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Saudi Arabia to Establish Marketing Tourism Offices

The Red Sea project is one of the major tourist destinations in Saudi Arabia (Asharq Al-Awsat)
The Red Sea project is one of the major tourist destinations in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia to Establish Marketing Tourism Offices

The Red Sea project is one of the major tourist destinations in Saudi Arabia (Asharq Al-Awsat)
The Red Sea project is one of the major tourist destinations in Saudi Arabia (Asharq Al-Awsat)

The Saudi Tourism Authority has set 24 plans that place Saudi Arabia as a top tourist destination on the local, regional, and global levels.
Last week, the Council of Ministers, headed by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz, approved the regulations of the Saudi Tourism Authority to play a crucial role in promoting Saudi Arabia as a top tourist destination on both regional and international levels.
- Establishing a database
According to the regulation, a copy of which was seen by Asharq Al-Awsat, the Authority achieved its goals in developing the necessary plans and policies for tourism marketing in the Kingdom, locally and internationally.
It must also promote destinations, propose developments in coordination with the Ministry of Tourism, and support and market events held by government agencies and the private sector.
The Authority will create a database of all available sites, tourist destinations, resorts, services, and events and update it periodically with the relevant authorities.
It will also be tasked with all Umrah-related promotions, including the development and management of its platform, in coordination with the relevant agencies.

Furthermore, the Authority will develop the necessary standards, tools, and mechanisms to measure visitor's experience and determine the priorities and challenges facing tourists. Reports will be shared with the Ministry.
The Authority will propose the necessary designs, policies, and procedures to prepare the development of tourist sites and destinations that need rehabilitation and submit them to the Ministry of Tourism.
- Marketing studies and research
Moreover, the Authority will work with the private sector to develop products and display them on platforms for local and global marketing.
It will prepare marketing studies and research on opportunities to develop the visitor experience in the Kingdom and cooperate with regional and international bodies and organizations.
The Authority must carry out marketing campaigns inside and outside the Kingdom to introduce tourism sites and products and register trademarks and any other intellectual property in its name, in accordance with the relevant regulations.
According to the new regulation, the Authority will develop media plans that support tourism marketing to be disseminated inside and outside the Kingdom.
It will also organize tourism forums, conferences, events, and exhibitions and participate.
- Small and medium enterprises
The Authority is scheduled to provide administrative, technical, and advisory assistance to tourism products' owners in the Kingdom and support small and medium enterprises in cooperation with the competent authorities.
It will also develop and implement training programs aimed at raising the efficiency of tourism marketing and contribute to the qualification and training of human cadres in this field.
Under the new regulations, the Authority will supervise media campaigns and advertisements promoting destinations and suggest investment opportunities that are required to improve the sector in the Kingdom.
It coordinates with the Ministry of Tourism, government agencies, and the private sector to develop a marketing policy for destinations and distribute tourism products outside the Kingdom to enhance the country's position as a global tourist destination.
- Tourist tracks

The Authority will determine the tourist tracks under the tourism sector strategy, in coordination with the Ministry, to ensure an experience consistent with the highest global standards.
The Minister of Tourism and Chairman of the Board of Directors of the Saudi Tourism Authority, Ahmed al-Khateeb, said the approval of the Authority's regulations confirms the government's continued support to achieve the goals consistent with Vision 2030.
Khateeb emphasized that the significant growth witnessed by the Saudi Tourism Authority is a direct result of the Saudi leadership's commitment to organizing and supporting the tourism sector in general and the Authority in particular.
The Minister stressed that the leadership's support has also helped attract visitors worldwide, develop tourism products, empower the private tourism sector, and participate in the most important local and international tourism forums and events.
He asserted that this alignment with the Kingdom's Vision 2030 is a significant milestone for the tourism sector in Saudi Arabia.

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Business

Goldman Sachs Cuts Oil Price Forecasts after US-Iran Deal

Vessels at the Strait of Hormuz, as seen from Musandam, Oman, June 15, 2026. REUTERS/Stringer
Vessels at the Strait of Hormuz, as seen from Musandam, Oman, June 15, 2026. REUTERS/Stringer
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Goldman Sachs Cuts Oil Price Forecasts after US-Iran Deal

Vessels at the Strait of Hormuz, as seen from Musandam, Oman, June 15, 2026. REUTERS/Stringer
Vessels at the Strait of Hormuz, as seen from Musandam, Oman, June 15, 2026. REUTERS/Stringer

Goldman Sachs lowered its fourth-quarter Brent crude oil price forecast to $80 from $90 and cut its 2027 average estimate to $75 from $80, after the US and Iran signed a preliminary agreement to reopen the Strait of Hormuz.

The revision is the bank's second cut in a week after it lowered its oil price forecast for 2027 on Friday, Reuters reported.

Analysts said in a note released late on Monday that ⁠they now expect ⁠Gulf exports to normalize to pre-war levels by the end of July, earlier than their previous forecast of end-August.

Oil prices eased on Tuesday, having slipped nearly 5% to their lowest since March 10 ⁠after US President Donald Trump said a memorandum of understanding was signed to end the US-Israeli war with Iran, which had closed the Strait of Hormuz.

Business

Beyond Oil Barrels: Hormuz Breakthrough Reshapes Gulf Economic Stability

FILE PHOTO: A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 8, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 8, 2026. REUTERS/Stringer/File Photo
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Beyond Oil Barrels: Hormuz Breakthrough Reshapes Gulf Economic Stability

FILE PHOTO: A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 8, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 8, 2026. REUTERS/Stringer/File Photo

The recent breakthrough in the Strait of Hormuz crisis is more than a temporary development aimed at ensuring the flow of energy shipments. It represents a strategic shift with deep and direct economic and investment implications for the financial systems of the Gulf Cooperation Council (GCC) states. As this vital waterway serves as the main artery of global energy trade, carrying the bulk of Gulf oil and gas exports to international markets, the restoration of normal shipping activity opens new prospects for broader regional stability.

The United States and Iran recently announced a preliminary agreement to end the war in the Middle East and reopen the strategically important Strait of Hormuz after months of bloodshed and global economic disruption. US President Donald Trump said the strait, a critical route for global oil supplies that Iran had restricted since the start of the war, would be reopened. He added: “The deal with the Islamic Republic of Iran is now complete. Ships of the world, start your engines. Let the oil flow.”

Global markets reacted immediately to news of the preliminary agreement. Benchmark Brent crude futures fell more than 4.5 percent, dropping below $84 a barrel as investors awaited the signing of a formal treaty in Switzerland next Friday. The return of normal maritime traffic has opened new prospects for broader regional stability.

In comments to Asharq Al-Awsat, financial and economic adviser Dr. Hussein Al-Attas said the easing of the crisis goes beyond preventing disruptions to crude supplies and should instead be viewed as a structural support for financial stability. He noted that the benefits of renewed confidence far outweigh the temporary oil price spikes generated by geopolitical tensions.

Last week, the World Bank indicated that the expected gradual resumption of oil and gas flows through the Strait of Hormuz would help ease financial bottlenecks across GCC countries. It said the recovery of oil export growth would gradually support regional GDP growth, which is projected to reach 4.2 percent in 2027.

These optimistic recovery forecasts mark a turning point after a severe contractionary period. The World Bank noted in its structural analysis that the economic impact of the disruption was not uniform across GCC states, but depended largely on each country's reliance on the strait as its sole export outlet.

Kuwait and Iraq were identified as the most severely affected because neither has alternative maritime export routes outside the Arabian Gulf. The disruption created acute financing gaps and large budget deficits as millions of barrels per day remained stranded during months of restrictions.

Qatar faced complex logistical challenges in securing alternative shipping routes for liquefied natural gas exports bound eastward, resulting in delayed shipments, operational pressure on liquefaction facilities, and a sharp increase in insurance costs for Qatari tankers.

Major regional ports were also affected, particularly in re-export activity and logistics services. The financial and banking sectors in the UAE and Bahrain incurred direct costs as international funds increased the risk premium applied to investment assets in both countries.

In contrast, Saudi Arabia demonstrated considerable logistical and structural resilience during the crisis, benefiting from advanced infrastructure that enabled it to redirect more than 60 percent of its oil exports through the Red Sea via the East-West Pipeline. Likewise, Oman's ports on the Arabian Sea and Indian Ocean, including Sohar and Duqm, provided the Omani economy with geographic flexibility beyond the constraints of the Strait of Hormuz.

FILE PHOTO: A drone view of vessels anchored in the Strait of Hormuz as seen from Musandam, Oman, June 8, 2026. REUTERS/Stringer/File Photo

Filling Financial Gaps

Technical analyses of energy markets indicate that the gradual restoration of navigation through the strait will allow Gulf producers to return to normal export levels and generate the revenues needed to close multibillion-dollar financing and budget gaps that emerged as a result of the maritime restrictions.

The breakthrough also coincides with substantial pent-up demand from major Asian energy importers. Governments and refiners across Asia sharply curtailed consumption during the conflict and drew down inventories. They are now prepared to rebuild strategic reserves, ensuring sustained demand over the medium and long term.

Despite these positive prospects, energy experts quoted in a notable Associated Press report expect it will take several months before energy companies can fully restore operations to meet global demand. They noted that slow shipping and refining processes, along with lingering concerns about safe passage through the strait, mean the agreement's full positive impact will not be felt immediately.

In managing the crisis, Saudi Arabia's logistical and structural resilience again stood out. During the conflict, the Kingdom successfully utilized its advanced infrastructure to redirect more than 60 percent of its oil exports through the Red Sea via the East-West Pipeline, enabling it to maintain supply flows, seize market opportunities and mitigate export disruptions. This demonstrated the effectiveness and capability of Riyadh's alternative logistics infrastructure even under the most challenging geopolitical conditions.

A person sits in shallow water as cargo and commercial vessels are anchored in the Strait of Hormuz off Bandar Abbas, Iran, Monday, June 8, 2026. (Amirhosein Khorgooi/ISNA via AP)

Declining Risk Premium

Al-Attas told Asharq Al-Awsat that the most immediate benefit of the breakthrough is the decline in the geopolitical risk premium. During periods of conflict and uncertainty over potential closures, this premium rises automatically across Gulf assets and markets, creating pressure on financial markets and increasing operating costs.

With tensions easing, the premium falls sharply, directly boosting the confidence of regional and international investors and encouraging a strong return of both short-term and long-term investment flows to regional markets.

This decline is also closely linked to a recovery in maritime logistics and lower transportation and insurance costs. Continued tensions in the strait had driven shipping rates and war-risk insurance premiums to record levels, affecting trade flows and supply chains across the Gulf and beyond.

As stability returns, these costs are expected to decline significantly, improving the efficiency of both regional trade and international shipping routes.

Vessels at the Strait of Hormuz, as seen from Musandam, Oman, June 14, 2026. REUTERS/Stringer

Momentum for Financial Markets

Al-Attas expects Gulf financial markets, including equities and fixed-income instruments, to respond positively to lower geopolitical risks. Investor appetite for blue-chip stocks is likely to increase, particularly in the banking, petrochemicals, transportation and logistics sectors, which serve as key drivers of regional exchanges.

The benefits will extend beyond equities. Gulf bonds and sukuk are expected to gain from lower yields and reduced risk premiums, increasing the attractiveness of sovereign and corporate debt instruments to global investment funds.

Greater clarity in the outlook also enhances the appeal of foreign direct investment. Global capital is constantly in search of stable and secure environments. As concerns over international shipping routes and energy corridors recede, Gulf countries become increasingly attractive destinations for foreign investment, particularly given the large-scale opportunities in tourism, industry and technology tied to national development plans and economic diversification efforts.

Regarding oil markets, Al-Attas said that although oil prices could ease somewhat as fears of supply shortages and disruptions fade, this price stability should be viewed as a positive development and a genuine gain over the medium and long term. Gulf states are not seeking temporary price spikes; rather, they benefit more from sustained global demand and the reliable, secure delivery of exports to both traditional and emerging customers.

This stability is also expected to improve the domestic business environment by accelerating major economic projects. Periods of uncertainty often lead companies and large investment groups to postpone expansion decisions or slow capital spending and liquidity deployment. With risks receding, private-sector decision-makers now have a clearer outlook for advancing strategic planning, investment expansion and hiring, supporting the region's long-term development goals.

Business

Most Gulf Markets Gain on Iran Deal

Traders wait at the Bahrain Bourse in Manama_ Bahrain_ November 8_ 2020. REUTERS
Traders wait at the Bahrain Bourse in Manama_ Bahrain_ November 8_ 2020. REUTERS
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Most Gulf Markets Gain on Iran Deal

Traders wait at the Bahrain Bourse in Manama_ Bahrain_ November 8_ 2020. REUTERS
Traders wait at the Bahrain Bourse in Manama_ Bahrain_ November 8_ 2020. REUTERS

Most ‌Gulf equities rose in early trade on Monday after the US and Iran announced a preliminary deal to end the war and restore traffic through the Strait of Hormuz.

Pakistan's prime minister said the two countries ‌are expected to ‌sign a memorandum ‌of ⁠understanding in Switzerland ⁠on Friday, following mediation by Islamabad.

Trump said on Sunday the waterway would reopen "toll free" and that the US blockade of Iranian ⁠ports would be lifted, while ‌Iran's ‌Mehr news agency reported the ‌draft deal envisages reopening it ‌within 30 days under Iranian arrangements.

Saudi Arabia's benchmark index gained 0.5%, with the country's biggest ‌lender by assets, Saudi National Bank.

However, oil giant ⁠Saudi ⁠Aramco slipped 1.1%.

Brent crude futures fell $3.65, or 4.2%, to $83.68 a barrel by 0630 GMT.

Qatar's benchmark index advanced 1%, with Qatar National Bank, the region's largest lender, jumped 1.9%.

UAE bourses were closed for a public holiday.