Green Horizons: Saudi Arabia’s sustainable tourism drive planting seeds for economic growth

Green Horizons: Saudi Arabia’s sustainable tourism drive planting seeds for economic growth
Tourism destinations such as this resort in Tabuk province, which is part of the Red Sea tourism megaproject, are designed to operate entirely on renewable sources, significantly lowering carbon emissions. (AFP file photo)
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Updated 02 February 2025
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Green Horizons: Saudi Arabia’s sustainable tourism drive planting seeds for economic growth

Green Horizons: Saudi Arabia’s sustainable tourism drive planting seeds for economic growth

RIYADH: Eco-friendly holiday destinations being developed across Saudi Arabia are positioning the Kingdom as a leader in sustainable tourism, a host of experts have told Arab News.

Aligning with the Vision 2030 strategy to increase visitor numbers to the Kingdom to 150 million a year by the end of the decade, Saudi Arabia is creating a host of new vacation resorts, as well as reinvigorating existing popular spots.

Alongside this, the Kingdom has made environmental preservation a key tenet of its ambitions for the tourist industry, with ecological and cultural safeguards inserted directly into its strategy.

According to Pascal Armoudom, partner at Kearney Middle East & Africa, this balanced approach ensures that tourism expansion enhances, rather than compromises, the Kingdom’s natural and cultural assets.

“A central element is renewable energy investment across giga-projects like NEOM and the Red Sea Project. These destinations are designed to operate entirely on renewable sources, significantly lowering carbon emissions. By aligning economic growth with clean energy, Saudi Arabia not only attracts environmentally-conscious visitors but also creates sustainable jobs, supporting economic diversification away from oil,” Armoudom said.




Pascal Armoudom, Partner at Kearney Middle East & Africa. (Supplied)

“Conservation commitments further reinforce this balance. The Saudi Green Initiative aims to plant 10 billion trees and restore millions of hectares of land, reducing carbon while enhancing landscapes that are vital to eco-tourism,” he added.

The Kearney partner went on to note that these commitments ensure that as tourism grows, natural habitats are preserved, making Saudi Arabia’s landscapes more resilient and attractive for long-term tourism investment.

“Cultural preservation and community integration are also prioritized. Projects like Diriyah Gate and AlUla involve local communities in heritage conservation and economic opportunities, allowing residents to benefit economically while protecting cultural authenticity. By prioritizing heritage alongside economic incentives, Saudi Arabia creates a tourism model that is inclusive and respects its historical identity,” Armoudom said.

He added that uniting renewable energy, conservation, and cultural preservation enables Saudi Arabia to build a thriving tourism economy that aligns with global sustainability standards, which will in turn foster growth that sustains both the environment and the economy.

Learning from the mistakes of others

Camilla Bevilacqua, partner at management consulting firm Arthur D. Little, explained that Saudi Arabia has the opportunity to learn from more mature global destinations, where tourism significantly contributes to economic growth but can lead to environmental and social degradation when not designed from a systemic perspective.

“To unlock the full potential of regenerative development, it’s crucial to integrate ecological, social, cultural, and economic understanding into a unified approach, creating a community that becomes steward of the development and a development that contributes to the intrinsic value of natural and heritage assets,” she added.




Camilla Bevilacqua, partner at management consulting firm Arthur D. Little. (Supplied)

The ADL partner also suggested that loss of natural and cultural assets requires large investments, especially from the public sector, to restore habitats and communities that can instead drive economic growth.

The notion that economic development in tourism and environmental protection is not a zero-sum game was echoed by Seif Sammakieh, partner in Oliver Wyman’s Government and Public Institutions Practice and the head of the Riyadh office.

He flagged up that Saudi Arabia is already putting this mentality into practice, adding: “Across the ecosystem there is clearly a deep commitment to safeguarding natural and cultural heritage, and a recognition that these resources are essential to the country’s tourism appeal.”

Sammakieh highlighted that part of the attraction of the Red Sea is its rich and diverse coral reef, meaning the economic success of the tourist destination requires a steadfast commitment to environmental preservation.

Innovation is key

Saudi Arabia is leading sustainable tourism through innovative, eco-friendly developments that align with Vision 2030’s commitment to environmental conservation and cultural preservation.

Kearney’s Armoudom highlighted Amaala, a luxury wellness destination on the Red Sea coast, as an example of a project that will be fully powered by renewable energy.




Seif Sammakieh, partner in Oliver Wyman’s Government and Public Institutions Practice and the head of the Riyadh office. (Supplied)

He also focused on Diriyah Gate as a project that blends cultural preservation with sustainable practices.

“This historic site is being developed as a cultural hub, incorporating energy-efficient designs, water-saving measures, and native landscaping, allowing visitors to experience Saudi heritage responsibly,” the Kearney partner added.

From ADL’s side, Bevilacqua noted that Saudi Arabia’s Vision 2030 includes sustainable tourism initiatives across multiple projects and organizations, such as Soudah, AlUla, NEOM, the Red Sea, and several Royal Reserves and National Parks. She also stressed that these efforts target ecological restoration, economic transformation, and community empowerment.

“For Soudah Development, ecological restoration plans to plant over 1 million trees by 2030 aim to restore mountain ecosystems, while wildlife reintroduction programs, such as the rewilding of Nubian ibex, enhance biodiversity. Additionally, over 300 locals have been trained as eco-guides and forest stewards, contributing directly to tourism growth and increasing community engagement,” Bevilacqua said.

With regards to the Red Sea Project, the ADL partner emphasized that the coral reef and mangrove restoration efforts aim for a 40 percent biodiversity increase and sequester 500,000 tonnes of carbon dioxide annually as part of marine and coastal ecosystem restoration. Additionally, over 500 jobs have been created, aligning conservation with economic development through ecotourism initiatives.

The rise of eco-tourism

While integrating sustainability and environmental protection into tourism developments is admirable, these projects do ultimately need to attract visitors in order to deliver an economic return.

Nicolas Mayer, PwC Middle East partner and global tourism industry lead, explained that tourists drawn to nature-based experiences tend to be strong spenders, contributing significantly to the local economy.

“Eco-tourism, in particular, has a profound economic impact on more remote and economically weaker regions, where visitor spending can create jobs, stimulate local businesses, and foster infrastructure development that benefits residents and tourists alike,” Mayer said.




Nicolas Mayer, PwC Middle East Partner, Global Tourism Industry Lead. (Supplied)

“This type of tourism is especially appealing for domestic travelers, who bring significant economic benefits while generating a lower ecological impact than international visitors. By encouraging domestic tourism, the Kingdom reduces the carbon footprint associated with air travel, thus aligning with its sustainability goals,” he added.

The PwC representative continued to stress that the concept of regenerative tourism is central to Saudi Arabia’s approach.

“Unlike traditional tourism, which may strain resources, regenerative tourism actively restores and enhances natural and cultural sites. This approach ensures that destinations not only maintain their ecological and cultural value but also improve over time, offering a richer experience for future visitors and a lasting legacy for local communities,” Mayer said.


Over 1,300 Saudi industrial licenses awarded in 2024, attracting $13.3bn investment, latest figures show

Over 1,300 Saudi industrial licenses awarded in 2024, attracting $13.3bn investment, latest figures show
Updated 27 February 2025
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Over 1,300 Saudi industrial licenses awarded in 2024, attracting $13.3bn investment, latest figures show

Over 1,300 Saudi industrial licenses awarded in 2024, attracting $13.3bn investment, latest figures show

JEDDAH: More than 44,000 new jobs are expected in Saudi Arabia after the Kingdom issued 1,346 industry licenses in 2024, an official report has revealed.

The Ministry of Industry and Mineral Resources announced that the permits have also helped attract investments worth over SR50 billion ($13.3 billion), driving economic growth and diversification.

The ministry added that the jobs figure is based on a report by its National Industrial and Mining Information Center, which analyzes key sector changes.

The issuance of the permits aligns with Saudi Arabia’s National Industrial Strategy, launched by Crown Prince Mohammed bin Salman in October 2022, that aims to drive sector growth and increase the number of factories in the Kingdom to about 36,000 by 2035.

The strategy focuses on 12 sub-sectors, targeting more than 800 investment opportunities worth SR1 trillion, striving toward tripling the industrial gross domestic product.

The analysis by the ministry also shows that 1,075 factories began production in 2024, with investments exceeding SR48 billion and a workforce of about 39,000 employees.

The issuance of permits aligns with the Kingdom’s National Industrial Development and Logistics Program, which was launched in 2019 to support the industrial sector and drive sustainable development. 

It also furthers the ministry’s goal of strengthening the industry and diversifying the economy under Vision 2030.

NIDLP aims to position Saudi Arabia as an international leader in energy, mining, logistics, and industry. Key components include improving regulations, investing in renewable energy, and boosting local content through initiatives like “Made in Saudi,” all supporting the goal of enhancing industrial capacity and global competitiveness.

In February 2024, the Ministry of Industry reported a 10 percent year-on-year increase in operational factories for 2023, totaling an investment of approximately SR1.5 trillion.

The body also revealed that 1,379 industrial licenses were issued in 2023, attracting investments exceeding SR81 billion. Additionally, production commenced in 1,058 factories during the same period, with total financial commitments reaching SR45 billion.


Closing Bell: Saudi main index ends week in red; Nomu gains

Closing Bell: Saudi main index ends week in red; Nomu gains
Updated 27 February 2025
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Closing Bell: Saudi main index ends week in red; Nomu gains

Closing Bell: Saudi main index ends week in red; Nomu gains

RIYADH: Saudi Arabia’s Tadawul All Share Index ended the week in the red, as it shed 120.75 points or 0.99 percent to close at 12,111.90 on Thursday.

The total trading turnover of the benchmark index was SR8.32 billion ($2.22 billion), with 69 stocks advancing and 172 retreating. 

Nomu, Saudi Arabia’s parallel market, gained 118.24 points to close at 31,404.47. 

The MSCI Tadawul Index, however, shed 17.71 points to 1,514.81. 

The best-performing stock on the main index was Alkhorayef Water and Power Technologies Co. The firm’s share price increased by 4.48 percent to SR163.20. 

The share price of Saudi Paper Manufacturing Co. rose by 2.65 percent to SR65.90.

Banan Real Estate Co. also saw its share price increasing by 2.56 percent to SR6.82. 

Conversely, the share price of Mobile Telecommunication Co. Saudi Arabia, also known as Zain KSA declined by 4.57 percent to SR10.86. 

On the announcements front, Arabian Pipes Co. reported a net profit of SR168.18 million in 2024, representing a rise of 27.3 percent compared to the previous year. 

In a Tadawul statement, the firm attributed the rise in profit to improved sales volumes and new project awards to support the company’s production levels.

The share price of Arabian Pipes Co. declined by 2.51 percent to SR11.64. 

The Company for Cooperative Insurance, also known as Tawuniya, said that it witnessed a net profit of SR1.02 billion in 2024, marking a 65.8 percent rise compared to 2023. 

According to a Tadawul statement, insurance revenues of the company rose by 19.7 percent year on year in 2024 reaching SR18.27 billion. 

Tawuniya’s share price increased by 1.83 percent to SR144.60. 

National Gas and Industrialization Co. revealed that its net profit for 2024 reached SR248.7 million, representing a rise of 9.41 percent compared to 2023. 

According to a Tadawul statement, the increase in net profits was driven by growth on higher gas sales which went up by SR365 million due to the rise in gas prices and volume.

National Gas and Industrialization Co.’s share price decreased by 1.52 percent to SR103.40. 

Conversely, the net profit of Gulf Insurance Group fell to SR98.19 million in 2024, representing a decline of 23.6 percent compared to the previous year. 

The group’s share price dropped by 1.54 percent to SR28.85.


Saudi Arabia strengthens halal leadership with 13 new deals at Makkah forum 

Saudi Arabia strengthens halal leadership with 13 new deals at Makkah forum 
Updated 27 February 2025
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Saudi Arabia strengthens halal leadership with 13 new deals at Makkah forum 

Saudi Arabia strengthens halal leadership with 13 new deals at Makkah forum 

JEDDAH: Saudi Arabia saw the signing of 13 agreements at a special event in Makkah, boosting its halal industry leadership by expanding investment, strengthening certification standards, and enhancing food production.

Announced during the second edition of the Makkah Halal Forum, held from Feb. 25 to 27, the deals included partnerships between the Halal Products Development Co., a subsidiary of the Public Investment Fund, and Al-Watania Poultry, Golden Chicken Farms Co., and Ajlan & Bros Holding Group.

The Islamic Chamber of Commerce and Development also signed agreements with Brazil’s Fambras Halal, Thailand’s Halal Science Center, and Slovenia’s KulinWorld to enhance global certification and research in the industry.

Additionally, the Saudi Authority for Industrial Cities and Technology Zones, or MODON, secured deals with First Milling Co. and Ghitha Alzad Food Industries to strengthen halal food production infrastructure. 

Held under the theme “Sustainable Development through Halal” and inaugurated by Saudi Commerce Minister Majid Al-Kassabi, the forum aligns with the Kingdom’s Vision 2030 goals of economic diversification and private sector expansion. 

As the birthplace of Islam, the Kingdom has long been a trusted source of halal products and is leveraging its influence to lead the $7 trillion global halal market, which is projected to reach $10 trillion by 2030. 

Muslim consumer spending on halal-certified products is estimated at $207 billion, according to the American Halal Foundation, underscoring the sector’s economic potential. 

With participation from over 150 companies across 15 countries, the forum has become a key platform for driving innovation, enhancing standards, and reinforcing Saudi Arabia’s role as a central hub in the international halal economy. 

The agreements signed during the forum support business development and economic growth across various sectors. They establish a framework for halal sciences, contribute to the advancement of scientific and educational materials, and reinforce the forum’s global standing. 

Serving as a global gathering for industry leaders, the forum facilitated collaboration on innovations and best practices in the halal sector, with a focus on sustainability and development. As a platform for business partnerships and investment, it reinforced Saudi Arabia’s position in the global halal economy.


Madinah’s economy expands as logistics, tourism, and tech sectors grow 

Madinah’s economy expands as logistics, tourism, and tech sectors grow 
Updated 27 February 2025
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Madinah’s economy expands as logistics, tourism, and tech sectors grow 

Madinah’s economy expands as logistics, tourism, and tech sectors grow 
  • Commercial activity expands as business licenses reached 86,000 in 2024

RIYADH: Saudi Arabia’s Madinah region saw its logistics services sector grow 54 percent year on year in 2024, underscoring the city’s growing role as a transport and trade hub, according to the latest official data. 

Figures from the Ministry of Commerce also revealed that the region’s commercial activity expanded 37 percent from 2018 to 2024, with registered business licenses reaching 86,000 last year.   

Madinah’s rise as a logistics center is fueled by its robust infrastructure, including three airports, an extensive highway network connecting five regions, the Haramain High-Speed Railway, and two major ports — one commercial and one industrial. These facilities supported nearly $1.1 billion in non-oil exports and over $1.4 billion in imports in 2021. 

The region’s broader economy also experienced strong growth, with the hotel sector reporting a 42 percent annual increase in 2024, while tourism-related businesses, including organized trip activities, grew by 33 percent.  

The technology sector also expanded, with computer programming services growing 28 percent, while date drying, packaging, and manufacturing climbed 14 percent year on year.   

This comes as consumer spending in the region continues to rise, with point-of-sale transactions reaching SR536.89 million ($143 million) in the week ending Feb. 22, signaling steady retail growth and stable inflation. 

The Madinah region has maintained strong demand growth from 2020 to 2024, underscoring its investment appeal, the Saudi Press Agency reported. 

The region’s development aligns with Saudi Arabia’s Vision 2030, which aims to transform Madinah into a key investment and cultural hub.  

In February, the Madinah Region Development Authority reported improvements in quality of life, economic growth, and cultural initiatives. The region ranked 88th globally in Euromonitor International’s 2024 Top 100 City Destinations Index and seventh in the Tourism Performance Index, with 3,200 locations registered in the National Urban Heritage Register. 

Saudi Arabia has also eased restrictions on foreign investments in real estate, allowing international investors to buy shares in Saudi-listed firms that own property in Makkah and Madinah, a move expected to drive further capital inflows into the region. 

Madinah’s digital transformation efforts are also gaining traction, with the Al-Madinah Smart City initiative climbing 11 places in the International Institute for Management Development’s Smart City Index, ranking 74th globally, up from 85th in 2023. 


Arab stock markets extend gains, aligning with global rebound: AMF report

Arab stock markets extend gains, aligning with global rebound: AMF report
Updated 27 February 2025
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Arab stock markets extend gains, aligning with global rebound: AMF report

Arab stock markets extend gains, aligning with global rebound: AMF report

RIYADH: Arab stock markets recorded a positive performance in January for the second consecutive month, mirroring the upward trajectory of global exchanges.

According to the latest Arab Monetary Fund report, the gains came after markets worldwide rebounded from the declines observed in December, driven by improving investor sentiment, monetary policy adjustments, and strong corporate earnings in key industries.

In January, the global uptrend was reflected in Arab stock markets, with major indices such as MSCI and the UK’s FTSE posting strong gains.

The report stated that the composite index for Arab financial markets increased by 0.97 percent at the end of January, reflecting broad-based improvements across regional exchanges. 

The positive sentiment was fueled by a combination of factors, including rising corporate profits, enhanced liquidity conditions, and policy measures aimed at strengthening market stability and attracting foreign investment.

Regional market performance

Casablanca’s stock exchange emerged as the top performer among Arab markets in January, with its index surging by 9.98 percent. This was followed by strong performances on the Kuwaiti and Amman bourses, which recorded gains of 5.73 percent and 5.11 percent, respectively. 

The Saudi, Tunisian, and Abu Dhabi markets also posted solid gains, rising by 3.15 percent, 2.69 percent, and 1.77 percent, respectively. 

Meanwhile, Egypt, Qatar, Palestine, and Dubai registered more modest gains of less than 1 percent, respectively.

Three Arab stock exchanges experienced declines. Bahrain Bourse saw a 5.36 percent fall, Iraq Stock Exchange dropped by 1.8 percent, while Muscat Securities Market fell by 0.73 percent.

Key drivers of market gains

One of the primary factors driving the positive performance in Arab stock markets was the robust financial results posted by listed companies, particularly in the banking sector. 

Many financial institutions across the region reported strong earnings for the end of 2024, which significantly boosted investor confidence and contributed to the stock market rally.

Global and regional central banks played a crucial role in supporting financial markets by maintaining accommodative monetary policies. Several central banks in the Arab region, including those in Saudi Arabia, the UAE, and Qatar, reduced interest rates to stimulate economic activity. 

Similarly, major international central banks, such as the US Federal Reserve and the European Central Bank, signaled a shift toward looser monetary policy to counter slowing economic growth and ease inflationary pressures. These moves improved market liquidity and encouraged risk-taking among investors.

In an effort to attract foreign investment, Arab stock exchanges intensified their market development initiatives. Many bourses focused on improving governance, enhancing transparency, and simplifying regulatory processes to facilitate foreign capital inflows. 

Structural reforms, such as digitalization of trading platforms, improved disclosure requirements, and the introduction of new financial instruments, contributed to increasing market attractiveness.

Strong performances in key sectors like banking, real estate, telecommunications, pharmaceuticals, and technology helped drive growth in Arab stock markets.

The surge in these industries contributed to broad-based market gains. Additionally, the insurance and consumer goods sectors saw increased activity, reflecting growing investor confidence in long-term economic stability.

Trading activity and market liquidity

Despite overall market gains, trading values across Arab stock exchanges recorded a mixed performance in January. The total value of traded stocks declined slightly by 2.96 percent compared to December. 

However, some markets showed strong growth in trading activity. The Palestinian market recorded the highest surge in traded value, jumping by 261.4 percent. 

The Kuwaiti and Amman stock exchanges followed with gains of 31.8 percent and 20.6 percent, respectively. 

The Saudi, Qatari, and Abu Dhabi markets also registered healthy increases in trading value, ranging from 12.3 percent to 19.6 percent.

Conversely, markets in Dubai and Egypt experienced declines, with decreases of 2.6 percent and 23.3 percent. The market in Muscat also fell 32.8 percent.

The largest drop was observed in the Tunisian market, which saw a 71.7 percent decline in traded value.

The total market capitalization of Arab financial markets increased by 0.60 percent at the end of January, adding approximately $26.28 billion in value compared to the previous month. 

The biggest contributors to this growth were Bourse de Casablanca, which rose by 10.17 percent, followed by Amman Stock Exchange with a gain of 7.55 percent. 

Kuwait Stock Exchange recorded an increase of 5.73 percent, while Tunis’s stock market and the Egyptian bourse saw growth of 2.93 percent and 2.76 percent, respectively.

On the other hand, Iraq’s market capitalization dropped by 2.42 percent, Beirut’s by 5.01 percent, and Bahrain’s by 5.36 percent.

Arab markets in a global context

Arab stock markets followed the global trend, where major indices posted strong gains in January. 

The MSCI Latin America Index rose by 9.37 percent, while the MSCI Europe Index increased by 8.42 percent. 

In France, the CAC 40 advanced by 7.72 percent, and in the UK, the FTSE 100 gained 6.13 percent. 

The Dow Jones saw gains of 4.70 percent, while Nasdaq rose by 1.64 percent and the S&P 500 increased by 2.70 percent.

In contrast, Japan’s Nikkei index declined by 0.81 percent, while the MSCI Asia Index showed marginal growth of 0.60 percent. 

Additionally, the MSCI Emerging Markets Index for the Arab region increased by 3.21 percent, highlighting the region's resilience in a recovering global economic environment.

Interest rate developments and economic outlook

Central banks worldwide adjusted their monetary policies in response to changing economic conditions. 

The US Federal Reserve held its interest rate steady at 4.50 percent to 4.25 percent following three consecutive cuts in 2024, reflecting a cautious approach to inflation management. 

Meanwhile, the European Central Bank and the Bank of China reduced their rates to support economic growth. 

In the Arab region, interest rate cuts in Saudi Arabia to 5 percent, the UAE to 4.4 percent, and Qatar to 5.1 percent, helped enhance liquidity and investor sentiment.