Saudi Arabia, World Bank pledge $100m to global tourism fund

Hot Air Balloons fly over Mada'in Saleh (Hegra) ancient archeological site near AlUla, Saudi Arabia. (Shutterstock)
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Updated 31 May 2021
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Saudi Arabia, World Bank pledge $100m to global tourism fund

  • International Fund for Comprehensive Tourism will be the first global fund dedicated specifically to supporting global tourism growth
  • Other steps are now being taken by industry leaders to help the tourism sector recover as it navigates its way through the COVID-19 crisis

RIYADH: Saudi Arabia, in partnership with the World Bank, pledged $100 million to establish the International Fund for Comprehensive Tourism, Ahmed Al-Khateeb, the Kingdom’s Minister of Tourism said during the opening speech of the Tourism Recovery Summit 2021 held in Riyadh.

“This will be the first and the only global fund dedicated solely to sustainable international tourism growth,” he said.

The ongoing global coronavirus (COVID-19) pandemic has brought the tourism sector to its knees. Steps are now being taken by industry leaders to help the sector recover as it navigates its way through the impact of the health crisis.

“Sustainability, inclusivity, and collaboration,” are the three vital principles the Saudi minister believes will be responsible for the global tourism recovery effort. 

“I am proud to say the Kingdom of Saudi Arabia is already acting on these principles,” he said. 

“As a new destination, our priority is to protect our rich nature and cultural heritage and to set new standards in sustainability. Our giga projects will combine nature-adventure and cultural attractions in a way that adheres to the highest environmental standards.”

NEOM, a city located in the north of the Kingdom, will be the first city to rely solely on natural modes of transportation and eliminate carbon emissions of any kind. The Red Sea Project aims to be the largest global destination powered by “clean energy” with no connection to the national grid, the minister explained.

Furthermore, the minister also highlighted the recently announced Saudi Green initiatives which he said: “will protect more than 30 percent of the Kingdom’s land and enhance our precious, natural heritage by planting 10 billion trees.”

International arrivals in Saudi Arabia plunged by 74 percent in 2020 due to the pandemic while tourism contribution to global GDP nearly halved, according to the Saudi minister, with more than 60 million jobs lost worldwide.

During Saudi’s G20 presidency, the Kingdom hosted the first-ever private sector tourism event in collaboration with policymakers to forge strategies for the future of tourism and coordinate immediate-response action to the pandemic.

“We are talking about $5.5 trillion in losses in 2020 globally for this industry,” Princess Haifa bint Mohammed Al-Saud, the assistant tourism minister for executive affairs and strategy, said during the panel talk.

“We have changed the language in Saudi Arabia. We no longer call it jobs in tourism, we call it careers in tourism,” she said.

During the pandemic, 35,000 jobs were created in the Kingdom at a time when the world was losing jobs in tourism, Princess Haifa explained. Saudi Arabia additionally witnessed a 33 percent increase in spending due to a shift in focus towards domestic tourism.

A total of SR13.9 billion ($3.71 billion) was spent during the summer of 2020 alone, Princess Haifa said: “We have promoted it locally and engaged the local community.”

International travel restarted in the Kingdom on May 17. Last week at the annual Arabian Travel Market, the CEO of the Saudi Tourism Authority, Fahd Hamidaddin, said the fourth quarter of this year could be a turning point for the Saudi tourism industry as the countries that it is targeting reach a 70 percent vaccination rate.

Saudi Arabia opened up to international tourism in September 2019 and has since announced a number of megaprojects to attract visitors, including a $530 million fund to develop key destinations across the Kingdom. Riyadh aims to raise the contribution of its tourism sector to its GDP from 3 percent to 10 percent, in a bid to modernize its economy and veer away from oil dependence.

Market research firm Euromonitor International estimated in March that inbound tourism spending in Saudi Arabia would reach $25.3 billion by 2025, recovering from the impact of the pandemic.

Saudi domestic tourism exceeded expectations during the pandemic, despite the UN World Tourism Organization (UNWTO) describing 2020 as “the worst year on record in the history of tourism.”

Figures from the UNWTO in December revealed that destinations welcomed 900 million fewer international tourists between January and October, compared with the same period in 2019, which was a 72 percent year-on-year slump.


Over 3k flights cancelled across the Middle East after attack on Iran by the US, Israel

Updated 01 March 2026
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Over 3k flights cancelled across the Middle East after attack on Iran by the US, Israel

RIYADH: US and Israeli strikes on Iran led to widespread airspace shutdowns in the Middle East, canceling and rerouting thousands of flights and paralyzing key international travel corridors.

Flight cancellations affected seven airports across the Middle East, including Dubai and Abu Dhabi in the UAE, Doha in Qatar, and Manama in Bahrain.

Emirates Airlines said in a statement: “Due to multiple regional airspace closures, Emirates has temporarily suspended all operations to and from Dubai, up until 1500 hrs UAE time on Monday, 2 March.”

A flydubai spokesperson said the situation is evolving, and the airline is closely monitoring developments while coordinating with authorities to adjust its flight schedule.

“Our teams are working diligently to implement comprehensive welfare for all affected customers. The safety of our passengers and crew remains our highest priority,” the spokesperson said.

He added: “We are currently experiencing a high volume of calls and appreciate our customers’ patience while our teams work to assist everyone as quickly as possible.”

Qatar Airways announced that the airport will remain closed until at least the morning of March 2.

“Qatar Airways flights to, and from, Doha have been temporarily suspended due to the closure of Qatari airspace,” the airline said.

It added: “Qatar Airways will resume operations once the Qatar Civil Aviation Authority announces the safe reopening of Qatari airspace.”

Saudia also said in an official statement that it had canceled a number of flights due to developments in the region and the closure of airspace.

The organization said the decision was taken in line with aviation safety and security standards, noting that its Emergency Coordination Center is closely monitoring developments with relevant authorities.

Saudia urged passengers to verify the status of their flights before heading to the airport and said guests would be notified of updates through the contact details associated with their bookings.

The carrier added that further information would be announced in a subsequent statement if available.

Air Arabia also said its flights were experiencing cancellations, delays, or rerouting as a result of the evolving situation and airspace closures.

Airlines cited airspace closures and safety concerns as the main reasons for flight disruptions, urging passengers to check official channels for updates as the situation develops.

Israeli airspace also remained closed on March 1st. Israeli airline El Al said it was preparing a recovery effort to bring home Israelis stranded abroad once the airspace reopened.

Travelers were either stranded or diverted to other airports on Feb. 28 after Israel, Qatar, Syria, and Iran as well as Iraq, Kuwait and Bahrain, closed their airspace.

After the UAE announced a temporary partial airspace closure, FlightRadar24 recorded no flights over the country.

The closures affected key hub airports in Dubai, Abu Dhabi, and Doha. Emirates, Qatar Airways, and Etihad, airlines that operate from these hubs, normally handle around 90,000 passengers daily, with even more traveling to other Middle Eastern destinations, according to aviation analytics firm Cirium.

Airports hit by attacks

Two airports in the UAE reported incidents as the government there condemned what it called a “blatant attack involving Iranian ballistic missiles” on Feb.28.

Dubai International Airport, the UAE’s largest and one of the world’s busiest, reported four injuries, while Abu Dhabi’s Zayed International Airport said a drone attack killed one person and injured seven others. Strikes were also reported at Kuwait International Airport.

Though Iran did not publicly claim responsibility, the scope of retaliatory strikes that Gulf nations attributed to Iran extended beyond the US bases that it previously said it would target.

Flight delays, cancellations are likely to continue

“For travelers, there’s no way to sugarcoat this,” said Henry Harteveldt, an airline industry analyst and president of Atmosphere Research Group.

“You should prepare for delays or cancellations for the next few days as these attacks evolve and hopefully end,” he added.

To avoid conflict zones, airlines are rerouting Middle East flights over Saudi Arabia, adding hours and fuel costs, which could push ticket prices higher if the tensions persist.

The extra flights will strain air traffic controllers in the Kingdom, who may need to slow traffic for safety. Meanwhile, countries that closed their airspace will lose out on overflight fees from passing airlines.

Mike McCormick, former head of air traffic control at the FAA and now a professor at Embry-Riddle Aeronautical University, said some countries may reopen parts of their airspace in the coming days once US and Israeli officials provide airlines with details on military flight zones and Iran’s missile capabilities.

“Those countries then will be able to go through and say, ok, we can reopen this portion of our space but we’ll keep this portion of our airspace closed,” McCormick said.

“So, I think what we’ll see in the next 24 to 36 hours is how the use of airspace evolves as the kinetic activity gets more well-defined and as the capability of Iran to actually shoot missiles and create additional risk is diminished due to the attacks,” he added.

But it is unclear how long the disruption to flight operations could last. For comparison, the Israeli and US attack on Iran in June 2025 lasted 12 days.