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Saudi Arabia Launches Major Partnerships, Agreements to Boost Tourism

Saudi Arabia launches significant partnerships and agreements to boost tourism and hospitality (Asharq Al-Awsat)
Saudi Arabia launches significant partnerships and agreements to boost tourism and hospitality (Asharq Al-Awsat)
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Saudi Arabia Launches Major Partnerships, Agreements to Boost Tourism

Saudi Arabia launches significant partnerships and agreements to boost tourism and hospitality (Asharq Al-Awsat)
Saudi Arabia launches significant partnerships and agreements to boost tourism and hospitality (Asharq Al-Awsat)

Several global partnerships and agreements enhancing the tourism sector in Saudi Arabia were accomplished at the Future Hospitality Summit, which concluded Wednesday.

Saudi Arabia hosted the second edition of the Future Hospitality Summit under the theme "Reimagined Horizons" on the 24th and 25th of May at Riyadh Airport Marriott Hotel.

The Red Sea Development Company (TRSDC) announced it signed three new management agreements with international brands to operate resorts in the first phase of development at the Red Sea destination.

Chief business officer at the Saudi Tourism Development Fund (TDF) Wahdan al-Kadi said that the project presents a significant opportunity to attract more investors to the Kingdom's tourism sector, resulting in job creation and improving the overall quality of life, and the development of tourism destinations.

TDF signed a financing agreement with Rimal al-Khobar Real Estate Company Ltd., co-owned by Retal Urban Development Co. and Assayel Arabia, to develop the first Nobu complex in the Eastern Province.

"The Saudi tourism sector is undergoing a major development drive, and we are committed to enabling private sector investors' participation and providing them with the necessary support to develop quality tourism projects across the country," noted Kadi.

He noted that the Nobu project reflects investors' confidence in the Kingdom and signals strong support for tourism development projects.

"Agreements like this are testament to the crucial role that TDF plays in advancing the Kingdom's economic diversification."

Meanwhile, the CEO of Dur Hospitality, Sultan al-Otaibi, explained that the summit helps exchange ideas and experiences between industry leaders and investors in the hospitality sector.

Otaibi told Asharq Al-Awsat that the sector is recovering after the coronavirus, which was reflected in the performance in the first quarter of this year.

He stated that the conference helped launch several investment partnerships in the industry and global operators that are in line with the requirements of the next stage, reiterating the importance of the conference's continuity in implementing the Kingdom's hospitality sustainability plans.

Otaibi expected an increase in investment in tourist villages and resorts in the Kingdom during the coming period, pointing out that demand signals a promising future for the sector in Saudi Arabia.

CEO at TRSDC John Pagano confirmed that the signing of the recent agreements is evidence of the increasing demand for opportunities in the rapidly growing tourism market in the Kingdom.

"This announcement demonstrates industry confidence in The Red Sea Project, with a total of 12 hospitality brands now confirmed, and signifies a growing appetite from global leaders to participate in expanding the Saudi tourism market. With two brands now entering the region for the first time, I believe the future of tourism in the Kingdom is bright," said Pagano.

Three renowned luxury brands will join a group of the most prominent international hospitality brands that have previously concluded agreements to manage and operate hotels in the Red Sea, most notably EDITION Hotels and St Regis Hotels & Resorts, which is part of Marriott International, Fairmont Hotel & Resorts, Raffles Hotels & Resorts, and SLS Hotels & Residences, part of global hospitality group Accor.

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Business

Business-Friendly Climate Draws 123,000 New Commercial Registrations in Saudi Arabia

 Employees at the Saudi Business Center (SPA). 
 Employees at the Saudi Business Center (SPA). 
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Business-Friendly Climate Draws 123,000 New Commercial Registrations in Saudi Arabia

 Employees at the Saudi Business Center (SPA). 
 Employees at the Saudi Business Center (SPA). 

Saudi Arabia’s business environment attracted 123,000 new commercial registrations in the fourth quarter of 2025, pushing the total number of active registrations past 1.8 million by year-end. Foreign investment in the healthcare sector surged by nearly 560 percent over the past three years, highlighting strong international confidence in the Saudi market.

According to a recent report by the Ministry of Commerce, reviewed by Asharq Al-Awsat, the number of active sole proprietorship registrations reached 1.26 million by the end of 2025, reflecting 20 percent growth over the past five years.

Active limited liability companies (LLCs) totaled 571,000, with a sharp 183 percent increase over five years. Meanwhile, the number of joint-stock companies grew 50 percent over the same period to 4,733 active registrations.

Regional and Sectoral Performance

Riyadh led the Kingdom in new commercial registrations during the final quarter of 2025 with 45,600 records, followed by the Eastern Province with more than 20,000, and Makkah Region with 19,200.

The construction sector topped all industries, with more than 66,000 registrations issued during the quarter. It was followed by wholesale and retail trade with 24,900, and manufacturing industries with 23,700, while the remainder was spread across other activities.

The report also highlighted a strong rise in e-commerce sales conducted via Mada cards in October, which hit a record SAR 30.7 billion ($8.1 billion) - a 68 percent year-on-year increase, up SAR 12.4 billion ($3.3 billion) from October 2024, according to data from the Saudi Central Bank (SAMA).

Healthcare Sector Momentum

The Ministry of Commerce said Saudi Arabia continues to roll out development projects aimed at improving healthcare quality and capacity by strengthening national talent, adopting innovative digital solutions, and upgrading medical facilities.

The Kingdom ranks first regionally in healthcare investment, with agreements signed at the recent Global Health Exhibition in Riyadh valued at about SAR 133 billion ($35.4 billion). Foreign investment in the sector has expanded by more than 560 percent in three years, with healthcare contributing 5 percent of GDP.

Healthcare-related activities saw strong growth in the fourth quarter, including medical laboratories (+33%), pharmaceutical manufacturing (+31%), physiotherapy centers (+31%), and telemedicine and remote care services (+30%).

E-Commerce and High-Growth Sectors

Active e-commerce registrations rose 9 percent year-on-year to 43,800 by the end of the fourth quarter, up from 40,000 in the same period of 2024. Strengthening the e-commerce ecosystem is a key objective of the National Transformation Program, with Saudi Arabia ranked among the world’s top 10 fastest-growing e-commerce markets.

Promising sectors highlighted by the report include artificial intelligence, gaming, cybersecurity, health software, and electric vehicle charging stations. AI-related registrations grew 34 percent to more than 19,000, while gaming rose 27 percent to 841 registrations. UI/UX design activities climbed 28 percent to 18,900.

Cybersecurity registrations increased 27 percent to 9,700, while health and medical software surged 85 percent to 4,300. Power generation and distribution activities grew 27 percent, and EV charging station operations expanded 26 percent to 4,300 registrations.

Investment Deals and Forums

The report cited the success of the Biban Forum, recently held in Riyadh, which generated agreements and launches exceeding SAR 38 billion ($10.1 billion). Investment deals worth SAR 22.2 million ($5.9 million) benefited 55 startups, with participation from 1,021 companies across 66 countries.

It also highlighted the Northern Borders Forum, which offered more than 240 investment opportunities valued at SAR 40 billion ($10.6 billion) across sectors including livestock, food, mining and energy, tourism, environment, and logistics.

 

 

Business

SABIC Reshapes Global Footprint With $950m Divestment Deals

A SABIC employee (company website) 
A SABIC employee (company website) 
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SABIC Reshapes Global Footprint With $950m Divestment Deals

A SABIC employee (company website) 
A SABIC employee (company website) 

Saudi Basic Industries Corporation (SABIC) has announced a major overhaul of its global portfolio, accelerating its exit from petrochemical and engineering plastics assets in Europe and the Americas through two divestment deals worth a combined $950 million.

The move marks a fundamental shift in the company’s operating model and investment identity. It comes as part of an intensive portfolio-optimization program launched in 2022, aimed at boosting returns on capital, freeing up cash, and refocusing investments on higher-growth markets and more sustainable profit margins.

Following the announcement, SABIC shares came under heavy selling pressure on Thursday, falling to 48.78 riyals — their lowest level since April 2009. The decline reflected investor reaction to deal details that include non-cash losses of about $4.88 billion (18.3 billion riyals), stemming from the fair-value revaluation of divested assets. These charges are expected to weigh on the company’s fourth-quarter 2025 results.

While the market response was cautious, analysts say the accounting hit represents a necessary short-term sacrifice to build a leaner, more competitive company aligned with the new centers of global economic growth in East Asia. The divestments also fit within SABIC’s longer-term strategic shift that began in 2020, when Saudi Aramco acquired a 70% stake in the company from the Public Investment Fund for $69.1 billion in the largest deal in the history of the Saudi stock market.

Focus on Higher-Margin Markets

According to SABIC, the first transaction involves the sale of its European petrochemicals business to investment firm AEQUITA for an enterprise value of $500 million. The second covers the sale of its thermoplastics engineering plastics business in Europe and the Americas to Mutares SE & Co. KGaA for $450 million, with potential additional payments linked to future free cash flow over the next four years or a subsequent resale of the business.

SABIC said the transactions represent a key step in reshaping its portfolio, sharpening its focus on higher-margin markets and products with strong competitive advantages, while redeploying capital into opportunities that deliver stronger returns and improved free cash flow. The company stressed that the divestments will not detract from its commitment to technology and innovation or its ability to serve customers worldwide.

Short-Term Pain, Long-Term Gain

SABIC chairman Khalid Al-Dabbagh described the deals as a “transformational step” in the company’s strategy to maximize shareholder value by strengthening cash generation.

Chief executive Abdulrahman Al-Fageeh said the transactions extend the portfolio-optimization program launched in 2022, which included earlier exits from functional forms and the Hadeed and Alba businesses. He said the strategy allows SABIC to reshape its portfolio more effectively and concentrate on areas where it has clear and sustainable competitive advantages in a rapidly changing global environment.

For his part, Chief financial officer Salah Al-Hareky added that the divestments reflect SABIC’s disciplined approach to capital management. Freeing up capital for redeployment into higher-return opportunities, he said, will improve capital efficiency and enhance returns over the medium to long term.

Assets Involved

The European petrochemicals business being sold includes the production and marketing of ethylene, propylene, polyethylene, polypropylene and value-added polymer compounds, with manufacturing sites in the UK, the Netherlands, Germany and Belgium.

The engineering thermoplastics deal covers SABIC assets producing materials such as polycarbonate, polybutylene terephthalate and ABS resins, with manufacturing facilities in the United States, Mexico, Brazil, Spain and the Netherlands. Mutares co-founder and chief executive Robin Laik said the priority after completion will be ensuring business continuity and supporting employees during the transition, while unlocking the full potential of the assets as a standalone platform.

Completion of both transactions remains subject to customary conditions and regulatory approvals, including employee consultations where required. SABIC expects the deals to close in the second half of 2026.

Analysts see the exits from lower-return assets as a catalyst for improved margins and stronger free cash flow, positioning SABIC for a more resilient and profitable phase beyond the near-term pressures on its share price.

 

 

 

Business

Lebanon Signs Gas Exploration Deal with International Consortium Amid Economic Crisis

In this photo released by the Lebanese Government press office, Lebanese Prime Minister Nawaf Salam, right background, attends the signing of an international consortium deal for gas exploration in the cost of southern Lebanon between the Lebanese government and representing officials from the international consortium consisting of France's Total, Italy's ENI, and state-owned oil and gas company Qatar Energy, in Beirut, Lebanon, Friday, Jan. 9, 2026. (Lebanese Government press office via AP)
In this photo released by the Lebanese Government press office, Lebanese Prime Minister Nawaf Salam, right background, attends the signing of an international consortium deal for gas exploration in the cost of southern Lebanon between the Lebanese government and representing officials from the international consortium consisting of France's Total, Italy's ENI, and state-owned oil and gas company Qatar Energy, in Beirut, Lebanon, Friday, Jan. 9, 2026. (Lebanese Government press office via AP)
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Lebanon Signs Gas Exploration Deal with International Consortium Amid Economic Crisis

In this photo released by the Lebanese Government press office, Lebanese Prime Minister Nawaf Salam, right background, attends the signing of an international consortium deal for gas exploration in the cost of southern Lebanon between the Lebanese government and representing officials from the international consortium consisting of France's Total, Italy's ENI, and state-owned oil and gas company Qatar Energy, in Beirut, Lebanon, Friday, Jan. 9, 2026. (Lebanese Government press office via AP)
In this photo released by the Lebanese Government press office, Lebanese Prime Minister Nawaf Salam, right background, attends the signing of an international consortium deal for gas exploration in the cost of southern Lebanon between the Lebanese government and representing officials from the international consortium consisting of France's Total, Italy's ENI, and state-owned oil and gas company Qatar Energy, in Beirut, Lebanon, Friday, Jan. 9, 2026. (Lebanese Government press office via AP)

Lebanon ’s government on Friday signed a deal with an international consortium to explore gas in an offshore area bordering Israel. 

The deal for exploration at the so-called Block 8 off the coast of southern Lebanon comes after Lebanon and Israel signed a 2022 agreement over their maritime border. The new deal is the latest to be granted by Lebanon to international companies to search for gas in its territorial waters. 

Cash-strapped Lebanon hopes that future gas discoveries will help the country pull itself out of the worst economic and financial crisis in its modern history. 

The deal was signed at the government’s headquarters in downtown Beirut by Energy Minister Joe Saddi from the Lebanese side and officials from the international consortium consisting of France’s TotalEnergies, Italy’s ENI, and state-owned oil and gas company Qatar Energy. 

TotalEnergies said in a statement that the consortium plans to start with a 1,200-square kilometer (463 square mile) 3D seismic survey to assess the area’s exploration potential. 

In 2017, Lebanon approved licenses for France’s TotalEnergies, Italy’s ENI and Russia’s Novatek to move forward with offshore oil and gas development for two of 10 blocks in the Mediterranean Sea, including one that was at the time in a disputed part with neighboring Israel. 

The companies did not find viable amounts of oil and gas in one of the blocks north of Beirut, and drilling in another in the south was repeatedly postponed because of the maritime border dispute with Israel. Lebanon and Israel later signed a deal over their maritime border in 2022. 

In August 2023, an offshore drilling rig began operations in the Mediterranean Sea off Lebanon’s coast. 

That did not give positive results, but Patrick Pouyanné, Chairman and CEO of TotalEnergies, said in a statement that they will keep trying in other areas. 

“We remain committed to pursue our exploration activities in Lebanon,” said Pouyanné. “We will now focus our efforts on Block 8, together with our partners Eni and QatarEnergy and in close cooperation with Lebanese authorities.” 

On Oct. 8, 2023 Lebanon’s Hezbollah started firing rockets toward Israeli posts along the border to back its Hamas allies a day after the Palestinian group attacked southern Israel. The war lasted 14 months during which Hezbollah was severely weakened. 

In January 2023, Lebanon, ENI, TotalEnergies and state-owned oil and gas company Qatar Energy signed an agreement in which the Qatari firm replaced Novatek. Under the deal, Qatar Energy takes Novatek’s 20% stake in addition to 5% each from ENI and TotalEnergies, leaving the Arab company with a total stake of 30%. TotalEnergies and ENI will each have 35% stakes.