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Saudi Tourism Forum Launches its Second Edition

The opening session of the Saudi Tourism Forum (Asharq Al-Awsat)
The opening session of the Saudi Tourism Forum (Asharq Al-Awsat)
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Saudi Tourism Forum Launches its Second Edition

The opening session of the Saudi Tourism Forum (Asharq Al-Awsat)
The opening session of the Saudi Tourism Forum (Asharq Al-Awsat)

The second edition of the Saudi Tourism Forum (STF) began Monday under the auspices of Visit Saudi at the Riyadh International Convention and Exhibition between Jan. 22 and 24.

The Saudi Tourism Ministry hosts the Forum with the Saudi Tourism Authority, Tourism Development Fund, and the Red Sea Authority. It brings together STA representatives with more than 100 other representatives of top destinations, airlines, hotels, travel and tourism companies, and tour operators.

The Forum, organized by 4M Events, aims to enrich the tourism sector, exchange experiences and ideas, and strengthen the partnership between the government and private sectors.

It seeks to provide investment opportunities for companies and investors in the sector and consolidate Saudi Arabia's position as a global tourist destination.

It also presents key projects in the field and discusses events and the industry's future.

CEO and member of STA Board of Directors Fahd Hamidaddin revealed the achievements of the tourism sector by the end of September 2023.

Hamidaddin said that by the end of September 2023, spending from domestic tourism increased to $23 billion, and about $27 billion was spent on inbound tourism.

He added that the new airline seats in 2023 reached 10 million after Wizz Air launched 21 new routes, contributing to 253,000 visits annually and spending $506 million.

Tourism products increased from 200 to 1,500 in 2023 in response to the target groups' increasing demand and diverse requirements.

The official also indicated that 17 travel agencies were added in 2023, adding approximately two million trips annually.

Regarding developing the tourist experience, Hamidaddin explained that more than 70 improvements have been made in the visitor experience through coordination with public and private partners of Visit Saudi.

The new improvements include providing information signs in the Chinese language at airports, meeting some special requirements for travelers from India and China, and ensuring that hotels are prepared for some special requirements for the winter and summer seasons.

The Authority now provides services in 12 languages through more than 18 channels, such as WeChat and applications used in China.

It also allocated 45 phone numbers to help visitors and a special contact number for partners, which has processed more than 57,000 calls since its launch.

Last summer, the service satisfaction rate reached 95 percent.

By Q2, Hamidaddin explained that a dedicated dashboard will be provided to businessmen through business intelligence to highlight visits and expected spending from major markets over the next three years.

He stated that Visit Saudi launched the loyalty Saudi Rewards program, which allows visitors to earn points. It focuses on events and experiences and ensures that partners receive information in a personalized manner.

The program includes 168 partnerships, more than 100,000 registered customers, and strategic partnerships, including Riyadh season.

Also, at the Forum's opening session, the chairman of the Organizing Committee, Hamza Nasser, indicated that the second edition is the result of the partnership with the Visit Saudi platform.

Nasser announced that the number of tourists increased in the Kingdom during 2023.

According to the World Tourism Organization (WTO), the number of tourists rose by 156 percent compared to 2019, and domestic tourism has achieved unprecedented numbers in recent years.

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Business

Saudi Economy Relies on Non-Oil Growth Engines to Absorb External Shocks

Oil fields operated by Saudi Aramco (Aramco)
Oil fields operated by Saudi Aramco (Aramco)
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Saudi Economy Relies on Non-Oil Growth Engines to Absorb External Shocks

Oil fields operated by Saudi Aramco (Aramco)
Oil fields operated by Saudi Aramco (Aramco)

Saudi Arabia's economic indicators show a growing ability to withstand external shocks, supported by an expanding non-oil sector that has continued to grow despite geopolitical tensions and disruptions to regional trade and energy routes.

Although gross domestic product (GDP) contracted by 3.8% year on year in the third quarter of 2026, the pace of decline slowed from a 4.7% contraction in the second quarter. Non-oil activities grew by 1.9%, accelerating from 0.9% in the previous quarter, while oil activities declined by 20.4%.

The significance of this performance is particularly evident given the exceptional circumstances of the third quarter, including disruptions to shipping through the Strait of Hormuz and the temporary shutdown of the East-West Pipeline in September.

Seasonally adjusted real GDP also grew by 1.3% compared with the second quarter, indicating an improvement in economic activity on a quarterly basis and reflecting the ability of certain sectors to continue expanding despite the sharp contraction in oil activities.

Annual and Quarterly Performance

According to data from the General Authority for Statistics, oil activities were the main driver of the GDP contraction, contributing a negative 4.7 percentage points, while government activities subtracted 0.4 percentage points.

By contrast, non-oil activities made a positive contribution of 1.1 percentage points, while net taxes on products added approximately 0.1 percentage points.

The data also showed an improvement in economic performance on a quarterly basis, with seasonally adjusted real GDP increasing by 1.3% in the third quarter compared with the second quarter of this year.

The growth was driven by a 5.7% increase in oil activities and a 0.6% rise in non-oil activities, while government activities declined by 1.2%.

Last month, the International Monetary Fund (IMF) noted that Saudi Arabia's available fiscal buffers and alternative oil export facilities were helping limit the economic damage caused by the war. The Fund considered the Kingdom better positioned than its Gulf peers to contain the fallout from the disruptions.

The IMF projected a strong recovery in the Saudi economy in 2027, forecasting growth of 7.9% amid expectations of a rebound in oil activities and improvements in trade and shipping.

These projections are particularly significant in light of Saudi government estimates that the economy will contract by 3.6% in 2026, with the projected budget deficit rising to 4.9% of GDP.

The contrasting performance of oil and non-oil activities underscores the importance of the structural transformation underway in the Saudi economy.

Non-oil activities are no longer merely an additional contributor to GDP. They are playing an increasingly important role in absorbing shocks and limiting the transmission of volatility in the energy sector to the broader economy.

Promising Sectors

Since the launch of Vision 2030, the Saudi government has pursued a clear strategy to diversify income sources and broaden the economic base by accelerating non-oil growth and developing promising sectors.

These include information technology and artificial intelligence, transportation and logistics, tourism, entertainment and quality of life, renewable energy and sustainability, as well as mining, manufacturing and other targeted industries.

These efforts have helped diversify sources of economic activity and strengthen the contribution of non-oil sectors, giving the Saudi economy greater flexibility to withstand external fluctuations by diversifying sources of value added and expanding the role of domestic businesses and the private sector.

Consumer Spending

In this context, Dr. Abdullah Al-Mir, Assistant Professor of Economics at King Fahd University of Petroleum and Minerals, told Asharq Al-Awsat that the contraction in the Saudi economy during the third quarter was not broad-based. Instead, it was concentrated largely in oil activities, which declined by approximately 20%.

Non-oil activities, meanwhile, continued to grow by 1.9%, playing an important role in cushioning the impact of the sharp decline in the oil sector.

According to Al-Mir, government spending and private sector activity are two key pillars of this resilience. Continued consumer spending by households and the private sector helps sustain domestic demand in trade, retail, hospitality, services and transportation, all labor-intensive activities directly linked to the non-oil economy.

He noted that the Riyad Bank Purchasing Managers' Index (PMI) reached 55.3 in September 2026, remaining in expansion territory for the sixth consecutive month, reflecting continued improvement in non-oil private sector activity.

Al-Mir explained that the importance of non-oil activities becomes even clearer when the energy sector slows. Sustained activity in services, entertainment and domestic tourism helps small and medium-sized enterprises remain operational, preserves local supply chains and supports employment opportunities.

He emphasized the importance of strengthening the resilience of the non-oil private sector against external volatility.

Al-Mir added that one of the most significant signs of Saudi Arabia's economic transformation was the increase in the share of non-oil activities to 57.3% of the economy, describing it as a historic level that reflects a structural shift in the country's economic composition.

He linked this transformation to the decline in the unemployment rate among Saudi nationals to 6.5%, highlighting the potential impact of expanding non-oil activity on the labor market.

Al-Mir noted that sectors such as tourism, entertainment, technology and manufacturing continued to expand despite geopolitical disruptions that affected oil production and shipping, further demonstrating the structural transformation of the Saudi economy.

"Non-oil activities have a greater capacity to withstand shocks, while sustained investment momentum associated with Vision 2030 provides an alternative source of growth," he said.

Business

Saudi Arabia Records 6,484 Franchise Registrations, Up 53%

A consumer goods store in Saudi Arabia (SPA)
A consumer goods store in Saudi Arabia (SPA)
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Saudi Arabia Records 6,484 Franchise Registrations, Up 53%

A consumer goods store in Saudi Arabia (SPA)
A consumer goods store in Saudi Arabia (SPA)

Commercial franchise registrations in Saudi Arabia grew by 53% during the first nine months of 2026, reaching 6,484, compared with 4,227 at the end of 2025, according to the Ministry of Commerce.

The ministry said the food and beverage, fuel and petroleum, and fashion and apparel sectors accounted for the highest number of franchise registrations in the Kingdom.

It explained that the Commercial Franchise Law aims to regulate and develop the sector, enhance transparency, protect the rights of all parties involved, and create an attractive investment environment.

It also seeks to improve the quality of goods and services and support the sustainability, growth and expansion of commercial activities.

Business

Saudi Stock Market Falls 0.8% for Second Consecutive Session

A man walks past the Tadawul logo at the Saudi stock exchange (AFP)
A man walks past the Tadawul logo at the Saudi stock exchange (AFP)
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Saudi Stock Market Falls 0.8% for Second Consecutive Session

A man walks past the Tadawul logo at the Saudi stock exchange (AFP)
A man walks past the Tadawul logo at the Saudi stock exchange (AFP)

Saudi Arabia's benchmark Tadawul All Share Index (TASI) closed Sunday's session down 0.8% at 9,838 points, shedding 83 points amid total trading turnover of approximately SAR 3.1 billion.

The decline marked the index's second consecutive losing session after it fell 1% on Thursday to 9,922 points, ending a three-day winning streak that began with a 3.4% surge on Monday, followed by gains of 2.3% on Tuesday and 0.4% on Wednesday.

Despite Thursday's losses, the index ended last week up approximately 2.4%.

During Sunday's session, the benchmark fluctuated between a low of 9,789 points and a high of 9,923 points, moving further away from the 10,000-point threshold it had surpassed during trading last week.

Market Declines

Among heavyweight stocks, Al Rajhi Bank edged down approximately 0.1%, while ACWA Power fell around 3%.

Shares of Alujain and SPIMACO dropped approximately 10% each, while Saudi Reinsurance (Saudi Re) declined 8% and Jabal Omar Development fell around 7%.

Dr. Sulaiman Al Habib Medical Services Group and ZOUJAJ closed at SAR 214 and SAR 35.02, respectively, down 3% and 2% following the passing of their dividend eligibility dates.

Elm Leads Gains

In contrast, Elm shares surged approximately 9% following the release of the company's financial results.

SAHL rose around 4%, Sports Clubs Company gained more than 4%, and Watani Iron Steel advanced more than 2%.

BinDawood Holding and Sumou Real Estate each jumped 5%.