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Saudi Arabia: SCTH, SAGIA Ink Promising Deals Worth $26B

Saudi Arabia: SCTH, SAGIA Ink Promising Deals Worth $26B
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Saudi Arabia: SCTH, SAGIA Ink Promising Deals Worth $26B

Saudi Arabia: SCTH, SAGIA Ink Promising Deals Worth $26B

The Saudi Commission for Tourism and National Heritage (SCTH) and the Saudi Arabian General Investment Authority (SAGIA) announced Friday a number of agreements and MoUs with regional and international investment firms in the tourism sector totaling about SAR100 billion (USD26.6 billion).

Agreements facilitated by SCTH include two with Al Khozama concerning the Mayasem Project and the Harbour Project in Jeddah, along with other investment plans plus another with Diriyah Gate Development Authority to establish a 27-hole golf course at Wadi Safar and a 40 room hotel in Al Bujairi, overlooking the Wadi Hanifah Valley and At-Turaif UNESCO World Heritage Site.of that with AMAN Resorts to build an exclusive 40 room hotel in Al Bujairi. Also, Saudia agreed on MoUs and agreements with NEOM to launch the first commercial flights to NEOM.

The agreements covered launching a joint initiative between Saudia and The Red Sea Development Company to promote the Red Sea Project as a luxury global destination to drive tourism, and an agreement with the Royal Commission for AlUla.

Agreements signed by SAGIA include one worth SAR37.5 billion with Triple 5, which plans to develop a series of mixed-use tourism, hospitality and entertainment destinations across the kingdom.

SAGIA signed another one with Majid Al Futtaim worth SAR20 billion for a mixed-use shopping and entertainment destination, which will create 12,000 jobs and feature the region’s largest indoor ski slope and snow park.

It also agreed with FTG Development, OYO Rooms, and Nenking Group/Ajlan Brothers on deals worth SAR11 billion.

The Chairman of SCTH, Ahmad al-Khateeb, said: “These exciting and wide-ranging agreements are only the beginning of the investment opportunities that will arise within Saudi Arabia – the fastest growing tourism sector on earth.

"We anticipate more businesses from around the world will establish operations within the kingdom, as its unique attractions, culture and natural beauty become more widely appreciated.”

Ibrahim al-Omar, governor of SAGIA, said: “In Saudi Arabia, the market fundamentals are in place for a vibrant tourism industry, and we believe that the private sector will play a crucial role in unlocking this potential.

“At SAGIA, our role is to empower and enable domestic and international investors by identifying and developing new opportunities, fostering partnerships and shaping regulatory reforms,” Omar added.

He further continued, “Signing these agreements today represents a milestone for the kingdom of Saudi Arabia as we continue charting a path to a new diversified economy.”

SAGIA granted two investment licenses with a value of SAR272.5 million. The first went to Kerten Hospitality to develop a portfolio of mixed-use projects across the Kingdom and the second to Tetrapylon to coordinate with leading tour operators across North America, Europe, and Asia.

In addition, organizations have made investment commitments collectively valued at SAR36.25 billion, including Alshaya Group, Shomoul, Radisson, and Seera Group.

Notably, these giant investments fall under a series of economic reforms conducted by the kingdom to attract qualitative investment to the Saudi market.

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Growth of Non-Oil Sectors Position Saudi Arabia Among Leading Global Economies

 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
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Growth of Non-Oil Sectors Position Saudi Arabia Among Leading Global Economies

 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)
 King Abdullah Port, Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia’s economy continued its upward trajectory in 2024, solidifying its status as one of the world’s most stable and fastest-growing markets. This momentum is being driven by the Kingdom’s unwavering commitment to economic diversification — a central pillar of Vision 2030 — which has significantly boosted non-oil sectors, expanded private sector participation, and increased the economy’s ability to generate jobs and attract investment.

Non-oil activities now contribute a record 51% to real GDP, marking a major milestone in the country’s transformation journey.

According to the Vision 2030 annual report, Saudi Arabia’s real non-oil GDP grew by 3.9% in 2024 compared to the previous year, fueled by ongoing investments across diverse sectors. Non-oil activities alone expanded by 4.3% year-on-year, reflecting the success of structural reforms and strategic national programs.

At the heart of Vision 2030 is the ambition to build a thriving economy. One of the key benchmarks is improving Saudi Arabia’s position in global GDP rankings. In 2016, the Kingdom ranked 20th worldwide. By 2030, it aims to break into the top 15, with a targeted GDP of SAR 6.5 trillion ($1.7 trillion).

In early 2024, Saudi Arabia adopted a new moving-chain methodology to measure GDP more accurately. Under this updated system, real GDP has grown consistently since 2016 at a compound annual rate of 1.75%, excluding the pandemic-induced downturn in 2020. Non-oil GDP, meanwhile, has shown even stronger performance, expanding at a 3.01% annual pace over the same period.

While the 2024 non-oil GDP target was narrowly missed, the outcome reached 98% of the goal — a strong showing amid global uncertainties. Leading contributors included wholesale and retail trade, hospitality, transportation, logistics, and information technology.

Non-oil exports also played a pivotal role in economic growth, achieving over 75% of their annual targets. Gains came primarily from increased exports of non-oil goods and a sharp rise in re-exports, underlining Saudi Arabia’s growing role in global trade flows.

The private sector’s role in the economy has expanded significantly, with its contribution to GDP reaching 47% — surpassing the 2024 target. Since 2016, this contribution has grown at a compound annual rate of 1.94%.

This progress reflects ongoing efforts to reduce reliance on oil, empower private enterprise, and enhance the Kingdom’s global competitiveness. Key initiatives include national strategies aimed at unlocking sectoral potential, the Public Investment Fund’s push to stimulate private capital, and the successful drive to attract global companies to relocate their regional headquarters to Saudi Arabia.

The government continues to foster a dynamic business environment, supporting small and medium enterprises (SMEs) through regulatory reforms and major development projects. These efforts span several sectors, including manufacturing, transport, logistics, and foreign investment.

Global Confidence, Positive Outlook

International confidence in the Saudi economy remains strong. In 2024, the world’s top three credit rating agencies affirmed the Kingdom’s sovereign creditworthiness. Moody’s assigned a rating of “Aa3” with a stable outlook; Fitch rated it “A+” with a stable outlook; and S&P awarded an “A/A-1” rating, also with a stable outlook.

Global institutions are also optimistic about the Kingdom’s growth prospects. The Organisation for Economic Co-operation and Development (OECD) forecasts Saudi economic growth at 3.8% in 2025 and 3.6% in 2026 — well above the global average.