The future of tourism: 5.3 billion people expected to travel
Session highlighted the shift from traditional sightseeing to immersive cultural and sporting experiences
Updated 13 February 2025
Sara Al-Shurafa
DUBAI: The future of tourism is set to witness unprecedented growth with an estimated 5.3 billion people expected to travel globally in coming years, industry leaders told the World Governments Summit on Wednesday.
During a session called “What role do governments play in shaping cultural tourism policies?” the panel emphasized tourism was no longer solely about destinations but also experiences, something future governments should pursue.
Aymen Moayed, secretary-general of the Supreme Council for Youth and Sports in Bahrain, highlighted the shift from traditional sightseeing to immersive cultural and sporting experiences.
“People are spoiled for choice, so it’s now about the experience,” he said, adding that sports, culture and entertainment were central to this transformation.
Nasser Al Khater, CEO of FIFA World Cup Qatar, echoed the sentiment, emphasizing that sports had become key entertainment drivers competing for global attention.
“It’s all about creating memorable experiences. Countries have one shot to build a lasting reputation,” he said.
Gillian Tans, former chairwoman and CEO of Booking.com, shed light on the sheer scale of the industry.
“In 1950, there were 25 million tourist arrivals. Last year, it was 1.3 billion. With remote work and digital lifestyles, we expect this number to soar,” she said.
Tans emphasized the rising demand for authentic, personalized and sustainable travel experiences, pointing to the growing importance of smart, seamless digital solutions.
The session also underlined the need for industry collaboration.
“We either all make it or fail,” Moayed asserted, highlighting that seamless integration across sectors from hospitality to transport was crucial. He added that governments also played a pivotal role in managing over-tourism and developing sustainable infrastructure.
“In essence, the future of tourism is an interconnected ecosystem where experiences, technology and sustainability converge to meet the evolving desires of global travelers,” he said.
KARACHI: Pakistan’s stock market is expected to experience a “bumpy ride” in the coming days due to what some analysts on Monday described as a challenging new budget the South Asian nation is set to announce next month in line with recommendations from the International Monetary Fund (IMF).
Prime Minister Shehbaz Sharif’s administration has been in talks with the IMF over its new fiscal plan, though the Fund’s team left Pakistan last week without reaching an agreement on key issues, including higher defense spending and the proposed taxation of agricultural income.
As a result, the benchmark KSE-100 Index remained largely flat in recent days and slipped 0.7% to 118,221 points on Monday, following rumors that the government planned to raise the Capital Gains Tax (CGT) on share trading income.
“Given the new measures that have been IMF-driven and that are impacting sentiment at the stock exchange, we are expecting some bumpy rides and [do] not [expect] a clean ride up like we saw in the prior year,” Ahsan Mehanti, chief executive officer at Arif Habib Commodities, told Arab News in an interview.
A man walks past Pakistan Stock Exchange building in Karachi on May 26, 2025. (AN Photo)
Finance Minister Muhammad Aurangzeb is expected to present the new budget on June 10 in Pakistan’s National Assembly, the parliament’s lower house, after the government postponed its earlier budget date of May 2 by nearly a week.
SMALL INVESTORS
The prevailing uncertainty has kept small investors like Abdur Rauf and Jawed Khanani from buying stocks, fearing an unfavorable outcome from the ongoing budget talks between the government and the IMF.
“If the budget turns out negative for the market, our money will get stuck,” said Rauf, a 68-year-old retailer, who said his “investment level has come down to 25% due to the budget factor.”
He maintained the government, by taxing bonus shares, was discouraging listed companies from issuing them to shareholders.
“They [the companies] are now giving dividends, which too have been taxed at 15% for tax filers and 30% for non-filers,” he said, adding, “after deducting the dividend tax and members’ [brokers’] commission, the investor is left with little money.”
Due to heavy taxation, small investors, mostly households and retired salaried individuals, have almost disappeared from the equity market, while large investors are also operating under pressure.
Jawed Khanani, Pakistani retail investor, gestures during an interview with Arab News’ business correspondent at the Pakistan Stock Exchange in Karachi, ahead of Pakistan’s upcoming federal budget. (AN Photo)
“The government should exempt dividends [from taxes], reduce the [brokers’] commission and abolish the tax on bonus shares so that investors could get some relief from companies and fresh investments could come to the market,” Rauf told Arab News.
Khanani also expressed concern over rumors of increased tax on dividend income and hoped the new budget would bring down existing tax rates.
“People hope that the [existing] 15% CGT on non-filers [of tax] should be brought down to 12% or 10%,” he said, seated in a small trading booth at the Pakistan Stock Exchange’s main trading hall.
GROWTH-ORIENTED OR CHALLENGING BUDGET?
Meanwhile, big market players like Arif Habib, chairman of the Arif Habib Group, one of Pakistan’s leading business conglomerates, are optimistic the government will unveil a growth-oriented budget after stabilizing the economy over the past year.
“You see, after the [economic] stabilization, the market expectations are that the new policies would be for the growth in the economy,” he told Arab News in an interview.
Regarding high taxes, he said the government was “very much concerned that the taxation rates in Pakistan are high” and would aim to provide maximum relief to investors and the general public if the IMF agrees to its proposals.
Staffers at Arif Habib Commodities Ltd. work inside the Pakistan Stock Exchange in Karachi on May 26, 2025, during Arab News’ special coverage ahead of Pakistan’s upcoming federal budget. (AN Photo)
Habib, who is believed to have close connections in policymaking circles, informed the IMF’s broader conditions hinge on the size of the budget deficit.
“The Pakistani side wants to have some aggressive approach,” he continued. “They wish that we may, in fact, incur some budget deficit, higher budget deficit, but give relief to the investors and to the general public.”
However, he noted this would depend on the IMF’s approval of a fiscal gap figure the Sharif government may be proposing for the next year.
“Now the number in fact being discussed in the market is about 5.1% or 4.9%,” he said.
Arif Habib, chairman of Arif Habib Group, speaks during an interview with Arab News’ business correspondent in Karachi, ahead of Pakistan’s upcoming federal budget. (AN Photo)
Habib said he sees no “element of harshness” in the new budget but noted that the key question for the government is how much relief it can offer the market.
“Expectations are high,” he added. “And if those are not met, then the markets would not, in fact, be happy about it.”
Analyst Mehanti offered a contrasting view, saying higher taxes are likely for sectors listed on the PSX.
“It will be a very, you know, challenging budget,” he said. “We are expecting, you know, higher levies for oils, fertilizer, stock market and real estate.”
Closing Bell: Saudi main index closes higher, gains 76 points
MSCI Tadawul 30 Index climbed 14.22 points, or 1.01%, to 1,416.62
Parallel market Nomu fell 237.23 points, or 0.88%, to 26,780.54
Updated 26 May 2025
Nour El-Shaeri
RIYADH: Saudi Arabia’s Tadawul All Share Index closed higher on Monday, rising 76.18 points, or 0.69 percent, to finish at 11,075.96.
The total trading value on the main market reached SR4.32 billion ($1.1 billion).
Despite the benchmark’s gain, market breadth leaned negative, with 70 stocks advancing while 171 declined.
The MSCI Tadawul 30 Index climbed 14.22 points, or 1.01 percent, to 1,416.62.
The parallel market, Nomu, however, ended in the red, falling 237.23 points, or 0.88 percent, to 26,780.54, with 36 stocks advancing and 59 declining.
ACWA Power Co. led the session’s gainers on the main index, surging 9.96 percent to close at SR276.00, supported by trading turnover of SR192.89 million.
Astra Industrial Group advanced 4.38 percent to SR157.20, followed by Saudi Industrial Investment Group, which gained 3.64 percent to SR15.38.
Other notable risers included Dar Alarkan Real Estate Development Co., up 3.55 percent to SR20.44, and Jamjoom Pharmaceuticals Factory Co., which closed 3.13 percent higher at SR171.40.
On the downside, Raoom Trading Co. recorded the steepest drop, falling 4.31 percent to SR68.90.
Jabal Omar Development Co. declined 4.14 percent to SR22.70, while The National Co. for Glass Industries ended 4.03 percent lower at SR44.10.
SHL Finance Co. dropped 4.03 percent to SR18.56, and National Metal Manufacturing and Casting Co. slipped 3.90 percent to SR13.32.
On the announcement front, Arabian Pipes Co. signed a contract with Saudi Aramco valued at approximately SR104 million for the manufacturing and supply of steel pipes.
The agreement, signed on May 26, will span nine months and is expected to impact financial results in the fourth quarter of 2025 and the first quarter of 2026.
Despite the news, shares of Arabian Pipes closed 1.03 percent lower at SR8.62.
Meanwhile, United Carton Industries Co. is set to debut on the main market on May 27 following the completion of its SR600 million IPO.
The final offer price was set at SR50 per share, giving the packaging firm an implied market capitalization of SR2 billion at listing. It marks the sixth listing on Tadawul so far this year.
Saudi Arabia increases wage support to 50% for tourism sector jobs
Move aims to bolster Saudization across 43 professions
It is designed to enhance the appeal and sustainability of careers in the sector
Updated 26 May 2025
Reem Walid
RIYADH: Saudi Arabia has raised wage subsidies for local workers in the tourism sector from 30 percent to 50 percent, in a strategic push to expand employment opportunities for Saudi nationals and reduce reliance on foreign labor.
The initiative, part of the Employment Support Program by the Human Resources Development Fund, was unveiled by the Ministry of Tourism in coordination with other government agencies.
It extends financial support to 43 tourism-related professions and is designed to enhance the appeal and sustainability of careers in the sector.
According to the Saudi Press Agency, the program aligns with the Ahlaha initiative — the ministry’s national workforce empowerment plan — which seeks to train and integrate Saudi citizens into the tourism industry.
The updated wage support is expected to encourage more private sector involvement in national workforce development and marks a significant step toward achieving the goals outlined in the Kingdom’s National Tourism Strategy, which aims to create 1.6 million jobs by 2030 as part of the broader Vision 2030 economic diversification agenda.
“The step aims to raise the percentage of national employment in the tourism sector, while ensuring job sustainability and stability for Saudi workers,” the SPA report stated.
The decision underscores ongoing efforts by the Ministry of Tourism and its partners to empower Saudi men and women in tourism-related roles and increase Saudization rates across the industry.
Latest figures from the General Authority for Statistics show that by the fourth quarter of 2024, employment in the tourism sector grew by 4 percent year on year. Saudi nationals comprised 25 percent of the workforce — or 242,073 employees — while expatriates accounted for 75 percent, totaling 724,458 workers. The Riyadh and Makkah regions led the sector in employment numbers.
In a related move, authorities announced in April that 41 key tourism roles, including hotel managers, travel agency directors, and tour guides, will be exclusively reserved for Saudi nationals starting April 2026. The decision is part of continued efforts to localize critical job functions and strengthen the domestic workforce.
Saudi Arabia launches joint venture to produce high-voltage insulators
Consortium will establish a new facility within the Kingdom to produce the insulators
Deal expected to reinforce local energy supply chains, reduce operational costs, and generate employment opportunities
Updated 26 May 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia’s power sector is set to receive a significant boost following the launch of a new joint venture aimed at localizing the production of high-voltage porcelain insulators, a key component in the Kingdom’s push to strengthen domestic manufacturing and reduce reliance on imports.
The agreement, signed under the patronage of the Ministry of Energy, brings together China’s Dalian Insulators Group, Power Union Co. — a subsidiary of Al-Ojaimi Industrial Group — and the Saudi firm Greengrid.
The consortium will establish a new facility within the Kingdom to produce high-voltage and extra-high-voltage suspension porcelain insulators used in electricity transmission and distribution networks.
The deal was formalized by Salem Mohammed Al-Ojaimi, CEO of Al-Ojaimi Industrial Group, and Chen Junrong, chairman and general manager of Dalian Insulators Group.
Under the patronage of the Ministry of Energy, a joint venture agreement has been signed to advance localization in the conventional power sector. pic.twitter.com/oPBJhKrI4m
The initiative aligns closely with Saudi Arabia’s economic diversification plan that emphasizes local industry development, reduced import dependency, and private sector engagement. The venture is expected to reinforce local energy supply chains, reduce operational costs, and generate employment opportunities within the power sector.
In a statement on X, the Ministry of Energy said the agreement seeks to “enhance local manufacturing capabilities in the conventional power sector to achieve the goal of localizing energy sector components by 2030.”
The initiative is part of Nuwatin — Arabic for “We Localize” — a flagship program under the Energy Localization initiative, unveiled at the Energy Localization Forum in Riyadh last October. It aims to guide energy companies toward national localization targets, including expanding industrial capacity, increasing GDP contribution, boosting exports, and improving the trade balance.
Porcelain insulators are vital to the reliability and safety of high-voltage transmission lines, providing both mechanical and electrical stability. Local production is expected to enhance grid resilience, reduce long-term infrastructure costs, and accelerate the development of a self-reliant domestic energy industry.
Established in 1915, Dalian Insulators Group is a leading Chinese manufacturer of high-voltage insulators and has been publicly listed on the Shenzhen Stock Exchange since 2011. The company has supplied more than eight million porcelain insulators to major transmission projects globally, including China’s 1,000kV UHV AC and 800kV DC lines.
As Saudi Arabia continues its transition to a more diversified and resilient energy economy, this joint venture represents a strategic step forward in strengthening industrial cooperation and advancing energy sector localization.
Six Saudi-listed companies join FTSE Russell indices amid index review
Changes will take effect on June 23 and be reflected on the Saudi Exchange
All six companies recently completed initial public offerings on the Tadawul
Updated 26 May 2025
Nour El-Shaeri
RIYADH: Six recently listed Saudi companies are set to join FTSE Russell’s global equity benchmarks, following the index provider’s latest quarterly review.
As part of the FTSE Saudi Arabia Inclusion in the Global Equity Index Series, these changes will take effect on June 23 and be reflected on the Saudi Exchange at the close of trading on Wednesday, June 19. The adjustment is being made early due to the market closure on Friday, June 21.
The newly included companies are Al Majed Oud Co., Arabian Mills for Food Products Co., Fourth Milling Co., Nice One Beauty Digital Marketing Co., Tamkeen Human Resource Co., and United International Holding Co. All six companies recently completed initial public offerings on the Tadawul.
FTSE Russell, a subsidiary of the London Stock Exchange Group, is a globally recognized index provider. Its indices, including the FTSE Global Equity Index Series, are widely followed by institutional and passive investors. Inclusion in these benchmarks is a notable milestone for any listed company, often resulting in increased passive fund inflows, improved liquidity, greater visibility, and enhanced credibility.
According to the index update, Al Majed Oud Co. will be included in the Mid Cap segment of the FTSE Global Equity Index. The other five companies — Arabian Mills, Fourth Milling, Nice One, Tamkeen, and United International Holding — will be added to the Micro Cap segment.
This move supports Saudi Arabia’s Vision 2030, a national strategy aimed at diversifying the economy, liberalizing capital markets, and boosting non-oil revenues. Reforms spearheaded by Tadawul and the Capital Market Authority — including the easing of foreign ownership restrictions and the modernization of trading systems — have helped make the Kingdom’s markets more accessible to global investors.
The momentum in Saudi Arabia’s IPO market continues to grow. In 2024, the main market witnessed 14 IPOs that raised approximately $3.8 billion, while the Nomu parallel market hosted 28 listings. Currently, more than 30 companies are in the IPO pipeline, and Tadawul is expecting a record year, with over 50 applications under review.
Despite the positive signal from index inclusion, all six companies experienced declines in share price as of 14:00 Saudi time on the day of the announcement. Al Majed Oud Co. dropped by 2.09 percent, Arabian Mills for Food Products Co. declined 1.87 percent, and Fourth Milling Co. fell 1.06 percent. Nice One Beauty Digital Marketing Co. slipped 1.96 percent, Tamkeen Human Resource Co. was down 2.89 percent, and United International Holding Co. edged lower by 0.71 percent.
While short-term price fluctuations are common, research suggests that being added to major global indices tends to enhance a company's visibility and appeal to institutional investors over time. The long-term impact, however, often depends on broader market conditions, investor behavior, and post-inclusion trading patterns.
