Saudi Arabia focused on promoting energy efficiency: top official

JEDDAH: Sharjah’s economy is projected to grow by up to 7.5 percent in 2025, strengthening its position as a hub for diverse sectors, according to a senior UAE official.

Executive Chairman of the Department of Government Relations Sheikh Fahim bin Sultan bin Khalid Al-Qasimi highlighted that the expected expansion will be driven by progressive policies, increased economic integration, and rising foreign investment in strategic industries.

Al-Qasimi underlined the importance of ongoing dialogue with the private sector to strengthen core industries such as manufacturing, trade, agriculture, and environmental sustainability.

“We will be hosting a number of quite frank discussions with the private sector about what the government should be doing better to protect the core industries – manufacturing, trading, agriculture and the environment — that we have,” Al-Qasimi said during the Sharjah Ramadan Majlis 2025.

The event, which was held under the theme “Sharjah: Shaping the Future, Empowering Growth,” was attended by senior officials, including Sheikha Bodour bint Sultan Al-Qasimi, president of the American University of Sharjah; and Thani bin Ahmed Al Zeyoudi, minister of state for foreign trade.

During the gathering, Al-Qasimi said that Sharjah’s economy is evolving at an impressive pace, with the gross domestic product now over 145 billion dirhams ($39.47 billion), and growth of 6.5 percent registered in 2023 — surpassing the global average by 3.5 percentage points. 

“We are immensely proud of the businesses that have found their home in Sharjah, especially those in the private sector, that have been the backbone of our economy for over a decade, and there is a reason why global giants such as Halliburton and Amazon have shown their confidence by investing in our emirate,” he said. 

Al-Qasimi forecasted that continued integration, smarter policymaking, and collaboration with the private sector would contribute to growth ranging between 6.5 percent to 7.5 percent in the coming years.

He added that the automotive industry and vehicle parts trading accounted for 24 percent of the emirate’s economy, with agriculture at 19 percent, at manufacturing on 17 percent — the same level the broader food ecosystem.

Al-Qasimi also pointed to the potential growth in the real estate sector in 2025, citing major developers like Alef Group and Arada, which are making significant investments in the emirate.

To foster this growth, Al-Qasimi stressed the importance of identifying supply chain interdependencies and collaborating closely with the private sector. “We need to identify the adjacencies and interdependencies in supply chains to understand from the private sector what we need to do to move forward,” he said.

Foreign Trade Minister Al-Zeyoudi pointed to Sharjah’s attractiveness to businesses, bolstered by initiatives like “Invest in Sharjah,” the Sharjah Investment and Development Authority, or Shurooq, and Sharjah Research, Technology and Innovation Park.

“Companies are moving here, and we aim to showcase the incentives, markets, and benefits available through the UAE’s Comprehensive Economic Partnership Agreements,” he said during the same event.

Juma Al-Kait, assistant undersecretary for foreign trade at the Ministry of Economy, emphasized the significance of foreign trade, a cornerstone of the UAE’s economic strategy.

He noted that the UAE’s foreign trade grew by 14.6 percent in 2024, hitting 3 trillion dirhams, outpacing the global rate, which recorded 2 percent. “If we look at Sharjah’s foreign trade, it grew 8.1 percent in 2024 compared to last year. There is a huge potential for the private sector to benefit or to utilize important agreements.” Al-Kait said. 

Sharjah is a key destination for manufacturing, services, and finance, with nearly 96 percent of its economy non-oil-based. Home to six specialized free zones, the emirate offers flexible investment opportunities and advanced infrastructure.

RIYADH: The number of licensed hospitality facilities in Makkah reached 1,030 by the end of 2024, marking an 80 percent increase compared to the previous year, according to Saudi Arabia’s Ministry of Tourism. 

The surge positions Makkah as the leader in the Kingdom for the highest number of licensed facilities and rooms, underscoring the region’s dedication to enhancing visitor experiences, the Saudi Press Agency reported. 

The move highlights the region’s commitment to enhancing the visitor experience while reinforcing the ministry’s dedication to protecting the rights of visitors and Umrah pilgrims using hospitality services in Makkah, as part of its ongoing efforts to improve service quality. 

“The ministry’s inspection teams conduct regular monitoring and inspection visits throughout the year to ensure that all facilities comply with licensing requirements, detect violations, and impose fines under the Tourism Law and Regulations of Tourist Accommodation Facilities,” SPA said. 

Saudi Arabia’s hospitality sector is growing beyond Makkah. By the end of the third quarter of 2024, the total number of licensed hospitality facilities across the Kingdom surpassed 3,950, marking a 99 percent increase from the third quarter of 2023. Licensed rooms climbed to 443,000, a 107 percent jump from the 214,000 recorded a year earlier. 

According to CoStar, a global real estate data provider, Makkah and Madinah have 17,646 and 20,079 rooms, respectively, in various stages of development in 2025. 

This comes as Saudi Arabia recorded 30 million inbound tourists in 2024, up from 27.4 million in 2023, government data shows. The Kingdom aims to attract 150 million visitors annually by 2030, with plans to raise the tourism sector’s gross domestic product contribution from 6 percent to 10 percent. 

Ahead of the 2024 Hajj season, the Ministry of Tourism said Makkah’s licensed hospitality facilities reached 816, providing 227,000 rooms to accommodate pilgrims. Authorities have also introduced new initiatives, including enhanced crowd management, digital meal distribution, and an expanded electric golf cart fleet at the Grand Mosque. 

The General Authority for the Care of the Grand Mosque and the Prophet’s Mosque has further implemented spatial guidance systems and multilingual support to improve visitor navigation, ensuring a seamless pilgrimage experience. 

Saudi Arabia’s aggressive expansion in hospitality and tourism underscores its ambition to position itself as a global travel hub, catering to both religious and leisure visitors.