More than 60 billion in public and private tourism investments across various regions of the Kingdom
Riyadh-Amlak
The General Authority for Tourism and Antiquities, in cooperation with the private sector, is making significant efforts to advance the tourism sector and establish more tourism projects that promote domestic tourism. In the coming period, the Authority, in cooperation with its partners, seeks to establish a number of companies and launch a series of development projects in many regions, The total cost of the investment projects planned for implementation during the proposed five-year executive plan—part of the updated General Strategy for National Tourism Development—is estimated at approximately 63.3 billion riyals.
Tourism Investment
Among the companies the General Authority for Tourism and Antiquities seeks to establish is the Saudi Company for Tourism Development and Investment (Holding), a government holding company owned by the Public Investment Fund, with an estimated capital of 200 million riyals. It will be wholly state-owned, particularly during the initial establishment phase, and will work (after its establishment) with the private sector by establishing subsidiaries tasked with developing a number of emerging and new projects. This was confirmed by Dr. Salah Al-Bukheit, Vice President for Investment and Tourism Development at the General Authority for Tourism and Antiquities, who said: “The studies and field surveys conducted by the Authority indicate that investors prefer to engage in specialized projects—which may involve real estate development, services, or other sectors—by establishing special purpose vehicles (SPVs).” There are a number of major tourism projects ready for implementation that the Authority can begin working on in cooperation with the private sector, including the development of the coastal destination south of Jeddah, the coastal destination in the Madinah region, the Souk Okaz Cultural City project, the development of Taif destinations (Al-Hada–Al-Shafa), the Farsan destination (Jazan destination), and the establishment of an exhibitions and conferences company.
Government Support for Tourism
Al-Bukheit noted that work is underway to finalize the procedures for establishing the Al-Aqeer Development Company (a closed joint-stock company) with an estimated capital of 2.710 billion riyals to develop the Al-Aqeer waterfront in the Eastern Province, and to promote it as a tourist destination with contributions from both the public and private sectors. The Ministry of Commerce and Industry has submitted the necessary documents to the relevant authorities for the company’s registration. This came in a comment by Al-Bakheet on the Cabinet’s decision to provide financial and administrative support to the General Authority for Tourism and Antiquities to carry out the tasks entrusted to it by law, a decision considered one of the most significant in the history of the Authority and national tourism. He said: “This decision will mark a qualitative leap in the state’s efforts to create appropriate incentives for fostering an investment-friendly environment for tourism and heritage projects, which will lead to a notable increase in the growth of domestic tourism in these regions and a rise in the proportion of tourism investments there in the coming years.” Al-Bakhit noted that the importance of this decision lies in the fact that the Authority relies heavily on it to manage major tourism investments, which serve as a strategic springboard for the state’s leadership in sustainable tourism development, helping to meet the growing demand for domestic tourism. He added: This decision is expected to contribute effectively to the implementation of tourism programs, projects, plans, and strategies that the Authority has been preparing in recent months, in cooperation with its partners from the public and private sectors.
Tourism Projects Worth 63.3 Billion Riyals
The total cost of the investment projects planned for implementation during the proposed five-year implementation plan—as part of the updated General Strategy for National Tourism Development—is estimated at approximately 63.3 billion riyals, These costs will be covered by the public and private sectors, with the Authority and its public-sector partners bearing 15.160 billion riyals, representing approximately 24 percent of the total costs. Meanwhile, the private sector will bear 48.458 billion riyals, representing approximately 76 percent of the total costs. Therefore, this decision will help provide the key resources—both financial and administrative—needed to move from the planning and feasibility study phase to the actual implementation of tourism investment projects on the ground, and ensure their growth, stability, and sustainability to meet the needs of citizens.
