At the end of February, the total capital and reserves of banks operating in Dubai alone stood at 246.4 billion dirhams, logging a year-on-year growth of 15.1 percent. Reuters/File
RIYADH: UAE-based banks’ aggregate capital and reserves reached 501.5 billion dirhams ($136 billion) at the end of February, up 14.4 percent year-on-year, according to new data.
The latest statistics from the Central Bank of the UAE showed that on a monthly basis, the total capital and reserves grew 0.95 percent, reflecting an increase of approximately 4.7 billion dirhams, according to the Emirates News Agency, also known as WAM.
This rise in figures falls in line with the central bank’s goal of enhancing monetary and financial stability in the country.
Moreover, the data indicated that national banks accounted for around 86.5 percent of the aggregate capital and reserves of banks operating in the UAE. At the end of February, they recorded a total of 433.7 billion dirhams, an annual rise of 14.6 percent.
On the other hand, the share of foreign banks settled at 13.5 percent, hitting 67.8 billion dirhams at the end of the same month, reflecting a 13.2 percent surge compared to the same period a year earlier.
Furthermore, at the end of February, the total capital and reserves of banks operating in Dubai alone stood at 246.4 billion dirhams, logging a year-on-year growth of 15.1 percent.
Additionally, banks operating in Abu Dhabi recorded around 217 billion dirhams, up 13 percent from the corresponding period in 2023.
Meanwhile, the cumulative capital and reserves of banks operating in other emirates combined reached an estimated 38.1 billion, reflecting a 15.5 percent climb in comparison to the same period a year prior.
In March, a top executive at Roland Berger said that UAE bank branches were witnessing the highest revenues in the region, amounting to $18.6 million per branch.
This was driven by the nation’s digital transformation, which enabled financial institutions in the Gulf Cooperation Council to reduce the number of banking branches by 328 within three years, Saumitra Sehgal, the global consulting firm’s head of financial services in the Middle East, told WAM, at the time.
Sehgal also pointed out at the time that the number of bank branches across GCC nations decreased from 4,067 at the end of 2019 to 3,739 by December 2022.
He further noted that banks in the UAE saw the highest number of outlets merge and reduce with the support of digital transformation between 2019 and 2022.
Tourist spending in Saudi Arabia up 27%, reaching nearly $7bn
Updated 12 sec ago
Dayan Abou Tine
RIYADH: Tourism spending in Saudi Arabia saw an annual increase of 27.25 percent in the three months to the end of September, hitting SR25.05 billion ($6.68 billion), according to new figures.
Data released by the Saudi Central Bank, also known as SAMA, also showed that the spending by residents traveling abroad increased by 21.79 percent to reach SR26.33 billion.
The travel balance of payments recorded a deficit of SR1.28 billion, marking a 33.83 percent decrease compared to the same period last year. The balance showed a surplus of SR40.17 billion for the first nine months of the year, reflecting a 4 percent increase from the same period in 2023.
These spending patterns align with the Kingdom’s broader ambition to rank among the top 10 global tourist destinations by the end of the decade, as outlined in its Vision 2030 economic diversification strategy.
Recent cultural advancements, including hosting art exhibitions and high-profile entertainment events, demonstrate Saudi Arabia’s commitment to enhancing its global image.
Landmark initiatives, such as the newly approved “Visiting Investor” visa, further signal the nation’s intent to attract diverse visitors while supporting the tourism sector’s growth.
Inbound tourism spending in Saudi Arabia has shown notable fluctuations throughout the year, shaped by a blend of cultural, religious, and seasonal factors.
Religious tourism, which accounted for 42 percent of all inbound visits in 2023, according to the Ministry of Tourism annual report, plays a pivotal role in this variation.
Pilgrimages during the holy months of Hajj and Ramadan drive significant surges in visitor numbers and spending, underscoring the importance of faith-driven travel to the Kingdom’s tourism sector.
Non-religious inbound tourism, which made up 58 percent of arrivals during 2023, might exhibit different dynamics influenced by factors such as climate.
Leisure tourists and those visiting friends and relatives often plan their trips during months when temperatures are milder.
This seasonal preference explains why tourism spending tends to peak during the second quarter of the year. In 2024, inbound spending reached SR47.6 billion in the second quarter, following a similar trend in 2023, when spending in the same period was SR48.93 billion.
By contrast, expenditures dropped to SR19.68 billion in the third quarter of 2023, coinciding with the peak summer heat.
Makkah remained the most visited destination in 2023, according to the ministry’s report, welcoming 15.4 million tourists, driven primarily by religious purposes.
Madinah, a secondary destination for many pilgrims, attracted 9.6 million visitors. Riyadh also emerged as a major draw, hosting 2.8 million tourists and reinforcing its growing reputation as a cultural and business hub.
Religious tourism generated the majority share of spending, contributing 55 percent of the total or SR77.4 billion, followed by visits to relatives and families at 19 percent or SR26.3 billion.
Leisure tourism, encompassing activities like entertainment and sightseeing, accounted for SR21.6 billion.
Startups of the Year: Zid and Salla revolutionize Saudi Arabia’s e-commerce landscape
Updated 20 min 43 sec ago
Nour El-Shaeri
RIYADH: E-commerce in Saudi Arabia witnessed a landmark year in 2024, with startups Zid and Salla leading the charge to reshape the Kingdom's — and region’s — digital economy.
These two firms have empowered merchants, enhanced digital infrastructure, and set the stage for exponential growth in Saudi Arabia’s online retail sector.
Zid: Where commerce meets innovation
For Zid, a Riyadh-based e-commerce enabler, the introduction of its “Total Commerce” vision at Ripple 2024 marked a defining moment in its scale-up journey.
In an interview with Arab News, Sultan Al-Asmi, CEO and co-founder of Zid, described the launch as a milestone that “wasn’t just a product launch; it was the unveiling of a unified ecosystem designed to redefine how merchants in Saudi Arabia — and eventually the region — conduct business.”
The platform allows merchants to manage e-commerce stores, social media sales, and physical outlets from a single dashboard.
He further emphasized Zid’s partnerships with platforms like Amazon, Snapchat, TikTok, and Meta, as well as its integration of artificial intelligence-powered tools, which are designed to “future-proof commerce in the Kingdom and across the region.”
Al-Asmi said: “Saudi Arabia’s e-commerce landscape is expanding rapidly, but logistical inefficiencies remain a significant barrier, especially for small and medium-sized businesses looking to scale globally.”
To address these challenges, Zid introduced a unified logistics dashboard to simplify inventory management and shipment tracking.
The company also launched flexible financing options to help merchants manage shipping costs and expand their reach.
“By integrating platforms like TikTok Shop and Amazon Marketplace and introducing AI-powered marketing tools, we’ve provided our merchants with innovative solutions to adapt to these changes and positioned them to capitalize on opportunities to drive sustainable growth,” Al-Asmi added.
Sultan Al-Asmi, CEO and co-founder of Zid. Supplied
The co-founder said that 2024 has been a year of exponential growth for Zid as the company transitions from “start-up to scale-up.”
Zid’s efforts have resulted in exponential growth. In 2024, its merchant base increased by over 30 percent, surpassing 12,000 active users, while the stock-keeping units on its platform exceeded 4 million.
The company also processed billions of transactions, providing valuable insights into Saudi commerce.
Al-Asmi highlighted the tangible impact of Zid’s solutions, stating, “Merchants on our platform have consistently increased both average basket sizes and conversion rates by 50 percent, reflecting the effectiveness of our solutions in driving larger transactions compared to our competitors,” he said.
“Additionally, our merchants experienced a 25 percent year on year growth in GMV (Gross Merchandise Value) and significant growth in the average number of orders per merchant, reinforcing Zid’s role as a reliable growth partner,” Al-Asmi added, going on to say that merchants who participated in Zid’s “10x” program saw their revenues grow tenfold.
In addition to its technical innovations, Zid credits its internal culture for its success. “At Zid, our culture is rooted in collaboration, resilience, and a relentless focus on merchant success,” said Al-Asmi.
He noted that the company’s leadership team draws on years of experience in Software-as-a-Service, retail, e-commerce, and technology, which has enabled the team to tackle complex challenges.
As Zid looks ahead to 2025, the company is focused on deepening its impact in Saudi Arabia while expanding its regional presence across the Gulf Cooperation Council.
Al-Asmi shared the company’s priorities for the coming year, stating, “Our priorities include further enhancing the Total Commerce ecosystem by introducing advanced AI capabilities, expanding Zid Financing to make capital more accessible to merchants, and driving adoption of cross-border commerce solutions.”
He emphasized that cross-border commerce represents a significant growth opportunity for Saudi merchants.
“GCC consumers have a deep appreciation for Saudi products due to their exceptional quality, cultural relevance, and value,” Al Asmi said, highlighting Zid’s efforts to strengthen logistics infrastructure and integrate platforms like Trendyol and Noon to its marketplace suite, which already includes Amazon Marketplace.
Al-Asmi underscored that sustaining momentum requires both innovation and collaboration.
“We plan to strengthen our existing collaboration with global platforms like Snapchat, Google, Meta, and TikTok while continuing to invest in local talent and infrastructure,” he explained.
“Our goal is to create an environment where every merchant can compete and win, regardless of size,” Al-Asmi stated. “With the groundwork laid this year, we are confident that Zid is well-positioned to lead the next chapter of commerce innovation in the region.”
The company has raised $59 million in funding to date, with its latest series B round garnering $50 million in 2021.
Salla: Empowering Saudi e-commerce growth
Salla, one of Saudi Arabia’s leading e-commerce enablement platforms, has cemented its position as a major player in the Kingdom’s rapidly growing digital economy through a series of high-profile partnerships and strategic milestones in 2024.
From securing substantial pre-initial public offering funding to integrating advanced tools for merchants and expanding digital payment solutions, Salla continues to shape the future of online business in the region.
In one of the year’s most notable announcements, Salla closed a $130 million pre-IPO investment round led by Investcorp, with participation from Sanabil Investment, a company owned by the Public Investment Fund, and STV, an existing shareholder.
“We are deeply grateful for the trust and investment from Investcorp and Sanabil in Salla, which reflects their confidence in our vision and our platform’s potential,” said Nawaf Hariri, CEO and co-founder of Salla.
The funds are expected to fuel the company’s growth as it supports over 80,000 active merchants across the region. Hariri emphasized Salla’s commitment to “empowering individuals, SMEs, and enterprises to start and expand their businesses both within and beyond Saudi Arabia.”
Salla’s platform has already enabled over $7 billion in e-commerce sales since 2020 and is tapping into Saudi Arabia’s $20 billion e-commerce market, which is projected to grow by more than 25 percent annually.
Nawaf Hariri, CEO and co-founder of Salla. Supplied
With a proprietary SaaS solution, Salla allows merchants to launch fully digitalized and automated online stores within hours, integrating payment solutions, logistics, and a suite of over 400 applications to support businesses throughout their lifecycle.
The company also strengthened its technology offering through a partnership with Adjust, a global analytics and measurement firm. This integration allows Salla merchants to access advanced app analytics tools, enabling them to optimize campaign performance and scale their businesses.
Amin Fadul, VP of Product at Salla, highlighted the benefits of this collaboration: “By leveraging Adjust’s powerful analytics and attribution tools, our users will have access to deeper insights into customer behavior, allowing them to make data-driven decisions that enhance their marketing strategies and drive growth.”
Adjust’s features, such as customer journey tracking, deep linking, and smart recommendations, complement Salla’s native mobile app maker to help merchants expand their mobile commerce capabilities.
Further enhancing its ecosystem, Salla partnered with STC Bank, Saudi Arabia’s first licensed digital bank, to integrate it as a payment option across more than 80,000 online stores powered by Salla.
This partnership offers merchants and their customers secure and convenient digital payment options directly through STC Bank accounts. By streamlining payment processes, the collaboration aims to boost digital payments and support the Kingdom’s broader digital transformation goals.
“This integration is expected to contribute to a more seamless shopping experience for online customers while reinforcing Salla’s role as a leader in the Saudi e-commerce market,” STC Bank said in its announcement.
Saudi Arabian oil made up 44.3% of Japan’s imports in November
Updated 30 min 25 sec ago
Arab News
TOKYO: Japan imported 31.49 million barrels of Saudi oil in November 2024, making up 44.3 percent of the total, as reported by the Japanese Ministry of Economy, Trade, and Industry’s Agency of Natural Resources and Energy.
Japan imported 71.18 million barrels of oil in November, of which 67.72 million barrels (95.1 percent) came from Arab countries.
Supplies from Arab countries play a vital role in Japan’s energy security. The main suppliers were Saudi Arabia, the UAE, Kuwait, Qatar, and the Neutral Zone (between Saudi Arabia and Kuwait).
The UAE shipped 27.16 million barrels to Japan, which represented 38.2 percent of the total imports, Kuwait contributed 5.19 million barrels (7.3 percent), and Qatar was responsible for 3.42 million barrels (4.8 percent). The Neutral Zone provided 0.6 percent of Japan’s imports.
Politics and resulting sanctions play a large part in determining the source of Japan’s oil imports. With a ban on imports from Iran and Russia, the rest of Japan’s oil imports in November came from Central and South America (1.8 percent), the United States (1.7 percent), Oceania (0.9 percent) and Southeast Asia (0.4 percent).
Omani-Saudi partnership forum explores prospects in health, education, technology, consultation
Trade between the two nations surpassed $2.59 billion in the first half of 2024
Saudi investments in Oman have increased by over 50% since 2021
Updated 41 min 43 sec ago
REEM WALID
RIYADH: Saudi Arabia and Oman are exploring new opportunities for cooperation and investment across various sectors, including health, education, technology, and consulting following a recent meeting,
Organized by the Oman Chamber of Commerce and Industry, the Omani-Saudi partnership forum considered ways to boost collaboration through the involvement of private sectors in both countries, mainly focusing on ongoing projects, the Oman News Agency reported.
This falls in line with the steady and robust economic ties between the two sides. According to data from Oman’s National Center for Statistics and Information, trade between the two nations surpassed 1 billion Omani riyals ($2.59 billion) during the first half of 2024.
This also aligns with the Kingdom’s Vision 2030 and Oman’s Vision 2040. Additionally, Saudi investments in Oman have increased by over 50 percent since 2021, significantly strengthening bilateral economic relations.
During the meeting, the OCCI showcased a presentation titled “Explore the Omani Market,” highlighting economic indicators and the appealing features that set Oman aside, including the nation’s strategic location, special economic and free zones, and incentives offered to investors.
The presentation highlighted target sectors in Oman Vision 2040 and related OCCI services.
The forum introduced firms that aspire to spearhead investment in consultation, education, information technology, and health. It also witnessed the participation of Omani and Saudi business owners.
In October, Saudi Arabia and Oman signed a memorandum of understanding aimed at bolstering economic and planning cooperation based on mutual interests.
The agreement was finalized at the time, with Saudi Minister of Economy and Planning Faisal Al-Ibrahim and his Omani counterpart, Said bin Mohammed Al-Saqri, signing a five-year commitment focused on enhancing medium- and long-term economic planning, studies, and modeling, alongside monetary policies and strategies.
In April, an MoU was signed between the Kingdom and Oman during a meeting between Sultan bin Salem Al-Habsi, Oman’s minister of finance, and Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development.
Discussions focused on cooperation mechanisms between Oman and the fund, as well as updates on collaborative development projects.
The MoU signed at the time is part of broader initiatives aimed at supporting developmental efforts in Oman, including infrastructure, higher education, vocational training, and projects in industry, mining, and transportation, as well as communications and energy sectors.
Culture meets comfort as Diriyah’s hotel expansion boosts Saudi Arabia’s tourism ambitions
Updated 30 December 2024
REEM WALID
RIYADH: Saudi Arabia’s tourism sector is poised for a significant leap forward with the planned opening of new luxury hotels in Diriyah – a $62.2 billion mega-development that fuses the Kingdom’s rich cultural heritage with ambitious modernity.
In October, the CEO of Diriyah Co. unveiled plans for the groundbreaking of seven new hotels by the end of the year, to go alongside the first luxury offering, Bab Samhan, opening its doors in December.
As part of the Vision 2030 initiative, these developments are set to bolster Saudi Arabia’s position as a global tourist destination while driving economic growth and creating jobs.
Diriyah is set to play a key role in this ambition, with 33 million tourists expected in Riyadh as part of Vision 2030, including major events such as Expo, as well as sports, cultural, and business gatherings.
“The opening of additional uniquely themed hotels in Diriyah supports the Kingdom’s new ambition to welcome 150 million visitors by 2030, following the achievement of the previous target of 100 million visitors by 2023, which was reached seven years ahead of schedule,” Diriyah Co.’s group CEO, Jerry Inzerillo told Arab News.
Diriyah Co.’s Group CEO, Jerry Inzerillo. Supplied
“The expansion of new hotel openings in Diriyah is anticipated to contribute to an increase in tourism spending, thereby supporting the non-oil economy and achieving financial sustainability goals,” he added.
The developments will also feature luxurious designs rooted in local heritage, with Inzerillo highlighting the Bab Samhan Hotel as a “prime example” of this philosophy.
“It offers an experience rich in authentic Najdi heritage, blending traditional design with high-quality services and a superior level of luxury,” the CEO said.
Other hotels under construction include Orient Express, Raffles, and Baccarat, alongside Armani, Fauchon L’Hotel, Corinthia and Rosewood.
These developments are expected to draw millions of visitors annually while elevating the Kingdom’s reputation on the global stage.
The newly-opened Bab Samhan hotel. Diriyah.sa
Cultural and economic growth
Camilla Bevilacqua, partner at management consulting firm Arthur D. Little, highlighted the broader implications of Diriyah’s hotel expansion.
“Diriyah is recognized as a UNESCO World Heritage site and is the historical home of the Saudi royal family. The development of hotels in this area can attract culturally minded tourists interested in exploring the rich heritage and history of Saudi Arabia,” she said.
Bevilacqua noted the importance of integrating cultural authenticity with high-end tourism. “By offering accommodation options within or near this historical site, Diriyah can become a focal point for cultural tourism. The selection of flagship hotel brands, such as Armani and Baccarat, will be a driver for international visitation and establish Riyadh as a competitive global destination,” she added.
The expansion also addresses critical infrastructure needs, with Bevilacqua noting that the groundbreaking of these hotels will significantly increase accommodation capacity in Diriyah.
Enhancing local economies
Diriyah’s hotel developments are set to generate significant economic benefits, with experts predicting that the establishment of new hotels will create numerous direct employment opportunities across various roles.
“International flagship hotel brands will raise the quality of services and customer experience across Riyadh, setting a new standard for the sector and upskilling talent in the Kingdom,” said Bevilacqua.
Inzerillo echoed this sentiment, citing the broader employment impact. “The Diriyah project, upon its completion, aims to create over 178,000 job opportunities, positively impacting youth employment and generating new prospects for citizens and the local community,” he said.
Indirect job opportunities are also expected to thrive, particularly in sectors such as transportation, retail, entertainment, and local artisanship.
“‘Made in Saudi’ retail, F&B, and experiences can be created around the new hotels to offer a unique cultural experience for international travelers,” Bevilacqua said.
The influx of tourists and increased spending are expected to further support the local economy, with hotels playing a key role in this growth. Inzerillo said that Diriyah is projected to attract 50 million visits annually by 2030, driving this economic boost. “This influx is anticipated to increase tourism spending and enhance local revenues,” he added.
The rise of Diriyah as a tourism hub presents significant opportunities for local firms and entrepreneurs. Bevilacqua notes that hotels can partner with businesses such as restaurants, tour operators, and craft shops to create package deals or promotions that encourage tourists to extend their stay in Riyadh and boost spending.
She also emphasized the potential for the creative industry. “This will allow revitalization of the local artisan and SME scene and increase their contribution to the economy and society, weaving heritage and conservation into modernization,” said the Arthur D. Little partner.
Inzerillo pointed to the Diriyah Accelerator Program for entrepreneurship as a platform for nurturing local talent. “The program enhances capabilities through various events and initiatives, enabling entrepreneurs to benefit from tourism growth in the Kingdom and Diriyah in particular,” he said, adding: “This includes opportunities in areas such as tour guiding, transportation, hospitality, and the development of heritage-based products.”
Diriyah celebrates Saudi Arabia being awarded the 2034 FIFA World Cup. Diriyah.sa
Stimulating foreign investment
The new hotels are expected to catalyze foreign direct investment by attracting international hospitality brands and investors, which will drive increased FDI in the region and bolster the overall economy.
Diriyah’s ambitious plans include over 40 luxury hotels in partnership with global brands such as Four Seasons and Ritz-Carlton. “This initiative bolsters investor confidence in the Saudi tourism sector and enhances the influx of foreign investments into the Kingdom,” Inzerillo added.
The project also aims to build local capabilities. “Leveraging partnerships and international cooperation, local talent is poised to grow, and knowledge transfer will create sustainable tourism and heritage capabilities in the Kingdom,” Bevilacqua said.
Diriyah’s hotel expansion is not just about luxury — it is a cornerstone of Saudi Arabia’s broader tourism strategy under Vision 2030. By blending heritage and modernity, creating jobs, and attracting global investment, the project exemplifies the Kingdom’s efforts to diversify its economy and position itself as a premier global destination.
“As Diriyah becomes a tourism hotspot, it may stimulate growth in other regions and sectors, promoting a comprehensive tourism industry across the Kingdom,” Bevilacqua said.
