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Saudi Arabia Allocates $4Bn for Tourism Development

People are seen at the Janadriyah Cultural Festival on the outskirts of Riyadh, Saudi Arabia. (Reuters file photo)
People are seen at the Janadriyah Cultural Festival on the outskirts of Riyadh, Saudi Arabia. (Reuters file photo)
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Saudi Arabia Allocates $4Bn for Tourism Development

People are seen at the Janadriyah Cultural Festival on the outskirts of Riyadh, Saudi Arabia. (Reuters file photo)
People are seen at the Janadriyah Cultural Festival on the outskirts of Riyadh, Saudi Arabia. (Reuters file photo)

Saudi Arabia announced plans to launch a tourism development fund with an initial $4 billion investment, as part of its plans to diversify its economic resources.

The Ministry of Tourism issued a statement saying the fund will launch equity and debt investment vehicles to develop the tourism sector in collaboration with private and investment banks.

Tourism Minister Ahmed al-Khateeb said that the fund is a testament to investor and private sector confidence in the long-term outlook for tourism in Saudi Arabia, especially since it comes at a time as tourism faces unprecedented global challenges in light of the COVID-19 pandemic.

Saudi Arabia considers tourism as one of the main pillars of the economic reforms aimed at reducing the Kingdom’s dependence on oil revenue.

Last year, Saudi Arabia opened up to international tourists, launching a new visa system that appeals to foreign companies to invest in the sector. It hopes that this will contribute more than 10 percent of gross domestic product (gdp) by 2030, up from the current 3 percent.

Experts predict a severe economic contraction in Saudi Arabia this year, hit by the economic impact of measures to contain the coronavirus pandemic and by a sharp drop in oil revenues.

They believe that the fund, which was approved by the Shura Council last week, will contribute to providing government funding to investors and help complete development projects in this sector

It will also help in establishing important tourism sectors that will achieve remunerative revenues in addition to achieving tourism development, economic and service goals.

Economist Saleh al-Humaidan said the sector will depend on domestic tourism in the next stage, along with the local industry.

He told Asharq Al-Awsat that domestic tourism will be a strong economic addition and will become a modern economic tributary capable of contributing to the consolidation of the policy of diversifying economic resources.

The tourism development fund will establish infrastructure for a broad future for domestic tourism, especially as there are large-scale domestic tourism investments, according to Humaidan.

He pointed out that the fund will certainly enhance the development of tourism and will be an important element in managing the retail sector, localizing national employment and creating job opportunities for Saudi youth.

Humaidan noted that domestic tourism along with religious, heritage and medical tourism have seen noticeable progress, adding that a lot can be achieved now that the Tourism Authority has been transformed into to the Ministry of Tourism.

The tourism development fund will be the major supporter to generate domestic tourism that attracts both foreign and local investment, he added.

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Japan, France Agree Rare Earths Deal to Cut China Reliance

French President Emmanuel Macron shakes hands with Japanese Prime Minister Sanae Takaichi during a welcoming ceremony at the Akasaka palace in Tokyo, Japan on April 1, 2026. PHILIP FONG/Pool via REUTERS
French President Emmanuel Macron shakes hands with Japanese Prime Minister Sanae Takaichi during a welcoming ceremony at the Akasaka palace in Tokyo, Japan on April 1, 2026. PHILIP FONG/Pool via REUTERS
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Japan, France Agree Rare Earths Deal to Cut China Reliance

French President Emmanuel Macron shakes hands with Japanese Prime Minister Sanae Takaichi during a welcoming ceremony at the Akasaka palace in Tokyo, Japan on April 1, 2026. PHILIP FONG/Pool via REUTERS
French President Emmanuel Macron shakes hands with Japanese Prime Minister Sanae Takaichi during a welcoming ceremony at the Akasaka palace in Tokyo, Japan on April 1, 2026. PHILIP FONG/Pool via REUTERS

Japan and France agreed to strengthen support for rare earths supply chains on Wednesday, Japan's public broadcaster NHK reported, in the latest moves by both countries to lessen dependence on the world's dominant supplier, China.

During French President Emmanuel Macron's three-day visit to Japan for talks with Prime Minister Sanae Takaichi, officials signed a roadmap to cooperate on critical minerals supply chains, NHK said.

"We cannot rely solely on specific countries, especially China," French Finance Minister Roland Lescure was quoted as saying by NHK.

The two sides also agreed to secure raw material supplies for a rare earths refining project in southern France, called Caremag, the broadcaster said.

The state-owned Japan Organization for Metals and Energy Security and gas ⁠firm Iwatani, along ⁠with the French government, are investors in Caremag, which is due to start operations in late 2026.

Japan plans to get about 20% of its future demand for dysprosium and terbium from the refining plant, heavy rare earth oxides used in magnets for EV motors, offshore wind turbines and electronic components.

Takaichi and Macron are due to issue a joint statement calling for diversifying supplies of rare earths and other critical minerals during their summit on Wednesday, the Nikkei newspaper reported separately.

The deal ⁠comes at a critical moment, with Japan and Western governments and manufacturers scrambling to secure supplies of rare earths minerals to reduce their dependency on China, the world's dominant rare earths producer and supplier.

In February, China prohibited exports of so-called dual-use items to 20 Japanese entities, which it said supply Japan's military.

That was after Takaichi angered Beijing with comments about Taiwan in November.

The rules cover seven rare earths and associated materials currently on China's dual-use control list, including dysprosium and yttrium, along with a swathe of other controlled critical minerals.

"China is pursuing a strategy of using rare earths as a diplomatic card, and if US-China and Japan–China relations improve, exports could recover quickly," said Kotaro Shimizu, principal analyst at Mitsubishi UFJ Research and Consulting.

Japan has reduced its reliance on ⁠China to 60% ⁠from 90% following a 2010 diplomatic incident which saw Beijing restricting rare earths supply to Tokyo.

Japan has been boosting investments in overseas projects like trading house Sojitz's tie-up with Australia's Lynas Rare Earths, and promoting rare earths recycling and manufacturing processes.

In the latest set of steps, Japan's Mitsubishi Materials this week agreed to acquire a stake in US ReElement, a company involved in rare earth element recycling, as both countries have set up an action plan for China alternatives.

Japan and the US are also considering joint development of rare-earth-rich mud deposits, near the remote Minamitori Island, and Japan is in talks with India to jointly explore rare earths in the desert state of Rajasthan.

Japan and France will also seek cooperation in space, with companies from the two countries expected to sign memorandums of understanding on 12 joint projects, including space debris removal and rocket launches, the Nikkei said.

Business

South Korea and Indonesia Discuss Energy Security, Sign Agreements on Minerals and Tech

Indonesian President Prabowo Subianto (L) and South Korean President Lee Jae Myung (R) pose for a photo during their meeting at the presidential office in Seoul on April 1, 2026. (Photo by YONHAP / AFP)
Indonesian President Prabowo Subianto (L) and South Korean President Lee Jae Myung (R) pose for a photo during their meeting at the presidential office in Seoul on April 1, 2026. (Photo by YONHAP / AFP)
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South Korea and Indonesia Discuss Energy Security, Sign Agreements on Minerals and Tech

Indonesian President Prabowo Subianto (L) and South Korean President Lee Jae Myung (R) pose for a photo during their meeting at the presidential office in Seoul on April 1, 2026. (Photo by YONHAP / AFP)
Indonesian President Prabowo Subianto (L) and South Korean President Lee Jae Myung (R) pose for a photo during their meeting at the presidential office in Seoul on April 1, 2026. (Photo by YONHAP / AFP)

South Korean President Lee Jae Myung held talks on Wednesday with Indonesian leader Prabowo Subianto, discussing energy security and agreeing to expand cooperation in areas such as critical minerals and technology, Lee's office said.

The summit talks followed a welcome ceremony at the presidential Blue House in Seoul.

Lee said energy security had become a growing concern amid the global uncertainty triggered by the conflict in the Middle East.

"We view Indonesia's stable role in supplying key energy resources such as LNG and coal as very ⁠reassuring," Lee said ⁠in a statement, calling for closer cooperation on energy supply and resource security.

Indonesia is the world's largest exporter of thermal coal, while South Korea has been among the five biggest importers of the fuel in recent years, according to Korean government data.

South Korea also imported about 2.1 million tons of liquefied natural gas from Indonesia in 2025, data showed.

The Indonesian president arrived in Seoul from Japan where Jakarta agreed to ⁠step up coordination with Tokyo on energy security, Reuters reported.

Prabowo described South Korea and Indonesia as natural partners with "complementary roles,” pointing to South Korea's industrial and technological strengths and Indonesia's abundant resources and large market.

South Korea's exports to Indonesia stood at $7 billion in 2025, while imports were $11.3 billion, trade data showed.

Lee and Prabowo also oversaw the signing of multiple preliminary agreements, including support for projects in renewable energy and data centers as the countries elevate their relationship into a strategic partnership.

JOINT FIGHTER PROJECT

Prabowo, a former general, also said that strong defense capabilities were essential, saying peace and stability required "robust security and defense."

No deals were announced on defense cooperation, however, including on the two ⁠countries' joint project ⁠to develop South Korea's homegrown KF-21 fighter jet.

Korea Aerospace Industries last month said it was in talks with Indonesia on a potential sale of KF-21 fighter jets, but said no decisions had been made. Media reports said that Jakarta was considering purchasing an initial batch of 16 aircraft.

South Korea expects Indonesia to complete a payment related to the joint development program by the end of this year, an official told Reuters. The countries were expected to advance defense ties, as well as strengthen cooperation in new growth areas such as artificial intelligence, infrastructure, shipbuilding, nuclear power, energy conversion, and cultural industries, the Blue House said in an earlier statement.

Lee is also set to award Prabowo South Korea's highest civilian honor, the Grand Order of Mugunghwa, during the state visit, the presidential office said.

Business

Saudi Stocks End March Higher amid Geopolitical Tensions

Two investors monitor Saudi Aramco stock movements on the Saudi market. (Reuters)
Two investors monitor Saudi Aramco stock movements on the Saudi market. (Reuters)
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Saudi Stocks End March Higher amid Geopolitical Tensions

Two investors monitor Saudi Aramco stock movements on the Saudi market. (Reuters)
Two investors monitor Saudi Aramco stock movements on the Saudi market. (Reuters)

Saudi Arabia’s stock market closed March on a strong note, advancing while most Gulf markets declined, underscoring its resilience in the face of heightened geopolitical tensions.

The benchmark Tadawul All Share Index (TASI) ended the final session of the month at a two-month high, trading above 11,200 points, supported by gains in Saudi Aramco and Al Rajhi Bank.

The index rose about 4.5 percent in March, recovering part of its 5.9 percent loss in February. On a quarterly basis, it gained roughly 6.7 percent, putting it on track for its strongest performance since the fourth quarter of 2023.

Economic adviser Hussein Al-Attas told Asharq Al-Awsat that the market’s strong performance reflects the broader resilience of the Saudi economy and its ability to absorb regional shocks.

He said the gains were driven in part by Saudi Aramco maintaining crude flows to global markets despite disruptions in the Strait of Hormuz.

Aramco shares rose 9.6 percent in March, climbing from 25 riyals to 27.44 riyals by Tuesday’s close.

The company has resumed exports through Saudi Arabia’s East-West pipeline, which bypasses the Strait of Hormuz. The pipeline is operating at full capacity of 7 million barrels per day via the Red Sea port of Yanbu, according to a source cited by Bloomberg.

Al-Attas added that petrochemical stocks have rallied since the start of the war, supported by their connection to Aramco and stronger global demand driven by supply disruptions linked to the conflict with Iran.

All 12 petrochemical firms listed on TASI have gained since the outbreak of the war, led by Yanbu National Petrochemical Company (Yansab), whose shares have surged 46 percent.

Gulf markets under pressure

The war involving Iran weighed on most Gulf markets in March, with heightened uncertainty driving sharp volatility and broad-based declines.

Dubai index recorded the steepest losses, falling 16.44 percent, followed by Abu Dhabi, down 8.93 percent. Bahraini and Qatari index each declined 7.84 percent, while Kuwait slipped 1.82 percent.

In contrast, Muscat bucked the regional trend, posting gains of about 10.5 percent. The Saudi market also outperformed its regional peers, rising 5.05 percent.