Glimpses on Business Growth Opportunities in Saudi Arabia!
UpGro My Business
Saudi Tourism Unveils 'This Land is Calling' Campaign
Saudi Arabia’s national tourism brand, “Saudi, Welcome to Arabia,” has launched a global campaign titled “This Land is Calling,” targeting audiences in the UK, France, Italy, Germany, and the US.
The campaign, featuring a film that follows a solo female traveler, showcases Saudi Arabia’s diverse and captivating landscapes, from desert dunes to snow-capped mountains and vibrant coral reefs. It highlights the country’s rich history and cultural heritage, portraying it as the Heart of Arabia. The film conveys a message of adventure and discovery, emphasizing Saudi Arabia’s warmth and hospitality. His Excellency Ahmed Al Khateeb, Minister of Tourism, expressed excitement about the campaign, which aligns with Saudi Vision 2030.
Created in collaboration with the award-winning agency BETC, the campaign will be promoted globally through various platforms, aiming to broaden perspectives and invite the world to experience Saudi Arabia’s unique blend of tradition and modernity.
Saudi Arabia's 2034 World Cup Bid: New Plans for Hotels, Stadiums, and Airports
Saudi Arabia has submitted its bid to host the 2034 men’s football World Cup, outlining ambitious plans for hotels, stadiums, and other travel infrastructure.
The 245-page “bid book” calls for tens of thousands of new hotel rooms, 11 new stadiums, and entire cities built from scratch. Hosting the event will require significant investment and effort, given the ambitious goals and past delays in projects under Crown Prince Mohammed bin Salman’s 2030 Vision.
Proposed host cities include Riyadh, Neom, Jeddah, Al Khobar, and Abha, with the opening match and final in Riyadh. FIFA’s new human rights and worker safety rules, inspired by the 2022 World Cup in Qatar, are also addressed in the bid book, which devotes 15 pages to sustainability and human rights. Notably, the bid does not mention alcohol, which is banned in Saudi Arabia.
The Saudis say Neom’s “first district” will be ready before 2034, stating: “All FIFA World Cup 2034 activities in Neom will take place in the first district of The Line, which will be fully operational in advance of the competition.”
Saudi Arabia plans for all five proposed host cities to have modern airports connecting to over 250 international destinations. By 2030, the countrywide airport capacity will exceed 300 million passengers, with flights to 250 destinations.
Saudi Arabia plans a $40 billion investment in artificial intelligence
Saudi Arabia’s government plans to establish a $40 billion fund to invest in artificial intelligence, as reported by the New York Times.
Representatives from Saudi Arabia’s Public Investment Fund (PIF) have recently discussed potential partnerships with US venture capital firm Andreessen Horowitz and other financiers. Discussions include the possibility of Andreessen Horowitz setting up an office in Riyadh and their role in the fund. The AI fund, expected to launch in the second half of 2024, may involve other venture capitalists. Saudi representatives have expressed interest in supporting various AI-related tech start-ups, including chip makers and large-scale data centers. In February, PIF’s governor Yasir Al-Rumayyan pitched Saudi Arabia as a potential hub for AI activity outside the US, citing its energy resources, funding capacity, and political will to advance AI projects.
Top Companies in Saudi Arabia
Saudi Arabia’s economic landscape is rich with dynamic companies that play a crucial role in the nation’s development. Let’s celebrate some of the leading firms contributing to the Kingdom’s growth and diversification:
1. Aramco: As a global leader in energy, Aramco fuels the world while spearheading sustainability and innovation in the oil and gas industry.
2. Red Sea Global: Transforming the tourism sector, Red Sea Global is pioneering sustainable luxury tourism, creating job opportunities, and boosting the economy.
3. stc: The Saudi Telecom Company (stc) is at the forefront of digital transformation, connecting people and businesses with cutting-edge technology and infrastructure.
4. P&G: Procter & Gamble enhances everyday life with trusted brands, while investing in local communities and sustainability initiatives.
5. Saudi Airlines: Connecting the Kingdom to the world, Saudi Airlines drives tourism and business travel, contributing to economic diversification.
6. Bupa: As a leading health insurance provider, Bupa ensures the well-being of individuals and families, supporting a healthier society.
7. SPIMACO: Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO) is crucial in advancing healthcare with high-quality pharmaceuticals and medical products.
8. HSBC: This global banking giant supports economic growth through innovative financial services, investment, and business support.
9. Ma’aden: Saudi Arabian Mining Company (Ma’aden) is a key player in the mining sector, fostering industrial development and job creation.
10. SADAFCO: Saudi Dairy and Foodstuff Company (SADAFCO) nourishes the nation with high-quality food products, contributing to food security and the local economy.
These companies are not just market leaders; they are pillars of progress, innovation, and sustainability, driving Saudi Arabia towards a brighter future. 🌟
Saudi Arabia set to become world’s biggest construction market
Saudi Arabia is set to become the world’s largest construction market as it invests heavily in projects to transform and diversify its economy, according to real estate consultancy Knight Frank.
The country’s construction output is projected to reach $181.5 billion by the end of 2028, reflecting a nearly 30% increase from 2023 levels. This growth is driven by residential properties and large-scale “giga projects” under Crown Prince Mohammed bin Salman’s Vision 2030 initiative. This ambitious plan aims to reduce the kingdom’s dependence on oil, accommodate a growing population, and attract foreign tourists. Mohamed Nabil, a regional partner at Knight Frank, highlighted the significant scale and value of these projects. Since the launch of Vision 2030, Saudi Arabia has initiated projects worth over $1.25 trillion. Although some projects have been downsized, the kingdom is working diligently to meet its 2030 goals.
Leading players in the Saudi construction sector include Saudi Binladin Group, Saudi Oger Ltd., Al Arrab Contracting Company (ACC), El Seif Engineering Contracting Company, Almabani General Contractors, and Al-Rashid Trading & Contracting Company (RTCC). These companies are pivotal in shaping the future of Saudi Arabia’s infrastructure and urban development.
World's Largest Airport Under Construction in Saudi Arabia
Saudi Arabia is constructing the world’s largest airport as part of its ambitious Vision 2030 strategy to become a global travel hub. Scheduled for completion by the end of the decade, this project is a key element of Crown Prince Mohammed Bin Salman’s plan to enhance the country’s international appeal. The airport, built on the site of the existing King Khalid Airport in Riyadh, will cover 34 square miles with six parallel runways, residential and recreational facilities, and retail outlets.
The Public Investment Fund (PIF) unveiled the master plan in November 2022, aiming for completion by 2030, in time for the World Expo and ahead of the FIFA World Cup in 2034. The airport is expected to initially handle 120 million passengers annually, increasing to 185 million by 2050, surpassing Atlanta’s Hartsfield-Jackson Airport.
The project, with sustainability at its core, is led by Mace Group, with design input from Foster + Partners and Jacobs Solutions. The airport will support Riyadh’s goal to become one of the top ten city economies globally and boost its population to 15-20 million.
Tourism Rejuvenates in Saudi Arabia with 'Tanaffas' Initiative
Saudi Arabia has launched the Tanaffas (Breathe) initiative, allowing local tourists to explore 10 destinations while adhering to strict health safeguards amid the COVID-19 pandemic. In a virtual press conference, Tourism Minister Ahmed Al-Khatib highlighted the growing importance of internal tourism due to international travel fears. He emphasized that this summer is a unique opportunity to discover Saudi Arabia’s historical, natural, and cultural treasures.
The initiative aims to revive the tourism sector, severely impacted by the pandemic. Al-Khatib announced plans to establish a tourism development council to facilitate private sector investment in tourism. The focus will be on mountainous and coastal areas, with safety protocols developed in collaboration with the Ministry of Health. The initiative includes shared housing options and licensed companies to accommodate tourists. Key destinations include Tabuk, Umluj, Yanbu, Jeddah, Taif, Al-Baha, Asir, Abha, Riyadh, and the eastern region.
🚨 Important Update! 🚨
Attention business owners! Google Business Profile is making a significant change. Starting July 15, 2024, customers won’t be able to start new chat conversations on Google Business Profile, and by July 31, 2024, the chat feature will be completely removed. But don’t worry! Customers can still reach your business through Google Search, Google Maps, and your website. Make sure your profile is updated with clear contact information, a compelling business description, and a stellar website link to ensure your customers can easily reach you. Stay ahead of the curve and keep your business visible and accessible! 🌐📱🚀
Qualcomm and Aramco Join Forces to Drive Saudi Arabia's Digital Future
Qualcomm Technologies and Saudi energy giant Aramco have signed an agreement to boost connectivity, artificial intelligence (AI), and advanced computing technologies for industrial applications in Saudi Arabia. The partnership aims to accelerate the development of industrial 4G/5G and non-terrestrial networks (NTN), including 450MHz cellular technology, and to design hardware, software, and services for end-to-end IoT solutions.
Nakul Duggal from Qualcomm highlighted that this collaboration will help develop advanced IoT solutions tailored to Saudi Arabia’s needs. Durga Malladi, another senior executive at Qualcomm, emphasized the role of cellular technology, high-performance computing, and AI in connecting millions of intelligent edge devices using the 450 MHz spectrum.
Nabil Al-Nuaim from Aramco stated that the collaboration aims to set benchmarks in industrial IoT and AI, enhance operational efficiencies, and promote sustainable growth. The Saudi Accelerated Innovation Lab (SAIL) will spearhead these innovations. Additionally, Aramco Digital and Intel are establishing Saudi Arabia’s first Open RAN (O-RAN) development center to support robust communications infrastructure and digital transformation across various industries.
Riyadh Travel Fair 2024 to be Held on May 27
Saudi Arabia is ready for the Riyadh Travel Fair 2024 with its growing tourism vision. The Riyadh Travel Fair 2024 is set to take place from May 27-29 at the Riyadh International Convention & Exhibition Center. This premier event will feature over 200 exhibitors from more than 30 countries, including 15 prominent tourism boards. It serves as a platform for showcasing tourist products and services and exploring investment opportunities in the tourism sector.
The event expects over 25,000 visitors, with a packed agenda of more than 20 seminars and numerous networking opportunities. Running from 4:00 PM to 10:00 PM daily, the fair provides ample time for attendees to connect and discover.
Key industry players, including travel leaders, think tanks, influencers, and professionals, will be present. Attendees can explore the latest travel trends, engage with tourism authorities, and deepen their understanding of the global travel landscape. Mark your calendars for this must-attend event.
Saudi Unveils Stunning Summer Retreats at Arabia Travel Market 2024
The Saudi Tourism Authority (STA) launched this year’s Arabian Travel Market (ATM) by highlighting the Kingdom’s captivating summer destinations. The event, held in Dubai, showcased the country’s thriving tourism sector and its exceptional summer offerings. STA Chief Executive Fahd Hamidaddin led a delegation of 72 partners from across Saudi Arabia’s tourism sector, including destination management companies, hoteliers, and airlines.
The Kingdom aims to solidify its reputation as a world-class year-round tourism destination, focusing on priority markets like India and China. Over the summer, Saudi Arabia offers an array of activities for visitors, including pristine Red Sea beaches, Jeddah’s rich culture, and unique events like the Esports World Cup in Riyadh.
Saudi’s mountain regions, such as Aseer, Taif, and Al Baha, offer a cool retreat for adventure seekers and nature lovers. At ATM, STA unveiled the innovative “Saudi Rewards” program and showcased interactive experiences like virtual bike racing and traditional dance performances. STA’s participation aimed to build on last year’s success, which included 1,600 deals and over 50 strategic agreements. With 100 million tourists welcomed in 2023, Saudi Arabia is poised for continued growth as a leading global tourism destination.
Saudi Arabia’s Entertainment Sector Set For Massive Growth
Saudi Arabia is on a mission to position itself as a top destination for leisure and entertainment, catering primarily to affluent visitors. This transformation aligns with a broader vision to diversify the kingdom’s economy and elevate its global cultural presence.
A report from Redseer Strategy Consultants projects that consumer spending in Saudi Arabia’s entertainment sector could skyrocket, potentially reaching $5 trillion by 2028. This surge highlights the kingdom’s evolving economic strategies and its drive to expand beyond traditional industries.
Saudi Arabia’s entertainment landscape has dramatically shifted, contrasting with its nearly dormant cultural scene just decades ago. The growing acceptance of contemporary entertainment such as movies and concerts marks a profound shift in cultural dynamics.
The entertainment sector’s rapid growth is set to boost the economy and redefine Saudi Arabia as a premier global tourist destination. The development of leisure and entertainment facilities aims to attract tourists seeking recreational and cultural activities beyond religious pilgrimages.
By 2028, Saudi Arabia’s leisure and entertainment industry could see spending levels that reflect its ambition to become a leading global hub for luxury and leisure. This long-term vision marks a significant departure from the past and places the kingdom on the international map as a vibrant, diverse tourist destination.
World Bank chooses Saudi Arabia for Knowledge Hub
Saudi Arabia’s National Competitiveness Center (NCC) and the World Bank Group announced a partnership in Washington DC on Friday to establish a knowledge hub in the Kingdom. The hub aims to share Saudi Arabia’s economic reform experiences and enhance regional and global competitiveness collaborations with other countries striving to improve their economic positions.
Saudi Minister of Commerce Majid Al-Qasabi highlighted the deal as a testament to the Kingdom’s progress in global competitiveness under Crown Prince Mohammed bin Salman’s leadership. Saudi ambassador to the US, Princess Reema bint Bandar, the President of the World Bank Group Ajay Banga, and the Chief Economist Intermit Gill also attended the announcement.
The hub, in its preparatory phase, will be overseen by a founding committee comprising the ministries of finance, economy, and planning, along with other relevant government agencies.
Saudi Arabia Smashes 2023 Tourism Targets: 27M Foreign, 77M Domestic Visitors!
In 2023, Saudi Arabia surpassed its 2030 tourism goals with a remarkable influx of visitors. The Kingdom welcomed a record-breaking 27 million foreign tourists and 77 million domestic travelers, surpassing the targets outlined in its Vision 2030 plan. This achievement reflects Saudi Arabia’s commitment to developing its tourism sector, aiming now to host 150 million visitors by 2030.
Focusing on enhancing its hospitality and real estate sectors, Saudi Arabia is poised for substantial growth in tourism. By attracting millions of visitors, the country aims to boost revenue generation and solidify its global reputation as a premier tourist destination. Strategic initiatives such as developing resorts along the Red Sea and hosting major events like gaming conferences and concerts contribute to this vision.
Additionally, the introduction of the unified GCC tourist visa, akin to the Schengen visa in Europe, simplifies travel within the Gulf region, further supporting tourism growth. Nasser Saidi, founder of Nasser Saidi & Associates, emphasizes the strong potential of tourism in Saudi Arabia, particularly its appeal to cultural, historical, and religious tourists, amidst the nation’s diversification efforts away from oil dependence.
Government incentives boost foreign investment in Saudi Arabia
Saudi Arabia sees a surge in net foreign direct investment (FDI) flows, reaching approximately SAR 13 billion ($3.4 billion) in the fourth quarter of 2023. Figures from the General Authority for Statistics (GASTAT) reveal FDI levels soared to around SAR 19 billion ($5 billion), marking a 16.6% increase from the previous quarter.
The Saudi government’s implementation of flexible investment policies, aligned with global standards, has contributed to this growth. Recent tax incentives, including a 30-year income tax exemption for regional headquarters of international firms, further bolster investment attractiveness. Economic analysts anticipate FDI to surpass SAR 50 billion in the fourth quarter of 2026, buoyed by infrastructure developments like NEOM and the Red Sea tourism projects. Saudi Arabia’s diverse resources, from oil and gas to cultural tourism and non-oil industries, position it as a lucrative investment destination across various sectors, including tourism, entertainment, sports, and nutrition.
Saudi business sector thrives in 2023 with booming hospitality, transport, and arts
The business landscape in Saudi Arabia is witnessing an impressive surge, acting as a significant catalyst for overall growth and diversification efforts. In the latest quarterly bulletin released by the Ministry of Commerce, Q4 2023 showcased a notable uptick in commercial registrations across various sectors, with land transport of goods taking the lead.
By the end of Q4 2023, commercial records soared to 33,447,000, marking a remarkable 21.2% year-on-year growth, with 5,841,000 new registrations compared to 2022.
The hospitality and technology sectors also witnessed robust growth, with “resorts” experiencing a significant 51% annual increase, reaching 3,377,000 records. Notably, Makkah claimed a substantial share of this growth, capturing 40.4% with 1,364,000 records.
Additionally, “software publishing” exhibited healthy growth of 28.8%, totaling 4,009,000 records by Q4 2023. The surge extends to tourism and specialized services, with “boutique hotels” witnessing a remarkable 74.4% increase, totaling 1,911,000 commercial records, with Makkah playing a pivotal role once again, contributing 45.2%.
Demand for cloud computing services surged by 40.5% annually, reaching 1,759,000 registrations by Q4 2023. Manufacturing and creative industries also showed promising growth, with “manufacturing medical instruments and equipment” witnessing a 28.3% increase, totaling 1,322,000 records, and “visual arts activities” boasting the highest growth percentage at 103.5%.
Furthermore, the interest in marine recreation is evident, with a 49.1% increase in commercial registrations for “marine clubs” by Q4 2023.
Saudi tourism attracts $13 billion in private sector investment
Saudi Arabia’s tourism industry has seen a significant influx of private sector investment, totaling approximately $13 billion. This investment surge further propels the nation’s ambitious efforts to entice international travelers. Princess Haifa M. Al Saud, Saudi Arabia’s vice minister for tourism, shared that this financial injection will facilitate the addition of 150,000 to 200,000 hotel rooms within the next two years, as reported by Bloomberg.
Government forecasts indicate a substantial growth trajectory, targeting $85 billion in tourism revenue by 2024, a notable increase from $66 billion recorded in the previous year.
The kingdom’s proactive approach involves extensive revitalization projects, focusing on historical sites like the desert city of AlUla and the Diriyah section of Riyadh. These endeavors include the development of luxurious hotels and upscale dining establishments.
Furthermore, Saudi Arabia has diversified its tourism offerings by hosting gaming conferences, MMA (mixed martial arts) matches, and hip-hop concerts, strategically appealing to a younger demographic of international visitors.
Saudi Arabia achieves record tourism spending! SR135 billion spent in 2023
In 2023, Saudi Arabia saw an unprecedented surge in inbound tourism spending, hitting a record SR135 billion, according to the Saudi Central Bank. This remarkable growth, representing a 42.8% increase from 2022, underscores the Kingdom’s thriving tourism sector.
Notably, Saudi Arabia topped the UN Tourism ranking for growth in international tourist arrivals, with a 56% increase compared to 2019. The Kingdom’s tourism recovery rate of 156% compared to 2019 further solidifies its position as a global leader in tourism. With numerous tourist destinations witnessing substantial increases in visitors, Saudi Arabia is increasingly recognized as a premier global destination. Achieving the milestone of 100 million tourists by the end of 2023, seven years ahead of Saudi Vision 2030’s timeline, highlights the Kingdom’s rapid development in tourism. This achievement has garnered international acclaim, showcasing Saudi Arabia’s commitment to unlocking the immense potential of its tourism sector.
