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Saudi Arabia Prepares Hospitality Facilities to Keep Pace with New Tourism Law 

The law is part of the system of improvements and development of the regulatory and legislative environment for the tourism sector. (Asharq Al-Awsat)
The law is part of the system of improvements and development of the regulatory and legislative environment for the tourism sector. (Asharq Al-Awsat)
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Saudi Arabia Prepares Hospitality Facilities to Keep Pace with New Tourism Law 

The law is part of the system of improvements and development of the regulatory and legislative environment for the tourism sector. (Asharq Al-Awsat)
The law is part of the system of improvements and development of the regulatory and legislative environment for the tourism sector. (Asharq Al-Awsat)

Saudi Tourism Ministry officials intend to visit hospitality facilities in the Kingdom to develop and raise the level of services and safety they offer. This will be done in cooperation with investors and in preparation for the new tourism scheme in the Kingdom, according to official sources.

Last August, the Saudi cabinet approved a new tourism law to boost the competitiveness of the tourism sector. 

The law is part of the system of improvements and development of the regulatory and legislative environment for the sector. 

The ministry’s follow-up comes for the purpose of measuring the extent to which hospitality facilities apply the regulations and standards of the sector. 

Besides collecting additional data, the ministry will promote serious cooperation. It is expected of facilities to provide necessary documents to visiting survey teams. 

The ministry called on hospitality establishments to provide several information. 

Most notably, it required them to inform survey teams of the extent to which they are familiar with the new tourism law and the current legislation. 

The ministry asked establishments to assess the feasibility of investment in the sector and to identify the most important obstacles with respect to licensing. 

Tourism Minister Ahmad al-Khateeb said the newly approved law comes in the line with the leadership’s orders to build a competitive tourism sector and contribute to the goals of Vision 2030. 

Khateeb indicated that since the launch of the national tourism development strategy in 2019, work has been ongoing to organize the sector. 

The Kingdom has established a ministry, an authority, a development fund, and regional councils to boost its tourism sector’s competitiveness. 

As per the new law, businesses will be given special licenses and support from the ministry, noted Khateeb, adding that the ministry will streamline licensing procedures by creating a one-stop-shop platform for all tourism stakeholders.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.