Saudi private sector investments in Africa to reach $25bn: finance minister

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Richard Attias, CEO of FII Institute. Screenshot
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Updated 28 October 2024
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Saudi private sector investments in Africa to reach $25bn: finance minister

  • Kingdom is actively involved in shaping the future of Africa by lending aid for philanthropic activities
  • Saudi Arabia has spearheaded several initiatives to develop the African continent

RIYADH: Saudi private sector investments in Africa are expected to reach $25 billion in the next 10 years as economic and trade cooperation between the Kingdom and the continent strengthens, said a top minister. 

Speaking at the Future Investment Initiative New Africa Summit in Riyadh, the Kingdom’s Finance Minister Mohammed Al-Jadaan said that Saudi Arabia is actively involved in shaping the future of Africa by lending aid for philanthropic activities and guiding the continent toward economic diversification. 

The New Africa Summit aims to connect international investors and business leaders, showcasing the unique opportunities available on the African continent and fostering cross-border investment, according to the FII website. 

Saudi Arabia has spearheaded several initiatives to develop the African continent, with the latest one being a memorandum of understanding signed in April. The agreement was between the Saudi Fund for Development and the African Development Bank Group to provide funding for emerging economies in the continent. 

“The relationship between the Kingdom and Africa is not only governed by the geographical location — we are partners with a joint history and a joint future. Our shared history goes beyond economic ties. We have different commonalities in our culture, geographies, and common denominator factors between our people,” said Al-Jadaan. 

He added: “It is expected that Saudi Arabia’s private sector investments in Africa will reach $25 billion in the coming 10 years. Since the summit (Saudi-Africa Summit), within less than a year, we are working on $5 billion of these investments.” 

During his speech, the finance minister also highlighted some of the major initiatives the Kingdom took to propel the socio-economic conditions in Africa, including $10 billion provided by the Saudi EXIM Bank to deliver financing products in Africa in the coming 10 years. 

He added that the EXIM Bank has already allocated $1.5 billion out of this $10 billion. 

“The recent Saudi-Africa summit that was held last year marked a new chapter. Saudi Arabia has dedicated $1 billion from the Custodian of Two Holy Mosques’ Philanthropic initiative in Africa. 

Second, $5 billion from the PIF (Public Investment Fund) has been allocated to diversify economic projects in Africa in the next 10 years, and it has already started,” said Al-Jadaan. 

The minister added that the Kingdom is also helping Africa in various frontiers, including digitalization, and aiding the continent to establish its position in the global landscape.

“The Kingdom was one of the first countries that requested that the G20 give permanent membership for the African Union, and also called for establishing a chair for Africa in the executive body in the World Bank,” said Al-Jadaan. 

He added: “One of the most important challenges faced by several African countries is the sustainability of the debts and this urges serious global cooperation to help these countries deal with sovereignty debts. Saudi Arabia is working with IMF, World Bank, and other groups to handle debts of African nations, especially countries which have less income.” 

According to the finance minister, Saudi Arabia is addressing urgent solutions for African nations and is also working to establish a lasting framework to enhance economic flexibility and financial stability across the continent.

During the inaugural ceremony, Richard Attias, CEO of FII Institute, said the New Africa Summit is a gathering dedicated to investing in the boundless potential of the continent. 

“Africa’s resilience, diversity, and reality are inspiring. From the lively markets to the solar farms, and endless savannahs symbolize ‘Infinite Horizons’, our FII8’s main theme,” said Attias. 

According to the CEO, the New Africa Summit is not aimed at discussing the future of the continent, instead, it intends to reshape it by introducing new narratives and exploring the continent’s untapped resources.

“Our commitment here today is to empower African voices, foster sustainable growth, and embrace the unique vision Africa brings to the world’s stage. Together, we will illuminate the path forward, creating partnerships that transcend borders and crafting an impact that future generations will inherit with pride,” said Attias. 

In a separate panel discussion, Tony Elumelu, chairman of the United Bank for Africa, said that the continent, with 60 percent of its population under the age of 30, is evolving as a startup hub in multiple sectors. 

He added that startups in Africa are tackling multiple challenges, and the failure rate among these companies has gradually decreased over the past several years. 

“We are seeing a young population in the tech sector startup landscape, we are seeing women in agriculture. The startup ecosystem is improving now. There’s room for improvement in the continent, but the good news is that, from where we started years ago, I have seen more progress than ever before,” said Elumelu. 

He added that the African continent has successfully bridged the gender gap over the past few years and said several companies have females in their top leadership. 

Elumelu also invited investors to come and invest in Africa and said the continent is open to new business. 

“The opportunities are there, the challenges are there. That’s what entrepreneurs always do; we try to navigate challenges for the betterment of all. So, Africa is open for business, we do have challenges. You can navigate those challenges,” he concluded. 


IMF-World Bank meetings end with little tariff clarity, but economic foreboding

Updated 8 sec ago
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IMF-World Bank meetings end with little tariff clarity, but economic foreboding

  • Former Pakistan central bank chief says for many developing countries, there is a real sense of despair that the agenda on Financing for Development is really not centerstage
  • During the whirlwind week, many finance and trade ministers sought to meet with US Treasury Secretary Scott Bessent and other key Trump administration officials, to no avail

WASHINGTON: Global finance leaders came to Washington this past week seeking clarity on what it would take to get some relief from President Donald Trump’s multi-layered tariff assault and on just how much pain it will bring to the world economy.
Most headed home with more questions than answers.

Many participants in the International Monetary Fund and World Bank Spring Meetings had a sense that Trump’s administration was still conflicted in its demands from trading partners hit with his sweeping tariffs. During the whirlwind week, many finance and trade ministers sought to meet with US Treasury Secretary Scott Bessent and other key Trump administration officials, to no avail. Those that did were often told to be patient — even as the clock steadily ticks down on the 90-day pause Trump had granted on the steepest levies.

Indeed, not a single deal was finalized over the course of the week despite the Trump administration touting the receipt of 18 written proposals and a full slate of negotiations.

“We are not negotiating. We are just presenting, discussing the economy,” said Polish Finance Minister Andrzej Domanski. He added that he stressed “how this uncertainty is bad for Europe, for the US I mean, it’s actually bad for everyone.”

Warnings that the tariffs — 25 percent on all US imports of vehicles, steel and aluminum and currently 10 percent for most everything else — would cause painful damage to the US and other major economies went largely unheeded by US officials.

“We know that they think — that it won’t be that bad,” Domanski said. “They think it’s a short-term pain, long-term gain. And I’m afraid that we’ll have short-term pain, long-term pain.” The Trump administration’s most substantial trade negotiations during the week were with Japan and South Korea, but the results were inconclusive as Bessent cited “productive” talks with both countries. Specific currency targets for the Japanese yen were not discussed, but both countries’ currency policies are expected to be part of future talks as the US sees currency weakness against the dollar as a nontariff barrier to American exports. The IMF took a slightly more optimistic view of the economic fallout from the highest US tariffs in more than a century, slashing growth forecasts for most countries in its World Economic Outlook but stopping far short of predicting recessions — even for the US and export-dependent China, which now faces US tariffs of 145 percent on many goods.

IMF Managing Director Kristalina Georgieva acknowledged that member countries were anxious about the uncertainty shock to a global economy buffeted by pandemic, inflation and wars but held out hope that trade negotiations would ease the tariff strains.

“We recognize that there is work under way to resolve trade disputes and reduce uncertainty,” Georgieva told reporters. “Uncertainty is really bad for business, so the sooner there is this cloud that is hanging over our heads is lifted, the better for profit, for growth, for the world economy.” Several finance officials told Reuters that odds of recession were higher than the IMF’s 37 percent chance, citing private sector forecasts.

DEBT RISKS RISE

Eric LeCompte, executive director of Jubilee USA Network, a faith-based nonprofit group advocating debt relief, said that the IMF’s forecasts were clearly aimed at preventing market panic, even as officials in private meetings expressed concerns about new debt crises emerging. “It was a do-nothing kind of week,” LeCompte said, adding that debt discussions were inconclusive and overshadowed by tariff talks.

Reza Baqir, a former Pakistan central bank governor who now heads sovereign debt advisory at Alvarez & Marsal, said: “For many developing countries, especially in the Global South, there is a real sense of despair that the agenda on Financing for Development is really not center-stage. And who is going to be there to champion that debate?” World Bank chief economist Indermit Gill also sounded an alarm on rising debt levels for emerging markets, noting that tariffs had prompted a sharp slowdown in trade and foreign direct investment that are crucial to developing country growth.

He and other World Bank and IMF officials told countries to cut their own tariffs to boost growth prospects.

NO US WITHDRAWAL

Policymakers did breathe a sigh of relief when Bessent expressed US support for the IMF and the World Bank, declaring that they have “enduring value” but criticizing their “mission creep” into climate, gender and equality issues. Rather than withdrawing from the institutions as prescribed by the Project 2025 Republican policy manifesto, Bessent said he wanted to refocus them on their core missions of economic stability and development, with expanded World Bank energy financing options and an end to China loans.

Participants at the meetings, along with financial markets, were encouraged by Bessent’s comments early in the week that triple-digit US tariffs on Chinese goods and vice versa were unsustainable, suggesting that a deal to ease them could be reached soon. But

China denied Trump’s assertions that tariff negotiations were under way with Beijing, adding to the week’s confusion over his tariffs and offering little reassurance to country delegations.

“I think most people left here bracing for things to get worse from an economic perspective,” said Josh Lipsky, a former IMF adviser who is now senior director of the Atlantic Council’s GeoEconomics Center. “The broad picture, when you step back, is very concerning.”

But a big challenge for developed countries at the moment was the recent selloff in US Treasury debt and other dollar-based assets, which indicated an erosion of trust in US economic policies, Lipsky said.

Trust in US economic leadership was the fundamental reason that the dollar had achieved reserve currency status, he said. While the US economy is too big to ignore the dollar for now, trading partners will try to seek alternatives unless that trust is repaired, he added.


Saudi Arabia’s international tourism revenue soars by 148%, leading G20 nations 

Updated 30 min 42 sec ago
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Saudi Arabia’s international tourism revenue soars by 148%, leading G20 nations 

RIYADH: Saudi Arabia’s tourism sector achieved a historic milestone in 2024, with international tourism revenue surging 148 percent compared to 2019 — the highest growth rate among G20 nations. 

This achievement reflects the success of Vision 2030, which has firmly positioned the Kingdom as a global leader in tourism, entertainment, and innovation.  

The 2024 annual performance report highlighted record-breaking pilgrim numbers, cultural milestones, and major international events, all driven by strategic investments, regulatory reforms, and transformative mega-projects.   

Tourism boom 

Vision 2030 unlocked Saudi Arabia’s vast tourism potential, establishing it as one of the fastest-growing global destinations. 

In 2024, international tourist arrivals surged to 29.7 million, up from 18.04 million in 2016, while domestic travelers nearly doubled to 86.2 million during the same period.  

Surpassing its target of 100 million visitors seven years ahead of schedule, the Kingdom has now set a bold new goal of attracting 150 million annual tourists by 2030. 

Saudi Arabia’s tourism strategy is driven by mega-projects aiming to transform the travel and hospitality industry.  

Pioneering projects like The Red Sea — home to carbon-neutral resorts including Shebara, St. Regis, and Ritz-Carlton Nujuma — are redefining sustainable luxury tourism. The adjacent Red Sea International Airport, the region’s first carbon-neutral terminal, strategically connects over 250 million people within a three-hour flight radius. 

In Diriyah, the birthplace of the first Saudi state, 3 million visitors experienced a seamless blend of heritage and hospitality, with developments like the Bab Samhan Hotel offering modern luxury rooted in history. 

Meanwhile, at Qiddiya, major entertainment attractions are nearing completion, with Aquarabia Park 81 percent finished and Six Flags Park 87 percent completed. 

The Kingdom’s global tourism profile continues to rise, with accolades including AlUla being named Best Cultural Tourism Project in the Middle East, Madinah ranking among the world’s top 100 destinations, and the Asir region earning four awards for excellence in culinary and cultural storytelling. 

To enhance accessibility, the Kingdom expanded its e-visa program to 66 countries by 2024, simplifying entry for millions of travelers.  

Additionally, Saudi Arabia has emerged as a global leader in safety, ranking highest among G20 nations in security indicators, further solidifying its reputation as a welcoming and secure destination for international visitors. 

Pilgrimage services 

Serving pilgrims remains a cornerstone of Saudi Arabia’s responsibilities. Vision 2030 has transformed the Hajj and Umrah experience into a model of efficiency, accessibility, and safety. 

In 2024, the Kingdom welcomed 16.9 million foreign Umrah pilgrims and 1.61 million foreign Hajj pilgrims, reflecting significant growth from 2016 levels. 

Innovations like the Makkah Route Initiative, which fast-tracks visa issuance and pre-clearance in eight countries, served 322,900 pilgrims in 2024 — a rise from just 1,700 in 2017. 

The Nusuk platform played a key role in improving pilgrimage planning, helping achieve an 81 percent satisfaction rate on the Pilgrim Experience Index. Transportation infrastructure, including the Haramain High-Speed Railway, the Makkah Bus Network, and the Al-Mashaer Metro Line, facilitated the movement of 69.5 million passengers between holy sites. 

The Kingdom’s commitment to pilgrims’ well-being is evident in its healthcare services. In 2024, 390,000 pilgrims received medical care, and 40,000 medical staff were mobilized. Adding to that, 189 hospitals, centers, and mobile clinics were deployed, and 28 open-heart surgeries and 720 cardiac catheterizations were performed. 

About 153,000 volunteers supported pilgrimage operations in 2024, up from just 3,352 in 2021, showcasing the growing culture of community service.  

Hosting mega-events  

Saudi Arabia’s global influence expanded across sports, esports, and entertainment in 2024. 

The Kingdom secured the rights to host the 2034 FIFA World Cup, which will feature 48 national teams competing across 15 stadiums in Riyadh, Jeddah, NEOM, Al Khobar, and Abha. 

The tournament will be backed by 134 training facilities and 230,000 hotel units, contributing to infrastructure development, job creation, and long-term economic impact. 

In the digital realm, Saudi Arabia hosted the inaugural Esports World Cup, the largest tournament of its kind, featuring 1,500 professional players, 500 elite clubs, and 22 competitions. Team Falcons emerged as champions, and the Kingdom further solidified its leadership by winning hosting rights for the Olympic Esports Games.  

Meanwhile, Riyadh Season 2024 drew 19 million visitors, with a total attendance of 76.9 million across 423 entertainment attractions. 

The festival featured top-tier performances, immersive themed zones, and vibrant cultural displays, reinforcing its reputation as a global entertainment event. 

Cultural renaissance 

Vision 2030 has revitalized Saudi Arabia’s cultural identity, merging ancient heritage with modern creativity. 

The Kingdom now boasts eight UNESCO World Heritage Sites, including the newly listed Al-Faw Archaeological Site, and 16 UNESCO Intangible Cultural Heritage elements celebrating traditions like Arabic calligraphy, Saudi coffee, and falconry.  

Groundbreaking discoveries such as the Bronze Age Village of Al-Natah in AlUla have further illuminated the region’s rich history. 

In arts and entertainment, the critically acclaimed film "Norah" became the first Saudi production selected for the Cannes Film Festival’s official lineup, while the Kingdom’s first Arabic opera, Zarqa Al Yamama, premiered to acclaim.  

The King Salman Global Academy for Arabic Language trained 782 international students, promoting Arabic language and culture across three continents.  

Economic impact 

Tourism is a major driver of Saudi Arabia’s economic diversification, with sector employment reaching 966,500 workers in 2024, up from 683,000 in 2020. Women now play a critical role, with 112,000 Saudi women employed in tourism, marking a 67 percent increase. 

Investment in the sector has surged from $314.67 million in 2021 to $3.95 billion by the third quarter of 2024, fueling massive infrastructure expansion, including the Kingdom’s hospitality capacity growing to 475,900 hotel rooms. 


Passengers in Saudi airports rose 46% in 2024 

Updated 27 April 2025
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Passengers in Saudi airports rose 46% in 2024 

RIYADH: Saudi Arabia’s airports handled 128 million passengers in 2024, marking a 45.8 percent increase since the launch of Vision 2030 in 2016, according to the Kingdom’s latest annual report. 

In 2024, airports across the country operated 905,000 flights and managed 1.2 million tonnes of cargo, underscoring Saudi Arabia’s growing stature as a logistics and aviation hub. 

Strengthening the aviation and logistics sector is a key goal outlined in Vision 2030, as the Kingdom aims to establish itself as a global center for business and tourism by the end of this decade.  

“Saudi Arabia is transforming its transport ecosystem, positioning itself as a global logistics and aviation hub by 2030,” the report stated.  

As part of these efforts, the Kingdom launched over 60 new routes last year under its Air Connectivity Program, with 12 new international carriers beginning operations in Saudi cities. Since its launch in 2021, the program has expanded air links with global destinations, enhancing Saudi Arabia’s prominence in global aviation. 

Innovation also took flight in 2024, with Saudi Arabia debuting the region’s first autonomous air taxi pilot project during the Hajj season. Designed to transport pilgrims across holy sites and expedite emergency responses, the air taxi pilot marks a significant step forward for the Kingdom’s smart mobility initiatives. Last year, Saudi authorities also granted the first operational license for drones to clean building facades. 

Transportation and logistics 

Saudi Arabia’s transportation and logistics infrastructure continued its rapid growth throughout 2024. The Kingdom ranked first regionally and 20th globally in handling commercial tonnage, while its Logistics Performance Index ranking improved to 38th globally, up from 52nd in 2016. 

“Saudi Arabia has embraced its strategic location as a global gateway between East and West, transforming logistics and transportation into cornerstones of economic development,” said the report. 

The year saw the launch of the $346.6 million Maersk Logistics Hub at Jeddah Islamic Port, and the addition of 34 maritime services across Jeddah Islamic Port, King Abdulaziz Port in Dammam, and Jubail Commercial Port.  

Further cementing its leadership, the Saudi Ports Authority, also known as Mawani, won the International Finance Award for infrastructure development, highlighting the sector’s global recognition. 

Saudi Arabia also secured membership in the Council of the International Transport Forum in 2024. Commenting on the achievement at that time, Saleh Al-Jasser, minister of Transport and Logistics, noted that it reaffirms the Kingdom’s pivotal role in advancing global transport and logistics services. 

Additionally, the master plan for an integrated logistics zone at King Salman International Airport received approval, reinforcing the Kingdom’s ambitions to become a world-class logistics hub. 

“Under Vision 2030, the logistics sector has undergone sweeping reforms and infrastructure advancements, aiming to make the Kingdom a world-class logistics hub that enables trade, strengthens regional integration, and supports national economic diversification,” added the report.  

Expanding rail transport  

Saudi Arabia’s rail sector also recorded significant progress. In 2024, 13 million passengers traveled via the national rail network, a 22 percent increase compared to the previous year, while freight movement reached 28 million tonnes. 

“These developments are reinforcing the Kingdom’s position as a regional leader in integrated, sustainable transport, supporting both economic growth and improved quality of life,” said the report.  

The Riyadh Metro, one of the world’s largest urban transit projects, was officially launched last year.  

Spanning six lines and 176 km, the metro boasts a daily capacity of 3.6 million passengers. In its first week of operation, the network transported 1.9 million passengers. 

The Riyadh Metro is a major component of Saudi Arabia’s Vision 2030 strategy, aimed at reducing traffic congestion in the capital and enhancing residents’ quality of life.


Egypt’s annual unemployment rate down to 6.6%  

Updated 27 April 2025
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Egypt’s annual unemployment rate down to 6.6%  

RIYADH: Egypt’s unemployment rate declined to 6.6 percent in 2024, down 0.4 percent from the previous year, driven by lower joblessness across both urban and rural areas and by growth in sectors such as agriculture, retail, and construction, official data shows. 

The Central Agency for Public Mobilization and Statistics reported that manufacturing also experienced strong employment growth, further contributing to the overall decrease. 

The number of unemployed individuals fell by 77,000 to 2.11 million, marking a 3.5 percent decrease from 2023, while the total labor force expanded by 2.9 percent to 32.041 million. 

CAPMAS’s annual labor force survey indicated that youth unemployment among those aged 15 to 29 dropped to 14.9 percent, a decline of 1 percentage point from the previous year. Within this age group, male unemployment stood at 9.8 percent, while the rate for females remained significantly higher at 37.1 percent. 

Among teenagers aged 15 to 19, unemployment fell slightly to 12.2 percent from 12.4 percent in 2023. For young people with intermediate, higher, and university-level education, the rate dropped to 18.7 percent, compared to 20.3 percent the previous year. 

“The number of entrepreneurs managing their own businesses reached 1.34 million, representing 4.2 percent of the total workforce,” the report stated.  

Labor force participation remained higher in rural areas, with 17.96 million individuals compared to 14.07 million in urban centers. Gender disparities persisted, with males accounting for 26.08 million of the labor force and females 5.96 million. 

Urban unemployment declined to 9.6 percent from 9.9 percent, while rural unemployment dropped to 4.2 percent from 4.8 percent.  

Among males, the urban joblessness rate stood at 6.3 percent, compared to 2.6 percent in rural areas. For females, the figures were notably higher, at 21.8 percent in urban regions and 12.4 percent in rural zones, where greater engagement in agriculture helped boost employment. 

The share of unemployed individuals who had previously worked also fell, reaching 42.3 percent in 2024, down from 45.3 percent the year before, suggesting improvements in job retention. 

The number of employed individuals rose to 29.92 million, a 3.3 percent increase from 28.95 million in 2023. Of these, 24.98 million were men and 4.93 million were women. 

Employment remained more concentrated in rural areas, with 17.20 million workers compared to 12.72 million in urban settings. 

Agriculture and fishing continued to dominate as the largest employment sectors, accounting for 5.59 million workers, or 18.7 percent of the total workforce. Wholesale and retail trade employed 4.63 million individuals, or 15.5 percent of the workforce, while the construction sector accounted for 4.04 million workers, or 13.5 percent.  

The manufacturing sector saw a 5.4 percent rise in employment, reaching 3.94 million workers, or 13.2 percent of total employment. 

Overall economic activity among those aged 15 and older rose to 44.2 percent in 2024, up from 43.4 percent the previous year. Male participation remained substantially higher at 70.3 percent, while female participation increased modestly to 16.9 percent. 

Urban participation in economic activity grew to 44 percent from 42.7 percent, and rural participation edged up to 44.4 percent from 44 percent.


Trump says US ships should be allowed to travel through the Panama and Suez canals for free

Updated 27 April 2025
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Trump says US ships should be allowed to travel through the Panama and Suez canals for free

  • “American Ships, both Military and Commercial, should be allowed to travel, free of charge, through the Panama and Suez Canals!” he wrote on his Truth Social platform

WASHINGTON: US President Donald Trump on Saturday urged free transit for American commercial and military ships through the Panama and Suez canals, tasking his secretary of state with making progress “immediately.”
Trump has for months been calling for the United States to take control of the Panama Canal but his social media post also shifted focus onto the vital Suez route.
“American Ships, both Military and Commercial, should be allowed to travel, free of charge, through the Panama and Suez Canals!” he wrote on his Truth Social platform.
He claimed both routes would “not exist” without the United States and said he had asked Secretary of State Marco Rubio to “immediately take care of” the situation.

 

Egypt’s Suez Canal, a key waterway linking Europe and Asia, accounted for about 10 percent of global maritime trade before attacks by Yemen’s Houthi rebels on shipping routes in the Red Sea and Gulf of Aden.
The Iran-backed rebels began targeting vessels after the start of the Gaza war, claiming solidarity with Palestinians, forcing ships to take a long and costly detour around the southern tip of Africa.
Egypt said last year its canal revenues had plunged 60 percent, a loss of $7 billion.
The US military has been attacking Houthi positions since January 2024, but those assaults have intensified under Trump, with almost daily strikes in the past month.
Trump has vowed that military action would continue until the Houthis are no longer a threat to shipping.