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Saudi Arabia to Lead Middle East Countries in Sustainable Space Sector Development

A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
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Saudi Arabia to Lead Middle East Countries in Sustainable Space Sector Development

A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)

As the Saudi space strategy approaches its launch, expectations for investment in the space sector are growing, with an industry expert predicting that the anticipated budget may be comparable to major space economies.

Moreover, Riyadh is expected to lead the way in creating a competitive and regulatory environment with an innovative approach driven by the public sector, which will support the growth of the regional ecosystem.

Growth Predictions

Phil Malem, CEO of Serco Middle East, estimated the global space industry to be worth more than $400 billion, with expectations of it growing to over a trillion dollars by 2040.

Investments should support the entire value chain of the space ecosystem, from launch to satellite manufacturing within the country, operations, ground segment, and end data services, Malem emphasized.

Speaking to Asharq Al-Awsat, Malem stated that creating the full value chain for the space ecosystem will maximize all relevant industry sectors, such as space exploration, robotics, space science, Earth observation, Satcom, and space sustainability.

Saudi Leadership

According to Malem, Saudi Arabia’s ambitious plans for the country and the region will position it as a global player with a significant impact on space sustainability, leading the Middle East region in this field.

Malem expected that both public and private investments would back the formation of international partnerships in the region and create a local ecosystem. This includes the Saudi Space Accelerator Program, which was introduced by the Saudi Space Commission in 2023.

The program aims to aid startups and entrepreneurs in developing innovative space solutions within the Kingdom while simplifying knowledge transfer, technology, and training.

Malem stressed the importance of strengthening top training programs for operational services through various global space services for professionals in multiple locations, agencies, and public space institutions, such as engineers, operators, and analysts.

This is necessary to enhance the entire space value chain from satellite design and spacecraft operations to data processing and management, explained Malem.

Economic Diversification

Malem forecasted that Saudi Arabia would experience exponential growth in the space sector as part of its economic diversification plans in the region.

He anticipated that space would be a top priority under the direction of Crown Prince Mohammed bin Salman, who serves as the chairman of the Council of Economic and Development Affairs and leads the Supreme Space Council.

The potential for the space sector to impact all economic sectors through services enabled by space data is significant, highlighted Malem.

Since 2018, the Saudi space sector has made big strides in creating a competitive and accessible environment.

Malem noted efforts had been made to enhance the Kingdom’s strategy and achieve incredible accomplishments in human spaceflight missions, including plans to launch Saudi astronauts this year.

Serious Mobilization

Riyadh has taken significant steps toward the sector, affirmed Malem, adding that Saudi Arabia has filled positions with qualified professionals from the global space industry over the past year.

According to Malem, the Kingdom adopted a policy of attracting the best talent to help shape the space sector’s long-term growth, drive, and sustainability.

Saudi Arabia’s space sector will prioritize both economic expansion and the development of its national workforce, said Malem.

The sector aims to position the Kingdom as a leading country in the field of space, he added, noting that this effort presents significant opportunities for building a skilled and confident local workforce capable of implementing the space program and supporting the revitalization of national visions.

Serco’s Plan

Serco’s action plan includes collaborating with local academic, industrial, and public sector organizations to design, develop, and provide training, revealed Malem.

He added that the aim is to prepare Saudi citizens with the abilities, knowledge, and experience required to tackle long-term growth challenges in the regional space sector.

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Business

Gulf Tourist Arrivals Top 75 Million in 2025

GCC tourism ministers meet in Bahrain (GCC)
GCC tourism ministers meet in Bahrain (GCC)
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Gulf Tourist Arrivals Top 75 Million in 2025

GCC tourism ministers meet in Bahrain (GCC)
GCC tourism ministers meet in Bahrain (GCC)

More than 75 million tourists visited Gulf Cooperation Council countries in 2025 as the region’s tourism sector continued to expand, recording an annual growth of 4.8%.

Around 20 million tourists also traveled between GCC states during the year, up 3.6% from 2024, highlighting the growing appeal of destinations within the Gulf.

That momentum continued into 2026. Saudi Arabia welcomed about 3.2 million tourists from other GCC countries in the first half of the year, reflecting increased regional travel and rising demand for Gulf destinations.

The kingdom received about 30 million international tourists in 2025, accounting for nearly 40% of all visitors to GCC countries.

Gulf tourism gathers momentum

Tourism spending across the GCC exceeded $131 billion in 2025, up from about $120 billion a year earlier, GCC Secretary General Jasem Mohamed Albudaiwi said.

The sector’s direct and indirect contribution to GCC economies reached around $254 billion, equivalent to 11.4% of gross domestic product.

Albudaiwi was speaking at the 10th meeting of GCC ministers responsible for tourism in Manama. The meeting was chaired by Bahrain’s Tourism Minister Fatima bint Jaafar Al Sairafi.

He said the figures reflected the progress GCC countries had made in developing tourism and underscored the sector’s growing role in supporting economic growth and diversification.

Saudi Arabia took part in the meeting through Tourism Minister Ahmed Al Khateeb as part of Bahrain’s presidency of the GCC’s 46th session.

Albudaiwi said the figures “do not merely represent indicators of growth” but reflect significant economic and development gains.

The next phase, he said, would require GCC countries to build on those results and strengthen the sector’s ability to protect and sustain its gains amid changing conditions, in line with the GCC Tourism Strategy 2023-2030.

Deeper integration between Gulf destinations

Albudaiwi said the next phase would focus on three main areas: strengthening the tourism sector’s resilience and preparedness, accelerating joint GCC initiatives and projects, and deepening tourism integration among member states.

The measures are intended to encourage travel within the GCC and capitalize on the diversity of tourism offerings across the Gulf.

Ministers discussed a joint GCC action plan to accelerate the tourism sector’s recovery, as well as joint promotional efforts and the development of Gulf tourism packages and programs.

They also considered ways to strengthen the GCC’s tourism presence in targeted international markets.

The meeting reviewed plans for a joint media strategy and a GCC tourism data and indicators dashboard. The initiatives are intended to improve data availability, strengthen performance measurement and help identify opportunities for growth.

Joint tourism initiatives

Ministers considered several initiatives to expand tourism cooperation and integration, including joint marketing campaigns and the exchange of expertise and knowledge on tourism data and statistics.

The meeting also discussed a unified tourist-guide license, common hotel-classification guidelines and the selection of the GCC Tourism Capital for 2027.

International cooperation and joint tourism activities and events were also on the agenda. The measures aim to support the development of an integrated Gulf tourism product and strengthen the region’s ability to attract visitors from international markets.

The meeting followed discussions at an extraordinary gathering of GCC tourism ministers in April, aimed at maintaining coordination among member states and improving the sector’s readiness to respond to changing conditions.

Saudi Arabia’s participation underscored its commitment to supporting joint GCC tourism efforts, coordinating priorities and advancing cooperation among member states to strengthen integration between Gulf destinations.

Business

Saudi Arabia Shields Supply Chains with National War-Risk Insurance Pool

A ship docked at a Saudi port (SPA)
A ship docked at a Saudi port (SPA)
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Saudi Arabia Shields Supply Chains with National War-Risk Insurance Pool

A ship docked at a Saudi port (SPA)
A ship docked at a Saudi port (SPA)

Trade can grind to a halt before ports close or shipping lanes are blocked. Disruption can begin elsewhere, when cargo or vessels become too costly or difficult to insure, or when markets are unable to provide adequate coverage for war-related risks.

Against a backdrop of rising geopolitical risks in the region and their spillover into maritime traffic, insurance and reinsurance markets, Saudi Arabia is moving to establish a national framework to help keep trade flowing even in a highly volatile maritime environment.

In response, the Cabinet approved the establishment of the “Saudi War Risks Insurance Pool for Cargo and Vessels,” a step aimed at building domestic insurance capacity to address risks that could drive up transportation and trade costs or constrain global insurers’ ability to provide coverage.

The initiative is also intended to help ensure the continuity of goods flows and support businesses involved in transportation and logistics.

The move is particularly significant for Saudi Arabia as it expands its role as a trade and logistics hub. The competitiveness of ports and distribution centers depends not only on cargo-handling speed and transport costs, but also on companies’ ability to price and manage risks when geopolitical conditions change abruptly.

Saudi Finance Minister Mohammed al-Jadaan said after the Cabinet approved the mechanism that the Saudi marine insurance pool was a specialized national mechanism designed to support the continuity of trade and supply chains through a public-private partnership.

He said the pool would directly enhance the technical preparedness of the domestic insurance market and expand its capacity to provide the necessary coverage under rules and frameworks set by the Insurance Authority.

He added that the initiative would strengthen the resilience of the national economy and help safeguard its stability amid regional and international crises and challenges.

Industry specialists who spoke to Asharq Al-Awsat said the pool’s economic value would be most evident during crises, when insurance premiums surge or insurers and reinsurers tighten their acceptance of risks associated with particular regions.

They said a stable insurance safety net could give transport companies, importers and exporters greater room to plan and continue operating.

A stable insurance environment

Logistics specialist Nashmi al-Harbi said rising shipping risks in the Red Sea and the Gulf had prompted some insurers to tighten their conditions for covering vessels linked to the region.

That makes the establishment of the Saudi pool particularly timely for domestic transport and logistics companies, he said, as it would help reduce one of the main sources of uncertainty affecting international shipping contracts.

Al-Harbi told Asharq Al-Awsat that international companies doing business with Saudi Arabia, or whose cargo passes through its ports, would also benefit from greater clarity and stability in the insurance environment.

He said the pool’s scope would not be limited to vessels based in the kingdom but would extend to activities and companies with Saudi interests, subject to approved eligibility and coverage requirements.

Al-Harbi said providing stable war-risk coverage would make Saudi Arabia more attractive as a regional hub for storage, distribution and re-exporting.

Logistics companies do not consider only port, transport and cargo-handling costs when selecting destinations, he said. They also take into account the costs of risks to goods and vessels throughout their journeys.

The cost of risk

Supply chain and logistics expert Khalid al-Ghamdi said the importance of the Saudi war-risk insurance pool went beyond providing coverage for vessels and cargo.

It also addressed a deeper challenge facing businesses: the difficulty of predicting risk costs when geopolitical conditions change suddenly.

Al-Ghamdi said a national war-risk safety net would give Saudi logistics companies greater stability when planning voyages, signing contracts and setting prices.

Companies managing thousands of containers need to know more than the cost of fuel, transport and cargo handling, he said. They also need greater certainty about insurance costs so that insurance risks do not suddenly become a heavy financial burden or an obstacle to keeping voyages in operation.

The decision sends a message to international logistics companies that Saudi Arabia is continuing to build a business environment capable of operating even when shipping is disrupted, he said.

That could become an additional factor in decisions by global companies when choosing ports and distribution and re-export centers.

Al-Ghamdi added that the selection of a logistics hub was based not only on location and transport costs, but also on its ability to absorb shocks and manage risks associated with trade flows.

Strengthening that capacity could improve supply-chain resilience, bolster international companies’ confidence and create opportunities for more effective risk-management partnerships, he said.

Insurance pool arrangements

The initiative establishes a national insurance mechanism bringing together the public and private sectors under the supervision of the Insurance Authority.

It is intended to strengthen the domestic insurance market’s ability to handle war risks associated with maritime transport and mitigate the effects of volatility and rising reinsurance costs in global markets.

The initiative also aims to enhance Saudi Arabia’s competitiveness as a logistics hub at a time when more flexible tools are needed to manage the risks facing trade and transport.

As part of its implementation, the Saudi Reinsurance Company, known as Saudi Re, said that the Insurance Authority had selected it to lead and structure the pool’s arrangements, with participation from insurers operating in the domestic market.

Saudi Re will manage the pool’s technical operations and reinsurance arrangements. Beneficiaries will be able to obtain coverage through participating insurers under approved terms and conditions.

Initiative’s objectives

The Insurance Authority has identified four main objectives for the pool: enhancing the insurance market’s preparedness and capacity to absorb marine insurance risks; supporting the continuity of trade and supply chains; limiting the effects of sharp volatility and higher reinsurance costs in global markets; and strengthening Saudi Arabia’s competitiveness as a major logistics hub.

The pool will cover cargo transported by land, sea and air, as well as marine hull insurance against covered damage and risks.

It will also cover charterers’ liability and provide protection and indemnity coverage, offering broader protection to parties involved in transport and trade.

Eligible beneficiaries include exporters and importers; vessel owners and operators; shipping, freight and maritime transport companies; businesses involved in cargo movements, logistics and supply chains; and Saudi insurers participating in the pool.

International models

Saudi Arabia is not alone in adopting such a mechanism. Other countries have established national pools to address rising war risks and difficulties in obtaining coverage from traditional insurance markets.

India offers a recent example. This year, it launched a marine insurance pool with a total capacity of $1.5 billion, including a $1.4 billion sovereign guarantee, to cover war risks affecting vessels and cargo linked to Indian interests.

India’s experience demonstrated the scale of demand for such coverage. The scheme issued more than 1,600 policies within weeks of beginning operations, while war-risk insurance premiums fell by about 35% to 40% from the peaks recorded during the escalation of regional tensions.

The trend reflects a shift in how countries manage maritime war risks—from relying entirely on global insurance and reinsurance markets to developing domestic capacity that can help keep trade moving when coverage becomes more expensive or private insurers’ appetite for risk declines.

Business

Turkish Central Bank Keeps Key Interest Rate at 37%

The Turkish Central Bank headquarters in Ankara (Reuters)
The Turkish Central Bank headquarters in Ankara (Reuters)
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Turkish Central Bank Keeps Key Interest Rate at 37%

The Turkish Central Bank headquarters in Ankara (Reuters)
The Turkish Central Bank headquarters in Ankara (Reuters)

Türkiye's central bank left its key interest rate at 37% on Thursday, as expected, keeping it unchanged for a fifth consecutive meeting as it continues to monitor the inflation impact of the Iran war.

The central bank said recent indicators suggested that the underlying trend of inflation was decelerating, though elevated energy prices posed an upward risk to the inflation outlook.

"The impact of geopolitical developments on the inflation outlook through the cost channel, economic ⁠activity and expectations is ⁠closely monitored," Reuters quoted the bank as saying in a statement.

The lira held steady at 48.4950 against the dollar after the announcement, while the main Istanbul share index was slightly lower.

In a Reuters poll, 16 of 17 economists had forecast the policy rate would remain at 37%, while ⁠one had expected a 100-basis-point cut.

The central bank also did not adjust its overnight lending and borrowing rates from 40% and 35.5%, respectively. The bank uses the rate corridor to adjust the cost of funding to the market, when necessary, without changing the benchmark rate.

Last month, the central bank resumed one-week repo auctions, which had been suspended since March in order to control the inflationary impact of the Iran war. Overnight interest rates, which had ⁠remained ⁠at around 40% since the suspension, fell by 300 basis points.

The war-related surge in energy prices has rattled import-reliant economies such as Türkiye, where inflation was 31.51% last month.

In the latest inflation report, the central bank raised its inflation forecast for the end of 2026 to 28%, from 26%. The government sees inflation at 28.4% at the end of this year.

Economists continued to expect monetary easing over the remainder of the year, but are closely monitoring new tensions in the region and their impact on inflation.