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.



India’s Modi Lauds Interim Trade Pact After US Tariff Rollback

Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)
Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)
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India’s Modi Lauds Interim Trade Pact After US Tariff Rollback

Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)
Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)

Indian Prime Minister Narendra Modi on Saturday hailed an interim trade agreement with the United States, saying it would bolster global growth and deepen economic ties between the two countries.

The pact cuts US "reciprocal" duties on Indian products to 18 percent from 25 percent, and commits India to large purchases of US energy and industrial goods.

US President Donald Trump, while announcing the deal Tuesday, had said Modi promised to stop buying Russian oil over the war in Ukraine.

The deal eases months of tensions over India's oil purchases -- which Washington says fund a conflict it is trying to end -- and restores the close ties between Trump and the man he describes as "one of my greatest friends."

"Great news for India and USA!" Modi said on X on Saturday, praising US President Donald Trump's "personal commitment" to strengthening bilateral ties.

The agreement, he said, reflected "the growing depth, trust and dynamism" of their partnership.

Modi's remarks came hours after Trump issued an executive order scrapping an additional 25 percent levy imposed over New Delhi's purchases of Russian oil, in a step to implement the trade deal announced this week.

Modi, who has faced criticism at home about opening access of Indian agricultural markets to the United States and terms on oil imports, did not mention Russian oil in his statement.

"This framework will also strengthen resilient and trusted supply chains and contribute to global growth," he said.

It would also create fresh opportunities for Indian farmers, entrepreneurs and fishermen under the "Make in India" initiative.

In a separate statement, Commerce Minister Piyush Goyal said the pact would "open a $30 trillion market for Indian exporters".

Goyal also said the deal protects India's sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry and milk.

Other terms of the agreement include the removal of tariffs on certain aircraft and parts, according to a separate joint statement released Friday by the White House.

The statement added that India intends to purchase $500 billion of US energy products, aircraft and parts, precious metals, tech products and coking coal over the next five years.

The shift marks a significant reduction in US tariffs on Indian products, down from a rate of 50 percent late last year.

Washington and New Delhi are expected to sign a formal trade deal in March.


Gold Bounces Back on Softer Dollar, US-Iran Concerns; Silver Rebounds

Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
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Gold Bounces Back on Softer Dollar, US-Iran Concerns; Silver Rebounds

Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth

Gold rebounded on Friday and was set for a weekly gain, helped by bargain hunting, a slightly weaker dollar and lingering concerns over US-Iran talks in Oman, while silver recovered from a 1-1/2-month low.

Spot gold rose 3.1% to $4,916.98 per ounce by 09:31 a.m. ET (1431 GMT), recouping losses posted during a volatile Asia session that followed a fall of 3.9% on Thursday. Bullion was headed for a weekly gain of about 1.3%.

US gold futures for April delivery gained 1% to $4,939.70 per ounce.

The US dollar index fell 0.3%, making greenback-priced bullion cheaper for the overseas buyers.

"The gold market is seeing perceived bargain hunting from bullish traders," said Jim Wyckoff, senior analyst at Kitco Metals.

Iran and the US started high-stakes negotiations via Omani mediation on Friday to try to overcome sharp differences over Tehran's nuclear program.

Wyckoff said gold's rebound lacks momentum and the metal is unlikely to break records without a major geopolitical trigger.

Gold, a traditional safe haven, does well in times of geopolitical and economic uncertainty.

Spot silver rose 5.3% to $74.98 an ounce after dipping below $65 earlier, but was still headed for its biggest weekly drop since 2011, down over 10.6%, following steep losses last week as well.

"What we're seeing in silver is huge speculation on the long side," said Wyckoff, adding that after years in a boom cycle, gold and silver now appear to be entering a typical commodity bust phase.

CME Group raised margin requirements for gold and silver futures for a third time in two weeks on Thursday to curb risks from heightened market volatility.

Spot platinum added 3.2% to $2,052 per ounce, while palladium gained 4.9% to $1,695.18. Both were down for the week.


Europe, Türkiye Agree to Work Toward Updating Customs Union

European Union (R) and Turkish flags fly at the business and financial district of Levent in Istanbul, Türkiye September 4, 2017. REUTERS/Osman Orsal
European Union (R) and Turkish flags fly at the business and financial district of Levent in Istanbul, Türkiye September 4, 2017. REUTERS/Osman Orsal
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Europe, Türkiye Agree to Work Toward Updating Customs Union

European Union (R) and Turkish flags fly at the business and financial district of Levent in Istanbul, Türkiye September 4, 2017. REUTERS/Osman Orsal
European Union (R) and Turkish flags fly at the business and financial district of Levent in Istanbul, Türkiye September 4, 2017. REUTERS/Osman Orsal

The European enlargement chief and the Turkish foreign minister said on Friday they had agreed to continue work toward modernizing the EU-Türkiye customs union and to improve its implementation, Reuters reported.

European Commissioner for Enlargement Marta Kos met Turkish Foreign Minister Hakan Fidan in the capital Ankara on Friday.

"They shared a willingness to work for paving the way for the modernization of the Customs Union and to achieve its full potential in order to support competitiveness, and economic security and resilience for both sides," they said in a joint statement afterward.

The sides also welcomed the gradual resumption of European Investment Bank (EIB) operations in Türkiye and said they intended to support projects across the country and neighbouring regions in cooperation with the bank.