Saudi Arabia Records Highest Half-Yearly Travel Surplus in Balance of Payments

Jabal Al-Fil in AlUla (SPA)
Jabal Al-Fil in AlUla (SPA)
TT

Saudi Arabia Records Highest Half-Yearly Travel Surplus in Balance of Payments

Jabal Al-Fil in AlUla (SPA)
Jabal Al-Fil in AlUla (SPA)

Saudi Arabia achieved the highest semi-annual surplus ever for the travel item in the balance of payments during the first half of 2023, soaring 327 percent, reaching $10.6 billion, compared to the first half of 2022.

The Ministry of Tourism announced that the Kingdom ranked second globally in the growth rate of tourist arrivals during the first seven months of 2023.

The UNWTO Barometer, issued by the World Tourism Organization (WTO) last month, showed that the Kingdom recorded a growth rate of 58 percent compared to the same period in 2019.

The ministry said there has been significant growth in spending by foreign visitors coming to the Kingdom, which amounted to about $22.3 billion.

The government created about 200,000 jobs and still needs 800,000 more to meet the needs of the hotels and new products to keep pace with the high demand from tourists coming to the country.

The state is building approximately 500,000 new rooms in several areas within the giant government projects in NEOM, Diriyah, and others, in addition to the private sector, which will pump more projects.

Crown Prince Mohammed bin Salman bin Abdulaziz recently launched the general plan for the project to develop al-Soudah and parts of Rijal Alma under the name al-Soudah Peaks.

The Crown Prince is the Chairman of the Board of Directors of al-Soudah Development Company.

Soudah Development is a real estate development company owned by the Public Investment Fund (PIF) of Saudi Arabia. It will drive the development of Soudah and parts of Rijal Almaa in the Aseer region.

The Company aims to create a year-round luxury mountain tourism destination with immersive cultural experiences while celebrating the region's natural landscape at 3,015 meters above sea level in the Asir region's unique natural and cultural environment.

The project spans an area of 627 km, including Soudah and parts of Rijal Almaa.



Saudi Finance Minister: 2025 Budget Aims to Continue Expanding Strategic Spending

Al-Jadaan speaking at the press conference (Asharq Al-Awsat)
Al-Jadaan speaking at the press conference (Asharq Al-Awsat)
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Saudi Finance Minister: 2025 Budget Aims to Continue Expanding Strategic Spending

Al-Jadaan speaking at the press conference (Asharq Al-Awsat)
Al-Jadaan speaking at the press conference (Asharq Al-Awsat)

Saudi Finance Minister Mohammed Al-Jadaan outlined the objectives of the 2025 budget, emphasizing a continued focus on strategic spending for developmental projects aligned with sectoral strategies and Vision 2030 programs.
He added that the budget aims to support initiatives that deliver sustainable economic, social, and environmental benefits, while enhancing the business environment, improving the Kingdom’s trade balance, and increasing both the volume and quality of local and foreign investments.
Speaking at a press conference following the Cabinet’s approval of the budget, Al-Jadaan highlighted the government’s commitment to expansionary spending due to its positive impact on citizens. He noted that Saudi Arabia’s economy has become more resilient to fluctuations in oil markets, reflecting ongoing structural changes.
The non-oil economy is projected to grow by 3.7% by the end of 2024, he said, with non-oil activities contributing 52% to GDP during the first half of the current year.
The minister also revealed that since the launch of Vision 2030, non-oil revenues have increased by 154%. Oil’s share of GDP currently stands at 28%, and the nominal GDP has reached SAR 4.1 trillion, he remarked.

Moreover, Al-Jadaan said that private investment’s contribution to GDP has grown from 16% in 2016 to 24.7% today. The industrial sector is set to attract SAR 30 billion ($8 billion) in investments in 2025, alongside SAR 12.3 billion ($3.2 billion) in credit facilities to support Saudi exporters. Tourism has also emerged as a significant driver of economic growth, ranking as the second-largest contributor to the balance of payments after oil.
The Saudi minister emphasized the encouraging economic indicators, noting the surge in small and medium-sized enterprises driven by government spending. He reiterated the government’s cautious and conservative approach to budget preparation, reflected in revenue figures.
Structural changes in the Kingdom’s economy are beginning to yield tangible results, with a 33% increase in spending on strategies and programs aimed at achieving Vision 2030, according to Al-Jadaan. These efforts are expected to sustain economic growth, foster diversification, and further strengthen the Kingdom’s global economic standing, he stated.