In speech to Congress, Trump reassures investors that new visa scheme would not tax foreign assets
Taxing foreign assets was a concern despite big enthusiasm for new scheme, pundits had told Arab News
“This move certainly removes a significant barrier for Saudi and Gulf investors who were previously wary of US residency due to FATCA’s global tax implications,” Al-Ansari tells Arab News.
Updated 09 March 2025
Miguel Hadchity
RIYADH: President Donald Trump assured that investors entering the US under the newly introduced $5 million “Gold Card” visa program will not be subject to taxes on their foreign assets.
This assurance comes as Trump and his administration seek to attract high-net-worth individuals from around the world by offering a direct pathway to US residency and citizenship.
Addressing Congress on March 4, Trump outlined the program’s structure. “They (investors) won’t have to pay tax from where they came, the money that they’ve made, you wouldn’t want to do that. But they have to pay tax (in the US) and create jobs,” he said.
His remarks came as a reassurance to prospective investors who may have been concerned about the Foreign Account Tax Compliance Act, which has deterred some wealthy individuals from seeking US residency due to global taxation concerns.
Now that the president has cleared that doubt and reassured investors that their assets abroad won’t be taxed, Salman Al-Ansari, a geopolitical analyst and former US investor, emphasized that the Gold Card exemption is a game-changer.
“This move certainly removes a significant barrier for Saudi and Gulf investors who were previously wary of US residency due to FATCA’s global tax implications,” he told Arab News in an interview.
Al-Ansari added that this exemption “is a clear indication that his administration is responsive to global investor concerns.”
Salman Al-Ansari. Supplied
However, he noted that despite this strong incentive, long-term concerns about possible changes in US tax policy are likely to remain. “Investors in the region understand that tax policies can change with different administrations, so some may still approach with caution, opting for structures that offer flexibility in case future regulations become less favorable,” Al-Ansari added.
The new initiative will replace the existing EB-5 visa program, which was originally designed to grant permanent residency to investors who contributed at least $1 million to a US business that created or sustained at least 10 jobs for American workers.
Trump emphasized to Congress that the initiative would address talent retention by allowing investors to fund and support highly skilled graduates from top US universities, preventing them from being forced to leave the country.
The US faces stiff competition from other nations with established golden visa programs, particularly Gulf nations like Saudi Arabia, which have successfully attracted high-net-worth individuals through similar initiatives.
On whether Saudi investors will become more selective about US investments due to domestic taxation under the Gold Card visa, Al-Ansari noted: “The exemption of foreign assets is a strong incentive, but the fact that income generated within the US is still taxable means that Saudi investors will likely be more strategic in their choices.”
He added: “They may favor sectors that offer higher tax efficiencies, such as real estate, energy, or industries benefiting from tax incentives.”
However, Al-Ansari said that as long as the US provides a stable business environment and competitive opportunities, taxation within the country is a reasonable tradeoff.
“The key factor for Saudi investors will be the ease of doing business and whether the Gold Card visa comes with additional facilitations that make investments more attractive beyond the tax benefits,” he concluded.
By structuring the Gold Card visa to exempt foreign assets from US taxation, Trump’s administration is positioning the program as an attractive alternative to other golden visa schemes worldwide.
Investors from the Gulf, who have already benefited from similar residency programs in their home countries, may now see the US as an increasingly viable destination for expanding their businesses and securing long-term financial stability.
As highlighted in a previous report by Arab News, the initiative is being closely watched due to its potential to attract substantial foreign capital, especially from countries like Saudi Arabia, the UAE, and Qatar.
Despite global competition from established golden visa programs, the US remains an appealing destination for investors, due to its business environment, talent pool, and real estate opportunities.
With the added benefit of no taxation on foreign assets, the Gold Card program is seen as a highly attractive option for investors looking to expand their businesses and secure long-term financial stability in the US.
Riyadh positions itself as a global arbitration hub
The Saudi Center for Commercial Arbitration, established in 2016, plays a pivotal role in this transformation
Updated 24 May 2025
Reem Walid
RIYADH: Saudi Arabia is rapidly positioning Riyadh as a global hub for arbitration, leveraging comprehensive legal reforms, technological advancements, and strategic initiatives aligned with its Vision 2030 economic diversification agenda.
The Kingdom’s concerted efforts to modernize its arbitration infrastructure have resulted in a notable increase in the enforcement of arbitral awards.
Since the enactment of the Arbitration Law in 2012, Saudi enforcement courts have processed approximately 35,000 enforcement applications, with the total value of awards exceeding $6.16 billion.
In 2023 alone, the value of locally enforced arbitral awards reached nearly $800 million, with rulings involving foreign stakeholders totaling around $400 million, as noted by Saudi Justice Minister Walid Al-Samaani at the Third Saudi Commercial Arbitration Conference, held last year.
Karim Youssef, founder and executive chairman of Youssef + Partners, emphasized the strategic nature of Riyadh’s emergence as an arbitration hub. Speaking to Arab News, he said: “Riyadh’s rise is closely tied to Saudi Vision 2030, which emphasizes legal reform, transparency, and modernization.”
He added: “The government’s push for a more attractive business environment includes strengthening the rule of law and legal infrastructure, encouraging foreign direct investment, and creating confidence in dispute resolution systems for both local and international investors.”
The Saudi Center for Commercial Arbitration, established in 2016, plays a pivotal role in this transformation. “Saudi’s rise comes through a focused approach, involving strong judicial openness to arbitration and the regulator benchmarking its conduct against international minimum standards,” said Youssef.
He pointed out that the SCCA saw its caseload increase by a factor of 80 by 2021, a testament to the rapid development and effectiveness of the reforms.
The introduction of the 2023 SCCA Arbitration Rules further aligns Saudi Arabia’s arbitration framework with global best practices. These rules incorporate the use of technology to streamline proceedings, enhance speed, control costs, and facilitate more direct communication between parties and the arbitral tribunal.
Notably, they allow parties to attend hearings remotely, particularly for preliminary and procedural hearings, and enable the engagement of foreign lawyers and counsels, reinforcing Saudi Arabia’s commitment to accommodating international legal practices.
Embracing digital tools
Speaking to Arab News, Beirut-based attorney Jihad Chidiac highlighted the significance of these reforms, stating that “notable changes include the 2023 rules of the Saudi Center for Commercial Arbitration, which introduce the use of technology to streamline proceedings, enhance speed, control costs, and facilitate more direct communication between parties and the arbitral tribunal.”
He added that these rules allow arbitrations to be conducted in languages other than Arabic and permit the appointment of multinational arbitrators from any jurisdiction, crucial given Riyadh’s strategic position between Asia, Europe, and Africa.
The Kingdom is positioning itself as a major arbitration hub, attracting global firms and experts seeking a modern, high-tech environment.
Jihad Chidiac, Beirut-based attorney
The Saudi government’s commitment to enhancing the arbitration infrastructure is further evidenced by the modernization of arbitration laws to align with international standards, such as the 2012 Arbitration Law based on the UN Commission on International Trade Law, or UNCITRAL Model Law.
This comprehensive legal infrastructure, along with Alternative Dispute Resolution-friendly courts, makes Riyadh a credible and competitive venue for international dispute resolution, attracting global commercial and investment disputes.
Global partnerships
Chidiac explained that “the establishment of the SCCA and the introduction of the 2023 SCCA Arbitration Rules further align with global best practices, drawing from renowned frameworks like the London Court of International Arbitration and the International Chamber of Commerce.”
These reforms enhance Riyadh’s appeal as a trusted center for arbitration, fostering confidence among international businesses and institutions.
The Kingdom’s dedication to global dispute resolution is also demonstrated by its accession to international treaties like the New York Convention and the formation of strategic partnerships with major arbitration institutions.
In November 2022, the SCCA expanded its operations by opening its first office outside Saudi Arabia at the Dubai International Financial Center, operating under the name “SCCA Dubai” and providing arbitration and mediation services in the UAE, positioning Riyadh as a key player in global dispute resolution services.
Developing local expertise
Looking ahead, continuous and systematic application of key initiatives is essential for Riyadh to solidify its position as a global arbitration hub.
Youssef emphasized the importance of ongoing support from the Ministry of Justice and the government, continued integration and implementation of Vision 2030, and alignment with international legal norms.
He added: “The SCCA is maturing into a competitive institution, with international standard rules and a growing caseload.”
Youssef suggested that this collective uniqueness can transform the region into a global hotspot for arbitration activity, enhancing its appeal and competitiveness on the international stage.
FASTFACTS
Riyadh’s emergence as a leading arbitration hub represents a significant and transformative shift for legal professionals, businesses, and investors across the Middle East.
Since the enactment of the Arbitration Law in 2012, Saudi enforcement courts have processed approximately 35,000 enforcement applications, with the total value of awards exceeding $6.16 billion.
Chidiac pointed out that one of the major trends in international arbitration, which Saudi Arabia has already embraced, is the increasing use of digital tools like online dispute resolution platforms and AI-powered arbitration solutions.
With initiatives like Saudi Vision 2030 driving tech-driven innovation, Chidiac added, “the Kingdom is positioning itself as a major arbitration hub, attracting global firms and experts seeking a modern, high-tech environment.”
Riyadh’s emergence as a leading arbitration hub represents a significant and transformative shift for legal professionals, businesses, and investors across the Middle East.
Youssef justified that with the establishment of the SCCA and the modernization of legislative infrastructure in line with international arbitration practices, Riyadh offers an efficient arbitral institution that incentivizes businesses and investors to select the city as the seat for their disputes.
This, in turn, increases demand for legal practitioners skilled in handling cross-border disputes, creating high-value professional opportunities.
The growing volume of cases, particularly driven by ongoing reforms, reflects an expansion in legal services and professional development, fostering a more predictable and stable legal environment that is attractive to foreign investors.
Chidiac concluded by saying that Saudi Arabia’s hosting of major global events like the Future Investment Initiative and the Global Saudi Investment Forum boosts its international business profile, reinforcing its role as a key hub for arbitration, which ensures efficient and predictable resolution of business disputes.
As Saudi Arabia continues to implement its Vision 2030 objectives, Riyadh’s positioning as a global arbitration hub is expected to strengthen further, offering a robust and modern legal framework that appeals to international investors and legal professionals alike.
Sky-high architecture shows Kingdom’s business ambitions
Influx of more than 180 multinational headquarters is generating strong demand for premium towers
Updated 24 May 2025
Nadin Hassan
RIYADH: Skyscrapers are transforming Riyadh’s skyline, signaling a bold shift in the capital’s urban and economic ambitions. From finance to high-end living, vertical development is accelerating, drawing comparisons to global cities such as New York.
Riyadh’s skyline is rapidly evolving, with high-rises, luxury towers, and smart skyscrapers rising from the King Abdullah Financial District to North Riyadh.
This vertical sprint isn’t just aesthetic, it’s strategic. Vision 2030, economic diversification plan, is at the heart of this real estate evolution. It seeks to double Riyadh’s population and rebrand it as one of the world’s top 10 global city economies.
Verticality is the new normal
According to the Real Estate and Municipalities Lead Partner at PwC Middle East Imad Shahrouri, Riyadh’s upward push is “a natural response” to the city’s transformational ambitions.
“We’re seeing landmark real estate initiatives unlock new mixed-use districts, while the influx of more than 180 multinational headquarters is generating strong demand for premium commercial and residential towers,” he told Arab News.
According to a report by Knight Frank, Riyadh’s population is projected to grow from 7 million in 2022 to 9.6 million by 2030.
To accommodate this change, the city will need approximately 305,000 new housing units for Saudi nationals between 2024 and 2034.
The growth is fueled by a compound annual rate of 4.1 percent, and Riyadh’s expatriate population is expected to swell to 5.5 million by 2030.
Much of this demand stems from the Kingdom’s need for skilled workers to manage giga-projects, new headquarters, and infrastructure rollouts.
These figures underscore just how essential vertical development has become. Riyadh isn’t just planning up — it has to build up to meet the city’s rapidly evolving demographic and economic realities.
Developers are building vertically to capitalize on land and offer walkable, integrated live-work-play spaces that align with global urban trends.
Imad Shahrouri, Real Estate and Municipalities Lead Partner at PwC Middle East
Shahrouri said: “These developments aren’t happening in isolation; they’re supported by significant investment in public transit and metro infrastructure, which is accelerating the shift toward more connected, transit-oriented urban nodes.”
In a city where land prices are soaring and lifestyle expectations are shifting, vertical living is more than a trend, it’s financially viable.
The appeal is not just in height but also in smart density. Developers are building vertically to capitalize on land and offer walkable, integrated live-work-play spaces that align with global urban trends, Shahrouri explained.
High-rise hype and high-stakes investing
Luxury towers are fast becoming Riyadh’s new skyline signature, and investors are taking notice.
From branded residences to environmental, social, and governance-compliant office towers, high-spec developments are increasingly viewed as strategic plays in a maturing market.
“We’re also seeing a shift in tenant expectations,” Shahrouri said.
He added: “Corporates are moving away from older stock in favor of smart, flexible spaces that support hybrid work models and sustainability goals. This is accelerating interest from institutional investors and REITs, who are drawn not just by the potential returns but by a maturing, more transparent market environment.”
Shahrouri cautions that valuation volatility in speculative zones and execution risks, like supply chain disruptions or limited contractor capacity, are factors investors must watch closely. Still, with robust local partnerships and regulatory alignment, the upside potential remains high.
A shift in the mindset
Arthur Neron-Bancel, principal at Oliver Wyman’s Government and Public Institutions practice, calls Riyadh’s vertical growth a reflection of deeper socio-economic shifts.
“There is a global trend toward higher-density mixed-use urban developments offering integrated ‘live-work-play’ environments. Both Saudis and expatriates now expect spaces that align with international standards,” Neron-Bancel told Arab News.
He continued: “Demographic shifts among Saudis, such as smaller family sizes and later marriages, along with increased migration to Riyadh from other cities, contribute to increased demand for apartments or townhouses.”
Neron-Bancel noted that skilled expatriates, drawn by major government-led initiatives, are contributing to rising demand for new residential formats such as executive housing and apartments.
With projects like Expo 2030 and the 2034 FIFA World Cup on the horizon, he said, investors are expecting that demand to remain strong for several years.
Beyond just demographic drivers, he noted the regulatory and structural shifts behind Riyadh’s vertical real estate momentum.
“Recent regulatory reforms, primarily driven by the Royal Commission for Riyadh City, Real Estate General Authority, and Riyadh Amanah, have played a significant role in facilitating high-rise mixed-use developments,” he said.
Neron-Bancel added that key initiatives include the Wafi program for off-plan sales to aid developer financing, the Strata law supporting shared ownership and homeowner associations, and the Ejar program standardizing rental markets.
That strategy includes stronger investor protections, clearer permitting pathways, and a deliberate push toward mixed-use verticality.
Architectural shift
Vertical expansion is prompting new questions around urban identity, density, and the kinds of spaces cities should create for people to live, work, and thrive.
For some, this transformation signals a redefinition of what it means to be a modern capital.
Sachin Kerur, managing partner at international law firm Reed Smith, believes Riyadh’s new skyline is as much a cultural transformation as it is an architectural one.
The higher density of development creates higher commercial and residential rental values with enhanced capital appreciation.
Sachin Kerur, mmanaging partner at Reed Smith
“There is a shift in the country’s urban development strategy, which is being seen best in Riyadh. Vertical development is gaining more attention than ever,” Kerur told Arab News.
He added: “The higher density of development creates higher commercial and residential rental values with enhanced capital appreciation. This is driving the appetite for the supply side as investors start to queue for opportunities.”
Kerur explained that the demand side is also being driven by a young demographic wanting modern, affordable and hassle-free accommodation providing the lifestyle opportunities enjoyed in other major cities in the GCC.
Kerur believes Riyadh’s real estate boom is a symptom of the Kingdom’s infrastructure ambitions, a key ingredient of Vision 2030.
The focus on vertical expansion signals the end of so-called urban sprawl, which is not seen as economically, or environmentally, attractive.
“There is definitely more dialogue in the Kingdom between government, developers, planning professionals, and architects. Urban sprawl is definitely old news,” he said, adding: “Cities are not judged well on the breadth of their horizontal limits. Today, building up creates better asset yields, reduces footprint and improves the living environment of a city.”
While Kerur acknowledges cultural hesitations, he remains optimistic.
“What Riyadh can now do is to aggregate the best in architectural and engineering talent and practice to create the next generation of innovative vertical living,” he added.
Kerur said that the sustainability advantages of Riyadh’s vertical shift will be considerable, particularly through the adoption of modern building materials and design approaches.
However, he noted that urban planners and developers will also need to account for cultural preferences and social attitudes toward high-rise living, which may still be unfamiliar or uncomfortable for many Saudis.
Even so, with a predominantly young population and fast-moving social change, he expects that more young Saudis, along with the growing expatriate community, will gradually embrace this new urban lifestyle.
Identity and investment
Kerur believes it is “absolutely essential” for Riyadh to have best-of-class, innovative and attractive vertical working and living space — a very clear expectation from the market and users.
When people can live, work, and socialize within the same area — often within the same building or neighborhood — it creates a more efficient, convenient, and productive environment.
This is especially important in cities that aspire to be global business hubs. Commuting long distances for meetings, meals, or leisure activities wastes time, adds stress, and contributes to traffic congestion.
In contrast, compact, mixed-use developments reduce the need for constant travel, helping professionals and residents make the most of their time.
MENA tech startups close significant funding rounds
Strategic investments boost investor confidence in startup landscape
Updated 24 May 2025
Nour El-Shaeri
RIYADH: A series of significant funding rounds and strategic investments have bolstered the Middle East and North Africa tech and startup landscape recently, with a focus on expanding regional ecosystems and scaling innovative solutions.
Among the notable developments, Aramco’s Wa’ed Ventures co-led a $19 million series B extension investment in US-based Graphiant, alongside stc Group’s Tali Ventures.
This investment is part of a broader $102 million series B round that also includes Sequoia Capital, Two Bear Capital, and IAG Capital Partners.
Founded in 2020 by Khalid Raza, Graphiant provides a Network-as-a-Service platform designed to deliver secure and high-performance enterprise connectivity across hybrid and multi-cloud environments.
As part of the funding agreement, Graphiant will establish its regional headquarters in Riyadh to support Saudi Arabia’s ambition to become a global technology hub.
Anas Al-Gahtani, acting CEO of Wa’ed Ventures, said: “By enabling enterprises to deploy secure, high-performance connectivity across multi-cloud and hybrid environments, Graphiant is solving foundational challenges for digital transformation.”
VUZ secures $12m pre-series C to expand immersive media platform globally
Saudi Arabia-based immersive media platform VUZ has raised $12 million in a pre-series C funding round, with the International Finance Corporation — part of the World Bank Group — joining as a strategic investor.
The round also included participation from Al Jazira Capital, Crosswork VC Success Fund, existing investors, and several Saudi family offices, bringing VUZ’s total funding to over $35 million.
Founded in the UAE in 2017 by Khaled Zaatarah, VUZ offers immersive live content across extended reality, virtual reality, augmented reality, and AI-powered streaming.
Founded in 2020 by Ahmad Hammouda and Seif Amr, Thndr enables users to invest in stocks, bonds, and funds through mobile platforms. (Supplied)
The new capital will support VUZ’s global expansion across Saudi Arabia, the UAE, Africa, Asia, and the US, while enhancing its AI-driven streaming technologies and live spatial experiences. The company previously closed a $20 million series B round in October 2022.
Saudi spacetech SARsatX raises $2.6m seed funding to scale satellite development
Saudi Arabian spacetech startup SARsatX has raised $2.6 million in a seed round led by TONOMUS, with participation from Wa’ed Ventures, Access Bridge Ventures, and KAUST Innovation Ventures.
Founded in 2019 by Ahmed Al-Zubairi and Muhannad Al-Mutiry as a spin-off from King Abdullah University of Science and Technology’s TAQADAM Accelerator, SARsatX designs and builds small satellites equipped with synthetic aperture radar technology.
The satellites provide Earth observation data used in applications such as deforestation monitoring, oil leakage detection, disaster management, and border security.
The company intends to use the funds to accelerate technology development and scale satellite deployment.
Saudi e-commerce app Ziadah closes seed round
Ziadah, a Saudi Arabia-based e-commerce platform, has closed a seed funding round from an undisclosed angel investor.
Founded in 2024 by Ali Al-Dahnin and Mahmoud Omar, Ziadah offers online stores behavior-driven marketing tools aimed at increasing sales.
The company plans to use the investment to enhance customer engagement features and expand its services to more merchants across the region.
Egypt’s Thndr raises $15.7m to expand digital investment platform across MENA
Thndr, a Cairo-based digital investment platform, announced a $15.7 million funding round led by Prosus, with participation from Y Combinator, BECO Capital, Endeavor Catalyst, and others.
Founded in 2020 by Ahmad Hammouda and Seif Amr, Thndr enables users to invest in stocks, bonds, and funds through a mobile platform with low commissions.
We’re building a product, network, and monetization model that’s hyper-local, with the infrastr- ucture to scale globally.
Khaled Zaatarah, VUZ founder and CEO
The new funds will support regional expansion focusing on the UAE and Saudi Arabia.
Hammouda said: “We believe the time is now to build the region’s leading investment-first money app.”
Sylndr secures $15.7m series A to accelerate Egypt used-car platform growth
Cairo-based Sylndr, a used-car platform, has raised $15.7 million in a series A round led by DPI Venture Capital through the Nclude Fund. Other investors include Algebra Ventures, Nuwa Capital, and Raed Ventures. Sylndr facilitates vehicle buying, selling, and financing.
Founded in 2021 by Omar El-Defrawy, the company will use the funds to expand across Egypt, improve pricing intelligence, inventory, fintech capabilities, and strengthen partnerships with dealers and lenders.
El-Defrawy said: “This round allows us to scale nationally and expand our product offering.”
UAE’s Tarjama secures $15m series A to scale Arabic AI ecosystem
Tarjama, a UAE-based language technology company, has closed a $15 million series A funding round led by Global Ventures, with participation from Wamda Capital, TA Ventures, and Phaze Capital,as well as Golden Gate Ventures and Endeavor Catalyst.
Founded in 2009 by Nour Al-Hassan, Tarjama serves over 700 clients globally with solutions across more than 50 languages and 22 Arabic dialects.
The company recently launched Pronoia V2, an Arabic-first large language model that it claims outperforms GPT-4o and Cohere in Arabic tasks.
Al-Hassan said: “Arabic has been underserved by AI for too long. Our flagship product, Pronoia, changes that — it is far faster, more secure, and cost-effective.”
Kuwait’s Circle raises $6m series A for regional q-commerce expansion
Circle, a Kuwait-based quick-commerce startup, has raised $6 million in series A funding from unnamed investors.
Founded in 2020 by Altaf Al-Thekair, Circle offers delivery of groceries and daily essentials within 20 minutes through its app and network of dark stores and fulfillment centers.
The company intends to use the funding to support regional expansion plans targeting key MENA markets by early 2026.
CEO Al-Thekair stated: “Securing this funding is a major milestone that propels us toward our vision of reshaping quick commerce in the MENA region.”
EFG Finance approves acquisition of B2B platform Fatura by MaxAB-Wasoko
EFG Finance, part of EFG Holding, has approved the acquisition of its B2B platform Fatura by MaxAB-Wasoko, a regional retail and supply chain super app.
EFG becomes a major shareholder in MaxAB-Wasoko and gains a board seat.
Fatura operates an asset-light marketplace with 626 wholesalers across 16 cities, expanding MaxAB’s product and logistics capabilities.
The acquisition is expected to contribute 25 percent of Egypt’s revenue by year-end and accelerate MaxAB-Wasoko’s pan-African expansion.
Egyptian fintech ElGameya raises seven-figure round to expand savings app
ElGameya, an Egyptian fintech, has raised a seven-figure US dollar investment round led by AYADY for Investment and Development, with participation from Jedar Capital, Cubit Ventures, and others.
Founded in 2020 by Ahmed Abdeen, the company offers a mobile app enabling users to join customizable savings circles with secure transactions,
The funding will be used to scale ElGameya’s reach and develop new products targeting underserved communities.
Abu Dhabi-based EQIQ doubles fund size to $30m
EQIQ, a venture capital fund and venture builder focused on Iraq, is doubling its fund size from $15 million to $30 million to increase investments in the e-commerce, logistics, and fintech sectors.
Founded by Mohamed Al-Hakim and Said Rahmani, EQIQ has deployed $8.5 million across five startups, including three co-built ventures.
The fund is backed by local and regional investors and aims to create a technology ecosystem to serve millions in Iraq.
Standard Chartered’s SC Ventures partners with DIFC
SC Ventures, the innovation and venture arm of Standard Chartered, has partnered with Dubai International Financial Centre Innovation Hub to launch the National Venture Studio in the city.
The initiative utilizes SC Ventures’ Venture Building-as-a-Service model to support startup development through ideation, prototyping, founder matching, and scaling.
Participants will also have access to co-hosted events, research, and ecosystem-building programs within DIFC.
Heritage meets high-tech: Saudi Arabia’s bold vision for smart tourism
Updated 23 May 2025
Reem Walid
RIYADH: Tourism is a critical part of Saudi Arabia’s Vision 2030 diversification initiative, but far from solely relying on its rich heritage to attract visitors, the Kingdom is utilizing pioneering technology to bring the past to life and help deliver an economy for the future.
One of the key pillars of the government’s aim to move Saudi Arabia away from its reliance on oil revenues is to establish the Kingdom as a global tourism hub and increase the sector’s gross domestic product contribution from 3 percent to 10 percent.
Vision 2030’s initial visitor target was 100 million a year by the end of the decade, but after surpassing that milestone seven years ahead of schedule, the ambition has now grown to 150 million.
While modern tourism attractions — such as Expo 2030 and global sports events — have a key role, utilizing the Kingdom’s heritage also has a huge role to play in attracting tourists and fueling long-term growth.
Experts have told Arab News that the Kingdom is blending this offering with cutting-edge technologies such as artificial intelligence, virtual reality, and augmented reality to redefine tourism.
From immersive historical reconstructions to personalized AI-driven tours, the Kingdom is setting a global benchmark for experiential and sustainable travel.
According to Bain and Co.’s Sami Abdul Rahman and Joachim Allerup, given the country’s young and digitally savvy population, the tourism sector is increasingly embracing gamification to make heritage sites more engaging and interactive.
“VR is being used to reconstruct ancient civilizations, allowing visitors to explore these locations as they once were, while AI personalizes tours based on visitors’ preferences, providing tailored insights and recommendations,” Abdul Rahman and Allerup said in a joint statement.
“Interactive AR overlays further enrich the experience by offering real-time information about artifacts and historical events. These innovations do not merely serve as entertainment but function as powerful educational tools, fostering a deeper connection between visitors and Saudi Arabia’s rich cultural heritage,” they added.
The partners went on to highlight that the combination of digital technology and traditional storytelling ensures that historical sites remain relevant and captivating for modern audiences.
Maite Grau Garvin, principal at Arthur D. Little Middle East, shed light on how through AR virtual tours, interactive exhibits and VR powered reconstructions, visitors can explore Diriyah’s rich heritage and historic Najdi architecture in a way that is both engaging and immersive, far beyond the traditional experience.
“Films and digital storytelling further enrich the experience, narrating the region’s deep-rooted history and cultural significance. Diriyah’s visitors can also interact with AI chatbots and voice assistants that deliver customized insights into Najdi architecture, key historical figures, and significant events,” Garvin said.
She added: “In AlUla, technology is transforming the way visitors experience Hegra, the ancient Nabataean site and Saudi Arabia’s first UNESCO World Heritage Site. AR experiences allow visitors to use smartphones or wearable smart glasses to overlay digital reconstructions of holograms, tombs, and inscriptions, bringing the site’s history to life like never before.”
The principal went on to say that these innovations represent a significant step forward in heritage tourism, allowing visitors to not only observe history but engage with it in an immersive and interactive manner.
“By seamlessly integrating AI, VR, and AR, Saudi Arabia isn’t just preserving its history — it’s bringing it to life, setting a new global benchmark for experiential tourism,” Garvin added.
Smart cities harmonizing with Saudi history
NEOM is redefining eco-friendly luxury in hospitality. Shutterstock
NEOM is at the heart of Saudi Arabia’s Vision 2030, bringing together sustainability, automation, and cultural heritage to create unique tourism experiences. The smart city has over 900 heritage sites, including Nabataean tombs, ancient inscriptions and cultural landmarks.
From ADL’s perspective, unlike traditional tour experiences, where history is something you just observe, NEOM makes it interactive. Visitors will be able to experience them through immersive storytelling, digital reconstructions, and guided smart tours.
“Their entire tourism model is built around renewable energy-powered transport, smart visitor flow management, and low-impact exploration. Whether it’s electric shuttles through heritage zones or AI-driven crowd control, the goal is to preserve cultural landmarks while making them seamlessly accessible,” Garvin said.
She added: “NEOM’s regenerative tourism model also protects and regenerates 95 percent of its land for nature, allowing visitors to explore heritage sites while engaging with the natural landscapes that have shaped Saudi culture for centuries.”
The ADL partner also highlighted how NEOM is redefining eco-friendly luxury in hospitality by creating carbon-neutral, renewable energy-powered hotels that blend seamlessly with the environment. Advanced water recycling, smart energy grids, and AI-driven sustainability efforts ensure minimal ecological impact.
“These initiatives, among many other, help ensure that Saudi Arabia’s history is not lost in its rapid modernization but instead enhanced through smart, sustainable tourism infrastructure ensuring world-class travel experience for generations to come,” Garvin added.
Effect of developments like Diriyah and AlUla on Saudi Arabia
AlUla. Shutterstock
Developments like Diriyah and AlUla give Saudi Arabia a clear edge when it comes to attracting tourists.
Garvin explained that while many countries have iconic historical sites, Saudi Arabia is creating something novel — immersive, technologically enabled, and sustainably developed heritage destinations that are purpose-built for 21st-century travelers.
“AlUla’s integration of AR and digital storytelling, and Diriyah’s AI-driven visitor engagement, are raising the bar for how history is experienced. Add to that the quality of infrastructure, transport, and hospitality now emerging in these locations, which is further supporting Saudi establish itself as a major player on the global tourism stage — especially for culturally curious and experience-driven travelers,” she said.
The principal added that these projects, particularly when anchored in sustainability and powered by advanced technology, give Saudi a first-mover advantage in what can be called “smart heritage tourism.”
She continued: “As the global tourism sector becomes more experience-driven, these developments place the Kingdom ahead of the curve.”
Garvin also shed light on how the Kingdom is opening up its tourism sector with a focus on providing diverse, enriching experiences.
She noted that the development of the sites is guided by a commitment to variety, from immersive cultural districts to accessible heritage attractions, ensuring that the offering caters to a broad range of travelers without necessitating elevated costs.
“That said, a tiered model is likely. For instance, bespoke experiences — such as private AR-guided tours or luxury stays within heritage zones — could naturally carry a higher price point,” the principal said.
General access to cultural landmarks, historical sites, and exhibitions is expected to remain competitively priced to encourage widespread domestic and international participation.
This approach aligns with the goals of Vision 2030: positioning tourism as a catalyst for cultural exchange, economic diversification, and job creation.
“Ultimately, the return on these investments is expected to come from increased visitor numbers, longer stays, and higher overall trip value, rather than from charging more per individual experience,” Garvin added.
High-tech solutions aligning with Vision 2030
The integration of high-tech solutions directly supports Saudi Vision 2030’s goals of diversifying the economy and positioning the Kingdom as a global cultural hub.
Abdul Rahman and Allerup from Bain & Co. explained that smart tourism initiatives mean people can experience what Saudi has to offer even before they arrive in the Kingdom.
“AI-driven platforms can personalize travel recommendations, while VR and AR allow global audiences to explore Saudi Arabia’s historical sites remotely, generating interest even before they arrive. This hybrid approach— where physical and digital tourism coexist— expands accessibility, ensuring that more people engage with Saudi culture regardless of their location.” they said.
From ADL’s side, technology is enhancing the travel experience to Saudi Arabia with e-visa platforms and digital booking systems, simplifying entry for tourists. Upon arrival, AI-powered assistants offer real-time insights and personalized cultural experiences.
The ADL representative also clarified that digital platforms and the metaverse are expanding Saudi Arabia’s cultural reach through virtual heritage tours and interactive storytelling on social media while emphasizing that these efforts preserve and promote the Kingdom’s history, engaging a global audience.
“On the sustainability front, AI and IoT-powered monitoring systems protect UNESCO-listed heritage sites while smart waste management and carbon-neutral tourism initiatives ensure responsible development,” Garvin said.
Maite Grau Garvin, principal at Arthur D. Little Middle East. Supplied
Evolution of smart tourism
From Bain & Co.’s lens, by 2025, smart tourism in Saudi Arabia will be characterized by hyper-personalized experiences driven by AI and data analytics.
Abdul Rahman and Allerup shed light on how travelers will be able to use advanced digital assistants to plan their visits, receiving itinerary suggestions tailored to their interests and real-time adjustments based on preferences or changing conditions.
The partners added: “Additionally, AI-driven customer service and smart infrastructure will streamline the travel experience, reducing friction and enhancing convenience. These advancements will position Saudi Arabia as a global leader in smart tourism, offering visitors not just a journey through history but a glimpse into the future of travel itself.”
Garvin from ADL believes that by the end of 2025, the Kingdom’s tourism sector will be one of the most technologically advanced in the world..
“As the Kingdom rapidly evolves, it has a unique opportunity to shape its identity as a global travel hub as it is a nation with a rich historical legacy yet a blank canvas in modern tourism,” she said.
She added: “Saudi Arabia isn’t just preserving its cultural legacy — it’s revolutionizing how the world experiences it, setting a new global standard for immersive, sustainable, and technology-driven tourism. By fusing innovation with tradition, Saudi Arabia is creating a truly future-proof tourism industry.”
Uber overtakes Lucid as PIF’s largest US equity holding by value
Updated 23 May 2025
Dayan Abou Tine
RIYADH: Uber Technologies Inc. has emerged as the Saudi Public Investment Fund’s largest single holding by market value in its US portfolio, valued at $5.31 billion for an unchanged stake of 72.84 million shares.
This change reflected a market-driven increase in Uber’s stock price. In contrast, Lucid Group Inc., in which PIF continues to hold 1.77 billion shares, saw its market value decline to $4.29 billion from over $5.3 billion at the end of 2024.
According to the fund’s latest 13F filing with the US Securities and Exchange Commission, PIF’s US equity portfolio fell to $25.55 billion by March-end, down from $26.77 billion the preceding quarter, amid valuation and position changes.
The shift was primarily driven by market-based valuation changes, rather than a significant reallocation of assets, with the majority of holdings remaining unchanged in terms of share count.
Not all holdings listed in the filing are traditional equity shares. The fund also disclosed positions in call options for several US tech giants, including Amazon, Adobe, and Microsoft, as well as Alphabet, and Meta Platforms.
These derivatives grant the right — but not the obligation — to purchase the underlying stocks and are distinct from direct share ownership. The figures disclosed, such as 961,300 shares tied to call options on Adobe Inc. and 1.2 million shares via Alphabet Inc. options, represent the total number of underlying shares the options control.
These positions indicate the PIF’s strategic use of capital-light exposure to high-value tech equities.
While many core holdings remained unchanged, PIF increased its exposure in certain stocks. The fund nearly doubled its position in PayPal Holdings, from 1.76 million to 3.67 million shares, and added to its stakes in Amazon, Zoetis, Micron Technology, and Lam Research.
PIF increased its position in PayPal Holdings. Shutterstock
Debt issuance meets strategic shift
In parallel with its global positioning, PIF continues to tap capital markets to finance Vision 2030 initiatives.
According to a May report by Global SWF, the fund raised $1.25 billion through a seven-year sukuk — its second debt issuance of the year — tightening pricing from 145 basis points over US Treasuries to just 110 basis points after attracting over $8.2 billion in orders.
The sukuk, issued under the Trust Certificate Issuance Programme as Sukuk Al-Wakala, signals robust investor confidence and PIF’s expanding sophistication in Islamic finance.
However, the issuance comes amid an internal recalibration.
According to the report, citing Arabian Gulf Business Insight, PIF is reportedly cutting 2025 budgets across its portfolio by at least 20 percent, with some flagship giga-projects facing up to 60 percent reduction. Developments such as NEOM and the Red Sea Project have seen timeline adjustments and contract revisions as the fund prioritizes capital discipline.
This strategic shift reflects broader fiscal pressures. Oil revenues remain below target, and Brent oil forecasts for 2025 have been revised downward to $66 per barrel, far below the $90 per barrel fiscal breakeven.
Meanwhile, Aramco’s dividend payout is expected to fall to $85.4 billion, reducing government inflows. Combined with a rising fiscal and trade deficit, borrowing has become a necessary tool for PIF to maintain project continuity.
Despite this, the fund is doubling down on investor engagement, according to Global SWF. It has raised $5.25 billion in debt already in 2025 through various instruments, including a $4 billion bond in January and a $7 billion Murabaha credit facility. These steps are allowing the fund to selectively advance high-priority ventures while reassessing broader allocations.
A new era of capital discipline
PIF is looking to invest in ventures linked to events including the 2034 FIFA World Cup set to be held in Saudi Arabia. Getty
PIF’s transformation signals a new phase of financial pragmatism, according to Global SWF. Rather than scaling back, the fund is reallocating, favoring ventures with measurable returns — especially those aligned with near-term events like Expo 2030 and the 2034 FIFA World Cup.
Analysts describe the move not as a retreat, but recalibration and pivot toward “economically viable infrastructure” and industry-led projects.
Co-investment deals with firms like Goldman Sachs, BlackRock, and Brookfield are also on the rise, helping PIF attract external capital and reduce reliance on sovereign funding. The aim is to deploy up to $70 billion annually while ensuring long-term sustainability, the report said.
Despite the evolving landscape, market appetite for PIF-backed instruments remains strong, said Global SWF. The latest sukuk’s successful pricing reflects sustained confidence in Saudi Arabia’s fiscal direction and PIF’s strategic execution.
The fund’s move toward pairing financial firepower with economic logic underscores its evolution from a spender to a steward of transformation.
As PIF adjusts its financial architecture, its mix of market exposure, targeted lending, and fiscal discipline may set a precedent for sovereign investors worldwide — and reinforce its role as the cornerstone of Saudi Arabia’s post-oil future.
