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 payments industry poised for $21.7bn revenue by 2028: BCG 

Saudi Arabia’s payments industry poised for $21.7bn revenue by 2028: BCG 
Updated 40 sec ago
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Saudi Arabia’s payments industry poised for $21.7bn revenue by 2028: BCG 

Saudi Arabia’s payments industry poised for $21.7bn revenue by 2028: BCG 

RIYADH: Saudi Arabia’s payments industry is experiencing strong growth, with total revenues expected to reach $21.7 billion by 2028, according to a new report by Boston Consulting Group. 

The sector’s expansion is driven by the Kingdom’s focus on digital transformation, fintech adoption, and efforts to improve financial accessibility. 

The Kingdom’s payments revenues grew from $10.3 billion in 2018 to $16.2 billion in 2023, reflecting a compound annual growth rate of 9.4 percent. By 2028, this figure is projected to grow by another 34 percent. Additionally, transaction volumes are forecasted to surge by 68 percent, from 11.3 billion in 2023 to 19 billion by 2028. 

These developments highlight Saudi Arabia as a leader in the Gulf Cooperation Council payments sector and a key driver of the Middle East’s projected 7 percent CAGR for payments revenue through 2028. 

“Saudi Arabia’s payments industry is moving toward a balanced model that integrates rapid growth with sustainable resilience,” said Lukasz Rey, managing director, partner and head of the Middle East Financial Institutions Practice at Boston Consulting Group.

“To achieve this, Saudi firms must prioritize scalable, modular infrastructures that optimize operational flexibility while reducing technology overhead. Incorporating generative AI (artificial intelligence) can elevate customer service, streamline fraud detection, and drive efficiency at scale, which are essential factors as the market matures,” she added. 

Rey went on to say that as regulatory scrutiny intensifies, companies that proactively embed risk management and compliance into their core technology will set the standard for delivering secure, innovative services that meet the high expectations of both customers and stakeholders in an evolving sector.

While Saudi Arabia and the broader Middle East region remain growth hotspots, the report highlights a significant global slowdown in the payments industry. 

Global payments revenue is expected to see a CAGR of 5 percent through 2028 — just over half of the 9 percent rate achieved over the past five years. 

The global revenue pool is expected to increase from $1.8 trillion in 2023 to $2.3 trillion by 2028. 

North America and Europe are set to experience the steepest slowdowns, with annual revenue growth of just 3 percent. 

In contrast, emerging markets such as the Middle East, Latin America, and Asia-Pacific are forecasted to see stronger development, driven by the accelerating adoption of digital payments. 

As global payments markets face increasing regulatory scrutiny, technological disruptions, and evolving customer expectations, the Kingdom is well-positioned to sustain its growth trajectory through continued innovation. 

Saudi Arabia’s efforts to modernize its payments infrastructure, expand digital payments adoption, and integrate new technologies like generative AI will play a key role in its long-term success. 

“With transaction volumes in Saudi Arabia set to increase by 68 percent by 2028, the payments sector is a regional leader in growth potential,” said Bhavya Kumar, managing director and partner at Boston Consulting Group.  

“Capturing this value, however, will require firms to build flexible, API-driven infrastructures that integrate seamlessly into digital ecosystems. By adopting agile methods and focusing on regulatory alignment, Saudi firms can adapt quickly to shifting consumer expectations and market demands,” he explained. 

“The companies that strategically invest in scalable technology and embrace a disciplined approach to risk management will distinguish themselves, fostering a resilient framework that drives sustainable success within Saudi Arabia’s dynamic payments industry,” Kumar added. 


Saudi Arabia to develop local talent for container shipping industry

Saudi Arabia to develop local talent for container shipping industry
Updated 58 min 6 sec ago
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Saudi Arabia to develop local talent for container shipping industry

Saudi Arabia to develop local talent for container shipping industry
  • Supply Chain and Logistics Conference brought together leading figures from the maritime and logistics sectors
  • It explored the Kingdom’s opportunities as a global trade gateway

RIYADH: Saudi Arabia must cultivate local talent in the container shipping industry to fully achieve its Vision 2030 ambitions and solidify its position as a global logistics hub, said a senior executive. 

Speaking at a panel discussion during the sixth edition of the Supply Chain and Logistics Conference in Riyadh, Poul Hestbaek, the CEO of Riyadh-based logistics service company Folk Maritime, highlighted the need for specialized expertise in the container sector.

“We have a strong focus on not just diversification, but also on Saudi talent. These are some of the things that we have had to hire experts from outside the Kingdom, but eventually, we hope to replace them with qualified young people from within Saudi Arabia,” Hestbaek said. 

Poul Hestbaek, the CEO of Riyadh-based logistics service company Folk Maritime. Screenshot

He continued: “If the day comes when I have to retire and I am replaced by a Saudi, that would make me really, really happy. So, I think talent is something we will be working on.” 

Hestbaek also highlighted the crucial role of collaboration in developing the Kingdom’s maritime industry, saying, “You cannot pull this off alone. It’s clear you depend on collaboration.” 

He added, “Whether it is partnering with Maersk, King Abdullah Port, or others, the better experts you bring, the better product you can offer.” 

The session brought together leading figures from the maritime and logistics sectors, who explored the Kingdom’s opportunities as a global trade gateway. 

Jay New, the CEO of King Abdullah Port, emphasized Saudi Arabia’s unique geographical advantages and infrastructure and said “30 percent of all containers sail past the Red Sea every day.

“The expansion opportunities for King Abdullah Port northbound along the Red Sea are limitless. You could build a port as big as you would ever want globally,” New said. 

Jay New, the CEO of King Abdullah Port. Screenshot

He added that King Abdullah Port was designed to accommodate future growth, with deep-water berths, linear quays, and cutting-edge automation. 

“In 2021, the World Bank recognized King Abdullah Port as the world’s most efficient port,” New said. 

He added, “King Abdullah Port will remain a consistently high-performing port for the future. This should last for decades, and this allows King Abdullah Port, on behalf of Saudi Arabia in many ways, to attract the main shipping lines into the port.” 

He further said: “This provides Saudi Arabia, Saudi cargo owners, cargo exporters, and cargo importers with access to the biggest ships in the world that serve the main trade routes from Asia to Saudi Arabia, and from Europe and America to Saudi Arabia.” 

Mohammad Shihab, managing director of Maersk Saudi Arabia. Screenshot

During the panel discussion, Mohammad Shihab, managing director of Maersk Saudi Arabia, stressed the dramatic improvements in customs clearance processes over the past decade. 

“Nine years ago, clearing cargo could take more than a week — sometimes up to 14 days. Today, many shipments are cleared in hours, with an average of one day for a large percentage of imports,” he said. 

Shihab added that these advancements make Saudi Arabia increasingly competitive as a transshipment hub. 

“The focus on infrastructure development and digital solutions has significantly enhanced the Kingdom’s position on global trade routes. The ability to clear cargo quickly benefits importers, exporters, and the local economy,” Shihab said. 

Turki Alkhorayef, general manager of Ports and Maritime Services at ELM. Screenshot

Technology was another key focus of the discussion. Turki Alkhorayef, general manager of Ports and Maritime Services at ELM, outlined how digital transformation is boosting efficiency in the logistics sector. 

“We are leveraging artificial intelligence, the Internet of Things, and real-time tracking to provide live updates on vessel arrivals, cargo movements, and port activities,” Alkhorayef said. 

The panel concluded with a consensus that investing in local talent, infrastructure, and advanced technology will be critical to achieving Vision 2030 goals. 

By fostering collaboration and ensuring Saudi nationals are trained to lead the industry, the Kingdom is poised to emerge as a dominant player in the global maritime and logistics sectors. 


JLL secures contract to support AlUla’s transformation into global tourism hub

JLL secures contract to support AlUla’s transformation into global tourism hub
Updated 55 min 47 sec ago
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JLL secures contract to support AlUla’s transformation into global tourism hub

JLL secures contract to support AlUla’s transformation into global tourism hub
  • JLL will provide project and cost management and strategic consulting
  • Deal to support planning, development, and delivery of AlUla’s hospitality, residential, and retail offerings

RIYADH: US-based real estate firm JLL has secured a program management contract with AlUla Development Co. to support the Saudi city’s transformation into a global tourism hub.

Under the agreement, JLL will provide project and cost management and strategic consulting to support the planning, development, and delivery of AlUla’s hospitality, residential, and retail offerings. 

This will include feasibility studies, project planning, construction management, and final handover of completed projects, according to a press release.

The contract with the Public Investment Fund’s subsidiary was signed during a ceremony held at AlUla Development Co.’s office in Riyadh.

Speaking at the event, Maroun Deeb, JLL’s head of project and development services for Saudi Arabia and Bahrain, expressed his pride in contributing to AlUla’s ambitious vision. 

“We are honored to have been chosen to support the AlUla Development Co. on such a significant project. This appointment reinforces our reputation as one of the leading project and program management consultancies in the region,” Deeb said.

He added: “By leveraging our expertise in large-scale projects, construction data insights, leading technology, and sustainable practices, we will ensure better client outcomes.”

Saud Al-Sulaimani, country head of Saudi Arabia at JLL, emphasized the company’s in-depth involvement in AlUla’s development journey. 

He said: “JLL has been at the forefront of AlUla’s transformation from the very beginning, being one of the first companies to work on this iconic destination. Our deep-rooted expertise in supporting the Kingdom’s vision of economic diversification and sustainable growth positions us uniquely for this appointment.”

Al-Sulaimani added: “We are committed to delivering exceptional value and impactful results as we continue to build upon our legacy in Saudi Arabia and drive forward AlUla’s ambitious development agenda.”

AlUla, a region rich in history, is a cornerstone of Saudi Arabia’s Vision 2030 strategy to diversify the economy and establish the country as a global tourism hub. The area’s development focuses on balancing heritage preservation with innovative urban growth. 

JLL’s appointment builds on the company’s significant portfolio in the Kingdom. According to the press release, the project and development services team is currently managing projects with a combined capital value of $30 billion. 

The US firm’s services include overseeing development, project and program management, and cost consultancy, as well as engineering design, workplace fit-out, health and safety advisory, digital solutions, and sustainability consulting.


Closing Bell: Saudi main index ends in the green at 12,097

Closing Bell: Saudi main index ends in the green at 12,097
Updated 16 December 2024
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Closing Bell: Saudi main index ends in the green at 12,097

Closing Bell: Saudi main index ends in the green at 12,097
  • Parallel market Nomu dropped 28.63 points to close at 31,144.44
  • MSCI Tadawul Index rose 4.13 points, or 0.27%, to finish at 1,517.67

RIYADH: Saudi Arabia’s Tadawul All Share Index rebounded on Monday, gaining 37.20 points, or 0.31 percent, to close at 12,096.73.

The benchmark index saw a total trading turnover of SR4.74 billion ($1.26 billion), with 71 stocks advancing, while 154 declined.

Meanwhile, Nomu dropped 28.63 points to close at 31,144.44. The MSCI Tadawul Index also posted a modest gain, rising 4.13 points, or 0.27 percent, to finish at 1,517.67.

Saudi Industrial Development Co. led the main market, with its share price surging 4.27 percent to SR28.10. Other notable gainers included Riyadh Cables Group Co. and Dr. Soliman Abdel Kader Fakeeh Hospital Co., whose shares increased by 4.14 percent and 4.12 percent, closing at SR151 and SR70.80, respectively.

On the downside, Saudi Chemical Co. saw its share price dip by 3.59 percent to SR9.93.

Balsm Alofoq Medical Co., which debuted on the Nomu market on Monday, was the top performer on the parallel market, with its share price soaring 30 percent to SR78.

Additionally, Neft Alsharq Co. for Chemical Industries saw a notable increase, with its share price rising 13.27 percent to SR5.55.

On the announcements front, Saudi-based online beauty brand Nice One has set its final offer price at SR35 for its upcoming initial public offering, positioning the company for a market capitalization of over SR4 billion upon listing.

The company revealed that institutional book-building orders exceeded SR169 billion, reflecting a subscription coverage of 139.4 times.

The retail subscription period for the IPO is scheduled from Dec. 24 to 25. If all formalities are completed by the Capital Market Authority and Saudi Exchange, the offered shares will be listed on the main market.

Meanwhile, Obeikan Glass Co. announced the commencement of trial operations at its new aluminum casting facility, the Saudi Aluminum Casting Foundry, on Dec. 16. The commercial operations of the plant, located in Al-Madina Al-Munawwara Industrial City, are expected to begin in Q1 2025, with a focus on manufacturing and casting aluminum products.


BP, ADNOC’s XRG agree Egypt gas JV Arcius Energy

BP, ADNOC’s XRG agree Egypt gas JV Arcius Energy
Updated 16 December 2024
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BP, ADNOC’s XRG agree Egypt gas JV Arcius Energy

BP, ADNOC’s XRG agree Egypt gas JV Arcius Energy
  • Arcius Energy is 51% owned by BP and 49% owned by XRG
  • ADNOC announced last week the newly-created XRG’s board members

DUBAI: BP and Abu Dhabi National Oil Company’s international investments arm XRG said on Monday they have closed a deal for a new natural gas joint venture in Egypt, as ADNOC expands its efforts to grow abroad.
The joint venture, Arcius Energy, is 51 percent owned by BP and 49 percent owned by XRG. It will operate in Egypt initially.
Naser Saif Al-Yafei, an ADNOC veteran, was hired as Arcius’ chief executive. He most recently led strategy, sustainability and transformation at subsidiary ADNOC Gas. Katerina Papalexandri, vice president of gas and low carbon energy growth at BP, was appointed chief financial officer.


“Arcius Energy brings together the strengths of our two companies to create a dynamic new platform for international growth in natural gas in the region,” BP Chief Executive Murray Auchincloss said in the statement, adding that Egypt was “a hub for new opportunities to build out a highly competitive gas portfolio in the region.”
Sultan Al-Jaber, XRG executive chairman and ADNOC CEO, said the JV “fully aligns with XRG’s objectives to accelerate the transformation of energy systems and build a world-scale integrated gas and chemicals portfolio to meet rising global demand.”
Arcius’ concessions in Egypt comprise a 10 percent interest in Shorouk, which contains the giant Zohr field operated by Eni and 100 percent of North Damietta, which contains the producing Atoll field operated by the Pharaonic Petroleum Company.


It also has exploration concession agreements for North El Tabya, Bellatrix-Seti East and North El Fayrouz.
ADNOC announced last week that the newly-created XRG’s board members include Blackstone’s Jon Gray and former BP boss Bernard Looney, who was dismissed by BP’s board last December after the oil major said he had knowingly misled the board by failing to disclose past relationships.
The appointment of big names from the world of finance and energy to XRG’s board signals its grand ambitions, as ADNOC pursues its aggressive growth strategy.
XRG, which ADNOC said is valued at more than $80 billion, will focus on overseas investments in low-carbon energy, including gas, chemicals and renewables.