UN Tourism and Saudi Arabia announce new certification program

UN Tourism and Saudi Arabia announce new certification program
Up to 50 tourism education and training programs will be assessed as part of the UN Tourism TedQual process. Shutterstock 
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Updated 03 April 2024
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UN Tourism and Saudi Arabia announce new certification program

UN Tourism and Saudi Arabia announce new certification program

RIYADH: A UN-backed tourism education scheme is set to enhance the training of Saudi workers to help deliver the best international standards in the Kingdom. 

In partnership with the Ministry of Tourism, the UN arm responsible for the field announced the launch of a six-month training program for institutions in Saudi Arabia that specialize in the sector. 

TedQual, a certification system designed by the body to evaluate a series of universally applicable criteria, will help further enhance the quality and training of the relevant bodies in Saudi Arabia. 

Against the backdrop of ITB Berlin last year, the Kingdom and UN Tourism signed a memorandum of understanding to bring TedQual to the nation. 

As per a release by the body, up to 50 tourism education and training programs will be assessed as part of the UN Tourism TedQual process. 

Similarly, up to 35 initiatives in tourism education and training institutions in the Kingdom will participate in this certification undertaking.

This will enable an evaluation of these particular methods to elevate standards, the ministry said. 

According to the Ministry of Tourism, eligibility requires that the program leads to the attainment of a diploma or higher qualification, is open to the public, and focuses on specializations within the field.

The TedQual project is the first in a series of future collaborations between the two bodies, including the creation of “massive” online open courses targeting the global tourism sector workforce, which amounts to 300 million people. 

The courses will be managerial as well as vocational and available in Arabic, Chinese and English as well as French and Spanish.


Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources

Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources
Updated 6 sec ago
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Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources

Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources

JEDDAH: Saudi Arabia’s Northern Borders region, home to an estimated SR4.6 trillion ($1.22 trillion) in mineral resources, is emerging as a key driver of economic growth and investment, according to the Ministry of Industry and Mineral Resources.

The region is a major hub for phosphate production, a critical component in global food security due to its use in agricultural fertilizers. Mining projects in Waad Al-Shamal, an industrial city dedicated to the sector, have positioned Saudi Arabia among the world’s leading phosphate producers and exporters.

As part of Vision 2030, the Kingdom is accelerating efforts to develop its mining sector and reduce its reliance on oil and gas. The ministry has identified mining as a key pillar of economic transformation, focusing on resource efficiency and attracting both local and international investment.

Jarrah bin Mohammed Al-Jarrah, spokesman for the ministry, said the region contains significant deposits of phosphate, coal, dolomite, limestone, and silica sand. It also has five phosphate ore sites and 29 active mining licenses, including 15 for building material quarries and 14 for mineral exploitation.

Beyond mining, the Northern Borders region is expanding its industrial footprint, with 61 factories operating across Arar, Tarif, and Rafha in sectors such as building materials, food processing, and chemicals, Al-Jarrah said.

The developments come as minister of industry and mineral resources Bandar bin Ibrahim Al-Khorayef began a visit to the region on Feb. 16 to assess industrial and development projects aimed at strengthening its role as a mining hub. His visit aligns with the ministry’s broader strategy to attract investment and position mining as a key sector in Saudi Arabia’s economic diversification.

Saudi Arabia’s mining ambitions have gained significant momentum in recent years. At a meeting in July, Alkhorayef highlighted that the estimated value of the Kingdom’s mineral wealth had surged from $1.3 trillion to $2.5 trillion by early 2024 — a 90 percent increase — driven by government investments in geological surveys, exploration, and private sector participation. 

The rise in valuation reflects a more comprehensive understanding of the country’s vast mineral potential, as well as increasing demand for critical minerals needed for global energy transitions.


Global financial leaders convene in Saudi Arabia to address emerging market risks

Global financial leaders convene in Saudi Arabia to address emerging market risks
Updated 52 min 47 sec ago
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Global financial leaders convene in Saudi Arabia to address emerging market risks

Global financial leaders convene in Saudi Arabia to address emerging market risks

RIYADH: Sovereign debt risks, structural reforms, and trade policies take center stage as global financial leaders and policymakers convened in Saudi Arabia for the first AlUla Conference for Emerging Market Economies. 

The high-profile summit comes amid ongoing economic turbulence, with leaders seeking solutions to enhance financial stability and resilience. 

The two-day event, hosted by the Saudi Ministry of Finance in partnership with the International Monetary Fund, is being held from Feb. 16— 17 in AlUla. The historic site is fast becoming a venue for strategic economic dialogues, underscoring Saudi Arabia’s efforts to assert itself as a key player in shaping financial policies for developing economies. 

The conference aligns with the Kingdom’s broader efforts to solidify its role as a hub for global economic dialogue and under Vision 2030, it continues to lead economic diversification initiatives, emphasizing collaboration and innovation to navigate global economic shifts. 

Saudi Minister of Finance Mohammed Al-Jadaan highlighted the conference’s role in addressing common economic challenges and fostering a more inclusive and resilient global economy. 

“Today, we will explore ways to address our shared challenges so we can build a stronger global economy that is durable and inclusive for all nations,” he said. 

Al-Jadaan stressed the importance of international cooperation, adding: “There is no pathway more effective than broad multilateral cooperation, and that work starts with conversations like the ones we are having at this conference.” 

One of the key challenges addressed during the opening ceremony was sovereign debt, which Al-Jadaan described as a threat to economic progress. 

“Since we all share the benefits, we should also work together to address structural risks like sovereign debt, which threatens development gains,” he said, adding that innovative solutions, including improving global debt restructuring frameworks, are necessary. 

IMF Managing Director Kristalina Georgieva echoed Al-Jadaan’s statements, emphasizing the importance of emerging markets in global economic stability. “You, the leaders in this room, have weathered the shocks of the past few years remarkably well, and your economies have delivered two-thirds of global growth,” she said. 

Georgieva called for the need for agility and resilience in the face of economic uncertainty. “Emerging markets will need to be agile, adaptable, and resilient,” she added, pointing to key areas such as inflation, high debt, and structural reforms that require urgent attention to improve competitiveness and productivity. 

She also praised Saudi Arabia’s leadership in establishing a dedicated space for emerging markets to discuss critical policy issues. “Minister Al-Jadaan not only identified a gap in terms of space for emerging markets to discuss policy issues of common interest, but he decided to close it,” she said. 

Georgieva spoke of the IMF’s newly established regional office in Riyadh, emphasizing its pivotal role in realizing this vision. The office — the first of its kind in the Middle East and North Africa — was inaugurated on April 24 last year during the Joint Regional Conference on Industrial Policy for Diversification, co-hosted by the IMF and the Saudi Ministry of Finance. 

She stressed the importance of mobilizing more resources for the IMF’s Poverty Reduction and Growth Trust. “The IMF needs more capacity to help vulnerable countries and to continue to adapt to evolving challenges.” 

Looking ahead, Al-Jadaan called for global economic cooperation that benefits all stakeholders. “We should be laser-focused on improving the lives of our people.

“We must find common ground to serve the common good and seek win-win solutions, fostering productive cooperation between East and West, South and North, to create a positive spillover for our neighbors and trading partners.” 

The conference is expected to generate actionable recommendations that will support emerging economies in enhancing financial stability and sustainable growth. Discussions will also explore how artificial intelligence and digital transformation can drive economic progress in developing economies. 

Participants are set to discuss strategies for economic resilience, aiming to strengthen cooperation between emerging and advanced economies for a more equitable and sustainable future. 


Housing prices drive Saudi Arabia’s inflation to 2% in January: GASTAT

Housing prices drive Saudi Arabia’s inflation to 2% in January: GASTAT
Updated 16 February 2025
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Housing prices drive Saudi Arabia’s inflation to 2% in January: GASTAT

Housing prices drive Saudi Arabia’s inflation to 2% in January: GASTAT
  • Housing rents rose 9.7% year on year, villa rental costs increased 7.7%
  • Furnishing and home equipment expenses witnessed a 2.4% year-on-year decline

RIYADH: Consumer prices in Saudi Arabia increased by 2 percent in January compared to the same month in 2024, primarily due to a rise in housing costs, official data showed. 

According to a report by the General Authority for Statistics, housing rents in the Kingdom rose 9.7 percent year on year in January, while villa rental costs increased 7.7 percent. 

The analysis said housing, water, electricity, gas, and other fuels saw a collective price increase of 8 percent. 

Despite rising inflation rates globally, countries in the Middle East region have shown resilience against intensifying spending costs. 

In December, the inflation rate in the UAE stood at 2.89 percent, 0.24 percent in Qatar, and 0.50 percent in Bahrain. 

In October, a report by the World Bank projected that the Kingdom’s inflation level is expected to remain steady at 2.3 percent in 2025, lower than the Gulf Cooperation Council average. 

“This increase (in housing prices) significantly impacted the continuation of the annual inflation rate for January 2025 due to the section’s weight, which amounted to 25.5 percent,” said GASTAT. 

The release also detailed several additional shifts in consumer prices. 

Food and beverage prices witnessed a moderate rise of 0.8 percent in January compared to the same month in the previous year. The rise in this section was attributed to an increase in the costs of vegetables, which rose by 5.6 percent. 

Personal goods and services expenses increased by 3.3 percent, influenced by a 21.6 percent rise in jewelry prices. 

Costs for restaurants and hotels rose by 0.8 percent year on year. 

Furnishing and home equipment expenses witnessed a 2.4 percent year-on-year decline. 

Prices for clothing and footwear decreased by 1.5 percent compared to the same month in the previous year, while transport expenses dropped by 1.9 percent. 

Saudi Arabia’s consumer price remained stable compared to December, with the index recording a marginal increase of 0.3 percent. 

According to GASTAT, housing rents increased by 0.3 percent compared to December, while food and beverage prices rose by 0.3 percent. 

Transportation prices increased by 0.5 percent compared to December, while costs of clothing and footwear rose by 0.1 percent. 

Prices for communication decreased by 0.3 percent month on month, while expenses for education declined by 0.1 percent. 

The prices of restaurants and hotels showed no significant change compared to the previous month. 

Wholesale Price Index

In a separate report, GASTAT said the Kigndom’s Wholesale Price Index rose by 0.9 percent in January compared to the same month of the previous year. 

The authority revealed that the rise was attributed to a 1.5 percent increase in the prices of other transportable goods and a 4.6 percent boost in the costs of agriculture and fishery products. 

Meanwhile, the prices of food products, beverages, tobacco, and textiles decreased by 0.3 percent year on year. 

The prices of metal products, machinery, and equipment also declined by 0.2 percent compared to January last year. 

In contrast to December, Saudi Arabia’s wholesale price index increased by 1.7 percent. 

GASTAT said this rise was due to a 4.1 percent price boost in other transportable goods, excluding mineral products. 

The cost of metal goods, machinery, and equipment decreased by 0.2 percent month on month, while the price of ores and minerals declined by 0.1 percent. 

Agricultural and fishery products stabilized, and no relative change was recorded in January compared to December. 


Saudi expat remittances surge to three-year high $38.5bn, SAMA reveals

Saudi expat remittances surge to three-year high $38.5bn, SAMA reveals
Updated 15 February 2025
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Saudi expat remittances surge to three-year high $38.5bn, SAMA reveals

Saudi expat remittances surge to three-year high $38.5bn, SAMA reveals
  • Surge largely attributed to the robust growth of the Saudi economy, driven by Vision 2030 projects

RIYADH: Expatriate remittances from Saudi Arabia surged to SR144.2 billion ($38.45 billion) in 2024, a 14 percent increase over the preceding year, according to recent data.

Figures from the Saudi Central Bank, also known as SAMA, revealed that this figure is the highest in three years. In December alone, non-Saudi transfers totaled SR14.02 billion, a 31.7 percent increase on the same month last year.

Remittances sent abroad by Saudi citizens reached a two-year high in 2024, totaling SR68.61 billion — a 10.74 percent increase compared with 2023, according to SAMA data. 

In December, these transfers surged to their highest monthly value in more than seven years, reaching SR7.66 billion.

Thamer Al-Harbi, an expert on remittances, told Arab News that this significant surge can be largely attributed to the robust growth of the Saudi economy, driven by Vision 2030 projects.

He flagged up the “high demands to get (laborers) from different levels and skills and from many parts in the world,” adding that the statistics underline an increase in non-Saudi workers.

As these projects continue to expand, they require skilled and unskilled workers from all over the world, leading to a significant increase in the foreign workforce.

He also explained that expatriates sending money “to their loved ones” during the holiday season largely drove the 31.7 percent annual surge in December.

Reflecting on how economic and regulatory trends in Saudi Arabia and the recipient countries affect remittance fluctuations, he said: “It is playing a role. For example, the stability of their currency will reflect on remittance through banking channels as they trust the currency and they get a good rate.”

The expert said that the top destinations for remittances from Saudi Arabia align closely with the largest expatriate communities in the Kingdom. 

FAST FACT

Remittances sent abroad by Saudi citizens reached a two-year high in 2024, totaling SR68.61 billion — a 10.74 percent increase compared with 2023, according to SAMA data.

Citing data from the General Authority for Statistics, he noted that the five largest expatriate groups in Saudi Arabia are from Bangladesh, India, Pakistan, Egypt, and the Philippines.

These same countries are among the primary recipients of remittances, particularly for person-to-person transfers. The strong presence of these communities, coupled with family obligations and economic ties, continues to drive significant money flows to these destinations.

“The fintech post-COVID played a role in easing the customer experience, speeding up the movement of money to global bank accounts, and saving time by allowing senders to use the service at home without visiting centers or waiting in long queues,” Al-Harbi added.

“Today, most of the apps even provide the service in different languages, which gives customers the confidence to do this by themselves,” he said.

To explain the surge in transfers by Saudis, Al-Harbi said that the Kingdom’s citizens usually transfer to relatives abroad in Europe or the US to pay for tuition and bills related to their properties. 

Advances in blockchain technology and compliance solutions driven by artificial intelligence are enhancing the efficiency and security of cross-border transactions, according to a report by IBS Intelligence released in July. These innovations are crucial for improving financial inclusion and supporting the growth of the digital economy in the Middle East. Several fintech companies are driving this transformation, particularly in the realm of cross-border payments.

These include Careem Pay, a digital wallet service from the popular ride-hailing app, which facilitates peer-to-peer and bill payments, and international money transfers.

Other companies operating in this space are Mamo, a Dubai-based financial services company; PayMe, a fintech based in Egypt; and Saudi company urpay.

Al-Harbi said that, in general, the Kingdom offers lower transfer fees compared ith other GCC countries and regions such as Southeast Asia and Africa, particularly for major remittance corridors.

This can be attributed to the high volume of transactions and the presence of numerous remittance service providers, which create a competitive market and help keep costs relatively low for expatriates sending money abroad. 

Al-Harbi said that economic and regulatory trends in Saudi Arabia and recipient countries play a crucial role in shaping remittance flows.

One key factor is currency stability. When a local currency is stable, expatriates are more likely to send money through official banking channels, because they trust that their funds will retain value and that they will receive favorable exchange rates.

Additionally, regulatory policies in Saudi Arabia and recipient nations influence remittance trends. Policies that allow smooth and secure money transfers encourage more transactions through formal channels, while stricter regulations or economic instability in recipient countries may push some expatriates to seek alternative methods.


Saudi Arabia to lead region’s initial public offerings in 2025 — EY

Saudi Arabia to lead region’s initial public offerings in 2025 — EY
Updated 16 February 2025
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Saudi Arabia to lead region’s initial public offerings in 2025 — EY

Saudi Arabia to lead region’s initial public offerings in 2025 — EY
  • Firm says overall MENA region expected to witness the listing of 38 companies and 22 funds in 2025

RIYADH: The outlook for initial public offerings in the Middle East and North Africa region remains positive in 2025, with Saudi Arabia leading the market with 27 potential listings, according to an analysis. 

In its latest report, professional services network firm EY said the overall MENA region was expected to witness the listing of 38 companies and 22 funds in 2025, across a variety of sectors. Three listings are in the pipeline of the exchanges in the UAE, while Qatar is expected to witness one IPO. 

This comes as the Gulf Cooperation Council region has emerged as a hotspot for IPOs in recent years, fueled by robust economic reforms, diversification efforts away from oil dependence, and growing interest from both regional and international investors. 

“The region continues to drive positive developments in areas such as governance and ESG to enhance its attractivity to local and international investors alike,” said Gregory Hughes, EY MENA IPO and transaction diligence leader. 

According to the analysis, Panda Retail Co. and Riyad Capital from Saudi Arabia, as well as Etihad Airways and Amanat Holdings from the UAE, are the notable companies considering an IPO in 2025. 

Outside the GCC region, Egypt has announced five IPOs for 2025, while Algeria has two businesses intending to list. 

In December, the Egyptian Cabinet announced plans to accelerate the government offerings program procedures in 2025 to maximize the private sector’s economic role and attract more investments. 

The move from the government aligns with the nation’s broader effort to expand the number of publicly traded companies and attract greater investment. 

The EY report set out how ESG goals remain “a priority” in the Middle East, and this will have an impact on potential IPOs.

It cited a new law in the UAE, set to come into force in May, requiring companies to report carbon emissions and adopt decarbonization strategies — including renewable energy and carbon offsetting. It sets penalties for noncompliance and encourages research and development. It also promotes carbon trading through a dedicated registry. 

“These measures align with the UAE’s 2050 net zero goals and are likely to influence IPO market dynamics, as companies prioritize sustainability to attract investors,” said the report.

The expected listings activity in the Gulf is in line with global forecasts, with the IPO market on track for a “strong performance” in 2025, according to EY.

“This is supported by a cautiously optimistic economic environment, increasingly accommodative monetary policies, heightened liquidity, valuation levels and investor confidence,” the report added.

The firm said that while there were challenges — particularly around fiscal and monetary policies, geopolitical tensions, artificial intelligence and digital transformation — they also “open the door to new opportunities.” 

EY called on businesses to focus on adapting their strategies to align with shifting market demands and “leveraging IPOs as a platform to drive growth and innovation.”

MENA IPO activity in 2024

EY revealed that markets in the MENA region witnessed a total of 54 IPOs in 2024, representing a 12.5 percent rise compared to 2023. 

These IPOs raised $12.6 billion in proceeds, also marking a 17.6 percent rise compared to the previous year. 

The year-on-year increase in proceeds for 2024 was impacted by a number of large-value IPOs such as Talabat Holding plc, OQ Exploration & Production and Lulu Retail Holdings that were listed during the last quarter of the year. 

The region continues to drive positive developments in areas such as governance and ESG to enhance its attractivity to local and international investors alike.

Gregory Hughe, EY MENA IPO and transaction diligence leader

“The year 2024 ended on a strong note with 54 IPOs in total, the highest in MENA over the past seven years. The region has been one of the busiest when compared to the global market,” said Brad Watson, EY MENA strategy and transactions leader. 

He added: “The momentum is expected to continue into 2025, with companies from various sectors announcing their intention to come to market. In addition, regional exchanges are actively working on initiatives to promote family-owned businesses and small to medium enterprises, aiming to strengthen the capital markets infrastructure and boost future liquidity.”

Earlier this month, a report released by the Kuwait Financial Center revealed that Saudi Arabia led the GCC IPO market in 2024, raising $4.1 billion through 42 listings, the highest number in the region. 

According to that analysis, the GCC region saw an increase of 23 percent in IPO proceeds compared to 2023, reaching a total of $13.2 billion across 53 public offerings. 

The EY report states that the MENA region witnessed 25 IPOs in the fourth quarter of 2024 raising $7.9 billion — a 32 percent increase in number and a 59.4 percent surge in proceeds compared to the same period in 2023. 

Saudi Arabia dominated the region’s IPO activity with 17 of the listings, and the Kingdom also raised $1.2 billion in proceeds during the period. 

Five IPOs took place on Saudi Arabia’s main market during the fourth quarter, raising proceeds worth $1.1 billion. The remaining 12 IPOs happened on the Kingdom’s parallel market Nomu, with proceeds valued at $119 million. 

Arabian Mills for Food Products Co. and United International Holding Co. marked the highest proceeds in Saudi Arabia at $300 million each. 

“The last quarter of 2024 was a bumper quarter for the MENA region with 25 IPOs, making up 46 percent of the total IPO activity in that year. Nomu listings accounted for 50 percent, indicating robust activity in the junior Saudi market,” said Hughes. 

According to EY, Talabat Holding plc, which is listed on the Dubai Financial Market, raised the highest proceeds valued at $2 billion, contributing 25.8 percent of the overall number in the fourth quarter. 

The Abu Dhabi Securities Exchange welcomed two IPOs in the fourth quarter, with proceeds valued at $2 billion. 

In the ADX, Lulu Retail Holding raised $1.7 billion, followed by ADNH Catering at $235 million. 

The Bahrain bourse witnessed the Al-Abraaj Restaurants Group IPO that raised $23.9 million. 

Outside of the GCC region, there were two MENA IPOs in the fourth quarter: Compagnie Marocaine de Goutte a Goutte et de Pompage in Morocco and the United Bank in Egypt.