a single event, though no date has been set. The conference would prioritize humanitarian aid and reconstruction, while a separate investment-focused event aims to attract international figures.