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Moody’s Upgrades Saudi Economy Growth Forecast

Saudi economy receives positive forecasts from the credit rating agencies for the current year. (Asharq Al-Awsat)
Saudi economy receives positive forecasts from the credit rating agencies for the current year. (Asharq Al-Awsat)
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Moody’s Upgrades Saudi Economy Growth Forecast

Saudi economy receives positive forecasts from the credit rating agencies for the current year. (Asharq Al-Awsat)
Saudi economy receives positive forecasts from the credit rating agencies for the current year. (Asharq Al-Awsat)

Global credit rating agency Moody’s has raised the Kingdom’s growth forecast to 2.5 percent for the current year from its last estimation of 1.7 percent, backed by moderate levels of debt and large financial reserves, in addition to its huge oil reserves.

For next year, it has elevated the expansion to 3.1 percent from the prior estimation of 2.6 percent.

This indicates that non-oil private sector activity will remain strong.

Moody’s said last year that the Saudi economy grew by 10.2 percent during the first nine months of 2022.

According to Moody’s report, Saudi economic growth was driven by the recovery of oil production and the rapid growth in the non-oil sector.

According to the firm’s report, the strong growth of the Saudi non-oil sector over the past and present years (averaging 5 percent annually through the second quarter of 2022) indicates that economic diversification efforts are gaining momentum.

Several government-sponsored mega-projects may move from design to construction, added Moody’s.

Moody’s revealed that the strength of institutions and governance in the country reflects the robust effectiveness of the Kingdom’s monetary and macroeconomic policies.

Moreover, ACWA Power has signed financing agreements totaling $8.5 billion for the NEOM Green Hydrogen Project (NGHP).
The investment was agreed upon with NEOM Green Hydrogen Company (NGHC), a joint venture between ACWA Power, Air Products, and NEOM Company, with ACWA Power holding a 33.3 percent equity stake.

According to Acwa Power, the project scope includes the development, financing, design, engineering, procurement, manufacturing, factory testing, transportation, construction, installation, commissioning, insurance, ownership, operation, and maintenance of the world-scale green hydrogen and green ammonia facility in NEOM.

Also, a 30-year green ammonia offtake contract has been inked with Air Products, it added.

The total financing consists of $5.8 billion in senior debt and $475 million of secondary debt facilities, both arranged on a non-recourse project finance basis.

The balance is from a consortium of financiers, structured as a combination of long-term uncovered tranches and an Euler Hermes-covered tranche. The financiers include First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Abu Dhabi Commercial Bank, Saudi British Bank, Saudi National Bank, and Riyad Bank.

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Egypt’s Tourism Minister: We’ve Agreed on Future Initiatives with Saudi Arabia

A glimpse of the visit by the Egyptian Minister of Tourism and Antiquities and his accompanying delegation to the UNWTO office in Saudi Arabia (Asharq Al-Awsat)
A glimpse of the visit by the Egyptian Minister of Tourism and Antiquities and his accompanying delegation to the UNWTO office in Saudi Arabia (Asharq Al-Awsat)
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Egypt’s Tourism Minister: We’ve Agreed on Future Initiatives with Saudi Arabia

A glimpse of the visit by the Egyptian Minister of Tourism and Antiquities and his accompanying delegation to the UNWTO office in Saudi Arabia (Asharq Al-Awsat)
A glimpse of the visit by the Egyptian Minister of Tourism and Antiquities and his accompanying delegation to the UNWTO office in Saudi Arabia (Asharq Al-Awsat)

Egyptian Tourism Minister Sherif Fathy told Asharq Al-Awsat that he and Saudi Tourism Minister Ahmed Al-Khateeb have agreed to collaborate on several tourism initiatives.

These include joint marketing efforts, shared tourism programs, environmental protection measures, and promoting specific types of tourism in the Red Sea.

Fathy recently visited Riyadh, where he met with Al-Khateeb and engaged with Saudi business leaders. They discussed ways to promote tourism between their countries and increase visitor exchanges.

During his visit to the United Nations World Tourism Organization (UNWTO) regional office in Riyadh, Fathy stated that the office’s presence in Saudi Arabia enhances the organization’s work in the region and improves communication with other countries.

He confirmed that they plan to develop and implement the agreed initiatives in the near future.

Fathy highlighted that the Middle East is a key player in global tourism and deserves a dedicated office to support all countries in the region. This effort aims to boost collaboration and promote the Middle East as a top destination for travelers.

Tourism, National Economy: A Path to Sustainable Growth

Samer Al-Kharashi, Director of the UNWTO regional office for the Middle East, stated that the office supports 13 countries in the region, with Egypt being a key member.

He highlighted that the recent visit by Egypt’s Minister of Tourism and Antiquities, who serves as Vice President of the regional committee, creates opportunities for collaboration.

This partnership aims to boost tourism’s role in the national economy, create jobs, and promote sustainable practices that protect the environment.

Speaking to Asharq Al-Awsat, Al-Kharashi emphasized the potential for cooperation with Egypt, which has a rich tourism history and many ancient sites. He noted that the regional office has the expertise to assist member countries.

Al-Kharashi expressed optimism about the discussions, which covered various opportunities for joint projects that would benefit both Egypt and the wider region.

Strengthening Bilateral Relations

Fathy’s visit to the UNWTO regional office aims to enhance bilateral relations, as Cairo actively seeks to develop its tourism sector through international collaboration.

During their meeting, Fathy and Al-Kharashi addressed key issues facing Egypt’s tourism sector, including challenges and growth opportunities. They explored future cooperation, particularly in tourism training, improving services, and increasing investments.

Egypt ranks first in Africa, fifth in the Middle East, and 63rd globally on the Travel and Tourism Development Index.

The UNWTO regional office in Riyadh is the first of its kind outside the organization’s headquarters, dedicated to supporting member states in the Middle East.

The office focuses on promoting tourism education, improving infrastructure, and fostering sustainable tourism while preserving the region’s cultural and environmental heritage.