Saudi Index Record a 158-Point Increase

Investors talk as they monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia (Reuters)
Investors talk as they monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia (Reuters)
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Saudi Index Record a 158-Point Increase

Investors talk as they monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia (Reuters)
Investors talk as they monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia (Reuters)

The Saudi index recorded an increase of 158-point last week, a 2.24 percent, driven by the positive atmosphere and general optimism after authorities resumed economic activities in the Kingdom and eased measures imposed to curb the spread of COVID-19.

Over the past two days, the Saudi stock succeeded in reducing the severity of inflation of some indices, as the market recorded strong gains during eight consecutive trading sessions.

This indicates that it is possible for the operations to gain profit which will, in turn, drive the index upwards targeting levels beyond last Sunday's record.

The Saudi index closed this week’s tradings on levels above 7200 points, supported by strong gains achieved on Sunday and Monday.

Saudi stocks will start Sunday the week’s trading amid expectations that the index will maintain a level above 7129 points.

Meanwhile, the period for the listed companies to announce their financial results ends on June 22, as the performance of listed companies varied. About 90 companies are expected to announce their financial results soon, which will affect the general performance of the market index.

Until now, 108 companies have announced their financial results for Q1 of 2020, which saw an improvement in the financial performance of 57 companies.

Meanwhile, oil prices did not affect the Saudi market during the past few days. Brent crude recorded levels of $40 a barrel for the first time in three months, however, the Saudi index fell by about 70 to 80 points.

Saudi stock continued its positive performance despite the oil price crisis, which will soon end. However, the effect of OPEC and OPEC+ meetings remains a stimulus that will benefit the market especially with the agreement to extend oil production cuts.

OPEC, Russia, and allies agreed on Saturday to extend oil production cuts until the end of July, prolonging a deal that has helped crude prices double in the past two months by withdrawing almost 10 percent of global supplies from the market.



Attractive Environment Drives Surge in Private Tourism Facilities in Saudi Arabia

Visitors flock to one of the events of “Riyadh Season 2024” (SPA)
Visitors flock to one of the events of “Riyadh Season 2024” (SPA)
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Attractive Environment Drives Surge in Private Tourism Facilities in Saudi Arabia

Visitors flock to one of the events of “Riyadh Season 2024” (SPA)
Visitors flock to one of the events of “Riyadh Season 2024” (SPA)

As Saudi Arabia experiences a surge in visitor numbers, there is a growing need to expand tourism infrastructure to keep up with demand.

In this context, the private facilities sector has emerged as a practical solution, contributing positively to increasing the income of local citizens who own these facilities.

This growth is reflected in the significant rise in the number of licenses granted by the Ministry of Tourism, which saw an increase of 333% in 2024 compared to the previous year.

In January, the Ministry of Tourism announced a new mandate requiring booking platforms and apps to exclude or refrain from listing unlicensed private hospitality facilities.

This move aims to ensure the quality of services provided to both local and international tourists across the Kingdom. The Ministry warned that any platforms violating this directive would face penalties.

This initiative is part of a campaign which seeks to enforce compliance with tourism licensing standards and regulations, ensuring facilities meet the criteria outlined in the Kingdom's Tourism Law and its accompanying regulations.

According to preliminary data from the Ministry of Tourism, the number of licenses issued for private hospitality facilities reached 8,357 last year, compared to 1,929 licenses in 2023.

Under the Kingdom’s Tourism Law, a private hospitality facility is defined as “any furnished and independent property unit, owned by an individual, licensed by the Ministry of Tourism, and offering daily accommodation services for a fee.”

Ministry spokesperson Mohammed Al Rasasimah emphasized that the growing number of licenses issued for private hospitality facilities reflects the ministry’s commitment to enabling individual investors in the hospitality sector to obtain the necessary operating licenses.

This initiative aims to enhance the quality of services provided.

He added that these efforts are part of the "Guests Are Our Priority" campaign, which seeks to strengthen compliance with licensing and classification standards and ensure facilities meet the conditions set out in the Tourism Law and its regulations.

Dr. Salem Baajajah, an economic expert and professor at King Abdulaziz University, told Asharq Al-Awsat that the significant growth in hospitality and tourism facilities is a result of the Ministry of Tourism's efforts to attract foreign investors.

He added that this expansion reflects a growing demand from international investors seeking to capitalize on opportunities in Saudi Arabia, aligned with the Kingdom’s Vision 2030 goal of increasing the number of tourists visiting Saudi Arabia.

He further explained that the tourism sector is experiencing notable growth, contributing to higher revenues for local citizens.