Saudi Arabia Drives Global Tourism Shift with 200 Bn Dollar Push

Tourism Minister Ahmed Al-Khateeb and World Economic Forum CEO Børge Brende shook hands after announcing the “Beyond Tourism” initiative (X)
Tourism Minister Ahmed Al-Khateeb and World Economic Forum CEO Børge Brende shook hands after announcing the “Beyond Tourism” initiative (X)
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Saudi Arabia Drives Global Tourism Shift with 200 Bn Dollar Push

Tourism Minister Ahmed Al-Khateeb and World Economic Forum CEO Børge Brende shook hands after announcing the “Beyond Tourism” initiative (X)
Tourism Minister Ahmed Al-Khateeb and World Economic Forum CEO Børge Brende shook hands after announcing the “Beyond Tourism” initiative (X)

Saudi Arabia, which views tourism as a key driver of economic growth and revenue diversification, is pressing ahead with major projects in the sector, with investments expected to exceed 200 billion dollars over the next five years.

Flagship destinations include NEOM and the Red Sea Project, among other new developments planned through 2030.

The figure was announced by Tourism Minister Ahmed Al-Khateeb in his opening address at the TOURISE 2025 forum in Riyadh on Tuesday. The event, held under the patronage of Saudi Crown Prince Mohammed bin Salman drew senior tourism leaders and policymakers from more than 120 countries.

TOURISE aims to bring governments, the private sector and non-governmental organizations together to drive sustainable growth and innovation in the industry. It seeks to gather all components of the tourism ecosystem annually for the first time to guide strategies, shape partnerships and align investment.

The need for such a platform has grown more urgent with the rapid rise in global travel. Some 1.5 billion people traveled internationally in 2023, a number expected to reach between 2.5 billion and 3 billion by 2035.

This expansion requires significant capital investment. Saudi Arabia alone expects to channel more than 200 billion dollars into tourism over the next five years to support emerging destinations such as NEOM and the Red Sea.

Tourism currently accounts for about 10 percent of global GDP, or roughly 11 trillion dollars. TOURISE 2025 aims to reinforce tourism’s status as a strategic industry that requires organized international cooperation.

Riyadh wants the forum to become a standing global platform for policy dialogue, investment facilitation and innovation, underscoring the Kingdom’s commitment to a more sustainable and inclusive tourism model for future generations.

Global platform
Al-Khateeb said the event serves as an international platform bringing together the public and private sectors to discuss the future of tourism and investment.

He highlighted the Kingdom’s strategy to develop the industry in line with Vision 2030, which positioned tourism as a key engine of economic growth and diversification.

Tourism has become a major driver of economic expansion and youth opportunities in Saudi Arabia, according to Al-Khateeb.

Since 2019, the Kingdom has taken part in global conferences and events, he said, and “these experiences revealed a gap between the private sector, governments and NGOs,” prompting the launch of TOURISE 2025 as a platform bringing the entire tourism ecosystem under one roof, including travel agencies, digital platforms, airlines, airports, transport and accommodation providers, retail, food and beverage, and supporting technologies.

‘Beyond Tourism’
Al-Khateeb launched the “Beyond Tourism” initiative in partnership with the World Economic Forum. The multi-sector initiative focuses on the future of travel and tourism through ten core principles, highlighting the industry’s role as a bridge between cultures, a driver of community empowerment and a creator of opportunities for future generations.

He said tourism will receive increased attention during upcoming World Economic Forum sessions.

Al-Khateeb also outlined global challenges, including a projected rise in traveler numbers, labor shortages, large-scale hospitality investments and the importance of technology and artificial intelligence while preserving human interaction. He stressed that TOURISE 2025 is a global platform to address the sector’s future and develop practical solutions to strengthen its sustainability.

He said the strong turnout at the forum followed “intensive days of work with 160 countries at the UN General Assembly,” adding that ministers and international partners are helping support the development of the sector.

The tourism ecosystem, he noted, extends far beyond travel itself, encompassing travel agencies, digital platforms, airlines, airports, transportation and accommodation, retail, food and beverage, and enabling technologies, all of which form essential parts of the tourism experience.

Al-Khateeb said around 1.5 billion people traveled last year, even though only 20 percent of the world’s population travels. He expects the number to rise to 2.5 billion or 3 billion by 2035.

He cited challenges facing the industry worldwide, including aircraft manufacturers’ ability to meet rising demand and major expansions in hospitality investments. In Saudi Arabia alone, more than 200 billion dollars were spent in the past five years and will be spent in the next five to build new destinations and cities such as NEOM and the Red Sea.

Millions of workers
Al-Khateeb said 357 million people currently work in tourism globally and that the sector is expected to add 90 million new jobs by 2034. He said the “jobs gap” and the need for practical solutions were discussed during UN General Assembly meetings.

On technology, he said artificial intelligence “is coming and cannot be avoided,” but should be used carefully in sectors that rely heavily on human interaction. He stressed that human connection remains essential in tourism and hospitality, noting that women hold 40 percent of jobs in the sector and youth hold 80 percent, making tourism one of the best industries for creating sustainable employment.

Attracting investment flows
Investment Minister Khalid Al-Falih said tourism in Saudi Arabia has achieved major leaps, with its contribution to GDP rising to more than 200 billion riyals, or 53 billion dollars, equivalent to roughly 5 percent of output, the medium-term target for 2030.

He said this growth is closely linked to investment, with tourism assets increasing fivefold since Vision 2030 was launched. Foreign direct investment inflows have tripled, and foreign investment in hospitality, hotels and tourism accommodation has risen eightfold. The Kingdom has added about 400,000 hotel rooms since its tourism strategy began.

Tourism, he said, is a resilient and interconnected sector that influences quality of life, travel, entertainment, culture, sports and other areas. He noted that countries with limited natural resources have cemented their position on the global tourism map by creating an attractive investment environment and drawing rising flows of capital.

He said tourism and investment form a “positive and integrated cycle,” adding that “investment brings tourism, and tourism attracts more investment,” supporting sustainable economic development in the Kingdom.

Build-up of economic value
Economy and Planning Minister Faisal Al-Ibrahim said tourism is a key accelerator of economic diversification, adding that its impact extends across multiple sectors, generating cumulative economic value nationwide.

Tourism naturally supports decentralized growth, he said, allowing visitors to explore regions beyond the Kingdom’s three major cities. This opens opportunities for smaller cities to tap global demand and supports small and medium-sized enterprises, family businesses, handicrafts, arts, culture and hospitality, enabling them to grow into larger and more attractive investment players.

He said tourism also drives a shift from perception to partnership, noting that a visitor’s experience in the Kingdom may lead to long-term economic decisions.

The number of domestic and international tourists rose from 80 million in 2019 to 116 million over five years, an increase of 45 percent, reflecting the scale of growth and economic impact.

He said current momentum stems from major infrastructure investments completed in recent years, along with new projects underway that will support public and tourism-sector demand over the next seven to ten years.

Tourism, he concluded, is a core driver of sustained economic momentum and of the long-term shift toward a productivity-based, diversified economy that creates opportunities for Saudis across the Kingdom.

Global challenges
Lubna Olayan, Chairwoman of the Olayan Group, said Saudi Arabia’s new investment law aims to ensure equal treatment for domestic and foreign investors. She underscored the importance of transparency to attract foreign direct investment and drive Saudi Arabia’s economic growth.

She said the strength and diversification of the Saudi economy beyond oil were critical to weathering recent shocks. The Kingdom enjoys the lowest debt-to-GDP ratio among G20 countries, she added, reflecting its resilience and ability to withstand global economic challenges.



FII Institute Announces Landmark 10th Anniversary Edition in Riyadh

 FII Institute and its global network have helped facilitate and spotlight more than $250 billion in investments and initiatives - SPA
FII Institute and its global network have helped facilitate and spotlight more than $250 billion in investments and initiatives - SPA
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FII Institute Announces Landmark 10th Anniversary Edition in Riyadh

 FII Institute and its global network have helped facilitate and spotlight more than $250 billion in investments and initiatives - SPA
FII Institute and its global network have helped facilitate and spotlight more than $250 billion in investments and initiatives - SPA

The Future Investment Initiative (FII) Institute will celebrate its 10th anniversary with FII10, taking place in Riyadh from October 26 to 29, 2026, under the theme “The Power of Legacy.”

“The Power of Legacy is not simply about celebrating the past decade,” said FII Institute CEO Princess Dr. Maha Bint Mishari Bin Abdulaziz. “It is about understanding how the decisions, investments, and partnerships we make today will shape generations to come, SPA reported.

FII10 represents both a reflection on what has been achieved and a commitment to what comes next.”

While the program themes and agenda will be revealed in the months ahead, FII10 will address the most pressing issues shaping the future of investment and humanity, creating a platform for bold ideas, meaningful partnerships, and transformative action.

Marking a defining milestone for one of the world’s leading global platforms for investment, innovation, and international dialogue, FII10 will celebrate a decade of impact while exploring the forces that will shape the next era of investment, growth, and global cooperation.

As artificial intelligence, technological disruption, shifting geopolitical dynamics, and evolving capital markets reshape economies and societies at unprecedented speed, the need for long-term thinking and trusted global dialogue has never been greater.

Since its inception, FII Institute and its global network have helped facilitate and spotlight more than $250 billion in investments and initiatives, demonstrating the power of convening capital, ideas, and leadership to create meaningful impact.

Today, FII Institute has grown into a year-round global platform, supported by more than 45 strategic partners from around the world and a thriving international membership community comprising thousands of members representing business, government, investment, academia, and innovation ecosystems across every region.


How Saudi Arabia's Buffers Shielded Its Economy from the Fires of War

Saudi flags fly along a street in the Saudi capital. (Asharq Al-Awsat)
Saudi flags fly along a street in the Saudi capital. (Asharq Al-Awsat)
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How Saudi Arabia's Buffers Shielded Its Economy from the Fires of War

Saudi flags fly along a street in the Saudi capital. (Asharq Al-Awsat)
Saudi flags fly along a street in the Saudi capital. (Asharq Al-Awsat)

At a time when the conflict between the United States and Iran plunged the region into one of its most severe periods of tension in years, closed the Strait of Hormuz, and drove up oil prices as well as shipping and insurance costs, Fitch Ratings reaffirmed Saudi Arabia's sovereign credit rating at A+ with a Stable outlook. The decision raises a fundamental question: How did the Saudi economy manage to preserve its financial resilience in the midst of the crisis?

The answer extends well beyond higher oil prices. It lies in a comprehensive framework of reforms built up over many years, including the creation of financial and logistical buffers, the diversification of funding sources, the development of energy infrastructure, and the strengthening of the private sector, all of which have made the economy far more capable of absorbing external shocks.

As the international financial and business community awaits the International Monetary Fund Executive Board's comprehensive report on its 2026 Article IV Consultation with Saudi Arabia, due later this month, data released by the Fund's mission, together with figures from the Saudi Central Bank and the Kingdom's balance of payments, reveal how the Saudi economy weathered one of the most challenging geopolitical tests in recent years.

Alternative Arteries

When Tehran announced the closure of the Strait of Hormuz, through which roughly one-fifth of global oil trade passes, many expected Gulf oil exports to face widespread disruption. Saudi Arabia, however, had been preparing for such a scenario for decades by building an integrated system to safeguard its oil exports without relying solely on the Strait.

That strategy included expanding the East-West Pipeline, which transports crude oil to the Red Sea ports of Yanbu, increasing its carrying capacity, establishing strategic storage facilities in key markets around the world, and maintaining the world's largest spare oil production capacity.

When the crisis erupted, this system enabled Saudi Aramco to continue honoring its export commitments. The company increased supplies through the pipeline, drew on its overseas inventories, and utilized part of its spare production capacity, limiting the decline in shipments and mitigating the impact of the Strait's closure on Saudi oil exports.

Why Did Inflation Remain Low?

Although the conflict pushed up global oil prices as well as shipping and marine insurance costs, the transmission of those shocks to the domestic economy remained limited compared with many other economies.

This was largely due to efficient supply chains, the stability of the Saudi riyal's peg to the US dollar, ample strategic reserves of essential goods, and fiscal and monetary policies that helped preserve market stability.

As a result, the International Monetary Fund expects average inflation in Saudi Arabia to reach only about 2.3 percent in 2026, a level that remains low compared with most advanced and emerging economies.

Current Account Surplus

At first glance, the conflict might have been expected to weaken Saudi Arabia's external accounts. Yet first-quarter data told a different story. The Kingdom recorded a $4.1 billion current account surplus, its first in nearly two years following a prolonged period of deficits, compared with a $8.2 billion deficit in the fourth quarter of 2025.

This turnaround resulted from a twofold equation. Although oil export volumes declined because of the disruption, higher prices offset much of the shortfall. At the same time, imports slowed amid shipping disruptions, while the travel balance improved as spending by visitors within the Kingdom increased.

An aerial view of the Saudi capital. (Reuters)

The Tools That Reinforced Stability

The current account surplus was only one factor underpinning the economy's resilience. Saudi Arabia also entered the crisis equipped with a range of financial strengths that helped preserve stability. The data point to several key pillars:

Reallocation of External Assets: Investment operations by government entities and Saudi Arabia's sovereign wealth fund recorded a sharp increase in the liquidation of foreign assets during the first quarter of 2026. Assets sold or repatriated totaled approximately $22.6 billion, up from just $4 billion in the fourth quarter of 2025, an increase of 460 percent. This sharp rise reflects an accelerated redeployment of external liquidity into the domestic economy.

Stable Reserve Assets: While government entities significantly increased the monetization of foreign assets, the Saudi Central Bank's reserve assets remained robust and stable, standing at SAR 1.862 trillion (approximately $496.5 billion) at the end of the first quarter, up 9.32 percent year over year. This illustrates an efficient allocation of financing roles. Rather than drawing directly on the Kingdom's official foreign exchange reserves, government entities chose to rebalance their investment portfolios and monetize part of their overseas assets to finance domestic projects, strengthening Saudi Arabia's financial buffers and reinforcing the foundations of its sovereign creditworthiness.

Sovereign Creditworthiness: These indicators in the balance of payments and the level of reserve assets were directly reflected in the Kingdom's sovereign credit profile. In their 2026 reviews, the major global credit rating agencies reaffirmed the structural strength of the Saudi economy and its high degree of resilience to regional geopolitical shocks. Fitch Ratings and S&P Global Ratings both affirmed Saudi Arabia's A+ rating with a Stable outlook, while Moody's maintained its Aa3 rating.

According to the agencies' reports, these ratings are fundamentally supported by the Kingdom's substantial net foreign sovereign assets and financial reserves, which provide external payment coverage well above that of similarly rated countries. They also reflect the growing resilience of the non-oil economy and Saudi Arabia's ability to secure alternative sources of financing for Vision 2030 projects without drawing down its core monetary reserves.

Proactive Financing: Before the crisis escalated, the government leveraged its strong credit profile and relatively low public debt, equivalent to 34.4 percent of GDP, to secure $13 billion in external financing during the first quarter, according to the National Debt Management Center's announcement in January. An additional $14 billion was raised through international sukuk issuances, commercial loans, and bond offerings by major Saudi banks and corporations, which also benefited from the Kingdom's strong sovereign credit standing. As a result, total external borrowing by Saudi residents reached $27 billion.

Investment Flows: The investment sector likewise reflected the depth of global institutional confidence. Contrary to the capital flight often seen during periods of geopolitical tension, the Saudi stock market experienced no wave of foreign investor withdrawals. Instead, nonresident investors remained net buyers of Saudi equities, recording net purchases of $2.4 billion during the first half of 2026, bringing their total holdings to more than $110 billion. This was accompanied by exceptional resilience in foreign direct investment, which posted $1.8 billion in net inflows during the first quarter alone, supported by growing confidence in the ongoing economic and legislative reforms under Vision 2030.

Banking Sector: The strength of the banking sector also enhanced the economy's ability to weather the period of heightened tensions. Saudi banks maintained high levels of capitalization and liquidity while private sector lending continued to expand, ensuring businesses and projects retained access to financing despite turbulence in global markets. The International Monetary Fund considers the soundness of the financial sector to have been one of the principal pillars supporting economic stability throughout the crisis.

A participant at a conference organized by the International Monetary Fund in cooperation with the Ministry of Finance in Riyadh. (Photo by Turki Al Aqili)

What Has Vision 2030 Changed?

Perhaps the best way to measure the success of Saudi Arabia's reforms is to ask a hypothetical question: What if the current crisis had occurred before the launch of Vision 2030?

At that time, the economy depended far more heavily on oil revenues, while financing tools and liquidity management options were considerably more limited. The contribution of non-oil activities was also substantially smaller than it is today.

Today, however, the economy rests on a far more diversified foundation, encompassing non-oil revenues, domestic and international debt markets, a strong banking sector, the Public Investment Fund, substantial foreign reserves, and advanced logistics infrastructure. Together, these elements have provided the Kingdom with a robust financial safety net, enabling it to absorb the shock without experiencing major disruptions.

The IMF's Assessment

The International Monetary Fund's 2026 mission concluding statement documented the Saudi economy's positive indicators, affirming that the economy has demonstrated a high degree of adaptability and a clear capacity to withstand external shocks. The Fund attributed this resilience to the structural strength of the national economy, the continued development of logistics infrastructure, and the ongoing expansion and diversification of the Kingdom's productive base and non-oil sectors.

At the same time, the IMF lowered its forecast for Saudi Arabia's economic growth in 2026 to 1.7 percent, a reduction of 0.3 percentage points from its previous projection. However, it raised its forecast for 2027 to 5.5 percent.

The downward revision does not reflect underlying weakness in the Saudi economy as much as it reflects the impact of the regional environment. Despite recording growth of approximately 3 percent in the first quarter of 2026, continued geopolitical tensions and higher shipping and insurance costs could weigh on the pace of economic activity during the remainder of the year.

Challenges Remain

Despite the strength of Saudi Arabia's financial and logistical buffers, a prolonged period of regional tensions could pose additional challenges. These include higher transportation and insurance costs, slower global trade, the possible postponement of certain investments, and mounting pressure on major development projects should energy and logistics costs remain elevated. For this reason, the International Monetary Fund emphasizes that continued structural reforms, a greater role for the private sector, and stronger productivity will remain essential to sustaining growth in the years ahead.

Resilience Has Become Economic Policy

The experience of recent months shows that what Saudi Arabia faced was not merely an oil crisis or a passing geopolitical test. Rather, it was a comprehensive test of the economy's ability to absorb and manage shocks. The convergence of a current account surplus, the redeployment of external assets, the preservation of strong foreign reserves, the securing of low-cost financing, and the continued inflow of investment demonstrates that sovereign liquidity management has become an integral part of a comprehensive economic strategy rather than a temporary response to crises.

As the International Monetary Fund's final report is awaited, the message emerging from Saudi Arabia's experience is clear: investment in economic resilience has become one of the Kingdom's most important sovereign assets, and perhaps its most valuable one, in a world increasingly marked by geopolitical and economic shocks.


Türkiye Says Iraq Seeks 750,000 Bpd Capacity on Kirkuk-Ceyhan Oil Pipeline

Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Turkish Energy Ministry Press Office/PPO/Handout via Reuters/File photo)
Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Turkish Energy Ministry Press Office/PPO/Handout via Reuters/File photo)
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Türkiye Says Iraq Seeks 750,000 Bpd Capacity on Kirkuk-Ceyhan Oil Pipeline

Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Turkish Energy Ministry Press Office/PPO/Handout via Reuters/File photo)
Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Turkish Energy Ministry Press Office/PPO/Handout via Reuters/File photo)

Turkish Energy Minister Alparslan Bayraktar said Iraq wants to send 750,000 barrels per day of oil through the Kirkuk-Ceyhan pipeline under an arrangement to keep it operating for another year, and that Türkiye has set aside sufficient capacity for it.

The current pipeline agreement between Iraq and Türkiye expires this month. The two countries reached an understanding last week to keep it operating for another year and a deal is expected to be signed in the coming days.

The pipeline has regained importance following Iran's closure of ‌the Strait of ‌Hormuz and the resulting halt in Iraq's seaborne oil exports.

Türkiye ‌informed ⁠Iraq last year ⁠that it did not want simply to renew the existing agreement and preferred to negotiate a more comprehensive arrangement.

Exports through the line were halted in 2023 after an international arbitration tribunal awarded damages against Türkiye. Oil flows resumed only around two and a half years later, toward the end of last year.

According to BOTAS data, the pipeline, which has a total capacity of 1.4 million bpd and transported roughly 480,000 bpd before the shutdown, has carried ⁠only about 190,000 bpd since restarting.

"They told us they would need ‌750,000 barrels of capacity. Although only 180,000-200,000 barrels are ‌flowing today, we said that's fine - we can allocate 750,000 barrels to you,” Bayraktar told reporters ‌after a cabinet meeting on Monday.

GOAL OF EXTENDING PIPELINE

Bayraktar said Türkiye wanted to ‌sign a new, more comprehensive agreement within one year, reiterating Ankara's goal of extending the pipeline south from Kirkuk to the Basra Gulf region and increasing its capacity to 2.5 million bpd.

"If Kuwait wants to put its oil into this pipeline, let it do so. If others in ‌the Gulf wish to use it, they could as well," he said.

He added that a natural gas pipeline could be built alongside ⁠an extended oil ⁠line and could transport gas from Qatar or other sources.

Bayraktar also said the $1.5 billion arbitration award against Türkiye forms part of the negotiations over a new pipeline agreement.

In February 2023, an international arbitration tribunal ruled that Türkiye had violated the 1976 pipeline agreement by allowing oil exports from the semi-autonomous Kurdistan region between 2014 and 2018 without the approval of Iraq's central government, ordering Türkiye to pay net compensation of $1.5 billion.

Under the main ruling, Türkiye was ordered to pay Iraq around $2 billion, while Iraq was ordered to pay Türkiye more than $500 million for underpaid transportation fees dating back to the 1990s. Analysts have said Türkiye's net liability could be reduced further once interest calculations are taken into account.

Following the award, Iraq and Türkiye filed cases in Washington, DC relating to enforcement of the ruling and the calculation of interest. Bayraktar said those proceedings remain ongoing.