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Cruise Saudi, ِAl Madinah Region Development Authority Sign MoU to Boost Tourism Sector

The Memorandum of Understanding (MoU) was signed during the Saudi Tourism Forum in Riyadh. (SPA)
The Memorandum of Understanding (MoU) was signed during the Saudi Tourism Forum in Riyadh. (SPA)
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Cruise Saudi, ِAl Madinah Region Development Authority Sign MoU to Boost Tourism Sector

The Memorandum of Understanding (MoU) was signed during the Saudi Tourism Forum in Riyadh. (SPA)
The Memorandum of Understanding (MoU) was signed during the Saudi Tourism Forum in Riyadh. (SPA)

Cruise Saudi, a wholly owned company by the Public Investment Fund (PIF), and Al Madinah Region Development Authority signed on Monday a Memorandum of Understanding (MoU) to foster economic development in historic Madinah Region, with a focus on social impact both locally and across Saudi Arabia, in line with Vision 2030.

Both the Al Madinah Region Development Authority and Cruise Saudi are aligned in their vision to boost accessibility to Madinah, facilitate regional development, and expand infrastructure to accommodate a growing number of tourists. Under the terms of the agreement, both entities will leverage their capabilities and experiences to realize this shared vision.

The MoU was signed during the Saudi Tourism Forum in Riyadh, an annual event dedicated to promoting Saudi Arabia as a tourist destination. The forum served as a fitting platform for both parties to underscore their commitment to elevating tourism in the Madinah region.

With a wealth of historic wonders and modern attractions, including the coastal city of Yanbu, the Madinah region provides a diverse range of experiences for exploration. Cruise Saudi, through its operations in the Red Sea, will play a pivotal role in facilitating the visits of cruise passengers to this culturally rich and historically significant region.

Mashhoor Baeshen, Executive Director, Destinations Development & Management at Cruise Saudi said: “Unique in history and culture, Madinah has so much to offer tourists seeking an authentic Saudi experience. Cruise Saudi’s signing of the MoU with Al Madinah Region Development Authority marks our commitment to showcasing the most significant historical sites of Saudi Arabia through a carefully curated array of onshore experiences.”

The agreement between Cruise Saudi and Al Madinah Region Development Authority aims to enrich the visitors' experience, create jobs, improve facilities, and drive economic growth, but also to support the Kingdom’s wider objective of welcoming 150 million tourists per year by 2030.

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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s digital advertising sector is experiencing rapid growth, but a significant portion of its revenues is leaking to foreign platforms. To maximize the impact on the national economy, experts are calling for strategies to curb this outflow and redirect it to local channels.

The importance of retaining digital ad revenues lies in the substantial size of this market. It is estimated that approximately $1 billion in ad spent is lost annually to foreign platforms, representing a considerable loss to Saudi Arabia’s economy.

Dr. Ebada Al-Abbad, CEO of Marketing and Communications at Tadafuq, a Saudi digital advertising network, told Asharq Al-Awsat that the problem stems from the fact that although advertisers, products, and audiences are often local, the largest share of financial gains goes to foreign platforms. He estimated that 70-80% of the $1.5 billion spent on digital advertising in Saudi Arabia in 2022 went to global platforms such as Google and Facebook. This results in the national economy losing nearly $1 billion annually from this sector alone.

Al-Abbad noted that government agencies in Saudi Arabia also contribute to the outflow. He explained that public sector spending on digital advertising, intended to raise awareness among citizens and residents, frequently ends up on foreign platforms. Government spending makes up about 20-25% of the total digital ad market in the Kingdom, meaning hundreds of millions of riyals leave the country annually, weakening the local digital economy.

Al-Abbad argues that Saudi Arabia needs strong local digital ad networks to keep this revenue within the national economy. These networks would help create jobs, drive innovation, and promote cultural diversity in digital content. Developing local platforms would also enhance Saudi Arabia’s digital sovereignty by ensuring that data remains within the country and is not controlled by foreign entities.

Moreover, local networks would reduce dependence on international platforms, ensuring that the economic benefits of digital advertising remain in the Kingdom, he said, stressing that this would align with Saudi Arabia’s broader Vision 2030 goals, which emphasize building a robust, diversified economy driven by local industries and digital transformation.

Globally, the digital advertising sector is growing rapidly. In 2022, worldwide spending on digital ads reached $602 billion, and it is projected to hit $876 billion by 2026. In the Middle East and North Africa (MENA) region, the digital ad market grew to $5.9 billion in 2022, with Saudi Arabia’s market accounting for over $1.5 billion.

In other countries, the digital ad sector plays a crucial role in boosting national economies. For example, in the United States, the digital advertising industry contributed $460 billion to the GDP in 2021, about 2.1% of the total. In the UK, the sector accounted for 1.8% of GDP in 2022. This shows how important digital advertising can be in driving economic growth.

One of the key challenges facing Saudi Arabia’s digital ad sector is the dominance of global platforms like Google and Facebook, which control 60% of the global digital ad market, Al-Abbad told Asharq Al-Awsat. This dominance results in a significant outflow of revenue and allows these platforms to control digital data and content. He warned that this could undermine Saudi Arabia’s national sovereignty over its digital economy.

To counter this, he emphasized that Saudi Arabia needs to build competitive local networks that can retain a larger share of the market. This will not only keep more revenue in the country but also strengthen the Kingdom’s control over its digital data and content.