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Indian Minister to Asharq Al-Awsat: We Expect Steady Growth in Tourism Between New Delhi and Riyadh

Saudi Minister of Culture Prince Badr bin Abdullah bin Farhan holding talks with India’s Minister of Tourism and Culture Gajendra Singh Shekhawat,X)
Saudi Minister of Culture Prince Badr bin Abdullah bin Farhan holding talks with India’s Minister of Tourism and Culture Gajendra Singh Shekhawat,X)
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Indian Minister to Asharq Al-Awsat: We Expect Steady Growth in Tourism Between New Delhi and Riyadh

Saudi Minister of Culture Prince Badr bin Abdullah bin Farhan holding talks with India’s Minister of Tourism and Culture Gajendra Singh Shekhawat,X)
Saudi Minister of Culture Prince Badr bin Abdullah bin Farhan holding talks with India’s Minister of Tourism and Culture Gajendra Singh Shekhawat,X)

India’s Minister of Tourism and Culture Gajendra Singh Shekhawat said he was optimistic about the future of tourism ties between his country and Saudi Arabia, saying that many young Saudis choose India as a favored tourist destination, while a good number of Indian tourists traveled to Saudi Arabia last year, expecting further steady growth in this movement over the coming years.

Building on this, he affirmed his country’s commitment to establishing broad practical cooperation with Riyadh, covering key sectors including economy, culture, and tourism. He also highlighted a set of challenges facing the global tourism sector, calling for joint governmental efforts to strengthen its resilience and adopt sustainability principles.

Speaking to Asharq Al-Awsat on the sidelines of the UN Tourism 26th General Assembly in Riyadh, the Indian minister said that global tourism is undergoing a major transformation that requires “stronger collaboration between governments and industry to enhance resilience, embrace sustainability, and ensure benefits are shared widely.” He looked forward to launching future joint production projects and initiatives with Saudi Arabia.

On this occasion, he congratulated Saudi Arabia for their successful hosting of the Assembly this year, noting that he had seized the opportunity to interact with his counterpart Ministers in Tourism and Culture during the visit, and to visit some prominent historical and cultural sites in the Kingdom.

Challenges Facing the Sector

The Indian minister acknowledged that the global tourism sector is going under a period of adjustment and facing multiple interconnected challenges, while international travel has rebounded post-pandemic, with many destinations still suffering from staff shortages, limited air connectivity, and uneven business recovery.

He added that climate change continues to pressure the sector to adopt sustainable practices, while geopolitical tensions and safety concerns affect traveler confidence. Tourists increasingly seek meaningful, tech-driven, and eco-conscious experiences, prompting destinations to rethink their travel offerings. Popular destinations face over-tourism, whereas emerging ones often lack the infrastructure for responsible growth. Persistent issues also include skills shortages, slow digital adoption among smaller operators, and the need for more inclusive and accessible tourism.

Tourism’s Economic Contribution

Regarding the size and economic contribution of tourism in India, and the steps taken by the Indian government to attract more foreign tourists, Shekhawat said that India is a prominent tourist destination and has shown consistent growth over the last few years.

He added that tourism contributes about 5% of the total GDP and supports close to 80 million direct and indirect jobs, serving as a principal source of foreign exchange earnings.

Shekhawat noted that his government has launched comprehensive reforms and focused investments to grow the tourism sector, including visa reforms, destination development, emphasis on healthcare and wellness tourism, and international partnerships.

He confirmed that India has opened the e-visa process where Saudi nationals can apply online and receive tourism visa within 72 hours.

India–Saudi Cooperation

Shekhawat emphasized that India and Saudi Arabia share deep-rooted cultural and historical ties based on centuries of exchange, trade, and people-to-people connections, stressing that cultural and tourism cooperation remain key pillars of our strategic partnership.

He said: “To further strengthen this bond, a Ministerial Committee on Tourism and Cultural Cooperation was established under the India–Saudi Arabia Strategic Partnership Council during the State Visit of Hon’ble Prime Minister of India to the Kingdom in April 2025.”

The Minister added: “During my current visit, I had a fruitful meeting with Saudi Minister of Culture, HH Prince Badr bin Abdullah bin Farhan Al-Saud and we also signed an MoU on Cultural Cooperation between our two countries. We discussed ways to enhance our cultural ties, promote exchanges between our cultural institutions, and intensify participation in each other’s cultural events and festival.”

Shekhawat concluded: “Many young Saudis choose India as a favored tourist destination, and a good number of Indian tourists traveled to Saudi Arabia last year. We expect these numbers to grow steadily over the coming years.”

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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
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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.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

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

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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).
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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.