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Establishing Qiddiya Investment Company Supports Saudi Entertainment Industry

Qiddiya Sign (Asharq Al-Awsat)
Qiddiya Sign (Asharq Al-Awsat)
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Establishing Qiddiya Investment Company Supports Saudi Entertainment Industry

Qiddiya Sign (Asharq Al-Awsat)
Qiddiya Sign (Asharq Al-Awsat)

Saudi Arabia has incorporated Qiddiya as a standalone business entity called Qiddiya Investment Company (QIC), a key step in testablishing a new phase of the entertainment industry in Saudi Arabia.

Saudi Ministry of Commerce and Investment registered QIC, which will oversee the development of Qiddiya, as a closed joint-stock company, wholly owned by the Kingdom’s sovereign investment fund, Public Investment Fund (PIF), according to a Ministry of Culture and Information statement released on Monday.

Saudi Arabia’s Custodian of the Two Holy Mosques King Salman and Crown Prince Mohammed bin Salman last month attended the launch ceremony of the project, which was announced in April last year as one of the three major projects of Vision 2030.

Covering 334 square kilometers, about 2.5 times the size of Walt Disney World, Qiddiya will shape Saudi Arabia’s multi-sector economy, help secure sustainable growth and improve the quality of services to citizens.

Qiddiya is one of the entertainment projects that will change investments in entertainment sector all around the world. QIC will allow the domestic economy to recapture a market share of billions of dollars spent annually by Saudis on foreign tourism. These funds will remain inside the country to be reinvested for the benefit of citizens.

Qiddiya CEO Michael Reininger explained that Qiddiya will be a fully independent entity, and will draft its own budget, aiming to move forward with this project that has the potential to enrich the lives of all Saudis.

“This step brings us closer to the day when we can satisfy the demand of a powerful and untapped Saudi market for new and accessible activities. It is for these future visitors – the nearly two thirds of the Kingdom’s population under 35, the more than 7 million people who reside within 40 kilometers of our location on the doorstep of Riyadh – that we at Qiddiya Investment Company aspire to build a better future filled with culture, sports, entertainment, and opportunity,” he said.

By the third phase of the project between 2026 and 2035, the entertainment city would have been established and will provide 11,000 housing units, in addition to the raise in gross domestic product, while the number of visitors to the entertainment city is expected to reach 31 million visitors.

Qiddiya Investment Company (QIC) was established on May 10 2018 to lead the development of Qiddiya, a leading entertainment destination in Saudi Arabia, as a center for activities, discovery and participation.

Qiddiya is envisioned as a gigantic entertainment hub with facilities divided into six main components: amusement parks; sports tracks, auto and motorcycle racing areas on desert and asphalt tracks; indoor ski slopes and water parks; natural attractions; and cultural and heritage events. The project includes resorts, hotels, restaurants and residential units.

As a key component of Vision 2030, Qiddiya will provide many opportunities that contribute to economic diversification and enhance the quality of life for Saudi citizens. The project is located just 30 minutes from the capital, Riyadh, and laid its foundation stone in April 2018, and the first phase will be completed in 2022.

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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar hit new multi-month highs against the euro and the pound on Thursday, the first day of 2025 trading, as it built on last year's strong gains on expectations US interest rates will remain high relative to peers.

The euro fell to as low as $1.0314, its lowest since November 2022, down around 0.3% on the day. It is now down nearly 8% since its late September highs above $1.12, one major victim of the dollar's recent surge.

Traders anticipate deep interest rate cuts from the European Central Bank in 2025, with markets pricing in at least four 25 basis point cuts, while not being certain of even two such moves from the US Federal Reserve, Reuters reported.

The dollar was hitting milestones across the board and the pound was last down 0.65% at $1.2443, its lowest since April, with its fall accelerating after it broke through resistance around $1.2475.

"It's more of the same at the start of the new calendar year with the dollar continuing to extend its advances in anticipation of Trump putting in place friendly policies at the start of his term," said Lee Hardman, senior currency analyst at MUFG.

US President-elect Donald Trump's policies are widely expected to not only boost growth but also add to upward price pressure. That will lead to a Fed cautious about cutting rates too much further, in turn underpinning US Treasury yields and boost dollar demand.

A weaker growth outlook outside the US, conflict in the Middle East and the Russia-Ukraine war have also added to demand for the dollar.

The dollar also reversed an early loss on Thursday to climb against the Japanese yen, and was last up 0.17% at 157.26.

It reached a five-month high above 158 yen in late December, potentially putting pressure on the Bank of Japan, which is expected to raise interest rates early this year, but possibly not immediately.

"If dollar/yen were to break above 160 ahead of the next BOJ meeting, that could be a catalyst for the BOJ to hike in January rather than wait until March," said Hardman.

"Though for now markets are leaning towards March after the dovish comments from (governor Kazuo) Ueda at his last press conference."

Even those who are more cautious about sustained dollar strength think it could take a long time to play out.

"The dollar may be vulnerable – but only if the US data confound market expectations that the Fed doesn’t cut rates more than once in the first half of this year, and not by more than 50bp in the whole of 2025," said Kit Juckes chief FX strategist at Societe Generale in a note.

"There's a good chance of that happening, but it seems very unlikely that cracks in US growth will appear early in the year – hence my preference for taking any bearish dollar thoughts with me into hibernation until the weather improves."

China's yuan languished at 14-month lows as worries about the health of the world's second-biggest economy, the prospect of US import tariffs from the Trump administration and sliding local yields weighed on investor sentiment.

Elsewhere, the Swiss franc, another victim of the recent dollar strength, gave back early gains to last trade flat at 0.90755 per dollar.

The Australian and New Zealand dollars, however, managed to break away from two-year lows touched on Tuesday. The Aussie was 0.36% higher at $0.6215 having dropped 9% in 2024, its weakest yearly performance since 2018.

The kiwi rose 0.47% to $0.5614.