FIFA World Cup 2034 a ‘game changer’ for Saudi tourism, experts say

FIFA World Cup 2034 a ‘game changer’ for Saudi tourism, experts say
The World Cup will showcase Saudi Arabia to the world. Shutterstock
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Updated 25 April 2025
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FIFA World Cup 2034 a ‘game changer’ for Saudi tourism, experts say

FIFA World Cup 2034 a ‘game changer’ for Saudi tourism, experts say

RIYADH: Hosting the FIFA World Cup in 2034 is expected to transform Saudi Arabia's tourism sector and accelerate the nation’s economic diversification, experts said. 

The Kingdom was awarded the competition by the sport’s international governing body in December, and is set to hold the event in 15 stadiums across five cities. 

Saudi Arabia’s sports tourism sector has been witnessing rapid growth since the launch of Vision 2030 nine years ago, with the Kingdom drawing 2.5 million visitors through 80 international events in the last four years, Tourism Minister Ahmed Al-Khateeb said in February. 

Bolstering the tourism sector is one of the crucial goals outlined in Saudi Arabia’s Vision 2030 initiative, as the Kingdom is steadily diversifying its economy by reducing its decade-long reliance on oil revenues. 

Saudi Arabia’s ambitious National Tourism Strategy aims to attract 150 million visitors by the end of this decade. 




Cristiano Ronaldo is one of a host of footballing superstars who now play in the Saudi league. Getty

Speaking to Arab News, Federico Pienovi, chief business officer and CEO of New Markets at Globant, said that the mega football event presents immense opportunities for the Kingdom to develop multiple sectors.

“Hosting the FIFA World Cup is a game-changer for Saudi Arabia’s tourism sector. For Saudi Arabia, FIFA World Cup 2034 represents a key milestone in its Vision 2030 strategy, accelerating economic diversification beyond oil by boosting tourism, hospitality, infrastructure, and smart city development,” said Pienovi. 

He added that the tournament accelerates the Kingdom’s tourist number ambitions by putting Saudi Arabia on the map for future leisure and business tourism.

Guillaume Thibault, partner and head of sports and entertainment at Oliver Wyman for India, the Middle East and Africa, echoed similar views and said the football gala will be a major catalyst for Saudi Arabia’s economic diversification, attracting over 10 million international visitors.

Thibault added that the event is also expected to accelerate Saudi Arabia’s national strategies in tourism, transport, and quality of life, creating opportunities in construction, hospitality, fan engagement, and talent development — all while mobilizing private sector investment. 




Argentina won the World Cup the only other time the competition was held in the region — Qatar in 2022. Getty

The Oliver Wyman official further said that hosting events such as the FIFA World Cup could boost the gross domestic product of Saudi Arabia, as well as creating immense job opportunities. 

“On a macroeconomic level, past World Cups have contributed up to 10 percent GDP growth, as seen in South Africa 2010, while creating tens of thousands of jobs. Saudi Arabia can maximize its investment impact by aligning with local businesses and PIF-backed companies, ensuring long-term economic gains and positioning itself as a global sports and business hub,” said Thibault. 

Max Klante, managing director and partner of Boston Consulting Group, said that major sporting events such as the 2034 World Cup, Formula 1, and the upcoming Asian games, will serve as an entry point for global audiences, showcasing Saudi Arabia as a travel destination.

“They provide a platform to highlight the Kingdom’s culture, heritage, and landscapes to the world while showcasing new and exciting entertainment and cultural experiences such as eSports and adventure extreme sports. The integration of sports, media, entertainment, and culture boosts international visibility and fosters long-term tourism growth,” said Klante. 

Saudi Arabia has already hosted several major sporting events, including the WWE Super Showdown, the Saudi Pro-Golf Championship, Battle of the Champions, and Formula E. 

The Kingdom has also witnessed E-Prix, the International Handball Federation Super Globe and the Saudi International Meeting for Disabilities Sport, as well as organizing the auction of players for the 2025 Indian Premier League, a major cricketing event which features 10 professional clubs. 

Long-term impacts

According to Pienovi, hosting major sporting events will not only boost tourism in the Kingdom but will also support the country’s infrastructure growth for the long term. 

“Beyond the tournament, the country will benefit from long-term infrastructure improvements, smart venue advancements, and the rise of new entertainment hubs that will attract visitors for years to come,” said Pienovi. 

Thibault said that hosting such events will help Saudi Arabia establish itself as a premier sports destination globally, strengthen global ties, attract international business, and enhance the Kingdom’s geopolitical influence. 

 “When executed strategically, major sporting events leave a lasting impact beyond the tournament itself. Mega-events drive billions in tourism, investment, and job creation. The 2012 London Olympics, for example, contributed $17 billion to the UK economy, proving their long-term financial impact,” said Thibault. 

He added: “In terms of urban transformation, such events accelerate infrastructure development and reshape cities. The Sochi 2014 Winter Olympics revitalized an entire region, turning legacy resorts into prime real estate. Saudi Arabia’s smart city and transport investments will ensure similar long-term benefits.” 

Elevating diplomatic and bilateral relationship

The Oliver Wyman official further said that hosting such global events could help Saudi Arabia strengthen its bilateral relationship with several countries. 

Saudi Arabia is already a diplomatic leader, ranking 18th in the Global Soft Power Index 2024 and has already hosted key forums including the G20 Summit and the World Economic Forum. 

“Mega-events further enhance global ties by bringing nations together through sport, fostering cultural exchange, trade, and investment partnerships. By attracting global leaders, Saudi Arabia can deepen international collaborations, expand economic alliances, and position itself as a key player in global sports diplomacy,” said Thibault. 

Klante also expressed identical views and said that successfully hosting global tournaments will enhance Saudi Arabia’s standing as a reliable and capable partner on the world stage.

“The ability to deliver top-tier sporting events creates unique opportunities for diplomatic engagement and strengthens economic and cultural ties with other nations. Stronger ties promote global understanding, security and prosperity,” added the BCG official. 

Klante added that hosting major international events will establish Saudi Arabia’s credibility in sports management and global event organization, while also opening opportunities for developing long-term partnerships with international teams, leagues, and sports federations.

He further said that such events in Saudi Arabia could also boost the morale in the Kingdom, and the country will see more sporting heroes in the coming years. 

“The ability to host major events inspires our youth to follow in the footsteps of their sports heroes. This strengthens engagement in sports, be this football, eSports, athletics or formula car racing. By inspiring the youth of today we lay the foundation for the top athletes of tomorrow,” said Klante. 




A drone show in Riyadh after Saudi Arabia was announced as the host nation for the FIFA World Cup 2034 on December 11. Getty

Potential challenges

Experts who talked with Arab News also talked about the potential challenges Saudi Arabia could face as the Kingdom gears up to face global sporting events. 

According to Pienovi, the challenge for the Kingdom lies in integrating cutting-edge technology for seamless fan interactions — whether it’s AI-driven crowd management, frictionless ticketing, or hyper-personalized digital experiences. 

“Fans now expect an immersive, waitless, and contactless experience, powered by AI, AR/VR, and digital personalization. Implementing biometric entry, tech-driven loyalty programs and real-time engagement solutions will be key to delivering a next-level experience,” said Pienovi. 

He added: “The challenge is not just in adopting these technologies but in making them intuitive, frictionless, and scalable across multiple venues.”

The Globant official believes that ensuring seamless connectivity across all platforms — from real-time streaming to AR-powered second-screen experiences — will be crucial for reaching international audiences and keeping fans engaged beyond the stadium. 

Klante underscored the vitality of strengthening the transport systems in the Kingdom, as well as, bolstering the logistical prowess, and said that “world-class events require complex logistical planning, complex integration and seamless execution.”

He added: “Ensuring global accessibility, efficient transport, and a smooth visitor experience will be critical to success. A focus must always be placed on how the visitor journey interacts with the various city and intercity transport solutions — creating a unified experience like no other.” 

Thibault also expressed similar views and said that logistics, crowd management and infrastructure development are crucial for Saudi Arabia to seamlessly host mega events like FIFA World Cup. 

The Oliver Wyman official added that managing transport, security, and emergency response requires advanced planning, with mega-projects including NEOM and Qiddiya integrating AI-driven security and real-time crowd monitoring. 

“The challenge lies in balancing speed with sustainability. Legacy planning is key to avoiding underutilized venues, ensuring stadiums transition into training hubs, community centers, or professional league facilities,” added Thibault.


Closing Bell: Tadawul closes higher on Monday as TASI edges up; Nomu surges over 300 points 

Closing Bell: Tadawul closes higher on Monday as TASI edges up; Nomu surges over 300 points 
Updated 02 June 2025
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Closing Bell: Tadawul closes higher on Monday as TASI edges up; Nomu surges over 300 points 

Closing Bell: Tadawul closes higher on Monday as TASI edges up; Nomu surges over 300 points 
  • MSCI Tadawul 30 Index rose 2.47 points to settle at 1,384.58
  • Parallel market Nomu climbed 314.77 points to close at 26,984

RIYADH: Saudi Arabia’s Tadawul All Share Index closed slightly higher on Monday, gaining 24.82 points, or 0.23 percent, to reach 10,850.09.

Total trading turnover on the main market stood at SR4 billion ($1 billion). 

Market breadth remained mixed, with 116 gainers against 120 decliners. The MSCI Tadawul 30 Index rose 2.47 points, or 0.18 percent, to settle at 1,384.58. 

The parallel market Nomu recorded a more pronounced gain, climbing 314.77 points, or 1.18 percent, to 26,984, with 31 stocks advancing and 49 retreating. 

Savola Group led the main market gainers, advancing 4.48 percent to close at SR28. 

United Carton Industries Co., which recently debuted on Tadawul, added 4.40 percent to close at SR42.70 with over SR217 million in traded value. 

Other notable gainers included Aldawaa Medical Services Co., which rose 2.92 percent to SR77.60, Middle East Pharmaceutical Industries Co., up 2.82 percent to SR124, and Jabal Omar Development Co., which gained 2.76 percent to close at SR21.56. 

On the downside, Riyad Bank posted the sharpest drop of the day, falling 3.51 percent to close at SR27.50. 

Zamil Industrial Investment Co. dropped 2.76 percent to SR38.75, while Naseej International Trading Co. declined 2.86 percent to SR78.20. 

Emaar The Economic City slipped 2.71 percent to SR12.92, and Abdullah Saad Mohammed Abo Moati for Bookstores Co. fell 2.45 percent to close at SR35.80. 

On the announcement front, Al-Modawat Specialized Medical Co. disclosed that its board had passed a resolution to initiate the company’s transfer from the Parallel Market to the Main Market. 

The move is subject to regulatory approvals and fulfillment of the market’s listing conditions. Shares of Al-Modawat ended the day down 1.84 percent at SR17.06. 

Saudi Arabian Mining Co. announced that it has received approval from the Capital Market Authority to proceed with a capital increase in connection with its previously disclosed acquisition of full ownership in Maaden Bauxite and Alumina Co. and Maaden Aluminium Co. 

The move is part of a share purchase and subscription agreement signed with AWA Saudi and Alcoa Saudi in 2024. 

The capital increase will raise Ma’aden’s share capital from SR38.03 billion to SR38.89 billion through the issuance of 861.9 million new shares. 

The newly issued shares will be used to acquire 100 percent of the shares held by AWA Saudi in MBAC and Alcoa Saudi in MAC, corresponding to 25.1 percent of the issued capital of each entity. 

In total, Ma’aden will issue 89.98 million new shares to AWA Saudi and 165 million shares to Alcoa Saudi at a nominal value of SR10 per share.

The transaction is expected to be executed through a combination of share issuance and cash payment. 

The company stated that further updates, including shareholder meeting arrangements for capital increase approval, will be announced in due course. 

Shares of Ma’aden closed 0.92 percent higher on Monday at SR49.50. 


Oman’s electrical machinery exports surge 141% in Q1 as industrial policy drives growth 

Oman’s electrical machinery exports surge 141% in Q1 as industrial policy drives growth 
Updated 02 June 2025
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Oman’s electrical machinery exports surge 141% in Q1 as industrial policy drives growth 

Oman’s electrical machinery exports surge 141% in Q1 as industrial policy drives growth 
  • Non-oil exports rose by 8.6% year on year in the first quarter, reaching 1.618 billion rials
  • Growth in the electrical equipment sector is being supported by major infrastructure developments

RIYADH: Exports of electrical machinery and equipment from Oman surged by 141 percent in the first quarter of 2025, reaching 128 million Omani rials ($332.8 million) compared to 53 million rials in the same period of 2024, according to official data. 

The strong performance of the sector highlights its growing importance to the country’s industrial base and export competitiveness, the National Center for Statistics and Information revealed. 

Officials have linked the sharp rise to rising demand across domestic and regional markets, driven by ongoing infrastructure expansion and increased investment in renewable energy projects. 

In figures released in May, the Oman News Agency revealed that the country’s non-oil exports rose by 8.6 percent year on year in the first quarter of 2025, reaching 1.618 billion rials.

Commenting on the latest release, Khalid Al-Qassabi, director general of Industry at the Ministry of Commerce, Industry and Investment Promotion, stated that the positive results reflect the resilience and diversity of Oman’s industrial base, according to a report by the ONA.

“He noted that the ministry continues to implement integrated industrial policies aimed at enhancing the position of national products in regional and international markets and driving industrial exports to higher levels,” the news agency added. 

Al-Qassabi said that growth in the electrical equipment sector is being supported by major infrastructure developments, such as the expansion of electricity networks, utilities, and new cities. 

He also pointed to rising interest in renewable energy technologies, which is boosting demand for domestically manufactured components. 

The sector is considered a strategic priority under Oman’s Industrial Strategy 2040, with the potential to enhance supply chains, increase national value-added, foster entrepreneurship, and support the localization of advanced technologies. 

Jasim Al-Jadeedi, technical director in the Office of the Undersecretary for Commerce and Industry, reiterated the ministry’s focus on expanding the global presence of Omani industrial goods. 

He said this is a central objective of the country’s industrial strategy and a key component of its economic diversification agenda under Oman Vision 2040. 

Al-Jadheedi explained that several initiatives are underway to improve product quality and competitiveness, including support for manufacturers in meeting international technical standards. 

He added that the government is working with relevant stakeholders to unlock new export markets through trade agreements, international exhibitions, and trade missions, while offering targeted incentives to local exporters. 

The technical director also emphasized the importance of adopting advanced technologies, including artificial intelligence and Industry 4.0 tools, to enhance efficiency, reduce costs, and achieve sustainable industrial growth. 

This sectoral expansion comes amid broader momentum in the industrial economy. 

Total credit extended by Oman’s banking sector increased by 9 percent year-on-year to 33.6 billion rials by the end of April, indicating continued strength in financing for the private sector and industrial enterprises. 

Non-oil industrial exports overall rose by 8.6 percent during the first quarter to 1.618 billion rials, up from 1.49 billion rials a year earlier. 

Industrial goods accounted for 28 percent of total exports during the period, led by electrical machinery and mineral products, the latter of which recorded a 14.1 percent rise in exports to 462 million rials. 


Rising demand sends Riyadh mall rents up by 4% in a year

Rising demand sends Riyadh mall rents up by 4% in a year
Updated 02 June 2025
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Rising demand sends Riyadh mall rents up by 4% in a year

Rising demand sends Riyadh mall rents up by 4% in a year
  • Riyadh accounts for the largest share of the 4.9 million sq. meters of retail developments
  • Other areas include Jeddah, Dammam Metropolitan Area, Khobar, and Dhahraneas include Jeddah, Dammam Metropolitan Area, Khobar, and Dhahran

RIYADH: Saudi Arabia’s capital is spearheading the Kingdom’s retail transformation, with mall rents up by 4 percent in a year and 2.2 million sq. meters of shop space to be developed by 2030.

According to Knight Frank’s Spring 2025 Saudi Arabia Retail Market Overview, Riyadh accounts for the largest share of the 4.9 million sq. meters of retail developments planned across the Kingdom’s five largest cities by 2030.

These areas include Jeddah, Dammam Metropolitan Area, Khobar, and Dhahran.

The need for more retail space is evidenced by the average mall rent in the Saudi capital rising to SR2,848 ($765) per sq. meter by the end of March, according to the report, with occupancy rates up five percent to reach 92 percent in the first quarter of 2025.

The findings come as Saudi Arabia steps up efforts to become a global hub for tourism and business by the end of the decade, with the Real Estate General Authority projecting the property market to reach $101.62 billion by 2029, driven by an anticipated compound annual growth rate of 8 percent from 2024.

According to Knight Frank, Riyadh’s retail transformation is being accelerated by a combination of population growth, both domestic and expatriate, along with rising disposable incomes.

“Developers are prioritizing experiential formats, with over half of upcoming projects incorporating entertainment zones, dining experiences, and cinemas. These trends align with Vision 2030’s objective to create vibrant, leisure-centric urban spaces,” the report said.

In Jeddah, the retail market expanded with approximately 225,000 sq. meters of new space delivered in 2024, including Phase 1 of Souq 7 and Al Bahr Mall. The city’s total retail stock reached 2.9 million sq. meters. Rents in regional and super-regional malls rose two percent to SR2,513 per sq. meter, while occupancy declined slightly to 86 percent.

Jeddah is also set to see the launch of the Jawharat Mall by Cenomi Centers, a dedicated luxury retail district spanning 87,000 sq. meters, expected to be completed by the end of 2025. Another significant development, the Cove by Ezdihar, will deliver 70,000 sq. meters along Jeddah’s waterfront.

In the Dammam Metropolitan Area, retail performance remained stable. Rents in regional and super-regional malls rose slightly to SR2,285 per sq. meter, with community centers seeing a 1.25 percent increase. Occupancy rates held steady at around 90 percent.

New supply additions of 31,000 sq. meters in 2024 brought total retail stock to 1.4 million sq. meters.

Regional malls typically range from 30,000 sq. meters to 90,000 sq. meters and offer a broad mix of retail stores and services, often anchored by one or two department stores.

Super-regional malls exceed 90,000 sq. meters and include a wider variety of retail, dining, and entertainment options, serving a larger trade area and drawing visitors from across an entire metropolitan region.

Consumer spending in Saudi Arabia grew by 7 percent year-on-year to reach SR1.41 trillion in 2024, fueled by a surge in point-of-sale and e-commerce transactions, according to Knight Frank.

Of this, point-of-sale transactions reached SR668 billion, marking a 9 percent annual increase, while e-commerce grew by 26 percent to SR197.4 billion, reflecting the Kingdom’s accelerating shift toward digital consumption

Flagship destinations such as Riyadh Park and Al Nakheel Mall have continued to benefit from strong tenant demand and rising foot traffic, driven by integrated entertainment offerings, including cinemas and family attractions.

Riyadh’s total retail supply stood at 4 million sq. meters during the first quarter, bolstered by the launch of key projects like Solitaire Riyadh, a 65,000 sq. meter development blending upscale retail with leisure experiences.

An additional 540,000 sq. meters of retail space is expected to be added in 2025, bringing the total to 5.2 million sq. meters in 2026.

The report highlights that more than half of the upcoming projects are integrating entertainment zones, dining venues, and cinemas, aligning with Vision 2030’s goals of creating vibrant, leisure-centric urban environments.

Luxury retail is also gaining momentum, with international brands expanding their footprint to meet the growing demand for premium shopping.

Omnichannel strategies are becoming critical as digital payments and e-commerce continue to reshape consumer behavior.
The food and beverage sector emerged as a key contributor to retail activity, with restaurants and cafes accounting for 29.7 percent of all point-of-sale transactions in 2024.
This translates to SR198.6 billion, according to data from the Saudi Central Bank.

Projects such as Qiddiya, The Avenues Riyadh, and Jawharat Riyadh are expected to further redefine the urban retail landscape, offering lifestyle-oriented spaces that support the Kingdom’s broader economic diversification and quality-of-life goals.


Pakistan inflation inches up 3.5% year-on-year in May 2025

Pakistan inflation inches up 3.5% year-on-year in May 2025
Updated 02 June 2025
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Pakistan inflation inches up 3.5% year-on-year in May 2025

Pakistan inflation inches up 3.5% year-on-year in May 2025
  • Inflation has cooled significantly, easing from 37.97% in May 2023
  • Federal budget for fiscal year 2025-26 will be released on June 10

KARACHI: Pakistan’s annual inflation rate rose to 3.5% in May, higher than the April 2025 reading of 0.3%, data from the statistics bureau showed on Monday.

On a month-on-month basis, inflation decreased by 0.2% in May 2025, as compared to a decrease of 0.8% in the previous month and a decrease of 3.2% in May 2024. The CPI inflation average during 11MFY25 stood at 4.61%, compared to 24.52% in 11MFY24.

Inflation has cooled significantly, easing from 37.97% in May 2023.

The CPI reading is higher than the government’s expectations. In its monthly economic report released last week, the finance ministry expected inflation to ease to between 1.5% and 2% year-on-year in May, before picking up to 3%-4% in June.

“CPI inflation General, increased to 3.5% on year-on-year basis in May 2025 as compared to 0.3% of the previous month and 11.8% in May 2024,” the Pakistan Bureau of Statistics (PBS) said in its monthly report.

“On month-on-month basis, it decreased by 0.2% in May 2025 as compared to a decrease of 0.8% in the previous month and a decrease of 3.2% in May 2024.”

Food items, whose prices recorded an increase, included Eggs (24.38%), Chicken (8.63%), Condiments and Spices (5.50%), Sugar (4.07%), Gur (3.66%), Milk Powder (2.80%), Potatoes (1.64%), Butter (1.31%), Fresh Fruits (1.21%), Pulse Gram (1.09%), Beverages (0.87%), Meat (0.82%), Sweetmeat (0.79%) and Pulse Moong (0.53%).

Non-food items that witnessed an increase in rates were Cotton Cloth (3.20%), Motor Vehicles (1.86%), Postal Services (1.74%), Major Tools & Equipment (1.23%), Readymade Garments (1.02%), Tailoring (0.95%) and Cleaning & Laundry (0.65%).

The latest CPI reading was also higher than projections made by several brokerage houses.

JS Global projected Pakistan’s headline inflation to inch up to 2.7% in May.

“Pakistan’s CPI is expected to clock in at 2.7% for May. The base effect is now fading, signaling a return to normalized price trends. This is likely to take 11MFY25 average inflation to 4.7%, down from 11MFY24 average of 24.9%,” JS Global had said in a report.

Last month, the State Bank of Pakistan cut the key interest rate by 100 basis points (bps) to 11%, the lowest policy rate since March 2022 (9.75%). The central bank has cut the rate by 1,100 bps since June from an all-time high of 22%.


Co-processing can help Middle East become sustainable aviation fuel hub: IATA official

Co-processing can help Middle East become sustainable aviation fuel hub: IATA official
Updated 02 June 2025
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Co-processing can help Middle East become sustainable aviation fuel hub: IATA official

Co-processing can help Middle East become sustainable aviation fuel hub: IATA official
  • Senior vice president of sustainability and chief economist at IATA said the world should act now to increase the production of SAF
  • Marie Owens Thomsen said governments in the Middle East region should create investment policies to attract more co-processing

NEW DELHI: The Middle East has all the potential to emerge as a global hub for sustainable aviation fuel production thanks to co-processing opportunities available in the region, according to a top official. 

Speaking to Arab News on the sidelines of the International Air Transport Association’s Annual General Meeting in New Delhi, Marie Owens Thomsen, senior vice president of sustainability and chief economist at IATA, said that the world should act now to increase the production of SAF to meet decarbonization targets. 

This comes as the region accelerates efforts to produce the fuel, with Saudi Arabia’s Nordic Electrofuel-backed project announcing in January a Jubail plant targeting 350 million liters annually by 2029, using renewable hydrogen and solar PV. 

The UAE, meanwhile, aims for 700 million liters by 2031, supported by Emirates, Etihad, and Air Arabia. Emirates has secured over 3 million gallons from Neste for 2024–25 flights, while Shell began supplying SAF at Dubai Airport in 2023. 

In her interview, Thomsen said: “The Middle East has huge opportunities for co-processing. What we are seeing across the world is insufficient production of SAF.” 

Co-processing is the use of renewable feedstock in conventional fossil fuel units. This method allows existing traditional fuel refineries to seamlessly integrate renewable feedstocks into their production processes without the need for extensive infrastructural changes. 

She added: “If this co-processing happens, then boom — we have a SAF plant. Clearly, the Middle East is uniquely positioned for this.” 

Thomsen further said that governments in the Middle East region should create investment policies in such a way that oil producers will be more attracted to co-processing. 

The use of SAF is widely considered a crucial development for the global aviation industry, as most countries have stipulated targets to achieve net zero as part of their energy transition efforts. 

According to Thomsen, the world, on its current trajectory, is expected to produce 400 million tonnes of SAF by 2050, up from an estimated 2 million tonnes in 2025 and 1 million tonnes in 2024. 

Amid this projected growth, Thomsen revealed that the world would require at least 500 million tonnes of SAF by 2050 to meet energy transition and sustainability goals. 

“On the current trajectory, we will be a 100 million tonnes short in 2050. That is a dramatic shortfall. If we do not address it today, this shortfall may be even greater by the time we reach 2050,” said Thomsen. 

She said this presents a challenge and dilemma because as long as jet engines power our flights, liquid fuels remain essential. 

“Again, I repeat, the Middle East is uniquely positioned to help the world take a big step forward if we could immediately co-process. There are also lower-carbon fuels which occur naturally in the Middle East, which the world should explore,” she added. 

Thomsen revealed that the aviation industry’s net profit margin is lower compared to other sectors, and expenses could rise as SAF gains. 

However, she made it clear that effective ways should be adopted to increase the production of the fuel, so that the energy transition targets could be achieved by 2050. 

On the opening day of the AGM, Willie Walsh, director general of IATA, also shared identical views, and said that sufficient government measures, including the implementation of effective policies, are needed to achieve decarbonization targets. 

He added that ensuring the success of the Carbon Offsetting and Reduction Scheme for International Aviation is crucial to offsetting carbon emissions in the aviation sector. 

Under CORSIA, an initiative launched by the International Civil Aviation Organization, airplane operators must purchase and cancel “emissions units” to offset the increase in CO2 emissions.