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Foreign Tourist Spending in Saudi Arabia Tops $13 Bln in Q1

Foreign tourists visit AlUla, one of Saudi Arabia’s top heritage sites (Asharq Al-Awsat)
Foreign tourists visit AlUla, one of Saudi Arabia’s top heritage sites (Asharq Al-Awsat)
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Foreign Tourist Spending in Saudi Arabia Tops $13 Bln in Q1

Foreign tourists visit AlUla, one of Saudi Arabia’s top heritage sites (Asharq Al-Awsat)
Foreign tourists visit AlUla, one of Saudi Arabia’s top heritage sites (Asharq Al-Awsat)

Saudi Arabia recorded a sharp rise in inbound visitor spending in the first quarter of 2025, with international tourists spending 49.4 billion riyals ($13.2 billion), up 9.7% from the same period last year, according to the Ministry of Tourism.

 

The kingdom also posted a surplus of 26.8 billion riyals ($7.14 billion) in its travel account balance, marking an 11.7% year-on-year increase, driven by a surge in tourism activity and government-led initiatives to diversify the economy beyond oil.

 

The data, published in the central bank’s balance of payments for May, reflects the success of Saudi Arabia’s broader tourism strategy under Vision 2030, which aims to position the kingdom as a global travel destination.

 

Tourism reforms yield results

 

The Ministry of Tourism said the strong surplus was the result of continued national efforts to boost tourism’s contribution to economic growth. It added that the figures reflect “clear progress” in the sector’s development.

 

The rapid growth highlights the effectiveness of reforms across the tourism ecosystem, including improved services, upgraded infrastructure, and enhanced collaboration between public and private stakeholders to meet Vision 2030 targets.

 

Industry experts say government initiatives launched in recent years are starting to bear fruit, as evidenced by rising international arrivals and spending.

 

E-visas widen access

 

Speaking to Asharq Al-Awsat, tourism investor and businessman Majed Al-Hokair said Saudi Arabia’s recent achievements underscore its growing appeal to international visitors.

 

He credited the introduction of electronic tourist visas for travelers from across the globe with significantly boosting arrivals, allowing visitors to explore the country’s diverse offerings — from historical and cultural sites to leisure and beach destinations.

 

Al-Hokair added that Saudi Arabia’s tourism appeal spans all seasons, drawing visitors for entertainment, heritage, business travel, and conferences, all of which have generated new job opportunities for Saudis in the sector.

 

Legal reforms fuel tourism boom

 

Nasser Al-Ghilan, founder and CEO of Amla Tourism Investment, told Asharq Al-Awsat that regulatory changes have also played a key role in attracting foreign tourists and driving up domestic tourism spending.

 

He said several new tourism and entertainment projects launched under Vision 2030 helped the kingdom surpass its goal of 100 million visitors in 2023, with new targets now set at 150 million annual visitors by the end of the decade.

 

Record tourism surplus in 2024

 

In 2024, Saudi Arabia posted a record 50 billion riyals ($13.3 billion) surplus in its travel account - a 7.8% increase over 2023 - driven by a 13.8% jump in international visitor spending.

 

Inbound tourism spending rose to 153.6 billion riyals ($40.9 billion) in 2024, compared to 135 billion riyals ($36 billion) the previous year, reflecting the kingdom’s growing status as a global travel hub.

 

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Business

Iraq Studies Alternative Options for Oil Exports

Floating oil export loading platforms at the Basra Oil Port, Iraq, March 12, 2026. REUTERS/Mohammed Aty
Floating oil export loading platforms at the Basra Oil Port, Iraq, March 12, 2026. REUTERS/Mohammed Aty
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Iraq Studies Alternative Options for Oil Exports

Floating oil export loading platforms at the Basra Oil Port, Iraq, March 12, 2026. REUTERS/Mohammed Aty
Floating oil export loading platforms at the Basra Oil Port, Iraq, March 12, 2026. REUTERS/Mohammed Aty

Iraq is studying alternative measures to export crude oil after disruptions to the process amid the US-Israeli war against Iran. At the same time, the country intends to continue producing crude oil at a level of 1.4 million barrels per day.

Iraqi Oil Minister Hayyan Abdul Ghani told the official television channel Al-Iraqiya News that oil exports account for 90 percent of Iraq’s revenues, and that the ministry has decided to continue producing crude oil at 1.4 million barrels per day.

He emphasized that the production and supply of petroleum products to meet domestic demand have not stopped.

He added that refineries are operating at full design capacity to cover local needs, and that sufficient quantities of liquefied gas are available to fully meet domestic needs.

Regarding exports, he explained that the export process has stopped in the south, prompting the government to search for possible alternatives to export crude oil. He revealed that an agreement is close to being signed to export oil through the Turkish Ceyhan pipeline.

Abdul Ghani added that the ministry has prepared a comprehensive plan to manage the current phase, particularly after the new circumstances in the Strait of Hormuz, noting that a plan has been activated to transport 200,000 barrels per day by tanker trucks through Türkiye, Syria, and Jordan.

In a separate context, the oil minister denied that tankers targeted in Iraqi waters belonged to Iraq, explaining that they were not Iraqi vessels and were carrying naphtha.

Iraq recently lost its entire oil export capacity of 3.35 million barrels per day after Iran closed the Strait of Hormuz following escalating conflict in the region.

Iraq relies on crude oil sales for about 95 percent of its revenues to meet the needs of the country’s annual federal budget. This means that the country would face a critical situation if the conflict in the Gulf region and the Strait of Hormuz continues.

Business

Gold Set for Weekly Drop as Oil Price Surge Weighs on Rate-cut Hopes

FILE PHOTO: A goldsmith weighs gold jewelry inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
FILE PHOTO: A goldsmith weighs gold jewelry inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
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Gold Set for Weekly Drop as Oil Price Surge Weighs on Rate-cut Hopes

FILE PHOTO: A goldsmith weighs gold jewelry inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
FILE PHOTO: A goldsmith weighs gold jewelry inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo

Gold prices were on track for a second consecutive weekly drop, despite edging up on Friday, as surging energy prices due to the Middle East war dimmed prospects for near-term US interest rate cuts.

Spot gold was up 0.3% at $5,095.55 per ounce, as of 0633 GMT on Friday. US gold futures for April delivery fell 0.1% to $5,100.20.

The US 10-year Treasury yields eased, increasing the appeal of the non-yielding bullion. Bullion, however, has ‌lost more ‌than 1% so far this week. Since the war ‌started ⁠on February 28, ⁠it has dropped over 3% so far.

Fears of inflation and questions about the Federal Reserve's ability to cut interest rates if high oil prices persist are somewhat counteracting gold's appeal, said Tim Waterer, KCM Trade chief market analyst.

"Given the ongoing uncertainty about the duration and scope of the conflict in the Middle East, I expect gold to remain on the ⁠radar for investors as a safety play." Heightening geopolitical ‌tensions, Iran's Supreme Leader Mojtaba Khamenei said ‌on Thursday that Tehran will keep the strategic Strait of Hormuz closed as ‌leverage against the US and Israel, which has stoked concerns about ‌global energy supply and risk assets.

Oil prices rose above $100 a barrel, as attacks on oil tankers in the Gulf and warnings from Iran shattered prospects of quick de-escalation in the Middle East conflict. As oil prices surged, US President Donald ‌Trump again demanded Fed Chair Jerome Powell cut interest rates.

Traders, however, expect the Fed to keep rates ⁠steady in the current ⁠3.5%-3.75% range at the end of its two-day meeting on March 18, according to CME Group's FedWatch tool. While recent inflation data suggest price growth is under control, the war and the resulting spike in crude prices have yet to filter through the data.

Investors are awaiting the release of the delayed January Personal Consumption Expenditures Index, expected on Friday. Gold discounts in India widened this week to their deepest point in nearly a decade as demand stayed subdued and some traders steered clear of paying import duties, while the escalating Middle East war boosted safe-haven demand in China.

Spot silver was down 1% at $82.91 per ounce. Spot platinum lost 1% to $2,111.45 and palladium fell 1% to $1,603.

Business

Iran War and Rising Fuel Costs Could Boost Panama Canal Traffic, Administrator Says

A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 12, 2026. (AP)
A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 12, 2026. (AP)
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Iran War and Rising Fuel Costs Could Boost Panama Canal Traffic, Administrator Says

A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 12, 2026. (AP)
A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 12, 2026. (AP)

Panama Canal Administrator Ricaurte Vásquez said Thursday that the conflict in the Middle East and rising fuel costs could ultimately benefit the interoceanic waterway as global shippers adjust routes.

In an interview with The Associated Press, Vásquez said that higher energy, fuel and navigation costs could make the Panama Canal a more attractive option for commercial traffic.

“When costs increase, in general when the price of marine fuel rises, the Panama Canal becomes a more attractive route,” Vásquez said.

Oil prices have risen amid the war in the Middle East, which has led to the temporary closure of the Strait of Hormuz by Iran in response to US and Israeli attacks. About one-fifth of the world’s oil passes through the waterway at the mouth of the Gulf.

If higher energy costs persist, routing cargo through Panama can cut voyages by between three and 15 days, depending on the route, while reducing fuel consumption, he said.

Vásquez said higher fuel costs are expected to affect container ships, bulk carriers and tankers transporting liquefied natural gas. If Middle Eastern supplies are disrupted, shipments may be replaced by other sources, including the United States, which could redirect some LNG cargo from Europe to Asia via Panama.

Gerardo Bósquez, an executive with the Panama Maritime Chamber, said a prolonged conflict could reshape global trade routes, with gas transport among the segments likely to benefit.

Vásquez cautioned that any changes will not be immediate and will depend on how long cargo operators expect the conflict and instability in the Gulf last.