Schengen Visa Applications in Saudi Arabia Grew by 23% in 2024

Visa applicants are seen at the Visa Center in Riyadh to complete their application procedures. (Asharq Al-Awsat)
Visa applicants are seen at the Visa Center in Riyadh to complete their application procedures. (Asharq Al-Awsat)
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Schengen Visa Applications in Saudi Arabia Grew by 23% in 2024

Visa applicants are seen at the Visa Center in Riyadh to complete their application procedures. (Asharq Al-Awsat)
Visa applicants are seen at the Visa Center in Riyadh to complete their application procedures. (Asharq Al-Awsat)

As travel and tourism continue to grow, despite the challenges faced by local, regional, and international businesses and projects, VFS Global has revealed that demand for Schengen visas in Saudi Arabia has increased significantly by 23% this year.

In an interview with Asharq Al-Awsat, Zubin Karkaria, founder and CEO of VFS Global, said that the company has managed the visa procedures for the Saudi Ministry of Tourism’s Trailblazers program, which works to send 100,000 students to Europe for training in the tourism and travel sectors.

He added: “Our strategy aims to provide long-term value to all stakeholders, including the Saudi government and its citizens, contributing to Saudi Arabia’s vision of creating a diverse and sustainable economy by applying some of our modern solutions to our operations in the Kingdom.”

Karkaria emphasized that Saudi Arabia is a key market for VFS Global’s business, noting that the company has expanded its presence and services in the Kingdom over the years through strategic partnerships to facilitate visa services for travelers. These partnerships include agreements with chambers of commerce, the Public Investment Fund (PIF), and Aramco.

He further stated: “VFS Global strictly adheres to service-level agreements with its government clients, managing non-judicial and administrative tasks related to visa applications, passports, and consular services.”

As international travel grows in emerging markets, there has been an increasing need for specialized services to meet the demands of governments and visa applicants globally. “This led us to develop an approach that benefits both parties, where we handle all administrative procedures necessary for visa processing,” Karkaria explained.

According to him, VFS Global enjoys a long-standing partnership with governments in the European Union, working closely with them in the countries where they operate to provide visa application services. He noted the ongoing rise in demand for international travel and visa issuance.

“The initial challenge during the COVID-19 pandemic, which directly impacted travel and related sectors, was dealing with the volatile business environment. We quickly recognized both the severity of the crisis and the opportunity to transform our operations to prepare our organization for the future,” he said.

He continued: “For instance, by April 2020, 3,196 of our 3,384 visa application centers worldwide were temporarily closed in response to the global crisis. However, within just seven months, we resumed operations at 1,600 centers, representing more than half of our global network, enabling us to serve over 50 government clients across 129 countries while implementing new health and safety measures to protect both staff and visa applicants.”

Karkaria said that over the past 23 years, the company played a critical role in helping its clients manage the rapid growth in visa demand in a cost-effective and highly secure manner.

He added: “We have also developed innovative solutions tailored to our government clients, such as LIDProTM, which allows them to process visa applications from multiple locations via a centralized electronic hub.” VFS Global is the trusted partner of 67 government clients and operates in 151 countries.

Karkaria stated that the company supports travel to the Kingdom by providing Saudi visa services since 2023.

“Through our partnership with the Saudi Visa and Travel Solutions company, we operate and manage Saudi visa service centers in 45 countries worldwide,” he told Asharq Al-Awsat.

He added: “We are committed to supporting Saudi Arabia’s ambitious plans to develop and grow tourism by expanding Saudi visa services in partnership with the Saudi Visa and Travel Solutions company. We are also in the process of appointing relationship managers for key government and private sector entities.”

Karkaria noted that Saudi Arabia has recently launched an educational visa to boost the education sector by supporting international institutions in establishing branches in the Kingdom and attracting international students to study and reside in the country.

In this context, VFS Global will help international institutions establish branches in Saudi Arabia and assist potential Saudi students in pursuing their careers at various international universities through professional guidance and recruitment services.

VFS Global established its visa application center operations in Saudi Arabia in 2005, providing visa and passport services on behalf of 31 governments through a network of 95 visa application centers.

The company operates in 14 locations across Saudi Arabia, including Riyadh, Jeddah, Khobar, Abha, Hail, Jubail, Makkah, Jazan, Qassim, Al-Kharj, Tabuk, Madinah, Najran, and Al-Jawf.

Karkaria stated, “We see tremendous potential in artificial intelligence to accelerate and improve visa application procedures. Our partnership with the Responsible AI Institute reflects our strong commitment to using this technology in a reliable and ethical manner, applying the highest security standards.”

“Most importantly, we are committed to using AI in accordance with the regulations and procedures implemented by the governments we work with. We are ready to help our government clients integrate AI into the visa application process,” he added.



Crypto Dips on Democrat Midterm Wins, Binance Hack Dents Optimism

Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
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Crypto Dips on Democrat Midterm Wins, Binance Hack Dents Optimism

Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)

Cryptocurrencies briefly dipped on Wednesday as Democrats won majorities in both the Senate and House in the US midterm elections, a potential blow to an industry that has pushed for faster deregulation for digital assets.

The sector has spent more than $300 million backing crypto-friendly Democrats and Republicans in roughly equal measure during the current and previous election cycles, hoping to pass legislation US crypto companies say will ‌put them on ‌a solid legal footing and allow them to thrive.

Bitcoin ‌briefly ⁠touched a six-week ⁠low before recovering to trade roughly flat by 0715 GMT at $78,070. Ether traded at $2,292, up just 1%.

Bitcoin has fallen by around 41% since hitting record highs above $122,000 in October 2025, bringing the value of the broader crypto market to around $2.61 trillion, according to CoinMarketCap.

The market has lost some $300 billion in value in the last month alone, as deepening concern about future returns from AI and the ⁠strain of rising borrowing costs pushed investors into less risky ‌assets such as government bonds and ‌safe-haven currencies.

Sentiment has also been hurt by the $6 billion hack of the Binance platform last ‌week, the largest heist in history.

On Tuesday, Binance customers had withdrawn ‌a net $4.72 billion from the world's largest cryptocurrency exchange since it reopened following the hack at the weekend.

"The market may be re-evaluating the risk-reward profile of crypto assets. On one hand, the string of security incidents is forcing investors to re-examine the ‌industry's security infrastructure and custody risks," Tim Sun, senior researcher at HashKey, said.

"On the other hand, potential shifts in ⁠the US political landscape ⁠could stall the progress of structural crypto legislation and institutional framework development. All of these factors leave the crypto market facing strong headwinds," he said.

US President Donald Trump, who vowed to make the United States the "crypto capital of the world" during his 2024 presidential campaign, has made his own forays into digital assets, with the launch of his "Trump" meme coin, plus his family's World Liberty Financial crypto platform, among other ventures.

The sector has seen sweeping reforms in the almost two years since Trump returned to office, including lighter enforcement and the creation of a strategic bitcoin reserve.

Washington has also allowed for easier access to banking and exchange-traded products and passed a federal stablecoin law that could help these assets move into the mainstream payments and money transfer systems.


Saudi Non-Oil Sector Expands for Seventh Straight Month

A view of Riyadh, Saudi Arabia. (Getty Images file)
A view of Riyadh, Saudi Arabia. (Getty Images file)
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Saudi Non-Oil Sector Expands for Seventh Straight Month

A view of Riyadh, Saudi Arabia. (Getty Images file)
A view of Riyadh, Saudi Arabia. (Getty Images file)

Saudi Arabia’s non-oil private sector continued to expand in October, with business activity and output growth accelerating despite a decline in the Riyad Bank Purchasing Managers’ Index (PMI) to 54.0 from 55.3 in September, according to data compiled by S&P Global.

The seasonally adjusted index remained above the neutral 50-point threshold for the seventh consecutive month, signaling continued improvement in operating conditions. Although it eased from September’s seven-month high, October’s reading was the second-highest since February.

Output growth accelerated to a strong pace from the previous month, supported by improving underlying demand and increased sales and marketing efforts. New orders also continued to rise, although more slowly than in September and at a rate below the survey’s historical average.

Domestic demand remained the main driver of growth, while export orders declined for the eighth consecutive month, with the contraction accelerating.

Survey respondents cited shipping disruptions, higher transport and insurance costs, and competitive market conditions as factors weighing on overseas sales. About a quarter of firms reported a decline in export orders in October.

Employment increased for the fourth consecutive month, although hiring remained modest and slowed from September. Backlogs of work rose slightly for the second straight month, reflecting higher sales and some delays in supplier deliveries.

Supplier delivery times improved only marginally, marking the weakest improvement since April, as disruptions to maritime routes continued to affect shipments. Some businesses consequently increased their reliance on domestic suppliers to secure production inputs.

Cost pressures intensify

Cost pressures mounted at the start of the final quarter, with purchase prices rising at their fastest pace in six months, driven by higher shipping, insurance, raw material and energy costs. Staff cost inflation also reached its highest level since February.

Despite rising input costs, the rate of increase in selling prices slowed to a nine-month low as companies offered larger discounts amid intensifying competition. Nevertheless, selling prices continued to rise at a strong pace.

Commenting on the findings, Naif Al-Ghaith, chief economist at Riyad Bank, said the non-oil private sector demonstrated resilience in October, supported by sustained domestic demand, stronger business activity and continued employment growth.

He noted that the PMI’s position above the 50-point threshold indicated improving operating conditions despite its decline from the previous month.

Al-Ghaith explained that faster output growth reflected Saudi businesses’ ability to respond to domestic demand through operational efficiency, marketing initiatives and increased sales activity.

New orders maintained strong growth, although demand had become more selective, he added.

Continued hiring, inventory accumulation and purchasing activity reflected companies’ readiness to meet demand, while expectations for output over the coming year remained only mildly positive and below the survey’s historical average.


Growth in Non-Oil Revenue Bolsters Saudi Budget Resilience

 A general view of Riyadh city during the early hour of evening at Riyadh, Saudi Arabia, May 28, 2025. (Reuters)
A general view of Riyadh city during the early hour of evening at Riyadh, Saudi Arabia, May 28, 2025. (Reuters)
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Growth in Non-Oil Revenue Bolsters Saudi Budget Resilience

 A general view of Riyadh city during the early hour of evening at Riyadh, Saudi Arabia, May 28, 2025. (Reuters)
A general view of Riyadh city during the early hour of evening at Riyadh, Saudi Arabia, May 28, 2025. (Reuters)

Saudi Arabia’s non-oil revenue surpassed oil revenue in the third quarter of 2026 for the first time since 2020, highlighting progress in diversifying government income and strengthening the budget’s resilience to energy market volatility.

The shift came as the Kingdom continued to control spending and allocate resources according to priorities, while maintaining funding for essential services and development projects in support of Vision 2030.

According to the Saudi Ministry of Finance, total revenue fell 4% year on year to SAR 259.1 billion ($69.1 billion) in the third quarter, while expenditure declined by the same percentage to SAR 343.4 billion ($91.6 billion), resulting in a deficit of SAR 84.3 billion ($22.5 billion).

For the first nine months of the year, revenue totaled SAR 858.9 billion ($229 billion), against expenditure of SAR 1.103 trillion ($294.2 billion), representing about 84% of the approved annual budget of SAR 1.3128 trillion.

Non-oil revenue strengthens revenue diversification

Non-oil revenue rose 20% in the third quarter to SAR 142.6 billion ($38 billion), helping offset a 23% decline in oil revenue to SAR 116.5 billion ($31.1 billion).

Over the first nine months, non-oil revenue reached SAR 412.5 billion ($110 billion), up 8% year on year, reflecting the expanding government revenue base and the growing contribution of non-oil sources to public finances.

Among non-oil revenue components, other revenue recorded the strongest growth in the third quarter, rising 68% to SAR 49.1 billion ($13.1 billion), from approximately SAR 29.3 billion a year earlier.

Taxes on international trade and transactions increased 26% to SAR 7.2 billion ($1.9 billion), while taxes on income, profits and capital gains rose 16% to SAR 7.7 billion ($2.1 billion). Taxes on goods and services totaled SAR 75.2 billion ($20.1 billion).

Essential and development sectors

Health and social development accounted for the largest share of cumulative government spending through the end of the third quarter, receiving SAR 230.8 billion ($61.5 billion), or 89% of the sector’s allocated budget.

The military sector ranked second, with spending of SAR 187.5 billion ($50 billion), followed by education at SAR 159.3 billion ($42.5 billion) and security and regional administration at SAR 99.4 billion ($26.5 billion).

Spending on economic resources reached SAR 75.7 billion ($20.2 billion), up 11% from the same period last year, reflecting continued allocation of resources to economic and development-related activities.

The figures show that funding for priority sectors was maintained despite the decline in overall quarterly expenditure, underscoring the importance of managing spending and balancing operational needs with development priorities.

Reserves and debt management

Saudi Arabia’s general reserve balance stood at SAR 399.5 billion ($106.5 billion) at the end of the third quarter, while the current account balance reached SAR 50.8 billion ($13.5 billion).

Total public debt amounted to approximately SAR 1.774 trillion ($473 billion), comprising SAR 1.136 trillion ($302.9 billion) in domestic debt and SAR 637.6 billion ($170 billion) in external debt.

New debt issuance during the period totaled SAR 298.3 billion, as part of efforts to finance the planned budget deficit, manage funding requirements and support development and strategic projects.

Dr. Salem Baajajah, professor of economics at King Abdulaziz University, told Asharq Al-Awsat that the first nine months of 2026 reflected the government’s continued support for economic activity and development projects, with expenditure rising 8% to approximately SAR 1.1 trillion, compared with revenue growth of 3% to SAR 858.9 billion.

The widening gap between revenue and expenditure underscored the need to balance development spending with fiscal sustainability, he explained.

Government expenditure remains an important driver of growth by financing projects and infrastructure, supporting non-oil sectors and strengthening the private sector’s contribution to economic activity, Baajajah noted.

However, the next phase requires greater emphasis on spending efficiency and maximizing the economic returns of projects to ensure their long-term development impact.

Baajajah stressed that assessing fiscal performance should go beyond revenue and expenditure growth rates to examine revenue sources, the size of the deficit and how it is financed, and the extent to which spending generates economic growth and jobs.

Overall, the third-quarter results reflect a two-pronged approach to fiscal management: expanding non-oil revenue to broaden the income base while aligning expenditure with available resources, without neglecting essential sectors or development projects.

This approach strengthens the budget’s ability to withstand fluctuations in oil revenue while supporting economic diversification targets and maintaining fiscal discipline.