Saudi Arabia, Morocco Sign MoU to Boost Sustainability in Tourism Industry

Saudi Arabia signs an agreement for sustainable development in the tourism industry with Morocco. (Asharq Al-Awsat)
Saudi Arabia signs an agreement for sustainable development in the tourism industry with Morocco. (Asharq Al-Awsat)
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Saudi Arabia, Morocco Sign MoU to Boost Sustainability in Tourism Industry

Saudi Arabia signs an agreement for sustainable development in the tourism industry with Morocco. (Asharq Al-Awsat)
Saudi Arabia signs an agreement for sustainable development in the tourism industry with Morocco. (Asharq Al-Awsat)

Saudi Arabia and Morocco signed on Friday a memorandum of understanding to promote cooperation in tourism and coordinate efforts to achieve sustainable development of the tourism industry.

The ceremony was attended by Saudi Tourism Minister Ahmed bin Aqil Al-Khatib, and his Moroccan counterpart, Fatima Zahra Ammor, on the sidelines of the 117th session of the Executive Council meeting of the UN’s World Tourism Organization (UNWTO).

In a statement, Al-Khatib said: “Saudi Arabia and Morocco enjoy a joint commitment to protect rich heritage sites, marine, mountainous and desert natural areas, in addition to their keenness on giving priority to youth in their development plans.”

He emphasized that the Kingdom’s tourism goals paid great attention to the importance of sustainability.

For her part, the Moroccan minister of Tourism noted that the new MoU reflected the “strong ties between the two countries and the common vision towards consolidating partnership and improving prospects for cooperation in the tourism sector...”

“It will lead to more joint initiatives and the exchange of experiences and best practices, allowing the two countries to develop their capabilities in the tourism field,” she added.

The Executive Council of the World Tourism Organization (WTO) opened on Wednesday in Marrakesh a three-day meeting, with the participation of over 250 representatives of UNWTO member countries, including tourism ministers, public and private investors, travel agents, and hotel and travel industry professionals.

The agenda focuses on the current turn in international tourism, the financial situation of the organization, a report on human resources, a proposal to create a study group to rethink future tourism, and a report on the progress of the legal and practical framework for the creation of regional and thematic offices of the UNWTO.



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.