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.



Britain's Pound, Stocks and Bonds Fall on Political Uncertainty, Global Inflation Angst

A view of 10 Downing Street in London, Britain, 14 May 2026. EPA/NEIL HALL
A view of 10 Downing Street in London, Britain, 14 May 2026. EPA/NEIL HALL
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Britain's Pound, Stocks and Bonds Fall on Political Uncertainty, Global Inflation Angst

A view of 10 Downing Street in London, Britain, 14 May 2026. EPA/NEIL HALL
A view of 10 Downing Street in London, Britain, 14 May 2026. EPA/NEIL HALL

British government bonds, stocks and sterling fell on Friday, as domestic political uncertainty clashed with global worries about an inflationary shock, leaving UK assets in the mire.

Sterling fell to a five-week low and is down almost 2% against the dollar this week, set for its biggest weekly drop since November 2024.

British Prime Minister Keir Starmer was in a battle to hold on to power after his health minister Wes Streeting resigned from government, while others positioned themselves to challenge his leadership, following disastrous local election results last week.

Markets are concerned that a ⁠new leader may ⁠be willing to loosen fiscal policy more, with British government borrowing costs up sharply again and UK bank stocks selling off on Friday.

Greater Manchester Mayor Andy Burnham has been offered a path for a possible leadership challenge after another Labour lawmaker said he would resign his parliamentary seat. If Burnham were to win the seat, he could then challenge for ⁠the party leadership.

"Market's fear is that Burnham would be more left leaning, and we could see further increase in deficits," Reuters quoted Jefferies economist Mohit Kumar as saying.

"Our base case is one of a managed exit for Starmer and Burnham likely becoming the next PM," he added.

The domestic political drama has coincided with another rise in energy prices on Friday and growing evidence that the economic damage from the Iran war is hurting.

US inflation data this week has shown consumers and factories are starting to see big increases in price pressures as a result of the war, which has ⁠pushed up the ⁠price of crude by over 50%.

The pound has tended to suffer against the dollar when tensions between Washington and Tehran flare or oil prices rise, given Britain's dependence on energy imports and the economy's sensitivity to higher fuel costs.

It was last down 0.3% on the day at $1.3364 after earlier touching $1.3335, its lowest level in over five weeks.

British bond yields jumped across the curve. The 10-year yield was last up almost 12 basis points (bps) at around 5.11%. Bond yields move inversely with prices.

Stocks also fell. The blue-chip FTSE 100 was last down 0.6%, while the more domestic-oriented FTSE 250 index of midcap stocks was down 1.1%.

UK banks were also down sharply, with Barclays and Lloyds down over 2% each.


Oil Gains after Trump Says Xi Agrees Iran Cannot Have Nuclear Weapons

The current price of gasoline is shown at a gas station in Encinitas, California, US, May 11, 2026.  REUTERS/Mike Blake
The current price of gasoline is shown at a gas station in Encinitas, California, US, May 11, 2026. REUTERS/Mike Blake
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Oil Gains after Trump Says Xi Agrees Iran Cannot Have Nuclear Weapons

The current price of gasoline is shown at a gas station in Encinitas, California, US, May 11, 2026.  REUTERS/Mike Blake
The current price of gasoline is shown at a gas station in Encinitas, California, US, May 11, 2026. REUTERS/Mike Blake

Oil prices gained about 2% after US President Donald Trump said he and China's Xi Jinping agree Iran cannot have nuclear weapons and as concerns persisted over ship attacks and seizures despite Tehran saying about 30 vessels crossed the Strait of Hormuz.

Brent crude oil futures were up $1.77, or 1.67%, to $107.49 a barrel at 0642 GMT. Prices hit a session high of $107.99 earlier in the day.

US West Texas Intermediate futures were up $2.13, or 2.11%, ‌to $103.30 a ‌barrel.

For the week, Brent has climbed nearly 6%, ‌while ⁠WTI has jumped more ⁠than 7%, on uncertainty over the shaky ceasefire in the Iran conflict.

Trump said his patience with Iran is running out and he had agreed in talks with Xi that Tehran cannot be allowed to have a nuclear weapon and must re-open the Strait of Hormuz.

Xi did not comment on his discussions with Trump about Iran, although China's foreign ministry issued a statement.

"This conflict, which ⁠should never have happened, has no reason to continue," ‌the ministry said.

"With the Beijing summit not ‌delivering any breakthrough on Iran, market focus is back on the deadlock and ‌a blockaded Strait, with a tail risk of renewed military escalation," said Vandana ‌Hari, founder of oil market analysis provider Vanda Insights.

Among deals the market was looking for from the summit, Trump said China wants to buy oil from the United States.

In incidents around the Strait of Hormuz, a ship was reported seized by Iranian ‌personnel off the United Arab Emirates and headed for Iranian waters on Thursday, and an Indian cargo vessel carrying ⁠livestock from ⁠Africa to the UAE was sunk on Wednesday in waters off the coast of Oman.

The White House said Trump and Xi had agreed on the need to keep the shipping lane open.

Iran's Revolutionary Guards said 30 vessels had crossed the Strait of Hormuz since Wednesday evening, still far short of 140 that were typical daily before the war, but a substantial increase if confirmed.

Yang An, analyst at Haitong Futures, said the main driver of oil prices was still tight supply.

"Oil prices swung several times yesterday but still closed near the day's high," he said.

"Ships passing through the strait eased some market concerns, but not enough to change the strong trend driven by tight supply."


China Stocks Drift as Trump-Xi Summit Offers Little to Excite Investors

 President Donald Trump talks with China's President Xi Jinping at the Zhongnanhai leadership compound, Friday, May 15, 2026, in Beijing. (AP Photo/Mark Schiefelbein, Pool)
President Donald Trump talks with China's President Xi Jinping at the Zhongnanhai leadership compound, Friday, May 15, 2026, in Beijing. (AP Photo/Mark Schiefelbein, Pool)
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China Stocks Drift as Trump-Xi Summit Offers Little to Excite Investors

 President Donald Trump talks with China's President Xi Jinping at the Zhongnanhai leadership compound, Friday, May 15, 2026, in Beijing. (AP Photo/Mark Schiefelbein, Pool)
President Donald Trump talks with China's President Xi Jinping at the Zhongnanhai leadership compound, Friday, May 15, 2026, in Beijing. (AP Photo/Mark Schiefelbein, Pool)

China stocks wavered on Friday as a summit between US President Donald Trump and China's Xi Jinping entered its last day, having produced few deals between the world's top two economies to excite investors so far.

China’s blue-chip CSI300 Index was largely flat and the Shanghai Composite Index rose 0.1% by the lunch break. Both indexes swung between gains and losses through the morning session but remain close to recent peaks.

Hong Kong’s benchmark Hang Seng fell 0.9% amid a risk-off mood in broader Asian markets, as investors' euphoria over tech stocks gave way to inflation fears amid rising wagers of US rate hikes this year.

Trump and Xi met at the ‌walled-off Zhongnanhai complex, a former imperial garden that houses the offices of Chinese ‌leaders, ⁠before Trump departed.

Traders ⁠were closely watching for any positive signals from the meeting, including a potential easing of tariffs, with the focus on whether a fragile trade truce struck when the leaders last met in October is extended.

"I think we were optimistically looking at the meeting and maybe half expecting some huge trade agreement to be proposed or announced and from that view, it has disappointed," said Nick Twidale, chief market analyst at ATFX Global.

Investor attention will be on whether there are detailed agreements announced after the two-day summit is over.

It ⁠was undecided whether the trade truce will be extended after it expires later ‌this year, US Trade Representative Jamieson Greer told Bloomberg TV ‌on Friday, but added that deals had been firmed up on Chinese purchases of farm goods and beef.

"This (summit) ‌was not a meeting aimed at a full reset of US-China relations," said Cliff Zhao, chief ‌economist at CCB International.

It was more about promoting high-level communication, reducing near-term uncertainty, and setting clearer boundaries for competition, he added.

THORNY GEOPOLITICS

Investors are focusing on geopolitical issues such as Iran and Taiwan, but it’s hard to make substantive progress, said Lynn Song, chief economist for Greater China at ING.

"Actions will speak louder than words, and if we ‌see progress on Iran negotiations or shifts in stance on US arms sales to Taiwan, it may suggest that progress was made at this summit," ⁠said Song.

Trump told Fox ⁠News Channel that China has agreed to buy 200 Boeing jets, a number that was far fewer than analysts had expected. That sent shares of Boeing lower and China's aviation stocks fell more than 2%.

Chip stocks, meanwhile, jumped 4% after China's SMIC said foreign clients were shifting orders back to China. Shares in chip equipment maker Advanced Micro-Fabrication Equipment (AMEC) surged 17% on its strong order expectation.

Data showed China's new yuan loans contracted in April for the first time in nine months, sharply undershooting forecasts as seasonal factors and weak household credit demand dragged on lending in the world's second-largest economy.

In currencies, China's yuan remained close to the three-year high against the dollar it hit on Thursday.

The yuan retreated slightly after the People's Bank of China set the midpoint rate at 6.8415 per dollar, 439 pips weaker than a Reuters' estimate.

The yuan "isn’t likely to be impacted too much by the summit, nor is it likely to be a topic of conversation given the CNY has been on an appreciation trajectory," said ING's Song.