RIYADH: Tourism prospects in Saudi Arabia are getting brighter as the government continues to invest in the sector, with 23 projects currently under development with a total investment value of SR16 billion ($4.26 billion).
The Tourism Development Fund, the Kingdom’s prime vehicle that drives tourism investment, is aiming to draw 100 million visitors by 2030.
TDF also signed a cooperation agreement with the General Authority for Small and Medium Enterprises, also known as Monsha’at, to fuel the tourism economy, Al-Eqtisadiah reported.
This development comes as the value of SME projects currently under development has touched about SR1 billion.
Under the terms of the agreement, both parties will work hand in hand to spot potential opportunities for qualified entrepreneurs and shop owners who spark a wave by cashing on the franchising activities in the Kingdom’s targeted tourist destinations.
This move will help ensure the sustainability of those enterprises as well as the continuity of their activities in line with the National Tourism Strategy.
Additionally, this agreement affirms the Fund’s keenness to develop a framework to further enable and support tourism establishments through the Fund’s programs, financing and investment solutions.
The Fund is also seeking to establish an integrated framework that would support the establishments nominated to benefit from financing and investment programs by providing them opportunities to expand the scope of their commercial activities through commercial concession to cover the targeted tourist areas.
Last December, TDF launched the AWN Tourism and Hospitality program to support SME tourism businesses by offering flexible financing loans worth SR10 million and a repayment period of up to 10 years.
Besides supporting commercial franchising, the initiative also provides the targeted projects with the resources they need to meet the needs of the lodging, restaurants, cafes and entertainment industries.
“Small business owners, too, have great business ideas; all they need from time to time is motivation and financial support to thrive. We are confident our new initiative will give them this opportunity while encouraging knowledge sharing, entrepreneurship, and job creation in the Kingdom,” said Qusai Al-Fakhri, the CEO of TDF at the launch of the initiative.
