Saudi Arabia Allocates $4Bn for Tourism Development
People are seen at the Janadriyah Cultural Festival on the outskirts of Riyadh, Saudi Arabia. (Reuters file photo)
Saudi Arabia announced plans to launch a tourism development fund with an initial $4 billion investment, as part of its plans to diversify its economic resources.
The Ministry of Tourism issued a statement saying the fund will launch equity and debt investment vehicles to develop the tourism sector in collaboration with private and investment banks.
Tourism Minister Ahmed al-Khateeb said that the fund is a testament to investor and private sector confidence in the long-term outlook for tourism in Saudi Arabia, especially since it comes at a time as tourism faces unprecedented global challenges in light of the COVID-19 pandemic.
Saudi Arabia considers tourism as one of the main pillars of the economic reforms aimed at reducing the Kingdom’s dependence on oil revenue.
Last year, Saudi Arabia opened up to international tourists, launching a new visa system that appeals to foreign companies to invest in the sector. It hopes that this will contribute more than 10 percent of gross domestic product (gdp) by 2030, up from the current 3 percent.
Experts predict a severe economic contraction in Saudi Arabia this year, hit by the economic impact of measures to contain the coronavirus pandemic and by a sharp drop in oil revenues.
They believe that the fund, which was approved by the Shura Council last week, will contribute to providing government funding to investors and help complete development projects in this sector
It will also help in establishing important tourism sectors that will achieve remunerative revenues in addition to achieving tourism development, economic and service goals.
Economist Saleh al-Humaidan said the sector will depend on domestic tourism in the next stage, along with the local industry.
He told Asharq Al-Awsat that domestic tourism will be a strong economic addition and will become a modern economic tributary capable of contributing to the consolidation of the policy of diversifying economic resources.
The tourism development fund will establish infrastructure for a broad future for domestic tourism, especially as there are large-scale domestic tourism investments, according to Humaidan.
He pointed out that the fund will certainly enhance the development of tourism and will be an important element in managing the retail sector, localizing national employment and creating job opportunities for Saudi youth.
Humaidan noted that domestic tourism along with religious, heritage and medical tourism have seen noticeable progress, adding that a lot can be achieved now that the Tourism Authority has been transformed into to the Ministry of Tourism.
The tourism development fund will be the major supporter to generate domestic tourism that attracts both foreign and local investment, he added.
Saudi Arabia Links Recruitment to Digital Systems to Strengthen Compliance and Wage Protectionhttps://english.aawsat.com/business/5267044-saudi-arabia-links-recruitment-digital-systems-strengthen-compliance-and-wage
Saudi Arabia Links Recruitment to Digital Systems to Strengthen Compliance and Wage Protection
Participants at the Global Labor Market Conference in Riyadh (SPA)
Saudi Arabia’s labor market is undergoing rapid transformation driven by reforms under Vision 2030, aimed at strengthening compliance, protecting wages, and improving the efficiency of the business environment. These efforts run in parallel with expanding the integration of recruitment into digital systems, advancing international partnerships to regulate labor mobility, and supporting workforce diversification, thereby reinforcing institutional trust and international cooperation in labor market governance.
In this context, Dr. Tariq Al-Hamad, Deputy Minister for International Affairs at the Ministry of Human Resources and Social Development, told Asharq Al-Awsat that labor market reforms in the Kingdom have delivered tangible progress in modernizing regulations, enhancing worker protection, and creating a more dynamic and inclusive work environment. He noted that these transformations are no longer confined to the domestic level, but have expanded to include a more structured international dimension through bilateral agreements, including those signed with Nepal and Nigeria, which serve as governance tools to regulate labor mobility and strengthen worker protection.
Labor market shifts
Al-Hamad said the reforms have achieved measurable progress in updating regulatory frameworks, enhancing worker protection, and improving operational efficiency, with clear gains in participation, compliance, and productivity. He added that updates to labor mobility regulations since 2021 have enabled greater flexibility for workers to move between employers within regulatory frameworks aligned with international best practices. This shift was reinforced by the Contractual Relationship Improvement Initiative launched in March 2021, which marked a pivotal transformation in regulating job mobility.
At the institutional level, more than 11 million employment contracts have been documented via the Qiwa Platform, enhancing transparency and raising compliance levels in the private sector. He added that the implementation of a wage protection system has introduced preventive safeguards and strengthened trust between parties to employment contracts.
Strengthening worker protection
Alongside these changes, the worker protection framework has seen notable progress. Al-Hamad stated that more than 90 percent of private-sector establishments are compliant with the Wage Protection Program, ensuring accurate and timely salary payments.
He added that labor dispute resolution procedures have become faster, more efficient, and more transparent. The reforms have also driven greater inclusivity, with female labor force participation more than doubling between 2018 and 2024, one of the fastest growth rates globally. Meanwhile, around 2.48 million Saudis have joined private-sector jobs since 2020.
Deputy Minister for International Affairs at the Ministry of Human Resources and Social Development, Dr. Tariq Al-Hamad (Asharq Al-Awsat)
International cooperation
As reforms accelerate, they are no longer confined to the domestic level, increasing the need for a structured international framework to sustain them. Al-Hamad emphasized that organized international labor cooperation is a strategic priority, as it strengthens the Kingdom’s position as a partner committed to ethical recruitment, regulatory modernization, and shared responsibility. It also reinforces institutional trust and diplomatic cooperation in labor markets.
He explained that these agreements align cross-border labor mobility with modern regulatory standards, transparency requirements, and digital compliance systems. The expansion of such agreements, including those with Bangladesh, Nepal, and Nigeria, reflects a shift from traditional recruitment models toward long-term institutional partnerships between governments, providing more stable labor mobility channels and strengthening trust.
Governance enhancement
Reflecting this direction, Al-Hamad said agreements with Nepal and Nigeria regulate the full worker lifecycle, from recruitment licensing and contract documentation to wage transparency and dispute coordination and resolution mechanisms. He added that they enhance oversight of recruitment agencies, clarify contractual obligations, and establish institutional cooperation between governments to monitor compliance and resolve complaints efficiently.
He also noted that linking these agreements to digital infrastructure, such as the Qiwa platform and the Wage Protection Program, ensures that commitments are translated into enforceable mechanisms supported by real-time monitoring. This is complemented by joint oversight frameworks and regular information exchange, strengthening continuous supervision and accelerating the handling of labor cases.
Aligning skills with economic needs
As part of improving market efficiency, Al-Hamad stressed that aligning labor mobility with sectoral economic needs is a core pillar of the labor market strategy. Recent agreements are increasingly based on specific sector needs, ensuring recruitment is driven by actual demand rather than volume, particularly in sectors such as construction, tourism, logistics, healthcare, and advanced services.
He explained that the ministry relies on digital data through the Qiwa platform to continuously analyze market needs and identify skills gaps, allowing recruitment to be directed in line with economic requirements. Coordination with partner countries prior to worker arrival also helps verify skills, improve workforce readiness, and reduce skills gaps from the outset of employment.
He added that workforce planning is increasingly integrated with major national projects to ensure expatriate labor complements, rather than replaces, localization efforts. This is supported by programs such as Nitaqat, which incentivize the hiring of national talent across sectors.
International recognition of reforms
At the global level, these reforms have received growing recognition. Al-Hamad noted that the International Monetary Fund has pointed to tangible outcomes, including declining unemployment among Saudis, increased female participation in the labor market, and growth in private-sector employment.
He added that the “A Decade of Progress” report, developed in cooperation with the World Bank, highlighted structural transformations in the labor market.
The International Labour Organization has also commended the Kingdom’s role in developing labor policies and engaging in global dialogue, reflecting its growing status as a model in labor market reform, inclusivity, and economic flexibility.
Future priorities
Al-Hamad concluded that the next phase will focus on deepening international cooperation at both bilateral and multilateral levels by expanding labor agreements with new countries and strengthening partnerships with international organizations such as the International Labour Organization and the World Bank. These efforts aim to support knowledge transfer and policy development.
He added that the ministry is working to enhance collaboration with the private sector, academic institutions, and international stakeholders to keep pace with labor market transformations, with the goal of consolidating the Kingdom’s position as a trusted global partner in labor market development and delivering sustainable outcomes.
Gold Steady as Investors Await Clarity on US-Iran Talkshttps://english.aawsat.com/business/5266994-gold-steady-investors-await-clarity-us-iran-talks
Gold Steady as Investors Await Clarity on US-Iran Talks
Gold bracelets and necklaces displayed for sale in a gold shop at the Grand Bazaar in Istanbul (AFP)
Gold prices held largely steady, as investors stayed on the sidelines awaiting clarity on the stalled peace talks between the United States and Iran.
Spot gold was steady at $4,709.50 per ounce, as of 0553 GMT. Last week, the metal fell 2.5% to snap a four-week winning streak.
US gold futures for June delivery fell 0.3% to $4,725.10.
"We're just sort of watching now whether there's progress in the (US-Iran) talks at all in the coming days and that's going to be the biggest driver for gold," said Kyle Rodda, a senior financial market analyst at Capital.com.
Lending support to bullion, the dollar eased after a report said that Iran through Pakistani mediators gave the US a new proposal on reopening the Strait of Hormuz and ending the war, Reuters reported.
US President Donald Trump said on Sunday that Iran could telephone if it wants to negotiate an end to their two-month war and stressed it can never have a nuclear weapon.
Trump cancelled a trip by two US envoys to Iran war mediator Pakistan on Saturday, dealing a setback to peace prospects.
Oil prices rose as the stalled talks prolonged the disruption of Middle East energy exports.
Higher crude oil prices can stoke inflation by raising transportation and production costs, increasing the likelihood of higher interest rates.
While gold is considered an inflation hedge, high interest rates make yield-bearing assets more attractive, weighing on its appeal.
Investors now await the US Federal Reserve's interest rate decision on Wednesday.
"It could either be a support to gold or an increased headwind, depending on if the Fed sort of indicates whether it sees itself potentially keeping policy unchanged for the rest of the year because of the inflationary impacts of the energy crisis," said Rodda.
Spot silver fell 0.1% to $76.61 per ounce, platinum gained 0.2% to $2,015.63, and palladium was down 0.6% at $1,487.73.
Türkiye Unveils Steep Tax Cuts to Boost Competitiveness, Investmenthttps://english.aawsat.com/business/5266967-t%C3%BCrkiye-unveils-steep-tax-cuts-boost-competitiveness-investment
Commuters arrive to take a ride across the Bosphorus at Karakoy ferry terminal in Istanbul, Türkiye, Thursday, April 23, 2026. (AP)
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Türkiye Unveils Steep Tax Cuts to Boost Competitiveness, Investment
Commuters arrive to take a ride across the Bosphorus at Karakoy ferry terminal in Istanbul, Türkiye, Thursday, April 23, 2026. (AP)
Türkiye unveiled details on Monday of a broad package of incentives aimed to boost competitiveness and attract investment, and also position its biggest city Istanbul as a leading financial gateway across the region.
At a press conference, Finance Minister Mehmet Simsek said Türkiye was extending a tax exemption on services exports to 100% to target high-value sectors like software, gaming, medical tourism.
At the same time, it is reducing manufacturing exporters' corporate tax rate to 9% to boost competitiveness and attract foreign direction investment (FDI), he said.
The tax reductions are long-term and "here to stay," he told reporters, days after President Recep Tayyip Erdogan first floated the comprehensive legislative package including the tax plans.
The package aims to bolster an economy that officials hope is emerging from a years-long inflationary crisis that cut deeply into individuals' and companies' savings and earnings, prompting many Turks to seek stability abroad. Inflation was above 30% last month.
Some of the incentives, including zero corporate income tax on transit trade, are focused on the companies located in the Istanbul Financial Center (IFC), a new state-backed clutch of glassy towers on the city's Asian side.
The rate is 95% for those located outside the IFC, Simsek said, noting it was set at 50% in years past.
The package aims to "export more goods and services, attract more talent, entrepreneurs, capital, a new home that's more encouraging local citizens to use Türkiye as a center of their activities and ... placing IFC as one of the key regional hubs," he said.
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