RIYADH: Saudi banks and the capital market are poised to make substantial contributions alongside the Public Investment Fund in achieving the objectives of Vision 2030, stated a report by S&P Global. 

The latest analysis by the global rating agency underscores that their involvement in the Kingdom’s economic diversification endeavors will enhance leverage in both the Saudi private sector and the broader economy. 

The report, citing public sources, indicated that the Saudi government’s transformation program aimed at enhancing the country’s economic, social, and cultural diversification will necessitate approximately $1 trillion in investments over several years. 

“Part of this sum will come directly from the government and the Public Investment Fund, but S&P Global Ratings also expect banks and capital markets to contribute a significant amount,” stated the US-based agency in the report.  

It added: “This will inevitably increase leverage in the Saudi private sector and the broader economy, albeit from low levels. The pace and extent of the increase in leverage in the corporate sector remain uncertain.”  

As per the report, Saudi Arabia’s banking sector maintains a robust position, characterized by strong asset-quality indicators and overall capitalization.  

The credit rating agency further anticipates that the banks’ sound profitability and conservative dividend payouts will persist, thereby bolstering their capitalization over the next one-to-two years. 

S&P Global highlighted the expansion of the capital market in the Kingdom, noting that from January to May 2024, 13 private companies have announced potential listings on Saudi Arabia’s main market and parallel market. 

The analysis projected that Saudi Arabia will experience a real gross domestic product growth of 2.2 percent in 2024 and 5 percent in 2025, with the non-oil private sector emerging as a key contributor to this expansion. 

Earlier this month, S&P Global, in another report, noted that banks in Saudi Arabia are expected to pursue alternative funding options to manage the rapid expansion in lending. 

The agency said that this pursuit of external funding could potentially impact the credit quality of Saudi Arabia’s banking sector. 

“The ongoing financing needs of the Vision 2030 economic initiative and relatively sluggish deposits growth, is likely to incentivize banks to seek alternative sources of funding, including external funding,” said S&P Global. 

MANILA: The Philippines is working to attract more visitors from the Middle East and position itself as a preferred destination for international travelers, its tourism stakeholders said ahead of the Arabian Travel Market in Dubai. 

More than 2,300 exhibitors and delegates from over 165 countries are joining the annual Arabian Travel Market, which this year will take place from May 6 to 9 at the Dubai World Trade Center. 

In the Philippines, known for its white sandy beaches, diving spots and diverse culture, tourism is a key sector, contributing nearly 13 percent, or about $44 billion, to its gross domestic product in 2019. 

The Department of Tourism will be leading the Philippine delegation in Dubai, as officials set their eyes on promoting the country’s best tourism to the international market. 

“We look forward to these opportunities to share the Filipino story to the rest of the world … and to reinforce the Philippines’ position as a preferred destination and top-of-mind choice for travelers,” Secretary of Tourism Christina Garcia Frasco said in a statement. 

With its participation at the Arabian Travel Market, the Philippines hopes to sustain the momentum from increased tourist arrivals from the Middle East, she added.

The Philippine tourism industry will not only promote their strengths, such as their tropical and natural attractions, but also diverse offerings in gastronomy and culture, as well as the Filipino tourism workers, “who serve as our best asset for their distinct hospitality and warmth,” Frasco said. 

The Philippines has welcomed more 2 million international travelers since the beginning of the year, according to data from the tourism department. This includes a 10 percent increase in visitors arriving from Gulf countries, especially Saudi Arabia and the UAE, which has been among the Philippine government’s key emerging-market targets. 

“There’s been a remarkable surge in outbound tourism from the Middle East, particularly from Gulf Cooperation Council countries … We see a growing appetite for international travel among GCC citizens and we see this trend continuing to rise in the coming years,” said Maria Margarita Montemayor Nograles, chief operating officer of the Tourism Promotions Board.

“This is one of the major reasons why we are doubling down on our efforts to maintain and enhance our presence in the Middle East. With our continued participation at the ATM, we aim to position the Philippines as a top-of-mind destination in Asia.” 

Tourists from the Middle East are growing more important for some Filipino tourism operators, and represent a significant segment of their clientele, said Manih Karay, president of CTPH Tour. 

“To appeal to tourists from Arab countries and promote the Philippines, we highlight the country’s natural beauty, rich cultural heritage, and warm hospitality … Their interest in exploring new destinations and cultural experiences aligns well with our commitment to providing inclusive and diverse travel services,” Karay told Arab News. 

Arab tourists also contribute to the growth of the Philippines’ tourism industry, Karay said, adding that they foster cultural exchange and economic development. 

“Their visits not only enrich our travel experiences but also promote mutual understanding and appreciation among different cultures,” she said.