Green Horizons: Saudi Arabia’s sustainable tourism drive planting seeds for economic growth

Green Horizons: Saudi Arabia’s sustainable tourism drive planting seeds for economic growth
Tourism destinations such as this resort in Tabuk province, which is part of the Red Sea tourism megaproject, are designed to operate entirely on renewable sources, significantly lowering carbon emissions. (AFP file photo)
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Updated 02 February 2025
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Green Horizons: Saudi Arabia’s sustainable tourism drive planting seeds for economic growth

Green Horizons: Saudi Arabia’s sustainable tourism drive planting seeds for economic growth

RIYADH: Eco-friendly holiday destinations being developed across Saudi Arabia are positioning the Kingdom as a leader in sustainable tourism, a host of experts have told Arab News.

Aligning with the Vision 2030 strategy to increase visitor numbers to the Kingdom to 150 million a year by the end of the decade, Saudi Arabia is creating a host of new vacation resorts, as well as reinvigorating existing popular spots.

Alongside this, the Kingdom has made environmental preservation a key tenet of its ambitions for the tourist industry, with ecological and cultural safeguards inserted directly into its strategy.

According to Pascal Armoudom, partner at Kearney Middle East & Africa, this balanced approach ensures that tourism expansion enhances, rather than compromises, the Kingdom’s natural and cultural assets.

“A central element is renewable energy investment across giga-projects like NEOM and the Red Sea Project. These destinations are designed to operate entirely on renewable sources, significantly lowering carbon emissions. By aligning economic growth with clean energy, Saudi Arabia not only attracts environmentally-conscious visitors but also creates sustainable jobs, supporting economic diversification away from oil,” Armoudom said.




Pascal Armoudom, Partner at Kearney Middle East & Africa. (Supplied)

“Conservation commitments further reinforce this balance. The Saudi Green Initiative aims to plant 10 billion trees and restore millions of hectares of land, reducing carbon while enhancing landscapes that are vital to eco-tourism,” he added.

The Kearney partner went on to note that these commitments ensure that as tourism grows, natural habitats are preserved, making Saudi Arabia’s landscapes more resilient and attractive for long-term tourism investment.

“Cultural preservation and community integration are also prioritized. Projects like Diriyah Gate and AlUla involve local communities in heritage conservation and economic opportunities, allowing residents to benefit economically while protecting cultural authenticity. By prioritizing heritage alongside economic incentives, Saudi Arabia creates a tourism model that is inclusive and respects its historical identity,” Armoudom said.

He added that uniting renewable energy, conservation, and cultural preservation enables Saudi Arabia to build a thriving tourism economy that aligns with global sustainability standards, which will in turn foster growth that sustains both the environment and the economy.

Learning from the mistakes of others

Camilla Bevilacqua, partner at management consulting firm Arthur D. Little, explained that Saudi Arabia has the opportunity to learn from more mature global destinations, where tourism significantly contributes to economic growth but can lead to environmental and social degradation when not designed from a systemic perspective.

“To unlock the full potential of regenerative development, it’s crucial to integrate ecological, social, cultural, and economic understanding into a unified approach, creating a community that becomes steward of the development and a development that contributes to the intrinsic value of natural and heritage assets,” she added.




Camilla Bevilacqua, partner at management consulting firm Arthur D. Little. (Supplied)

The ADL partner also suggested that loss of natural and cultural assets requires large investments, especially from the public sector, to restore habitats and communities that can instead drive economic growth.

The notion that economic development in tourism and environmental protection is not a zero-sum game was echoed by Seif Sammakieh, partner in Oliver Wyman’s Government and Public Institutions Practice and the head of the Riyadh office.

He flagged up that Saudi Arabia is already putting this mentality into practice, adding: “Across the ecosystem there is clearly a deep commitment to safeguarding natural and cultural heritage, and a recognition that these resources are essential to the country’s tourism appeal.”

Sammakieh highlighted that part of the attraction of the Red Sea is its rich and diverse coral reef, meaning the economic success of the tourist destination requires a steadfast commitment to environmental preservation.

Innovation is key

Saudi Arabia is leading sustainable tourism through innovative, eco-friendly developments that align with Vision 2030’s commitment to environmental conservation and cultural preservation.

Kearney’s Armoudom highlighted Amaala, a luxury wellness destination on the Red Sea coast, as an example of a project that will be fully powered by renewable energy.




Seif Sammakieh, partner in Oliver Wyman’s Government and Public Institutions Practice and the head of the Riyadh office. (Supplied)

He also focused on Diriyah Gate as a project that blends cultural preservation with sustainable practices.

“This historic site is being developed as a cultural hub, incorporating energy-efficient designs, water-saving measures, and native landscaping, allowing visitors to experience Saudi heritage responsibly,” the Kearney partner added.

From ADL’s side, Bevilacqua noted that Saudi Arabia’s Vision 2030 includes sustainable tourism initiatives across multiple projects and organizations, such as Soudah, AlUla, NEOM, the Red Sea, and several Royal Reserves and National Parks. She also stressed that these efforts target ecological restoration, economic transformation, and community empowerment.

“For Soudah Development, ecological restoration plans to plant over 1 million trees by 2030 aim to restore mountain ecosystems, while wildlife reintroduction programs, such as the rewilding of Nubian ibex, enhance biodiversity. Additionally, over 300 locals have been trained as eco-guides and forest stewards, contributing directly to tourism growth and increasing community engagement,” Bevilacqua said.

With regards to the Red Sea Project, the ADL partner emphasized that the coral reef and mangrove restoration efforts aim for a 40 percent biodiversity increase and sequester 500,000 tonnes of carbon dioxide annually as part of marine and coastal ecosystem restoration. Additionally, over 500 jobs have been created, aligning conservation with economic development through ecotourism initiatives.

The rise of eco-tourism

While integrating sustainability and environmental protection into tourism developments is admirable, these projects do ultimately need to attract visitors in order to deliver an economic return.

Nicolas Mayer, PwC Middle East partner and global tourism industry lead, explained that tourists drawn to nature-based experiences tend to be strong spenders, contributing significantly to the local economy.

“Eco-tourism, in particular, has a profound economic impact on more remote and economically weaker regions, where visitor spending can create jobs, stimulate local businesses, and foster infrastructure development that benefits residents and tourists alike,” Mayer said.




Nicolas Mayer, PwC Middle East Partner, Global Tourism Industry Lead. (Supplied)

“This type of tourism is especially appealing for domestic travelers, who bring significant economic benefits while generating a lower ecological impact than international visitors. By encouraging domestic tourism, the Kingdom reduces the carbon footprint associated with air travel, thus aligning with its sustainability goals,” he added.

The PwC representative continued to stress that the concept of regenerative tourism is central to Saudi Arabia’s approach.

“Unlike traditional tourism, which may strain resources, regenerative tourism actively restores and enhances natural and cultural sites. This approach ensures that destinations not only maintain their ecological and cultural value but also improve over time, offering a richer experience for future visitors and a lasting legacy for local communities,” Mayer said.


Saudi Public Investment Fund partners with Goldman Sachs Asset Management

Saudi Public Investment Fund partners with Goldman Sachs Asset Management
Updated 04 March 2025
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Saudi Public Investment Fund partners with Goldman Sachs Asset Management

Saudi Public Investment Fund partners with Goldman Sachs Asset Management
  • The PIF will serve as an anchor investor for new funds in Saudi Arabia and other Gulf nations
  • A goal s to attract capital from global investors, a significant portion of which will be earmarked for investments in the Kingdom

RIYADH: The Public Investment Fund and Goldman Sachs Asset Management signed a non-binding memorandum of understanding in Riyadh on Monday. The agreement designates the PIF as an anchor investor for new private and public funds in Saudi Arabia and other GCC countries.

An anchor investor is an institutional investor that backs a business or asset before it goes public on the stock market, to add value and help establish its name and reputation.

The aim of the new partnership is to help position the Kingdom as an investment hub and grow the Saudi asset management sector by leveraging the institutional strength of the PIF and the expertise of Goldman Sachs, the organizations said. A goal is to attract equity capital from international investors, a significant portion of which will be earmarked for investments within the Kingdom.

Yazeed Al-Humied, deputy governor and head of Middle East and North Africa investments at PIF, said asset management forms part of the fund’s broader efforts to diversify the Saudi economy and strengthen local capital markets.

He described the agreement with Goldman Sachs as “another element in PIF’s strategy of attracting global capital and expertise from a wide range of investors to the region, while facilitating knowledge-transfer and capacity-building within Saudi Arabia.”

Their private-credit strategy will focus on senior and junior loans (representing higher or lower priority debts) for companies in the GCC region, officials said. Their public equity strategies will target investments in publicly listed companies associated with the Kingdom.

Goldman Sachs recently expanded its presence in Saudi Arabia, opening a new office in Riyadh in October. Marc Nachmann, global head of asset and wealth management, said the company is proud to collaborate with the PIF to develop investment strategies.

“Drawing on our decades of experience investing in public and private markets, our aim is to help clients access the dynamic opportunities created by Saudi Arabia and the wider GCC’s rapid economic transformation,” he added.

“We are excited to see this partnership expand and to continue building our presence in Saudi Arabia.”

The PIF said it aims to support Saudi Arabia’s Vision 2030 plan for national development and diversification through a wide range of investments and partnerships. Since 2017, it has established 103 companies to create investment opportunities in the Saudi economy.


OPEC+ to proceed with planned April oil output hike

A view shows the logo of Organization of the Petroleum Exporting Countries (OPEC). (File/Reuters)
A view shows the logo of Organization of the Petroleum Exporting Countries (OPEC). (File/Reuters)
Updated 03 March 2025
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OPEC+ to proceed with planned April oil output hike

A view shows the logo of Organization of the Petroleum Exporting Countries (OPEC). (File/Reuters)
  • The increase is the first since 2022 from OPEC+, which includes the Organization of the Petroleum Exporting Countries, plus Russia and other allies

LONDON: OPEC+ has decided to proceed with a planned April oil output increase, the group said on Monday.
The increase is the first since 2022 from OPEC+, which includes the Organization of the Petroleum Exporting Countries, plus Russia and other allies. Oil was trading 2 percent lower toward $71 a barrel at 1900 GMT.
Eight OPEC+ members that are making the group’s most recent layer of output cuts held a virtual meeting on Monday and agreed to proceed with the April increase, OPEC said. The increase is 138,000 barrels per day according to Reuters calculations.
“This gradual increase may be paused or reversed subject to market conditions,” OPEC said in a statement. “This flexibility will allow the group to continue to support oil market stability.”
Oil has been trading in a range of $70-$82 a barrel in recent weeks in anticipation of major changes to US sanctions on large oil producers Iran, Russia and Venezuela as well as US tariffs on China that could reduce demand.
Trump has renewed pressure on OPEC to bring down prices, which rallied to multi-month highs above $82 a barrel in January after Trump’s predecessor Joe Biden slapped new sanctions on Russia.
Since then prices have fallen on hopes Trump would help clinch a peace deal in the war between Russia and Ukraine and boost Russian oil flows. However, his plans to cut Iran’s oil exports to zero and the cancelation last week of a Chevron license to operate in Venezuela prevented prices from falling further.
The combination of those bullish and bearish factors made decision-making for April extremely complex, OPEC+ sources have said. They added that Trump’s plans for global tariffs could complicate the outlook even further.
OPEC+ has been cutting output by 5.85 million barrels per day, equal to about 5.7 percent of global supply, agreed in a series of steps since 2022 to support the market.
In December, OPEC+ extended its latest layer of cuts through the first quarter of 2025, pushing back the plan to begin raising output to April. The extension was the latest of several delays last year.
Based on the plan, the gradual unwinding of 2.2 million bpd of cuts — the most recent layer — begins in April with a monthly rise of 138,000 bpd.


Closing Bell: Saudi indices close in green 

Closing Bell: Saudi indices close in green 
Updated 03 March 2025
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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 increased on Monday, gaining 88.36 points, or 0.73 percent, to close at 12,123.81.

The total trading turnover of the benchmark index was SR6.1 billion ($1.6 billion), as 138 of the listed stocks advanced, while 99 retreated.

The MSCI Tadawul Index also increased by 13.74 points, or 0.91 percent, to close at 1,525.96.

The Kingdom’s parallel market Nomu gained 113.62 points, or 0.36 percent, to close at 31,695.97. This came as 39 of the listed stocks advanced while 36 retreated.

Sustained Infrastructure Holding Co. was the best-performing stock of the day, with its share price surging by 6.82 percent to SR32.10.

Other top performers included BAAN Holding Group Co., which saw its share price rise by 6.11 percent to SR2.43, and Al-Baha Investment and Development Co., which saw a 5.26 percent increase to SR0.40.

Riyad Bank rose 4.91 percent to SR29.90, while Lazurde Co. for Jewelry gained 4.87 percent to SR13.78.

SAL Saudi Logistics Services Co. saw the steepest decline of the day, with its share price easing 7.45 percent to close at SR203.80.

ACWA Power Co. fell 5.56 percent to SR353.20, while the Power and Water Utility Co. for Jubail and Yanbu dropped 4.83 percent to SR46.30.

Saudi Cable Co. also faced a loss in today’s session, with its share price dipping 4.56 percent to SR125.60, while East Pipes Integrated Co. for Industry saw a 3.57 percent to settle at SR151.40.

On the announcement front, Balady Poultry Co. released its financial results for the fiscal year 2024, reporting a net profit of SR118.11 million, marking a 17.04 percent increase from SR100.91 million in the previous year.

The company attributed the rise to increased production capacity, with average daily output growing to 192,000 birds per day in 2024, compared to 164,000 in 2023.

Total revenue for the year reached SR887.11 million, reflecting a 16.58 percent increase from SR760.97 million in 2023.

Gross profit also saw a significant rise of 21.8 percent, reaching SR144.45 million, while operational profit climbed 15.95 percent to SR121.38 million.

Balady Poultry’s total shareholders’ equity, after deducting minority equity, surged by 46.96 percent to SR308.94 million from SR210.22 million in the previous year.

Listed on Nomu, Balady Poultry’s share price dropped 8 percent on Monday to settle at SR322.

The Power and Water Utility Co. for Jubail and Yanbu, also known as Marafig, reported a significant decline in net profit for 2024, falling 97.08 percent to SR17.15 million from SR587 million in the previous year.

The sharp drop was attributed to rising fuel costs, increased provisions for credit losses, and lower finance income.

Revenue for the year increased 7.83 percent to SR6.88 billion, driven by higher sales volumes across all main business sectors.

However, gross profit fell 11.07 percent to SR1.52 billion, while operational profit declined 40.57 percent to SR948 million. Total comprehensive income also dropped 93.96 percent to SR34.32 million.

The company cited a 44 percent rise in fuel costs, amounting to SR580 million, as a key factor impacting profitability.

Additionally, Marafig recorded a provision of SR511 million for expected credit losses on trade receivables and reported a 26 percent decline in finance income.

These factors were partially offset by increased revenues, a 26 percent rise in other operating income from insurance claim collections, and a 52.54 percent reduction in zakat provisions.


Saudi banks’ aggregate profit reaches $2.2bn: SAMA 

Saudi banks’ aggregate profit reaches $2.2bn: SAMA 
Updated 03 March 2025
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Saudi banks’ aggregate profit reaches $2.2bn: SAMA 

Saudi banks’ aggregate profit reaches $2.2bn: SAMA 

RIYADH: Saudi banks posted strong financial results in January, with aggregate profits rising 16 percent year on year to SR8.14 billion ($2.17 billion), according to newly released data. 

Figures from the Saudi Central Bank, also known as SAMA, representing pre-zakat and pre-tax earnings, highlight the sector’s resilience and growing profitability. 

The surge comes as total bank loans in Saudi Arabia exceeded SR3 trillion for the first time, marking a 14.66 percent annual increase — the fastest pace since October 2022. 

A key driver of this growth has been increased business financing, particularly in real estate, manufacturing, and trade. As lending to these sectors expands, banks benefit from higher interest income, reinforcing their financial performance and their role in supporting economic diversification under Vision 2030.  

Saudi banks closed 2024 with record-high cumulative profits of SR89.1 billion, with December marking the highest monthly earnings. 

The sector has also benefited from government stimulus efforts aimed at supporting businesses, enhancing credit access, and driving infrastructure development. To sustain growth, Saudi banks have tapped into the bond market, securing additional capital for lending and investments, further strengthening their financial positions amid economic fluctuations. 

Additionally, the sector has effectively adapted to shifting economic conditions, including fluctuating interest rates that have influenced lending practices and consumer behavior. 

According to S&P Global, Saudi banks are set for continued profitability, driven by higher lending growth, a favorable economic environment, and lower interest rates. 

The forecast suggests that non-performing loan formation will remain slow amid lower interest rates, with S&P Global projecting NPLs to rise to 1.7 percent of systemwide loans by the end of 2025, up from 1.3 percent in September 2024. 

However, the increase in NPLs is expected to be gradual, with no significant write-offs anticipated in the near future. 

S&P Global also sees credit growth as a key driver of bank profitability, with return on assets projected to stabilize between 2.1 and 2.2 percent, in line with the 2024 estimate. 

This, along with a strong provisioning cushion, will help mitigate potential credit losses, which are expected to range between 0.50 and 0.60 percent of total loans over the next 12-24 months. 

However, despite the benefits of increased lending, challenges remain. The net interest margin is projected to decline by 20-30 basis points by the end of 2025, primarily as SAMA aligns with US Federal Reserve rate cuts to maintain the currency peg. 

Additionally, the repricing of largely floating corporate loans — accounting for 50 percent of total loans, according to S&P Global — is expected to lower interest income. 

This impact will be partially offset by fixed-rate and long-term mortgages, which comprise 25 percent of the total loan portfolio. 

In the broader picture, while lower interest rates may reduce funding costs, a sharp decline could shift consumer preferences toward demand deposits, potentially affecting overall bank funding. 

Data from SAMA showed that demand deposits hit a record high of SR1.68 trillion in January, while time and savings accounts declined slightly from their November peak of SR989.99 billion to SR985.03 billion, as interest rates edged lower. 

Despite these pressures, Saudi banks are expected to remain resilient, with a solid foundation for sustained profitability into 2025, according to the agency. 


MENA startups funding reaches almost $500m a month: report 

MENA startups funding reaches almost $500m a month: report 
Updated 03 March 2025
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MENA startups funding reaches almost $500m a month: report 

MENA startups funding reaches almost $500m a month: report 

RIYADH: Investment in Middle East and North Africa startups surged nearly fivefold in February, with funding reaching $494 million across 58 deals, according to Wamda’s monthly report. 

The sharp increase follows a January dominated by debt financing, which accounted for 90 percent of investments. 

However, in February, debt financing dropped to 15 percent, with equity investments driving growth. Excluding debt, month-on-month funding rose 371 percent. 

Saudi Arabia and UAE lead regional investment 

Saudi startups secured the largest share, raising $250.3 million across 25 deals, fueled by major announcements at LEAP 2025. The UAE followed with $203.5 million across 15 deals, while Egypt ranked third with $27.5 million from eight deals. 

Oman returned to the top four, securing $6 million across two deals. Smaller investments were recorded in Morocco, Tunisia, and Jordan, as well as Bahrain and Qatar. 

Morocco and Jordan each saw $1 million invested across two and one deals, respectively.  

Tunisia recorded $300,000 across two deals, while Bahrain secured $1.7 million in a single transaction, and Qatar saw $2.7 million invested in two deals. 

Fintech leads sectoral investments 

Fintech attracted the highest funding, securing $274 million across 15 deals. Insurtech followed with $55 million, while logistics raised $28.5 million in four deals. 

Other notable sectors included martech and edtech, each raising $28 million, and contech securing $17.7 million. Cleantech startups attracted $15 million, while AI-focused startups secured $14 million. 

Software-as-a-Service companies raised $13.4 million, while e-commerce and Web3 startups secured $6.9 million and $5 million, respectively.  

Healthtech, e-services, foodtech, and regtech startups attracted smaller amounts, ranging from $866,000 to $2.9 million. Mobility, mediatech, and gametech startups each raised under $200,000. 

Later-stage funding gains momentum 

February saw an increase in later-stage funding rounds, with buy now, pay later giant Tabby securing $160 million in Series E funding, the largest single deal of the month.  

Flow48, an alternative finance platform, raised $69 million, while Applied AI secured $55 million, making them the other two standout mega deals. 

Series A startups collectively raised $158 million across seven deals, while series B funding reached $56 million across two rounds.  

Pre-series B funding accounted for $22.7 million across eight transactions, while pre-Series A startups raised $5.5 million across five deals. 

In contrast, early-stage funding was widely distributed, with 15 pre-seed startups raising $22 million and 10 seed-stage startups securing $27.8 million.  

Equity investments accounted for $2.5 million across four deals, while one grant of $1.7 million was recorded. 

B2B startups attract most investment 

Startups operating under the business-to-business model attracted the largest share of investment, raising $191.6 million across 33 deals.  

Business-to-consumer startups followed with $138.5 million secured across 18 deals.  

Meanwhile, six startups operating in both B2B and B2C models raised a combined $164 million. 

Gender disparity in startup funding persists 

Investment remained heavily skewed toward male-led startups, which secured $428.7 million, accounting for 86.7 percent of total funding.  

Mixed-gender teams attracted $65 million, representing 13.2 percent of investments, while female-founded startups received just $200,000, highlighting the ongoing gender disparity in the region’s startup funding landscape. 

Venture capital activity on the rise 

MENA’s venture capital ecosystem is also seeing renewed interest from international investors.  

500 Global, a US-based VC firm, recently launched 500 MENA L.P., a dedicated fund focused on high-growth tech startups in the region.  

The fund aims to support companies beyond the seed stage, catalyzing further expansion of the region’s technology ecosystem. 

Additionally, Al Madinah Angels Network was recently established in Saudi Arabia to support startups under the Al Madinah Ventures Initiatives.  

This angel investor group seeks to provide early-stage funding and mentorship to founders, contributing to the region’s broader economic growth strategy. 

Saudi Arabia continues to be the leading VC investment hub in the region, having secured $750 million in total venture capital funding in 2024. 

The country’s sustained leadership in startup investment underscores its growing influence as a center for entrepreneurship and innovation in MENA. 

Other countries are following the regional trend. Earlier in February, the Qatar Investment Authority announced that it is advancing its $1 billion “fund of funds” venture capital program.  

The initiative, currently evaluating eight new VC firms, aims to fill funding gaps in series A, B, and C rounds while encouraging participating firms to establish offices in Doha to build a stronger local ecosystem.