Extending Hajj Visas Boosts Economic Diversification, Stimulates Tourism

Hundreds of thousands of pilgrims flock to the Jamaraat Bridge during the last Hajj season (EPA)
Hundreds of thousands of pilgrims flock to the Jamaraat Bridge during the last Hajj season (EPA)
TT

Extending Hajj Visas Boosts Economic Diversification, Stimulates Tourism

Hundreds of thousands of pilgrims flock to the Jamaraat Bridge during the last Hajj season (EPA)
Hundreds of thousands of pilgrims flock to the Jamaraat Bridge during the last Hajj season (EPA)

Saudi Arabia’s decision to extend the Hajj visa to three months will enhance the Kingdom’s efforts to diversify the economy, increase new job opportunities, stimulate foreign investment indirectly, as well as reduce pressure on Jeddah Airport, officials and experts told Asharq Al-Awsat.

Member of the Saudi Shura Council Fadl bin Saad Al-Buainain noted that the pilgrim’s comprehensive experience goes beyond performing the rituals of Hajj and Umrah, to moving between the cities of the Kingdom and visiting tourist and heritage sites, which would strengthen the tourism sector and reflect positively on commercial activities and the overall economy.

Al-Buainain stressed that these visits will provide an important marketing and media channel, and will enhance cultural communication and consolidate human relations.

“There is an important aspect in extending residence and allowing travel from any of the Kingdom’s airports. This will contribute to reducing the human flow departing from Jeddah Airport, and revitalizing the airports of other cities,” he stated.

But the economic impact may not be visible in the short term, according to Al Buainain.

The Saudi official added that the decision would have positive repercussions in the medium term, and provide greater support for achieving the objectives of diversifying the sources of the economy, increasing consumer spending, and pumping more investments in the tourism and commercial sectors.

For his part, the CEO of Thakher Development Company, Eng. Abdulaziz Al-Aboudi, noted that the government decisions would stimulate the hospitality sector in Makkah Al-Mukarramah and achieve a qualitative positive shift.

“The hotel occupancy rate in Makkah Al-Mukarramah during the Hajj season 2023 reached 100 percent, compared to 80 percent during Ramadan, and 60 percent during the same period in 2022,” he told Asharq Al-Awsat.

Al-Aboudi revealed that the hospitality and real estate sectors in Makkah recorded a strong performance during the Hajj season this year, driven by a number of factors, including the high occupancy rate in hotels.

Dr. Abdel-Rahman Baeshen, head of the Al-Shorouk Center for Economic Studies, said that Saudi Arabia has adopted a strategy of maximizing the material returns from the Hajj and Umrah, within a plan to diversify the economy.

He added that extending the Hajj visa would increase the revenues of the tourism sector in general, and stimulate recovery and growth.

For his part, professor of international commercial law at the Institute of Management in Riyadh Dr. Osama Al-Obaidi said: “Extending the Hajj visa for a period of three months will have positive results on the Saudi economy, by enriching and deepening the experience of pilgrims and preparing various tourist sites to receive visitors.”

Tourism currently contributes about $12 billion to the Saudi gross domestic product, Al-Obaidi told Asharq Al-Awsat, noting that the recent government decision would help raise this amount to $20 billion in 2030, reflecting positively on the policy of diversifying the national economy.



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
TT

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
TT

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
TT

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.