Oil Updates – crude drops as sticky US inflation heightens demand concerns
Updated 19 February 2024
Reuters
SINGAPORE: Oil prices fell as investor attention returned to the demand outlook after reports of higher producer prices in the US stoked worries that sticky inflation and higher interest rates would limit fuel consumption growth, according to Reuters.
Brent crude futures were down 55 cents, or 0.7 percent, at $82.92 a barrel at 10:20 a.m. Saudi time. The March contract for US West Texas Intermediate crude, which expires on Tuesday, was 41 cents, or 0.5 percent, lower at $78.78.
The WTI April contract was down 0.7 percent, or 54 cents, at $77.92.
Both Brent and WTI contracts had settled higher on Friday, as geopolitical tensions in the Middle East offset slowing demand forecasts from the International Energy Agency.
“WTI and Brent eased on Monday morning as investors re-adjust to demand-side fears after a significant jump in US producer price index numbers,” said Phillip Nova analyst Priyanka Sachdeva in a research note.
US producer prices increased more than expected in January amid strong gains in the costs of services, which could amplify inflation worries.
Markets are also yet to see the direction of demand from China after it returns from a week-long Lunar New Year holiday, while Presidents’ Day in the US is set to keep trade relatively muted.
Moreover, Federal Reserve policymakers on Friday signalled “patience” toward interest rate cuts. Higher rates keep up the cost of buying oil, providing for a bearish market trend.
Over the weekend, tension in the Middle East continued as Israeli raids put the Gaza Strip’s second-largest hospital out of service, and Yemen’s Iran-aligned Houthi fighters claimed responsibility for an attack on an India-bound oil tanker.
The Organization of the Petroleum Exporting Countries would be able to cover “most levels of disruption,” ANZ Research analysts said in a client note, as its spare capacity is at an eight-year high of 6.4 million barrels of oil per day.
“The market was also reminded of the uncertain outlook for demand, with the International Energy Agency warning that growth is expected to lose its steam in 2024,” ANZ said. The agency forecasts a market surplus during the year.
The UN Security Council is likely to vote on Tuesday on an Algerian push for the 15-member body to demand an immediate humanitarian ceasefire in the Israel-Hamas conflict, diplomats said, with the US signalling it would veto.
In Europe, Russia on Sunday said it had full control of the Ukrainian town of Avdiivka in its biggest gain in nine months, days ahead of the two-year anniversary of its invasion.
It was not immediately clear whether the death of Alexei Navalny, President Vladimir Putin’s most high-profile opponent, in a Russian Arctic penal colony on Friday would trigger new sanctions on Moscow, the world’s second-biggest oil exporter.
Egypt’s monthly inflation eases to 1.5% in October
Updated 1 min 33 sec ago
NOUR EL-SHAERI
RIYADH: Lower food prices helped ease Egypt’s inflation rate in October to 1.5 percent, down from 2.3 percent in September, according to official data.
The Central Agency for Public Mobilization and Statistics said that the general consumer price index reached 240 points last month, reflecting the modest decline in inflationary pressures.
The easing was primarily driven by a 2.1 percent decrease in fruit prices and a 0.4 percent decline in vegetable and hotel services prices, which helped mitigate cost increases in other sectors.
While some categories saw price reductions, others continued to exert upward pressure. Meat and poultry prices surged 3.3 percent, while fish and seafood prices climbed 2.1 percent.
Dairy products, including cheese and eggs, rose by 2 percent, while sugar, tea, and cocoa recorded a 1.2 percent increase. Bottled water and natural juices increased by 1.1 percent, and cereal and bread prices rose by 0.8 percent.
Energy costs remained a key factor, with a 7.2 percent increase in electricity, gas, and fuel prices. Housing maintenance expenses rose by 1.5 percent, while rent increased by 0.7 percent.
Medical services also contributed to the inflationary trend, with outpatient services up 2.4 percent and hospital services increasing by 1.7 percent.
On an annual basis, Egypt’s inflation rate dropped to 26.3 percent in October, a sharp decline from the 38.5 percent reported in the same month of the previous year, signaling a cooling trend in price pressures.
Biban 24 concludes with $9bn in deals, boosting Saudi Arabia’s SME sector
Updated 41 min 55 sec ago
MIGUEL HADCHITY
RIYADH: Agreements exceeding SR35.4 billion ($9.42 billion) were signed at Biban 24 in Riyadh, an event organized by the General Authority for Small and Medium Enterprises, also known as Monsha’at
The five-day event, themed “A Global Destination for Opportunities,” attracted over 182,000 visitors, reflecting the Kingdom’s rapid development in the SME sector and entrepreneurship, the Saudi Press Agency reported.
According to Monsha’at Gov. Sami bin Ibrahim Al-Husseini, Biban 24 marked a landmark achievement for Saudi Arabia’s entrepreneurial framework. He highlighted the forum’s record-setting agreements and innovative initiatives, strengthening entrepreneurship within the country.
Al-Husseini emphasized that these achievements align with Vision 2030’s objectives to boost the SME sector’s contribution to the national gross domestic product.
“The forum’s success is a testament to the commitment of public and private sector enablers, partners, and sponsors to support SMEs and empower entrepreneurs to launch and grow their ventures,” he said.
Biban 24 featured partnerships with prominent international organizations, including the Estonian Business and Innovation Agency, Bahrain’s Tamkeen Labor Fund, and the Korea Franchise Association, as well as Malaysian SMEs, Korea’s Ministry of SMEs and Startups, Malaysian Franchise Development, Miltton CIO World, Alibaba Cloud, Zoom, and Oracle.
Several financing agreements were signed with local banks, amounting to over SR15 billion to support Saudi entrepreneurs and SMEs.
The event drew a global crowd of business owners and featured over 300 panels and workshops with over 250 international and local speakers.
The e-commerce section included 59 service providers and enablers, showcasing emerging technologies, modern retail, and e-commerce solutions. Specialists provided guidance on digital payments, online marketplaces, and supply chains throughout the forum.
Biban Talks, a dedicated stage, hosted over 100 speakers covering diverse topics such as media, tourism, and the environment, as well as education, sports, finance, investment, and the non-profit and financial sectors.
This interactive platform enabled entrepreneurs to share success stories and discuss the challenges they encountered.
In the Investor Arena, over 115 business owners showcased their projects to potential investors, resulting in preliminary agreements for deals with 65 companies, totaling over SR15 million.
The event also welcomed more than 1,350 startups from 72 countries worldwide.
Biban 24 celebrated the graduation of 12 startups from its Real Estate Innovation Accelerator, while also launching a virtual lab to support business owners.
The event brought together over 70 local and international incubators and accelerators to showcase projects and share success stories. The forum also promoted collaboration between entrepreneurs and investors, aiming to build a robust entrepreneurial environment that fosters innovation and economic growth in Saudi Arabia.
Asrar Al-Omiri, CEO of “A’akelha Incubator,” said that Biban 24 was an essential platform for startup hubs and accelerators to spotlight their supported projects.
She added that A’akelha’s participation through the “360 Platform” virtual incubator aimed to showcase success stories and assist projects in expanding through investment rounds.
Al-Omiri highlighted the launchpad’s commitment to attracting entrepreneurs and offering an ideal environment for transforming ideas into scalable businesses.
Ghassan Halawa, founder and CEO of Parachute16, affirmed that Biban 24 is the leading event focused on high-growth startups and entrepreneurship.
Halawa underscored the extensive local and international participation, which allows business incubators to showcase projects and directly engage with investors and key players in the entrepreneurial space.
Lama Ghalayini, business development specialist at VentureTactics Fund, described Biban 24 as a valuable opportunity for fintech startups to enhance their investment prospects.
She said the forum provides a crucial platform for entrepreneurs to understand the fund’s role in enabling startups to overcome financing challenges through innovative solutions that foster their market growth.
Saudi Arabia’s industrial production holds steady in September: GASTAT
The manufacture of chemicals and chemical products grew by 2 percent, while food product manufacturing saw a 12.3 percent increase
GASTAT revealed that the sub-index for mining and quarrying activity remained stable in September
Updated 10 November 2024
Nirmal Narayanan
RIYADH: Saudi Arabia’s industrial production held steady in September, showing a slight year-on-year decrease of 0.3 percent due to a modest decline in manufacturing output, official data showed.
According to data from the General Authority for Statistics, the Kingdom’s manufacturing sector decreased by 0.5 percent in September, bringing the Industrial Production Index to 105.6 points. This decrease was largely attributed to a 12.3 percent drop in the production of coke and refined petroleum products.
In contrast, the manufacture of chemicals and chemical products grew by 2 percent, while food product manufacturing saw a 12.3 percent increase.
Saudi Arabia’s growth in the manufacturing sector is crucial to achieving the goals outlined in Vision 2030, as the Kingdom continues to diversify its economy and reduce its dependence on crude revenues.
GASTAT revealed that the sub-index for mining and quarrying activity remained stable in September compared to the same month in 2023.
“Oil production level in Saudi Arabia reached 8.97 million barrels per day in September 2024, which is the same level recorded in the previous year,” said GASTAT.
In a bid to maintain market stability, Saudi Arabia, in alignment with the decision of OPEC+, reduced its oil output by 500,000 barrels per day in April 2023. This cut has now been extended until December 2024.
IPI is an economic indicator that reflects the relative changes in the volume of industrial output and is calculated based on the industrial production survey.
According to the report, the sub-index for electricity, gas, steam, and air conditioning supply activity recorded a 4.9 percent annual decrease in September, while the sub-index for water supply, sewerage, and waste management activities increased by 2.5 percent during the same period.
The authority revealed that the index for oil activities decreased by 2.5 percent in September compared to the same month the previous year.
On a positive note, the index for non-oil activities increased by 5 percent year on year in September, supported by growth in all non-oil economic activities except for electricity, gas, steam, and air conditioning supply.
Compared to August, Saudi Arabia’s IPI decreased by 1.2 percent.
The Kingdom’s sub-index for mining and quarrying activity decreased by 0.2 percent in September compared to the previous month, while manufacturing activities saw a decline of 2.6 percent.
Month-on-month, the index for oil activities decreased by 1.6 percent, and the index for non-oil activities declined by 0.3 percent.
Saudi startup boom creates ‘entrepreneurial bridge’ with Egypt
Updated 34 min 49 sec ago
Nour El-Shaeri
RIYADH: Saudi Arabia’s thriving startup ecosystem has created an entrepreneurial bridge with neighboring countries, attracting a growing number of founders to the nation.
This trend is particularly pronounced among Egyptian tech entrepreneurs, drawn by market potential, government initiatives, and abundant funding opportunities.
The Saudi market, characterized by its large size and high consumer purchasing power, presents lucrative opportunities for tech startups.
Additionally, Vision 2030 and various entrepreneurship support programs have fostered a stimulating environment for innovation.
“Saudi Arabia’s government initiatives and funding opportunities are major attractors for Egyptian tech entrepreneurs,” Motaz Abuonq, CEO and founder of Value Makers Studio, told Arab News.
VMS is a Saudi-based venture studio that supports Egyptian and regional startups with funding opportunities and consulting to boost their entry into the Kingdom.
The entrepreneurial bridge
Abuonq explained that Egyptian entrepreneurs benefit from Saudi Arabia’s advanced infrastructure, simplified regulations, and substantial financial backing from entities such as Saudi Venture Capital Co. These resources provide a robust foundation for startup growth.
“The regulatory environment is being streamlined to attract foreign investment, making it easier for businesses to establish and operate,” Abuonq added.
Motaz Abuonq, CEO and founder of Value Makers Studio. (Supplied)
Extensive funding opportunities are available from both private and public sectors, with many investors leaning toward innovative tech solutions, he added.
Saudi entrepreneurs find Egypt appealing due to its skilled workforce, cost efficiency, and strategic location, Abuonq explained.
Egypt’s position as a gateway to African and Middle Eastern markets and its thriving entrepreneurial community in Cairo enhances its attractiveness.
“Egypt offers a large pool of educated tech professionals and relatively lower operating costs, which are significant advantages for Saudi startups,” noted Abuonq.
Mohammed Al-Zubi, founder and managing partner of Saudi-based VC Nama Ventures, echoed Abuonq’s sentiment about Egypt’s large talent.
In an interview with Arab News, Al-Zubi explains that Nama is interested in investing in Egyptian startups due to the size of the market and the vast talent pool.
Mohammed Al-Zubi, founder and managing partner of Saudi-based VC Nama Ventures. (Supplied)
“Egypt is the biggest country in the Arab world in terms of population, and Egyptians are leaders in terms of tech talent and their price per value factor,” he said.
Abuonq further explained that the advanced entrepreneurial community in Cairo, with numerous incubators and accelerators, supports startups and fosters a collaborative environment.
“Cultural and historical ties, including a shared language and similar customs, further ease business operations and collaboration between the two countries,” he added.
Abuonq explained that despite many similarities, the two nations also share differences.
“Saudi Arabia’s decision-making process tends to be more conservative and time-consuming due to multiple approval layers, while Egypt’s regulatory environment, although stable, includes bureaucratic challenges,” Abuonq stated.
“Saudi Arabia is reforming its business laws to attract foreign investment, but navigating these changes can be complex,” he added.
Conversely, Egypt’s regulatory environment may be more stable, but it will also face bureaucratic hurdles.
Intellectual property protection is another differentiator, with Saudi Arabia enhancing its laws under Vision 2030, providing better safeguards for technological innovations compared to Egypt, Abuonq explained.
Nama Ventures has successfully navigated the cultural and regulatory differences between the two countries, facilitating seamless investments in Egyptian startups.
“In terms of Nama, we have been able to seamlessly invest in Egyptian startups just as we do with Saudi startups, in terms of investing using standard investment instruments at the holding level and then having these holding companies own the operating companies in Egypt almost 100 percent,” Al-Zubi said.
Glowing case studies
Success stories exemplify the potential for cross-border entrepreneurship.
“Egyptian startup EYouth has become a notable educational partner for Saudi institutions, while Saudi companies like Mrsool and Foodics have successfully penetrated the Egyptian market, capturing significant market shares and becoming well-known brands,” Abuonq said.
These examples highlight the unique opportunities each market offers. In Saudi Arabia, large projects such as NEOM and Red Sea Global create avenues for AI, renewable energy, and smart city solutions, he added.
Egypt, with its youthful population and numerous innovation hubs, is a fertile ground for new technologies.
“A large segment of young people in Egypt are ready to adopt new technologies, and numerous innovation centers and business incubators support startup growth,” Abuonq said.
Success stories, such as Egyptian last-mile company ShipBlu, demonstrate the potential for cross-border entrepreneurship. Al-Zubi highlighted ShipBlu as an example of a great bet by Nama Ventures, attributing its success to the complementary nature of its leadership team.
Several startups have announced plans to expand to the Saudi market this year with the latest being Egypt’s e-commerce marketplace Kemitt.
In February, Egyptian fintech Khazna also announced its plans to enter the Saudi market through a partnership with Khwarizmi Ventures.
Two months later, Egyptian group-buying startup Waffarha secured a seven-figure seed round from VMS, enabling it to initiate its plans to expand to the Saudi market.
Egypt’s artificial intelligence firm Intella has also seen significant growth in the Kingdom, enough to relocate its headquarters to Saudi Arabia.
In an interview with Arab News last year, Nour Taher, CEO of Intella, said that the Kingdom is becoming a hub for tech companies.
“Saudi Arabia is currently our largest market with 70 percent of our business coming from there. We have just taken the decision to relocate our HQ there to better serve our existing clients and further expand our business. We are also inspired and aligned with Saudi Arabia’s Vision 2030,” she said.
Crossing the bridge
To address expansion challenges, thorough market research, regulatory compliance, and cultural adaptation are essential.
Abuonq emphasized the importance of building partnerships and hiring local consultants to navigate regulations.
“Understanding local consumer behavior and adapting business strategies to align with cultural differences are crucial for success,” he advised.
Building partnerships with local companies can facilitate market entry while hiring local legal and business consultants can help navigate regulations and ensure compliance with the law, he explained.
Enhancing partnerships between the Saudi and Egyptian tech ecosystems requires strategic initiatives such as bilateral trade agreements, transnational incubators, and joint ventures, as well as cultural exchange programs and joint innovation platforms.
“Governments and organizations should facilitate cross-border operations and create platforms for startups to collaborate and share technological advancements,” Abuonq suggested.
He added that joint ventures and partnerships between companies from both countries can leverage strengths and market insights, and cultural exchange programs can promote understanding and collaboration among entrepreneurs and tech professionals.
In his experience assisting Egyptian tech entrepreneurs in Saudi Arabia, Abuonq identified regulatory navigation, market adaptation, and cultural sensitivity as primary challenges.
Helping startups understand and comply with complex and evolving regulations in Saudi Arabia is crucial, as is assisting them in adapting their products and services to meet local market needs and consumer behavior.
“Ensuring startups are culturally sensitive and adaptable in their business practices is another significant challenge,” he noted.
For Al-Zubi, fostering stronger partnerships between the Saudi and Egyptian tech sector involves enhancing exposure to each country’s entrepreneurial landscape.
“Any effort that strengthens exposure to each ecosystem’s startups is a positive effort in our opinion,” he stated, aligning with the strategic initiatives suggested by Abuonq.
Addressing the challenges and opportunities in assisting Egyptian startups expanding into Saudi Arabia, Al-Zubi emphasized the importance of a strong foundation.
“I would highly encourage Egyptian startups to scale to Saudi from a position of strength, not weakness,” he advised.
He further stressed the need for these startups to demonstrate success in their native market and ensure that their business models are functioning in a healthy fashion before considering expansion into Saudi Arabia. “It should be a market expansion strategy and not a migration play,” Al-Zubi added.
Preserving the Past, Building the Future: Saudi Arabia’s cultural heritage and business synergy
Updated 09 November 2024
Reem Walid
RIYADH: As Saudi Arabia embarks on an ambitious journey toward a thriving economy, the nation is uniquely positioned to harmonize the conservation of its rich cultural heritage with the development of vibrant business opportunities.
The Kingdom is committed to various initiatives, such as cultural tourism projects and the revival of artisanal craftsmanship, which not only safeguard its diverse cultural tapestry but also drive economic growth.
This approach showcases the symbiotic relationship between tradition and innovation, demonstrating how honoring cultural heritage can foster sustainable development and enhance Saudi Arabia's global influence.
Under the Vision 2030’s Quality of Life Program, the nation is transforming with rapid developments in the cultural sector among others.
This comes as the cultural sector is expected to contribute more than $47.9 billion to the Kingdom’s gross domestic product by 2030.
In the Quality of Life Program 2023 annual report, Saudi Crown Prince Mohammed bin Salman said that the Kingdom is striving to cultivate a deep sense of pride in the nation and actively contribute to global development and progress, across economic, environmental, cultural, and intellectual dimensions.
The report further revealed that in 2023, the Ministry of Culture targeted 108,010 employees in the Saudi cultural sector, but recorded 216,878 workers during the year, reflecting an achievement rate of 201 percent.
The Kingdom also aimed for nine Saudi participants in international cultural events, but actually witnessed 32.
When it comes to the number of cultural events days, Saudi Arabia was targeting 2,093 in 2023 but recorded 3,934 – reflecting an achievement rate of 188 percent.
As for the number of cultural facilities, the Kingdom was aiming for 41 in 2023 but achieved 45.
Cultural tourism’s contribution to economic development
Cultural tourism has been essential in diversifying the Kingdom's economy by boosting local hospitality, retail, and service industries, while also enhancing Saudi Arabia's global standing in cultural diplomacy.
“The revitalization of cultural landmarks such as AlUla, Diriyah, and UNESCO-listed sites has significantly enhanced Saudi Arabia’s international appeal, repositioning the Kingdom as a global destination not only for religious pilgrimage but also for its rich history, arts, and traditions,” Patrick Samaha, partner at Public Sector at Kearney Middle East & Africa told Arab News.
“With 30 million international tourists visiting in 2023, the influx has boosted local businesses in hospitality, retail, and services, generating new jobs, particularly in regions where tourism was previously underdeveloped,” Samaha added.
The Kearney partner went on to add that the Kingdom’s active participation in cultural diplomacy has resulted in stronger global relationships and a growing international appreciation for its rich heritage.
“This is reflected in the government’s significant investment in cultural landmarks, which will further open opportunities for hosting international events, forums, and conferences. Without a doubt, Saudi Arabia is well on its way to becoming a leader in cultural tourism,” he said.
There is no doubt that the Kingdom is working to diversify its economy by attracting visitors to explore its diverse landscape and rich cultural heritage.
Tamer El-Leisi, consulting partner at PwC Middle East told Arab News that the Kingdom has reported the highest growth among G20 countries in 2024, gaining international recognition, fostering cross-cultural understanding as well as enhancing the country's global image as an open and welcoming destination.
“It has also supported the preservation of historical sites and provided income opportunities for local artisans,” he added.
Tamer El-Leisi, consulting partner at PwC Middle East. (Supplied)
The PwC Middle East consulting partner said this work has a “profound impact” on economic growth, enhancing the labor market, and supporting local businesses.
“As cultural tourism grows, so does the demand for professionals in various sectors, such as hospitality, entertainment, and creative arts, which in turn boosts employment and economic growth,” El-Leisi added.
He highlighted that as a result of these efforts, the number of international and domestic tourists exceeded 100 million tourists in 2023, spending more than SR250 billion ($66.6 billion).
“These numbers have even increased during the first quarter of 2024 by 10 percent with an increase of around 17 percent in spending. By 2030, the tourism sector aims to account for over 10 percent of the country’s GDP,” he said.
As Saudi Arabia strives to become a global center for cultural tourism, building international partnerships with other nations, cultural institutions, and global organizations is crucial for success.
Balancing cultural heritage and business growth
The Saudi government has been crucial in safeguarding the Kingdom’s heritage while promoting an economically sustainable sector by supporting the heritage ecosystem, attracting private investment, and developing local talent.
According to Samaha, Saudi Arabia has recognized the importance of preserving its heritage at a time when it is embracing global cultural exchange, which is why heritage plays a central role in its Vision 2030.
“Rightfully so, key government initiatives have focused on boosting the socio-economic impact of heritage and the broader cultural sector, aiming to create a sustainable industry that appeals to younger generations. To achieve this, the Kingdom has developed a robust ecosystem, composed of both government and non-government entities, mandated to unlock the socio-economic potential of the sector and attract private investment,” the Kearney partner said.
He added: “For example, the creation of the Heritage Commission under the Ministry of Culture has enabled heritage sites to become catalysts for economic activity and offers various training programs to develop local talent in the heritage field.
Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at management consulting firm Arthur D. Little.
Samaha continued to note that the Royal Institute of Traditional Arts was established to nurture talent in local crafts and generate business opportunities for artists through incubators and apprenticeship programs.
“These are just two examples of the many impactful initiatives being implemented by the Saudi government,” he said.
Undoubtedly, the Kingdom has demonstrated a firm commitment to cultural heritage by employing innovative and forward-thinking strategies to safeguard and preserve it for future generations. Those efforts foster a strong connection between cultural preservation and economic development.
“This is evident in many ways. For instance, the rehabilitation, restoration and promotion of historic sites and cultural attractions is encouraging exploration of cultural sites. Meanwhile, an emphasis on cultural tourism is strengthening national identity, fostering unity and shared purpose among the population,” El-Leisi said.
He stressed that local communities are actively engaging with tourists, not only enriching visitors’ experiences but also supporting community development.
“Furthermore, investing in sustainable tourism practices is ensuring that the country's cultural heritage is preserved for future generations while minimizing the environmental impact of tourism activities. The Saudi government is focusing on responsible tourism, implementing green initiatives, and supporting eco-friendly businesses in the tourism sector,” the PwC partner added.
Preservation cultural heritage to attract investments
The preservation of Saudi Arabia’s cultural heritage plays a key role in attracting investment, fostering sustainable growth, and enhancing the Kingdom’s global standing, aligning with Vision 2030.
“By protecting heritage sites, especially those recognized by UNESCO, Saudi Arabia boosts tourism and diversifies its economy. Traditional crafts and cultural practices also stimulate the creative industries, drawing investment into cultural and luxury sectors,” Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at management consulting firm Arthur D. Little, told Arab News.
“Globally, these efforts enhance Saudi Arabia's cultural diplomacy and soft power, strengthening its influence in international affairs. Through these initiatives, the Kingdom builds a sustainable, diversified future while positioning itself as a cultural leader on the world stage,” Khan added.
Ongoing initiatives that effectively blend the preservation of cultural heritage
Saudi Arabia is effectively merging the protection of its cultural heritage with economic growth through important initiatives outlined in Vision 2030.
“AlUla is being transformed into a global tourist destination, preserving ancient tombs and relics while generating jobs and revenue through luxury tourism. Similarly, Diriyah, the historic birthplace of the Saudi state, is undergoing restoration, combining heritage conservation with commercial and luxury developments,” Khan said.
“The Red Sea Project focuses on eco-tourism, safeguarding both natural and cultural heritage while creating employment and diversifying the economy,” he added.
The Arthur D. Little partner went on to note that in Jeddah, the restoration of its UNESCO-listed historic district is boosting tourism through traditional markets and cultural festivals.
“These projects illustrate how Saudi Arabia is harmonizing tradition with modern business opportunities to foster sustainable growth. The region can further draw inspiration from countries like Japan and Morocco, which have successfully promoted their cultural heritage while reaping significant economic benefits from tourism and cultural industries,” Khan said.
