SCTA, SAGIA sign deal to attract more investments

Saudi Arabia’s tourism sector grew 6.8 percent in 2011 making SR 59 billion revenue and has the potentials to attract value added investment, said Abdullatif Al-Othman, governor of Saudi Arabian General Investment Authority.
Speaking to reporters after signing an agreement with Saudi Commission for Tourism and Antiquities, he described tourism and antiquities as vital sectors that could contribute immensely to the government’s plan to achieve balanced regional development.
Prince Sultan bin Salman, president of SCTA, said the agreement crowned the distinguished relations between the two government departments. “It will lead to greater cooperation between the two organizations benefiting the national economy,” he added.
He said the agreement would boost investments in the tourism sector, strengthening the economy and creating more jobs for Saudi men and women.
“The Kingdom’s huge natural resources as well as its security and stability will help attract more investment from within the Kingdom and abroad,” he added.
He disclosed plans to establish a number of giant projects in the tourism sector and he sought SAGIA’s professional support to mobilize investments for these projects.
Al-Othman emphasized SAGIA’s readiness to cooperate with all government departments to attract more investments to the Kingdom, especially in the tourism sector that requires more infrastructure and service projects.
“The agreement will contribute to attracting excellent investments in different parts of the Kingdom, especially tourist centers that must be exploited economically,” he said.
He added: “Despite the annual growth achieved by the tourism sector, (6.8 percent in 2011), its contribution to the GDP reached only 3.2 percent. This is far below our expectations and the world or regional average of more than 9 percent. So, there is room for big development in this vital sector that can boost the economy and attract value-added investment.”
The SCTA-SAGIA agreement will facilitate licensing of tourism projects and issuance of licenses related to the sector. It will promote investments in the tourism sector as well as in exhibitions and conferences.