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Diriyah Development Company President: We Plan to Establish Diriyah as Global Tourist Destination

One of the development projects in Diriyah, Saudi Arabia. (Asharq Al-Awsat)
One of the development projects in Diriyah, Saudi Arabia. (Asharq Al-Awsat)
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Diriyah Development Company President: We Plan to Establish Diriyah as Global Tourist Destination

One of the development projects in Diriyah, Saudi Arabia. (Asharq Al-Awsat)
One of the development projects in Diriyah, Saudi Arabia. (Asharq Al-Awsat)

Mohamed Saad, President of Diriyah Company, emphasized the company’s steadfast and advanced strides towards executing its comprehensive plans to establish a major tourist destination in Diriyah, located northwest of Saudi Arabia's capital, Riyadh.

The project aims to create a global gathering hub spread over 14 square kilometers, becoming a place to live, work, and entertain approximately 100,000 people by 2030.

Speaking to Asharq Al-Awsat, Saad detailed the company’s ambitious blueprint to essentially develop a new city on this land.

He highlighted that his company is adopting a holistic development model to ensure the establishment of adequate infrastructure to support urban development plans.

These include residential units, office spaces, new hotels, arts and cultural centers, shopping areas, clubs, restaurants, and world-class cafes.

Saad affirmed that these initiatives align with the goals of Saudi Arabia’s national transformation plan, Vision 2030, showcasing Diriyah Development’s role in fostering a vibrant and diverse economy in the Kingdom.

He stressed the importance of having a detailed strategy as the main factor in the success of a large-scale project like Diriyah.

He noted that such planning attracts top talent in architecture, construction, and global services, especially those focusing on sustainable practices, thus aiding in achieving project goals.

Saad added that Diriyah has partnered with over 100 international firms.

“We always welcome collaboration, especially since our project is now considered one of the most attractive in the world,” he said.

Regarding Diriyah’s potential to be both a historic and cultural center while also developing a new city, he highlighted the project's responsibility in careful planning.

“We fully understand the immense responsibility we bear as the developers of the Diriyah project,” he asserted.

“We are committed to a meticulously planned approach, combining a unique blend of celebrating the past, embracing the present, and looking forward to a prosperous future,” he explained.

Saad also stated that Diriyah’s charm lies not only in its cultural significance but also in its historical buildings, some dating back 300 years, showcasing Najdi architectural heritage.

Moreover, he highlighted the importance of a comprehensive investment strategy for Diriyah's success, citing recent developments like the Diriyah Square shopping area and the Royal Opera House.

“We have a comprehensive investment strategy covering all development aspects, from modern infrastructure to tangible assets,” affirmed Saad.

He also noted the upcoming Diriyah Arena that is “set to become one of the largest entertainment and cultural venues in the Middle East, spanning 76,000 square meters with 20,000 seats.”

Saad highlighted investment opportunities in newly opened areas like Al-Turaif and Al-Bujairi waterfront, which have already attracted millions of visitors.

Diriyah’s expansion plans include hotels, residential units, a golf course, and more. Saad announced further massive assets to be unveiled by the end of the year at the Diriyah Outlook 2024 event.

As a project supported by Saudi Arabia’s Public Investment Fund (PIF), Diriyah aims to create job opportunities, expecting to provide around 178,000 positions for Saudi youth across various sectors.

Saad further revealed his company’s aim of attracting 50 million annual visits to support Vision 2030’s goal of tripling the GDP to 10% of Saudi Arabia's economy by 2030, with Diriyah contributing over 70 billion riyals ($18.6 billion).

“We’re creating a place for people to live, work, and enjoy life, committed to boosting prosperity and making a big impact on the economy,” Saad underlined.

Regarding Diriyah’s role and balancing returns with development, Saad said: “Diriyah is a major project owned by the PIF. As a company, we have commercial goals and global partnerships, aiming to provide significant investment opportunities.”

“These projects will generate revenues that contribute to economic and social development,” he confirmed.

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Business

Survey: Swiss Companies Plan Investment Abroad to Offset US Tariffs

FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019. REUTERS/Arnd WIegmann/File Photo
FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019. REUTERS/Arnd WIegmann/File Photo
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Survey: Swiss Companies Plan Investment Abroad to Offset US Tariffs

FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019. REUTERS/Arnd WIegmann/File Photo
FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019. REUTERS/Arnd WIegmann/File Photo

Swiss companies plan to relocate some of their operations and production abroad to deal with the impact of US tariffs, according to a study by business association economiesuisse.

It surveyed more than 400 companies before and after Switzerland last month agreed a deal to reduce US tariffs from 39% to 15%, with a quarter of the firms already having identified concrete steps they were taking, Reuters reported.

Nearly a third of those firms have decided to increase investments outside Switzerland and shift production and operations abroad, the survey said.

Some 16% of companies said they were going to relocate operations to countries outside the European Union or the United States, in addition to 10% going to the US, and another 5% looking at the European Union.

Other options included looking more at other markets, raising prices and even halting exports to the US.

Rudolf Minsch, economiesuisse's chief economist, said the relocation and investment was not damaging for Switzerland, which remained an attractive business location, though he cautioned high-skilled jobs and R&D should be kept.

As part of its agreement, Bern has also pledged $200 billion in investments from its companies in the US, raising concerns about the potential long-term economic impact.

UBS has said if the pharmaceuticals industry - Switzerland's biggest export sector - relocates all US-bound production to that country - cumulative Swiss economic growth over five years would be reduced from a forecast 10% to 7.7%.

Minsch said Switzerland was too small to absorb the $200 billion, and had a long tradition of investing abroad.

Those investments also helped secure jobs at home, he said.

Business

UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
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UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo

World food commodity prices fell for a third consecutive month in November, with all major staple foods except cereals showing a decline, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 125.1 points in November, down from a revised 126.6 in October and the lowest since January, Reuters reported.

The November average was also 2.1% below the year-earlier level and 21.9% down from a peak in March 2022 following Russia's full-scale invasion of Ukraine, the FAO said.

The agency's sugar price reference fell 5.9% from October to its lowest since December 2020, pressured by ample global supply expectations, while the dairy price index dropped 3.1% in a fifth consecutive monthly decline, reflecting increased milk production and export supplies.

Vegetable oil prices fell 2.6% to a five-month low, as declines for most products including palm oil outweighed strength in soy oil.

Meat prices declined 0.8%, with pork and poultry leading the decrease, while beef quotations stabilized as the removal of US tariffs on beef imports tempered recent strength, the FAO said.

In contrast, the FAO's cereal price benchmark rose 1.8% month-on-month. Wheat prices increased due to potential demand from China and geopolitical tensions in the Black Sea region, while maize prices were supported by demand for Brazilian exports and reports of weather disruption to field work in South America.

In a separate cereal supply and demand report, the FAO raised its global cereal production forecast for 2025 to a record 3.003 billion metric tons, compared with 2.990 billion tons projected last month, mainly due to increased wheat output estimates.

Forecast world cereal stocks at the end of the 2025/26 season were also revised up to a record 925.5 million tons, reflecting expectations of expanded wheat stocks in China and India as well as higher coarse grain stocks in exporting countries, the FAO said.

Business

World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The World Bank affirmed on Thursday that Saudi Arabia's economy has gained significant momentum for 2026-2027, driven by robust non-oil sector expansion under Vision 2030.

In a report titled “The Gulf’s Digital Transformation: A Powerful Engine for Economic Diversification,” the World Bank said growth is expected to persist in the Kingdom with non-oil activities expanding by 4% on average.

The report lifted its forecast for Saudi Arabia’s real GDP growth to 3.8% in 2025 compared to a 3.2% last October.

The forecast represents a major upward revision affirming the resilience of the Saudi economy and its ability to absorb external volatility. It also indicates growing confidence in the effectiveness of ongoing structural reforms within Vision 2030.

On Tuesday, Saudi Arabia approved its state budget for 2026, projecting real GDP growth of 4.6% in 2026.

The report showed that in the Kingdom, economic momentum is strengthening across oil and non-oil sectors with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

It said oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

At the financial level, the fiscal deficit between 2025 and 2027 is projected to remain at an average of 3.8% of GDP.

Meanwhile, the current account balance slightly recovered, settling at 0.5% of GDP in the first quarter of 2025 against -2.6% in the second half of 2024.

The report said real GDP growth remained stable at 3.6% y/y in the first half of 2025, thanks to the stabilization of the oil sector and sustained non-oil growth.

Non-oil activities expanded by 4.8% over the period, in line with the performance of 2024 while non-oil growth was driven by the wholesale, retail trade, restaurants, and hotels sector (+7.5% y/y in the first half of 2025), consolidating the role of hospitality and tourism as engines of economic diversification.

The report also indicated that oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

These trends are expected to persist in 2026-2027, with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

Job Market and Inflation
The report said the labor market mirrors the stabilization of the real economy and is rapidly becoming more inclusive to women.

Overall unemployment decreased by 0.7 point between the first quarter of 2024 and the first quarter of 2025, with the female unemployment rate dropping from 11.8% to 8.1% over the same period.

Also, inflation remained low and stable in Saudi Arabia, settling at an average of 2.2% in the first half of 2025.

However, price increases have been concentrated in the housing and utilities sector as rental prices have become a key issue, largely because rental supply has failed to match demographic growth, especially in Riyadh.

While this reflects the government’s efforts to dynamize the Kingdom’s urban centers, the price increases prompted the government to freeze rental prices in Riyadh for the next five years, as anticipated increases in housing supply should help control rental prices.

Finally, the report said Saudi Arabia’s external position stabilized in the second half of 2024 and the first quarter of 2025.

Although net foreign direct investment has remained relatively stable, the World Bank has emphasized that recent changes in foreign ownership regulations in Saudi Arabia, coupled with continued structural reforms, are positive steps to attract greater flows of foreign direct investment (FDI).