Saudi Arabia committed to embracing sustainability-driven growth in tourism sector, minister says at WEF

Saudi Arabia committed to embracing sustainability-driven growth in tourism sector, minister says at WEF
The Maraya, the world’s largest mirrored building, in Ashar Valley in AlUla desert. (AFP)
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Updated 22 January 2025
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Saudi Arabia committed to embracing sustainability-driven growth in tourism sector, minister says at WEF

Saudi Arabia committed to embracing sustainability-driven growth in tourism sector, minister says at WEF
  • Ahmed Al-Khateeb spoke in Davos ahead of launch of briefing paper on the future of travel and tourism sector
  • He said Saudi Arabia continues to place a strong emphasis on supporting SMEs and entrepreneurs

DAVOS: The tourism sector in Saudi Arabia, which has undergone a transformative shift in recent years, must continue to grow with sustainable practices front and center, according to the country’s tourism minister.

Speaking at a media briefing on Monday attended by Arab News at the World Economic Forum’s annual meeting in Davos, Ahmed Al-Khateeb said it was vital the tourism industry embraced a sustainable agenda if it was to continue its upward trajectory without impacting natural environments and the communities living in them.

The Kingdom has been working with major global organizations, including the WEF, UN Tourism, and the World Travel and Tourism Council in order to achieve this, the minister said.

Al-Khateeb was speaking ahead of the launch of a WEF briefing paper on the future of the travel and tourism sector, as well as a new investor whitepaper from the Ministry of Tourism on investments in the sector, which showcases Saudi Arabia’s position as one of the fastest-growing tourism destinations globally.

He emphasized that the Kingdom was approaching sustainability from three key perspectives: environmental, economic and social. He added that focusing on the environment alone would not garner satisfactory results.




Saudi Tourism Minister Ahmed Al-Khateeb spoke at a media briefing on Monday, attended by Arab News, at the Saudi House on the sidelines of the World Economic Forum’s annual meeting in Davos. (SPA)

He said: “People travel to explore other peoples and cultures and to enjoy nature and the environment. If we don’t protect the environment, presented by nature, people will not travel. We need to ensure sustainability across all sectors — environmentally, economically, and socially.

“In 2019 we commissioned a study with the WTTC and Oxford Intelligence to analyze the sustainability of our industry, which revealed that our sector contributes to about 8 percent of global greenhouse gas emissions.

“While this isn’t as high as initially feared, it’s still a concern. If we don’t come up with the right tools to reduce this in the best-case scenario, or at least maintain this, with the very high and fast growth of our industry in the next decade, we’re afraid this number will double to 15 or 16 percent in the worst-case scenario.”

The Kingdom has already begun addressing these concerns by launching campaigns to reduce food and water waste, in conjunction with hospitality chains like Hilton and Marriott. And in 2023 it spearheaded initiatives such as the Sustainable Tourism Global Center, working with international organizations like the UN and the WTTC to promote responsible tourism practices worldwide.




Mist covers the sky at an elevation 2800 metres above sea level, at the Jabal Marir (Mount Marir) park in Al-Namas in Saudi Arabia's Asir Province, on August 16, 2022. (AFP)

From the economic perspective, Al-Khateeb highlighted how important small and medium-size enterprises were to the sector, making up 80 percent of the global tourism industry.

Ensuring the viability of these SMEs was crucial as the sector grows, especially thanks to their job-creation potential, he said. This was increasingly the case for women, including in Saudi Arabia where a milestone 25 percent of tourism sector jobs in 2023 were held by females, he added.

Saudi Arabia continues to place a strong emphasis on supporting SMEs and entrepreneurs, which includes initiatives to train and support the next generation of tourism leaders, with 100,000 Saudis being trained annually through a partnership with UN Tourism, Al-Khateeb said.




This picture shows a view of the ancient town of Hegra in Saudi Arabia’s AlUla desert on January 27, 2024. (AFP)

He added: “We’ve funded over 1,500 small businesses through the Saudi Tourism Development Fund over the past two years, and we continue to make the sector more attractive as a viable business opportunity for entrepreneurs.

“I am very optimistic. We want to further promote the sector, for it to prosper and to grow. We want to make this sector more important in Saudi Arabia, and we took a decision to invest in the sector to open it up.”

With the value of the global tourism industry expected to grow to $11 trillion by 2030, Al-Khateeb said that Saudi Arabia recognized the importance of both government and private sector collaboration, adding: “(Governments) design, but (the private sector) implement, they invest, they take the risk.”

He added: “The private sector is very important in our industry: It’s run by the private sector and we believe and we know in Saudi Arabia how important it is. That’s why we invited the private sector for the first time to join the G20 meetings held in Riyadh, and since then they have been joining all of them.”

Sports tourism – and football, in particular – will drive record numbers of visitors to Saudi Arabia, the minister said, as it prepares to host the FIFA World Cup in 2034.

He added: “Sport is extremely important, people travel for sport. People can cut their spending in many things – but they will not cut their spending to go watch a game. It's recession-proof. We believe in it, and we'll continue to invest in sport.”

 


Pakistan, Saudi Arabia sign agreement to boost cooperation in public sector auditing

Pakistan, Saudi Arabia sign agreement to boost cooperation in public sector auditing
Updated 03 February 2025
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Pakistan, Saudi Arabia sign agreement to boost cooperation in public sector auditing

Pakistan, Saudi Arabia sign agreement to boost cooperation in public sector auditing
  • Development comes during a visit to Pakistan by a Saudi General Court of Audit delegation, led by Hussam bin Abdulmohsen Al-Angari
  • Auditor General of Pakistan’s office says both sides agreed to collaborate on training programs, exchange of trainers to tackle audit challenges

ISLAMABAD: Pakistan and Saudi Arabia have signed a Memorandum of Understanding to increase collaboration in public sector auditing through enhanced cooperation between audit institutions of both countries as well as training programs and the exchange of trainers, a spokesperson for the Auditor-General of Pakistan’s office said on Monday.

The development comes during a four-day visit to Pakistan by a delegation of Saudi Arabia’s General Court of Audit, led by GCA President Hussam bin Abdulmohsen Al-Angari, which arrived on Sunday.

The agreement was signed during AGP Muhammad Ajmal Gondal’s meeting with the Saudi delegates, aiming to strengthen audit cooperation, enhance knowledge-sharing, and improve governance, transparency and accountability in government spending.

Muhammad Raza Irfan, a public relations officer at the AGP’s office, told Arab News the agreement will not only strengthen professional relations between auditing institutions of both countries, but also further promote bilateral cooperation between Pakistan and Saudi Arabia.

“This collaboration marks a significant step toward fostering international cooperation in auditing,” AGP Gondal was quoted as saying in a statement issued from his office.

“The exchange of ideas and methodologies will undoubtedly strengthen our capacity to meet emerging challenges and set new benchmarks for public accountability.”

Discussions at Monday’s meeting focused on fostering closer ties between the Supreme Audit Institutions of Pakistan and Saudi Arabia, sharing innovative audit methodologies, and planning collaborative initiatives for the future, according to the AGP office.

The two sides agreed to share best practices in audit standards, performance audits, and citizen participatory audits, and expand expertise in thematic, environmental and impact audits.

“It also agreed to collaborate on training programs, exchange trainers, address emerging auditing challenges and plan cooperative audits, including a performance audit on the oil and gas sector in 2025,” the statement read.

Both sides reaffirmed their shared commitment to promoting transparency, accountability and excellence in public sector auditing.

Dr. Alangari praised Pakistan’s initiatives in modernizing audit practices and expressed his enthusiasm for future collaborations, according to the AGP office.

“The partnership between our two SAIs is a testament to the shared vision of accountability and transparency,” the GCA president was quoted as saying.

“We are eager to build upon this momentum and address challenges collectively, ensuring value addition to public sector auditing globally.”

The meeting underscored the importance of international collaboration to address emerging challenges and leverage innovative technologies in auditing.

“The Saudi side also announced the launch of the second phase of the Fund for Improved SAI Performance, which is scheduled for mid-February,” the statement said.

“The office of the AGP was also offered to apply for the second phase of FISP, which provides funds of up to $40,000.”

The GCA’s FISP initiative is aimed at providing funding to SAIs in developing countries to help them improve their performance and capacity in conducting audits and upholding accountability within their respective governments.

Pakistan and Saudi Arabia are close regional partners and economic allies, and both countries signed 34 agreements worth $2.8 billion in October last year. The Kingdom is home to over 2 million Pakistani expatriates, serving as the top destination for remittances for the cash-strapped South Asian country.


Closing Bell: Saudi indices close in red at 12,377

Closing Bell: Saudi indices close in red at 12,377
Updated 03 February 2025
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Closing Bell: Saudi indices close in red at 12,377

Closing Bell: Saudi indices close in red at 12,377
  • MSCI Tadawul Index dropped by 3.79 points, or 0.25%, to close at 1,541.82
  • Parallel market Nomu lost 48.69 points, or 0.16%, to close at 31,056.38

RIYADH: Saudi Arabia’s Tadawul All Share Index dropped on Monday, losing 32.84 points, or 0.26 percent, to close at 12,377.03.  

The total trading turnover of the benchmark index was SR6.55 billion ($1.75 billion), as 65 of the listed stocks advanced, while 170 retreated.   

The MSCI Tadawul Index also dropped by 3.79 points, or 0.25 percent, to close at 1,541.82.  

The Kingdom’s parallel market Nomu lost 48.69 points, or 0.16 percent, to close at 31,056.38. This comes as 37 of the listed stocks advanced and 43 retreated.  

Mutakamela Insurance Co. was the best-performing stock of the day, with its share price surging by 4.88 percent to SR18.90.  

Other top performers included Saudi Arabian Cooperative Insurance Co., which saw its share price rise by 4.59 percent to SR18.70, and Saudi Cable Co., which saw a 3.30 percent increase to SR131.60.  

Arriyadh Development Co. rose 3.01 percent to SR35.95, while Al Mawarid Manpower Co. gained 2.87 percent to SR136. 

The National Co. for Glass Industries saw the steepest decline of the day, with its share price easing 3.72 percent to close at SR54.40. 

Elm Co. fell 2.84 percent to SR1,123, while Mouwasat Medical Services Co. dropped 2.78 percent to SR87.50. 

Bawan Co. also faced losses, with its share price dipping 2.75 percent to SR56.50, while Saudi Awwal Bank saw a 2.46 percent decline to settle at SR35.75. 

Saudi Tadawul Group Holding Co. announced that its subsidiary, Tadawul Advanced Solutions Co., also known as WAMID, has finalized the acquisition of the remaining 49 percent stake in Direct Financial Network Co., completing the regulatory requirements on Feb.2. 

The shares, previously owned by National Two Ventures, were acquired for SR220.5 million, making WAMID the sole owner of DirectFN. 

The transaction follows WAMID’s initial purchase of a 51 percent stake in DirectFN in May 2023 for SR134 million. 

With this latest acquisition, WAMID now holds full ownership of the financial technology company, aligning with Saudi Tadawul Group’s strategy to enhance its technological and financial services offerings. 

Saudi Tadawul Group Holding Co.’s share price saw a slight 0.76 percent dip on Monday to settle at SR209.80. 

Riyad Bank announced its financial results for 2024, posting a 15.9 increase in net profit, reaching SR9.32 billion, up from SR8.04 billion in 2023. 

The growth was driven by an 18.16 percent rise in total income from special commissions, which reached SR21.62 billion, supported by higher income from loans and investments. 

Total operating profit rose 8.71 percent to SR17.28 billion, bolstered by increases in fee income, exchange income, and gains on non-trading investments. 

Operating expenses related to credit losses and asset impairments dropped 17.2 percent to SR1.63 billion, reflecting improved asset quality. 

Assets grew by 16.42 percent to SR450.37 billion, with loans and advances rising 16.65 percent to SR320.08 billion. 

Client deposits also increased significantly, up 20.21 percent to SR306.42 billion. Earnings per share rose from SR2.58 in 2023 to SR3.01 in 2024. 

Riyad Bank saw a 0.34 percent increase in its share price on Monday to reach SR29.60. 


OPEC+ reaffirms commitment to production cuts

OPEC+ reaffirms commitment to production cuts
Updated 03 February 2025
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OPEC+ reaffirms commitment to production cuts

OPEC+ reaffirms commitment to production cuts
  • Meeting reviewed crude oil production data for November and December
  • OPEC welcomed renewed pledges from overproducing countries to achieve full compliance with production targets

RIYADH: OPEC+ members reaffirmed their commitment to production cuts aimed at maintaining stability in the global oil market during a meeting held on Monday.

The 58th Joint Ministerial Monitoring Committee session, conducted via videoconference, reviewed crude oil production data for November and December 2024 and highlighted the strong overall compliance by both OPEC and non-OPEC countries involved in the Declaration of Cooperation.

The committee reiterated its commitment to the DoC, which is set to extend through the end of 2026. It also commended Kazakhstan and Iraq for their improved compliance, including the additional voluntary production adjustments they made.

OPEC also welcomed the renewed pledges from overproducing countries to achieve full compliance with production targets.

These countries are expected to submit updated compensation schedules to the OPEC Secretariat by the end of February 2025, covering the overproduced volumes since January 2024.

The committee stressed its ongoing role in monitoring adherence to production adjustments. It will continue to track additional voluntary production cuts announced by participating OPEC and non-OPEC nations, in line with the decisions made during the 52nd JMMC meeting on Feb. 1, 2024.

In a procedural update, the committee announced that, effective Feb. 1, 2025, Kpler, OilX, and ESAI will replace Rystad Energy and the Energy Information Administration as secondary sources for assessing crude oil production and compliance with the DoC.

The next JMMC meeting is scheduled for April 5, 2025.


Oil Updates — prices gain as Trump tariffs stoke supply worries

Oil Updates — prices gain as Trump tariffs stoke supply worries
Updated 03 February 2025
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Oil Updates — prices gain as Trump tariffs stoke supply worries

Oil Updates — prices gain as Trump tariffs stoke supply worries

LONDON: Oil prices rose on Monday after US President Donald Trump imposed tariffs on Canada, Mexico and China, raising fears of supply disruption, though gains were capped by concern over what could be an economically damaging trade war.

Brent crude futures rose $1.28, or 1.7 percent, to $76.95 a barrel by 3:32 p.m. Saudi time after touching a high of $77.34.

US West Texas Intermediate crude futures were up $1.89, or 2.6 percent, at $74.42 after touching their highest since Jan. 24 at $75.18.

Trump’s sweeping tariffs on goods from Mexico, Canada and China kicked off a trade war that could dent global growth and reignite inflation.

The tariffs, which will take effect on Feb. 4, include a 25 percent levy on most goods from Mexico and Canada, with a 10 percent tariff on energy imports from Canada and a 10 percent tariff on Chinese imports.

“The relatively soft stance on Canadian energy imports is likely rooted in caution,” Barclays analyst Amarpreet Singh said in a note.

“Tariffs on Canadian energy imports would likely be more disruptive for domestic energy markets than those on Mexican imports and might even be counterproductive to one of the president’s key objectives — lowering energy costs.”

Goldman Sachs analysts expect the tariffs to have limited near-term impact on global oil and gas prices.

Canada and Mexico are the top sources of US crude imports, together accounting for about a quarter of the oil US refiners process into fuels such as gasoline and heating oil, according to the US Department of Energy.

The tariffs will raise costs for the heavier crude grades that US refineries need for optimum production, industry sources said.

Gasoline pump prices in the US are certainly expected to rise with the loss of crude for refineries and the loss of imported products, said Mukesh Sahdev at Rystad Energy.

Trump has already warned that the tariffs could cause “short-term” pain for Americans.

US gasoline futures jumped 2.5 percent to $2.11 a gallon after touching the highest level since Jan. 16 at $2.162.

“It is clear that the tariffs will have a negative effect on the global economy, with physical markets set to get tighter in near term, pushing crude prices higher,” said Panmure Liberum analyst Ashley Kelty.

Investors will also be watching for news from an OPEC+ meeting on Monday, with expectations that the oil producer group will stick to its current plan of gradual increases to output.

Rystad’s Sahdev added that tariffs, if kept for long, have the potential to cause production losses in Canada and Mexico, which could help OPEC+ to unwind output curbs.


Banking, healthcare to drive 8% growth in Saudi stock market profits in 2025: SNB Capital 

Banking, healthcare to drive 8% growth in Saudi stock market profits in 2025: SNB Capital 
Updated 03 February 2025
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Banking, healthcare to drive 8% growth in Saudi stock market profits in 2025: SNB Capital 

Banking, healthcare to drive 8% growth in Saudi stock market profits in 2025: SNB Capital 
  • Petrochemical field is projected to record substantial growth of 74% in 2025
  • Healthcare division is anticipated to achieve a 23% rise in net profits, up from 11% in 2024

RIYADH: Saudi stock market profits are set to grow by 8 percent in 2025, with the petrochemical sector driving the increase, according to a new report by SNB Capital. 

Banking and healthcare are also expected to see big rises, with the industries benefiting from increased loan activity and expanded operations. 

If petrochemicals are excluded from the analysis — with energy giant Aramco dominating the market — the Saudi stock exchange would see a 14 percent growth in profits.

This broad-based growth across key sectors highlights the resilience and dynamism of the Saudi economy, setting the stage for heightened market activity and increased investor confidence. 

These favorable conditions have translated into a surge in initial public offerings, with strong demand from both institutional and retail investors driving significant gains in 2024.

The petrochemical field is projected to record substantial growth of 74 percent in 2025, driven by improved prices, additional production capacities, and a return to full operational activity following widespread maintenance closures in 2024. 

The healthcare division is anticipated to achieve a 23 percent rise in net profits, up from 11 percent in 2024, driven by a 20 percent revenue increase attributed to new expansions that help mitigate margin pressures. 

The cement sector is also poised for strong growth, supported by the acceleration of mega projects, while the car rental industry is expected to benefit from fleet expansion, operational efficiencies, and lower interest rates, though short-term rental margins could face some pressure. 

Strong expectations for IPO activity in 2025 have been bolstered by lower interest rates, accelerating economic activity, and attractive investor incentives, according to SNB Capital.

Macroeconomic sentiment remains favorable, with over 85 percent of managers forecasting at least three interest rate cuts in 2025, signaling a shift toward easier financial conditions. 

The report underlines a growing proportion of managers who view the market as undervalued relative to its fair worth, though a majority still consider it fairly valued at its peak. 

Oil prices are expected to stabilize in 2025, with most fund managers predicting a range between $70 and $79 per barrel. 

Optimism is rising across sectors such as tourism, banking, and construction, while cautious views persist for the energy and petrochemical industries as they continue to navigate challenges. 

The strong market activity witnessed in 2024 lays the foundation for the optimistic forecasts for 2025, as the momentum generated by increased IPOs, rising transaction values, and sectoral recovery is expected to carry forward into the coming year. 

The Tadawul All-Share Index recorded a sharp increase in IPOs in 2024, reversing a decline in the prior year. 

The number of IPOs rose to 14, up from eight in 2023, with total proceeds reaching SR14.2 billion, compared to SR11.9 billion the previous year. 

Institutional subscription coverage rates improved significantly, averaging 126 times in 2024 compared to 61 times in 2023, while retail subscription coverage increased to an average of 16 times from 11 times. 

Market activity surged in 2024, with the number of negotiated deals reaching approximately 3,500, compared to 918 in 2023 and 1,316 in 2022, according to SNB. 

Negotiated deals generally refer to transactions that are arranged through direct agreements between buyers and sellers rather than through open market auctions or bidding processes. 

In the context of the stock markets, it can imply block trades, private placements, or structured deals involving large volumes of shares or assets that require direct negotiation to determine terms such as price and volume. 

Although the average deal size declined to SR24 million from SR34.6 million in 2023, the total value of transactions climbed to SR84 billion, significantly higher than SR29.5 billion in 2023 and SR38.9 billion in 2022. 

Major offerings contributed to increased market liquidity and a higher proportion of free-floating shares. 

Among them, Saudi Aramco’s secondary offering in June stood out as the largest secondary issuance in the Middle East, Europe, and North Africa since 2000. 

The offering raised SR42 billion through the sale of 1.55 billion shares at SR27.25 per share, surpassing the scale of its 2019 IPO. 

Saudi Telecom Co. followed with a secondary offering in November, generating SR38.6 billion through the sale of 2 percent of its public shares, or approximately 100 million shares. 

Meanwhile, SAL Logistics Services completed an IPO valued at SR6 billion, with shares expected to be distributed to shareholders in early 2025 at an estimated value of SR7 billion.