Preserving the Past, Building the Future: Saudi Arabia’s cultural heritage and business synergy

Preserving the Past, Building the Future: Saudi Arabia’s cultural heritage and business synergy
Above, a tourist poses in front of a rose-colored sandstone in Madain Saleh, a UNESCO World Heritage site, near Saudi Arabia’s northwestern town of AlUla. (AFP)
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Updated 09 November 2024
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Preserving the Past, Building the Future: Saudi Arabia’s cultural heritage and business synergy

Preserving the Past, Building the Future: Saudi Arabia’s cultural heritage and business synergy

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.


Saudi Arabia’s ACWA Power launches $3bn renewable projects in Uzbekistan

Saudi Arabia’s ACWA Power launches $3bn renewable projects in Uzbekistan
Updated 18 December 2024
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Saudi Arabia’s ACWA Power launches $3bn renewable projects in Uzbekistan

Saudi Arabia’s ACWA Power launches $3bn renewable projects in Uzbekistan
  • ACWA Power has been significantly involved in Uzbekistan’s renewable energy sector in recent years
  • Uzbekistan aims to generate 40 percent of its electricity from renewable sources by 2030

JEDDAH: Saudi utility giant ACWA Power launched three renewable projects in Uzbekistan, including wind, solar, and battery storage, marking a $3 billion investment in the country’s energy transition.

On Dec. 18, Uzbekistan’s President Shavkat Mirziyoyev and the Kingdom’s Minister of Energy, Prince Abdulaziz bin Salman, who joined virtually, inaugurated the projects.

The initiatives include the Bash and Dzhankeldy Wind Power Plants with a total capacity of 1,000 megawatts and a transmission line, the Samarkand 1 and 2 solar projects with 1,000 MW of solar power and a 1,000 MWh battery energy storage system, and the Tashkent BESS Project, which consists of a 500 MWh BESS.

Uzbekistan aims to generate 40 percent of its electricity from renewable sources by 2030, a critical milestone in its broader plan to achieve 20 gigawatts of clean energy capacity by the decade’s end.

Mohammad Abunayyan, the chairman of ACWA Power’s board of directors, who also chairs the Saudi-Uzbek Business Council, emphasized the significant progress in his company’s collaboration with the Uzbek government, highlighting its role as a key strategic investor in the country’s rapidly growing clean energy sector.

Abunayyan said: “Today’s groundbreaking highlights the multitude of large-scale foreign direct investments and commendable efforts by Uzbekistan to strengthen the potential of the country’s energy system and capacity. It also paves the way for the commencement of ACWA Power projects that are expected to yield widespread benefits for Uzbekistan’s key regions and communities.”

Prince Abdulaziz commended the robust relationship between the Kingdom and Uzbekistan and said the alliance has nurtured deep collaboration across multiple sectors, with a particular focus on energy, which has brought mutual benefits to both nations, according to a statement from the company.

The Saudi minister also praised the economic cooperation between the two countries, particularly in the context of Saudi Vision 2030 and Uzbekistan Strategy 2030. He stressed their shared goals of economic development, diversification, renewable energy, and sustainable growth, as well as the Kingdom’s growing investment in Uzbekistan’s electricity sector amid the country’s energy transition.

In October, ACWA Power announced it signed a letter of intent with the Asian Infrastructure Investment Bank to secure $150 million for the development of three wind power plants in Uzbekistan, namely the Kungrad 1, 2, and 3 plants in the Karakalpakstan region.

The company, listed on the Saudi Stock Exchange, said in a press release that the financing will support the three facilities, each with a capacity of 500 MW.

The financing term is set at four years and will be backed by an institutional guarantee from ACWA Power.

Uzbekistan is a key foreign market for ACWA Power, which has been significantly involved in the country’s renewable energy sector in recent years.

The company’s current portfolio in Uzbekistan includes 11.6 GW of power, with 10.1 GW from renewable sources, along with the country’s first green hydrogen project, which has an annual capacity of 3,000 tonnes.

Since the partnership began, four major projects worth approximately $3 billion have been successfully implemented, with an ongoing portfolio of initiatives valued at $15 billion, ACWA Power said in the statement.


Saudi Arabia unveils enhanced e-guide to boost exports

Saudi Arabia unveils enhanced e-guide to boost exports
Updated 18 December 2024
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Saudi Arabia unveils enhanced e-guide to boost exports

Saudi Arabia unveils enhanced e-guide to boost exports

JEDDAH: The Kingdom’s businesses now have access to an enhanced support system through the newly launched electronic guide by the Saudi Export Development Authority.

SEDA has introduced the first digital version of its Export Incentive Service, or Incentives, which provides a comprehensive overview of key benefits, application procedures, and eligibility criteria aimed at promoting exports.

The initiative is designed to help Saudi companies expand into global markets by offering nine distinct incentives that adhere to World Trade Organization regulations, according to the Saudi Press Agency.

This launch is part of SEDA’s ongoing efforts to enhance the export environment, raise awareness of export practices, develop human capital within the sector, and create new opportunities for Saudi exporters.

Additionally, the program seeks to address the challenges faced by exporters through collaboration with both public and private sector stakeholders. By supporting these efforts, the program aligns with the Kingdom’s Vision 2030 goals of diversifying sources of national income.

The guide caters to the specific needs of exporters, covering a wide range of activities, including e-commerce platform registration, product certification, participation in international trade shows, marketing, advertising, product registration, and facilitating visits to potential buyers. It also offers legal consultations and specialized training.

A notable feature of the program is its cost-sharing component. The initiative compensates companies for a portion of the costs associated with entering new markets, offering reimbursement ranging from 50 percent to 75 percent, depending on specific terms and conditions.

In the third quarter of 2024, Saudi Arabia’s non-oil exports reached SR79.48 billion ($21.17 billion), marking an impressive 16.76 percent increase compared to the same period in 2023, according to data from the General Authority for Statistics.

Notably, the Kingdom’s exports to the UAE amounted to SR19.58 billion, followed by India at SR6.78 billion and China at SR6.48 billion.

Chemical products led the Kingdom’s non-oil exports, representing 25.5 percent of total shipments, with a 5.3 percent year-on-year increase. Plastic and rubber products followed, accounting for 24.9 percent of exports, reflecting an 8.9 percent growth compared to the previous year.

In addition to the export incentives program, SEDA recently introduced another initiative exempting industrial inputs from customs duties.

Developed in collaboration with the Ministry of Industry and Mineral Resources, this service provides industrial companies with customs duty exemptions on inputs used to produce export goods. This move aligns with Vision 2030’s broader goal of diversifying the economy and increasing non-oil exports.

The service covers industrial inputs, such as raw materials, labor, fuel, equipment, and buildings, enabling Saudi manufacturers to reduce costs associated with production for export. By improving cost efficiency, the initiative aims to enhance the global competitiveness of Saudi industries.

Together, these programs are designed to diversify income sources, enhance non-oil exports, and promote sustainable growth, offering innovative solutions tailored to the needs of exporters while supporting the competitiveness of the Kingdom’s industrial sector.


Closing Bell: Saudi indices close in green

Closing Bell: Saudi indices close in green
Updated 18 December 2024
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Closing Bell: Saudi indices close in green

Closing Bell: Saudi indices close in green

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Wednesday, gaining 12.33 points, or 0.10 percent, to close at 11,961.05.  

The total trading turnover of the benchmark index was SR4.5 billion ($1.2 billion), as 117 of the listed stocks advanced, while 106 retreated.     

The MSCI Tadawul Index increased by 0.40 points, or 0.03 percent, to close at 1,498.37.  

The Kingdom’s parallel market Nomu also gained 95.94 points, or 0.31 percent, to close at 31,196.25. This comes as 47 of the listed stocks advanced, while 39 retreated.  

The best-performing stock of the day was Savola Group, with its share price surging by 9.98 percent to SR33.60.  

Other top performers included United International Holding Co., which saw its share price rise by 9.01 percent to SR171.80, and Batic Investments and Logistics Co., which saw a 6.05 percent increase to SR3.68.     

Alkhaleej Training and Education Co. saw its share price surge by 4.35 percent to SR32.35, while Fitaihi Holding Group recorded a 3.58 percent rise, closing at SR4.34.  

Red Sea International Co. saw the biggest decline of the day, with its share price dropping 7.05 percent to SR56.70. 

Jahez International Co. for Information System Technology saw its shares drop 5.07 percent to SR29, while Zamil Industrial Investment Co. declined 3.95 percent to SR32.80. 

Moreover, Sumou Real Estate Co. dropped 3.83 percent to SR46.50, while Al-Baha Investment and Development Co. fell 3.12 percent to SR0.31. 

On the parallel market Nomu, the top performer was View United Real Estate Development Co. with its share price surging by 30 percent to reach SR9.88.  

Leen Alkhair Trading Co. saw a 9.62 percent surge in its share price to SR25.65, placing second, followed by Yaqeen Capital Co., which rose 8.13 percent to SR26.60. 

Dar Almarkabah for Renting Cars Co. saw a 7.71 percent increase, reaching SR17.75, while Abdulaziz and Mansour Ibrahim Albabtin Co. rose 7.59 percent to SR17.80. 

Nomu’s two biggest decliners for the day were Enma AlRawabi Co., with its share price falling 11.65 percent to SR22, and Knowledge Net Co., which dropped 8.70 percent to SR31.50. 

Leaf Global Environmental Services Co. followed with a dip of 8.40 percent in its share price reaching SR97.10.  

Bena Steel Industries Co. and Advance International Company for Communication and Information Technology were also among the worst performers with a 7.16 percent and 6.25 percent decline respectively.  

On the announcement front, Saudi Arabia’s Capital Market Authority has approved Saudi Fisheries Co.’s request to reduce its capital from SR400 million to SR66.99 million, representing a reduction in the number of shares from 40 million to 6.7 million. The move aims to restructure the company’s capital base.

Saudi Fisheries Co.’s share price closed Wednesday with a 0.44 percent drop to settle at SR22.56.

Additionally, the CMA has approved Makkah Construction and Development Co.’s request to increase its capital from SR1.65 billion to SR2 billion.

The capital increase will be achieved by issuing 0.213 bonus shares for every existing share owned by registered shareholders, with a total of 35.18 million new shares to be issued.

The increase will be funded by transferring SR351.84 million from the company’s statutory reserve account to its capital.

Makkah Construction and Development Co.’s share price dropped 1.46 percent on Wednesday to settle at SR107.80.

In a separate announcement, Yaqeen Capital Co., acting as the financial advisor and lead manager for ITMAM Consulting Co., disclosed the firm’s intention to offer 3 million ordinary shares, representing 14.29 percent of its total capital, in an initial public offering.

The company plans to list its shares on the parallel market, subject to regulatory approval. 


Cairo-Jeddah named second-busiest international air route for 2024

Cairo-Jeddah named second-busiest international air route for 2024
Updated 18 December 2024
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Cairo-Jeddah named second-busiest international air route for 2024

Cairo-Jeddah named second-busiest international air route for 2024
  • Airline capacity on this route has surged by 14% compared to 2023, and has increased by 62% compared to 2019
  • Expansion contributes to Saudi Arabia’s target of attracting 150 million visitors annually by the end of the decade

RIYADH: The Cairo-Jeddah air route has been ranked as the second-busiest international flight corridor in 2024, with approximately 5.5 million available seats, according to a new report.

The analysis, conducted by global travel data provider the Official Airline Guide, revealed that airline capacity on this route has surged by 14 percent compared to 2023, and has increased by 62 percent compared to 2019.

This growth is aligned with Saudi Arabia’s broader efforts to enhance its aviation sector, which is a key part of its Vision 2030 strategy.

These efforts include strengthening the country’s airlines, logistics services, cargo infrastructure, and other support industries to boost tourism and make the Kingdom a global aviation hub.

The expansion also contributes to Saudi Arabia’s target of attracting 150 million visitors annually by the end of the decade.

John Grant, chief analyst at OAG, attributed the rapid growth of the Cairo-Jeddah route to significant investments under Vision 2030, as well as longstanding ties between the two cities, which have historically seen high volumes of worker traffic and, more recently, increased business activity in consultancy and services.

He also noted that the easing of travel restrictions for entry into Saudi Arabia and the rise of low-cost carriers have contributed to the route’s growth.

The report also highlights a 19.1 percent capacity gap between the second and first-place routes. Hong Kong-Taipei holds the title of the world’s busiest international route in 2024, with 6.8 million available seats.

The Seoul Incheon-Tokyo Narita route ranks third with 5.4 million seats, just 58,818 seats behind Cairo-Jeddah, while Kuala Lumpur-Singapore Changi follows closely in fourth place with 5.4 million seats, only 28,293 behind third.

The Bangkok-Hong Kong route has made a significant leap into the Top 10 Busiest International Routes for 2024, ranking seventh with 4.2 million seats. This marks a 29 percent increase in capacity compared to 2023, although it still lags 13 percent behind the 2019 levels.

Asia dominates the top 10, with seven of the busiest routes located in the region. Other notable routes include New York JFK to London Heathrow and two Middle Eastern routes: Cairo-Jeddah and Dubai-Riyadh. The Jeddah-Riyadh route has also seen impressive growth, with capacity increasing by 10 percent in 2024 compared to the previous year.

These trends highlight the growing demand for air travel in and out of the Middle East, particularly in Saudi Arabia, which continues to make strides toward achieving its ambitious goals under Vision 2030.


King Fahd Airport sees 15% growth in passenger traffic, reaching 12m in 2024

King Fahd Airport sees 15% growth in passenger traffic, reaching 12m in 2024
Updated 18 December 2024
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King Fahd Airport sees 15% growth in passenger traffic, reaching 12m in 2024

King Fahd Airport sees 15% growth in passenger traffic, reaching 12m in 2024
  • Airport set new daily records for the number of passengers, surpassing 50,000 in a single day
  • Saudi Arabia’s civil aviation sector experienced a 17% annual surge to 62 million passengers in the first half of 2024

JEDDAH: Saudi Arabia’s King Fahd International Airport reported a 15 percent annual increase in passenger traffic in 2024, reaching 12 million, according to official statistics.

Dammam Airports Co, the managing and developing firm of the facility, reported that the Eastern Province-based airport achieved this milestone between January and mid-December, adding that it handled over 99,000 flights during the same period, reflecting a 5 percent growth compared to 2023.

The airport also set new daily records for the number of passengers, surpassing 50,000 in a single day, a new peak for daily traffic since it started operations.

On June 13, the airport reached a record daily air traffic volume, with 374 flights operated on the day, according to the report by the Saudi Press Agency.

This aligns with the Kingdom’s aviation goals, including tripling annual passenger numbers to 330 million, expanding connectivity to over 250 destinations from its 29 airports, and increasing air freight capacity to 4.5 million tons of cargo annually by 2030.

Breaking the 12 million passengers record is part of the series of successes accomplished by the KFIA’s operating and managing company, aligning with the goals of the National Transport and Logistics Strategy, represented by the National Aviation Strategy.

Saudi Arabia’s civil aviation sector experienced a 17 percent annual surge to 62 million passengers in the first half of 2024, amidst increasing domestic and international travel demand.

According to official statements the General Authority of Civil Aviation issued in July, the period also saw 446,000 flights, reflecting a 12 percent increase compared to 2023. Additionally, air cargo traffic through the Kingdom’s airports rose by 41 percent, reaching 606,000 tons during the same period.

King Khalid International Airport in Riyadh led the growth, handling 17.7 million passengers, a 21 percent year-on-year increase, and 132,000 flights, marking a 15 percent rise from the previous year.

Jeddah’s King Abdulaziz International Airport recorded 24 million passengers, a 16 percent increase, and 148,000 flights, showing a 13 percent rise compared to 2023.