The impact of entertainment ventures on Saudi Arabia’s economy

The significant rise in net flows from tourism activities indicates the progress made by the government to diversify from a predominantly hydrocarbon-based economy. (SPA)
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Updated 02 September 2023
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The impact of entertainment ventures on Saudi Arabia’s economy

  • New tourism and entertainment initiatives are among the country’s top drivers for non-hydrocarbon economic growth

RIYADH: Saudi Arabia is reaping the rewards of its substantial investments in diversifying its economy, with a key focus on the entertainment and tourism sectors. These investments have not only improved the nation’s income potential but have also paved the way for a departure from its reliance on hydrocarbons. 

The results of these efforts are evident in the figures published by the Saudi Central Bank for July, which revealed a surplus of $17.7 billion in the Kingdom’s current account balance during the first quarter of 2023. This reflects a significant revenue boost from tourism, reaching $9.8 billion in the first quarter compared to $3 billion in the same period the previous year.  

The OECD Tourism Trends and Policies 2022 report validates Saudi Arabia’s commitment to developing its tourism industry as one of the Kingdom’s fastest-growing sectors, significantly contributing to the national economy while creating a substantial number of jobs.  

Adel Noueihed, managing director of Imagination Middle East, a global creative agency, highlighted that on a global scale, entertainment contributes to 4 percent of gross domestic product, while tourism accounts for 7 percent.  

“When it comes to economic diversification, this is what KSA should aim to achieve when opening up these sectors,” he told Arab News. 

“And these numbers make sense if you’re trying to diversify away from hydrocarbons that these sectors would be two really clear pillars of things the government can do to diversify,” Noueihed added. 

Christophe Castagnera, strategy head of Imagination Middle East, echoed this sentiment, highlighting the untapped potential for experiences in Saudi Arabia.  

“We know in Saudi that in every vertical, there are sports, music, technology and performing artists, whether traditional, hyper modular or futuristic, like NEOM. There is now a whole new opportunity for these spaces to fill, which is brilliant,” he said.  

Castagnera underscored that these ventures are “a big part and a big driver” of what the government is doing with its strategic work and new initiatives.  

At the regional level, the strategy head pointed out that he has never witnessed such a multi-layered approach to building the experience economy, especially in terms of the intricacies involved in planning, investment, creative thinking and imagination required in the projects.

Driving growth

Saudi Arabia’s Vision 2030 is driving specific support measures for the entertainment sector, with a goal of contributing over $23 billion or 3 percent of GDP and creating more than 100,000 jobs by 2030. It also has a $64 billion investment plan to further bolster the sector’s growth.  

“It’s (entertainment) a booming industry globally,” added Noueihed. “I think as people get more prosperous in certain parts of the world, they’ve got more disposable income, more time, and they want to spend that in different cultural entertainment activities. It’s a good play.”  

The tourism sector, too, is undergoing rapid expansion, with the aim of tripling employment to 1.6 million people and tripling its contribution to GDP to 10 percent by 2030. 

There’s an untapped market for experien-ces now in Saudi Arabia, which is brilliant.

Christophe Castagnera, Strategy head of Imagination Middle East

Castagnera outlined two key facets of the entertainment and tourism sectors.  

“There’s the domestic one as well as the international one. I think domestically there’s been entertainment hubs in Saudi Arabia, more from an underground or in-home point of view,” he explained.  

However, with the ambitious Vision 2030 initiative, Castagnera outlined that substantial investments have been made to draw various levels of entertainment ventures.   

He highlighted two prominent ones, saying, “Qiddiya and Seven being the two main ones” as the primary drivers of this transformation.”  

Even in the business sector, the Kingdom has film commissions, film sets and gaming, which are critical drivers for investment in the entertainment industry.

Economic showstoppers

One standout project is Saudi Entertainment Ventures, known as Seven, which recently announced a $346 million amusement destination. This venture is poised to offer immersive experiences and family recreations, enhancing the quality of life for millions of Saudis.  

The unveiling of Seven’s project came at an exciting time for Saudi Arabia as its economy grew by 1.1 percent in the second quarter compared to the year-ago period, spurred by a 5.5 percent surge in non-oil activities.  

Seven, a wholly owned subsidiary of the Public Investment Fund, has begun construction work on its SR1.3 billion ($346.54 million) entertainment destination in Madinah.  

The project, in collaboration with BUJV, a joint venture by Al Bawani Co. and UrbaCon Trading & Contracting, aligns with the Kingdom’s strategy and vision to improve the lives of Saudis, revitalize communities, and boost tourism. 

On a global scale, 4 percent of GDP comes from entertainment, and 7 percent comes from tourism. When it comes to economic diversification, this is what KSA should aim to achieve.

Adel Noueihed, managing director of Imagination Middle East

“Our entertainment destination in Madinah will transform the entertainment landscape of the region and bring new, unique, and exciting experiences to the people of Madinah, supporting Seven’s aims to enrich the quality of life for millions of Saudis,” said Seven Chairman Abdullah Al-Dawood, in a statement at the launch.  

The unveiling of Seven’s project is part of a broader trend in Saudi Arabia’s entertainment and tourism sectors, which have been driving positive economic growth in recent years.   

This growth is evident in the International Monetary Fund’s projection of Saudi Arabia’s non-oil GDP, which is expected to increase from 3.9 percent in 2020 to a solid 4.3 percent in 2023.  

This steady rise in net flows from tourism activities underscores the nation’s successful diversification efforts away from a predominantly hydrocarbon-based economy.

Addressing challenges

While challenges remain, particularly in job creation, there is a push to overcome them.  

What must still be seen is the steady growth of the private sector and the creation of jobs over the next few years for the young Saudi population, among which two-thirds are under 30. This change, too, is happening. 

Our entertainment destination in Madinah will transform the entertainment landscape of the region and bring new, unique, and exciting experiences.

Abdullah Al-Dwood, Seven chairman

“The challenges will take time, but the ambition is there,” said Noueihed. “When it comes to enhancing the local sector, the quick route for a lot of entertainment and even tourism is to import intellectual property.”  

What will transform over time, continued Noueihed, is how local brands and flavors emerge in the Kingdom, encouraging an artistic and cultural renaissance in the region that will grow into a global industry to reckon with.   

“All they need is the right tools, exposure, and funding to create exciting local IP that’s nuanced and relevant to the local market. I think that’s quite important as well. And that will differentiate Saudi from other parts of the GCC and even the Arab world,” Noueihed concluded.


Saudi non-oil trade surplus with GCC jumps over 200% in April

Updated 10 July 2025
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Saudi non-oil trade surplus with GCC jumps over 200% in April

JEDDAH: Saudi Arabia’s non-oil trade surplus with fellow Gulf Cooperation Council countries jumped by more than 200 percent in April 2025, driven by a sharp rise in re-exports and strengthening regional economic ties.

According to the latest figures released by the General Authority for Statistics, the Kingdom posted a trade surplus of SR3.51 billion ($935 million) with GCC nations during the month, compared to just SR1.16 billion in April 2024 — a year-on-year increase of 203.2 percent.

The total value of non-oil trade, which includes re-exports, between Saudi Arabia and the GCC bloc reached SR18.03 billion in April, reflecting a robust 41.3 percent growth from SR12.76 billion in the same month last year.

This momentum is attributed to the accelerated pace of regional economic integration, supported by strategic initiatives such as Saudi Arabia’s Vision 2030 and similar diversification programs across the Gulf. These frameworks aim to reduce dependence on hydrocarbons by fostering growth in sectors like logistics, finance, tourism, and manufacturing.

Non-oil exports — encompassing both national products and re-exported goods — saw a notable rise of 55 percent year on year to SR10.77 billion. Within this category, re-exports surged by 81 percent to SR7.74 billion, highlighting Saudi Arabia’s growing role as a regional re-export hub. National-origin exports also rose by 13.3 percent, totaling SR3.03 billion.

Imports from GCC countries also registered an increase, climbing to SR7.26 billion in April — a 25.2 percent rise compared to SR5.80 billion in the previous year.

Among individual member states, the UAE continued to dominate Saudi Arabia’s regional trade portfolio, accounting for SR13.53 billion — or 75.1 percent — of the Kingdom’s total non-oil trade with the GCC. Bahrain followed with SR1.8 billion (10 percent), while Oman recorded SR1.45 billion (8.1 percent). Kuwait and Qatar contributed SR819.9 million (4.5 percent) and SR422.1 million (2.3 percent), respectively.

The data reflects not only Saudi Arabia’s growing non-oil export capacity but also a broader regional shift toward more diversified, interconnected Gulf economies.


Saudia, flyadeal rise high in Cirium’s June punctuality rankings

Updated 10 July 2025
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Saudia, flyadeal rise high in Cirium’s June punctuality rankings

  • Marks Saudia’s second time in 2025 leading global rankings for arrival and departure punctuality
  • Achievement aligns with Kingdom’s ambition to become global aviation hub

JEDDAH: Saudia emerged as the world’s most punctual airline in June, topping global rankings for both on-time departures and arrivals, according to aviation analytics firm Cirium.

In its latest report, the London-headquartered independent aviation analytics company said that Saudia operated 16,733 flights in June, achieving a 91.33 percent on-time arrival rate and a 90.69 percent on-time departure rate — a 2.41 percent increase in arrival punctuality compared to May’s rate of 89.18 percent.

The achievement aligns with Saudi Arabia’s ambition to become a global aviation hub and a top destination for international travelers. Under Vision 2030, the Kingdom is investing heavily to boost private sector participation, expand connectivity, and reinforce its role in global aviation.

It also supports the National Aviation Strategy’s goal of enhancing the travel experience, which aims to target 330 million passengers annually, over 250 global destinations, and 4.5 million tons of air cargo by 2030.

Ibrahim Al-Omar, director general of Saudia Group, said, “Achieving exceptional on-time performance and maintaining operational excellence requires seamless coordination across all sectors and subsidiaries of the group.”

This marks Saudia’s second time in 2025 leading global rankings for both arrival and departure punctuality, following a similar achievement in March. It also mirrors the airline’s performance in June 2024, when it topped the rankings with an on-time arrival rate of 88.22 percent and a departure rate of 88.73 percent across 16,133 flights to more than 100 destinations.

Flyadeal, Saudia Group’s low-cost carrier, ranked first in the Middle East and Africa for on-time arrival performance, achieving a rate of 91.77 percent across more than 5,980 flights. The carrier’s performance surpassed that of Saudia within the region.

In a statement, Saudi Group said: “The accomplishment reflects Saudia and flyadeal’s unwavering focus in operational efficiency and excellence, achieved during the high-demand period of Hajj, summer travel, and Eid Al-Adha holidays.”

In the airport category, Cirium ranked Riyadh’s King Khalid International Airport as the world’s most punctual large airport for the same period. The travel gateway recorded a 90.41 percent on-time departure rate and an 86.99 percent on-time arrival rate, outperforming major global hubs in operational efficiency.

With 22,180 flights tracked, the Kingdom’s capital hub served 109 routes operated by 59 airlines, showcasing Saudi Arabia’s growing global connectivity and aviation excellence.

Meanwhile, Dammam’s King Fahd International Airport ranked seventh among medium-sized airports for on-time departures, achieving an 86.18 percent punctuality rate across 8,200 flights on 59 routes, according to Cirium.


Closing Bell: Saudi main index steady at 11,277; Nomu edges up

Updated 10 July 2025
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Closing Bell: Saudi main index steady at 11,277; Nomu edges up

RIYADH: Saudi Arabia’s Tadawul All Share Index was steady on Thursday, as it marginally declined by 0.01 percent, or 0.82 points, to close at 11,276.91. 

The total trading turnover of the benchmark index was SR4.96 billion ($1.32 billion), with 128 of the listed stocks advancing and 120 declining. 

The Kingdom’s parallel market Nomu gained 31.28 points to close at 27,479.50.

The MSCI Tadawul Index marginally shed 0.02 points to 1,445.23. 

The best-performing stock on the main market was SHL Finance Co. The firm’s share price increased by 9.95 percent to SR19.33. 

The share price of Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, rose by 5.8 percent to SR31.38. 

Sustained Infrastructure Holding Co. also saw its stock price rise by 4.24 percent to SR35.44. 

Conversely, the share price of Umm Al Qura for Development and Construction Co. declined by 6.14 percent to SR25.06. 

On the announcements front, Anmat Technology for Trading Co. said that it received a contract valued at SR50 million from Etihad Etisalat, also known as Mobily, to supply and install power generator systems and a fuel monitoring system. 

In a press statement, Anmat said that the contract is effective from June 26 and will last until May 17, 2028. 

The company added that the impact of the deal will be reflected in the firm’s financials from the second half of this year and will continue until the end of the contract duration. 

The share price of Anmat, which is listed in Nomu, increased by 10.19 percent to SR12.33. 

International Human Resources Co. said that it signed a framework agreement with the Arab National Bank to provide human resources services. 

According to a Tadawul statement, the contract is valid for 12 months and will be renewed for a similar period unless either party notifies the other at least 30 days prior to the expiry date. 

International Human Resources Co.’s share price rose by 2.83 percent to SR6.17. 


Saudi Tourism Development Fund rolls out programs to boost startup growth 

Updated 10 July 2025
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Saudi Tourism Development Fund rolls out programs to boost startup growth 

RIYADH: Tourism startups and entrepreneurs in Saudi Arabia stand to benefit from three newly launched support initiatives aimed at accelerating innovation, attracting investment, and strengthening the Kingdom’s growing travel economy. 

The Tourism Development Fund has introduced the Grow Tourism Incubator, Tourism Hackathons and Bootcamps, and the Grow Tourism Accelerator — a suite of initiatives designed to empower early-stage ventures through TDF Grow, its non-financial enablement arm, according to a press release. 

Developing a robust tourism landscape is a key pillar of Saudi Arabia’s Vision 2030 agenda, as the Kingdom works to diversify its economy and reduce its reliance on oil revenues. 

The National Tourism Strategy targets 150 million annual visitors by 2030, after surpassing the 100 million milestone ahead of schedule, with official data showing the Kingdom welcomed 116 million tourists in 2024 — exceeding its annual target for the second year in a row. 

Qusai bin Abdullah Al-Fakhri, CEO of TDF, said: “We remain committed to empowering entrepreneurs to transform their ideas into promising, impactful projects. We strive to provide a comprehensive support ecosystem that addresses the needs of businesses at every stage, helping them overcome challenges and accelerate their growth.”  

He added: “These three programs embody our dedication to practical enablement, offering guidance, support, and connections with key stakeholders, to build a sustainable tourism sector full of opportunity and aligned with the aspirations of Saudi Vision 2030.” 

The Grow Tourism Incubator Program, now in its first edition, will target early-stage tourism startups. Registration opened on June 24 and will remain open until July 17. 

The incubator offers a 10-month immersive environment, providing participants with access to shared workspaces, as well as legal, marketing, and logistical support, along with technical and administrative services. 

The program will also include workshops, specialized training sessions, and mentorship by leading industry experts, delivered both virtually and in person at TDF headquarters — ensuring accessibility for entrepreneurs across the Kingdom. 

The Tourism Hackathons and Bootcamps program aims to support innovators and early-stage tourism projects, with a focus on three key regions: Asir, Al-Ahsa, and Madinah. 

Running for five months, the program will allow participants to take part in hackathons followed by training bootcamps, helping them develop their ideas into actionable prototypes. 

Registrations opened on July 1 and will remain open until July 22. 

The Grow Tourism Accelerator builds on the success of previous cohorts, which have graduated 99 participants to date. 

This three-month program is designed to support startups and help them scale within the tourism sector. 

“The accelerator also attracts international companies, enriching the diversity of the investment landscape and elevating service quality across the industry. The program provides integrated mentorship, culminating in graduation and connections with potential investors,” the TDF release stated. 

It added that the TDF Grow platform has supported 8,800 beneficiaries through its non-financial programs and initiatives, helping entrepreneurs and small and medium enterprises accelerate their projects and enhance the competitiveness of Saudi Arabia’s tourism sector.


OPEC says no peak to oil demand before 2050

Updated 10 July 2025
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OPEC says no peak to oil demand before 2050

  • OPEC sees oil demand rising by 18.6% to around 123 mbd in 2050
  • It expects demand to grow for longer than other forecasters

PARIS: The OPEC oil cartel said Thursday that demand for crude will continue to expand through at least 2050, calling efforts to rapidly shift away from fossil fuels an unworkable fantasy.

In its latest annual report on the outlook for oil demand, OPEC sees global oil demand rising by 18.6 percent from 103.7 million barrels per day in 2024 to around 123 mbd in 2050.

That rising demand will be “driven by expanding economic growth, rising populations, increasing urbanization, new energy-intensive industries like artificial intelligence, and the need to bring energy to the billions without it,” said OPEC Secretary General Haitham Al-Ghais in his foreword to the report.

“There is no peak oil demand on the horizon,” he said.

That forecast puts OPEC, which gathers together a number of the world’s leading oil exporting nations, at odds with the International Energy Agency, whose member states include many oil-consuming nations.

The IEA said last month that it expects global oil demand to begin to decline in 2030, driven by the rise of electric cars and the shift away from crude to produce power.

The IEA even sees oil demand dropping in Saudi Arabia as it replaces crude with gas and renewable energy to produce power.

Ghais said that OPEC sees growth in oil demand being primarily driven by developing nations, and that fossil fuels still account for around 80 percent of the global fuel mix, little changed from when the cartel was founded in 1960.

.”..it has become increasingly clear to many policymakers in recent years that the narrative of swiftly phasing out oil and gas has been seen for what it is: unworkable, and a fantasy,” he said.

The OPEC chief blasted many timelines to reach net-zero carbon emissions as having “little regard for energy security, affordability or feasibility.”

Experts say a rapid phase-out of fossil fuels is necessary if global warming is be kept to 1.5 degrees Celsius above preindustrial levels.