Saudi tourism shows strong growth with low environmental impact: report 

Saudi Arabia’s tourism sector exhibits significantly lower greenhouse gas emissions compared to the broader Middle East and North Africa region, and these emissions are consistently decreasing. Supplied
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Updated 25 October 2023
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Saudi tourism shows strong growth with low environmental impact: report 

RIYADH: Saudi Arabia’s tourism industry is making significant strides, contributing 6.4 percent to the annual gross domestic product while emitting only 3.3 percent of global greenhouse gases, according to a new research. 

A report titled “The Environmental Impact of Global Tourism” places the Kingdom at the 15th rank globally for the most significant reduction in emission intensity.  

The first-of-its-kind analysis was jointly presented by Saudi Minister of Tourism Ahmed Al-Khateeb and Julia Simpson, president of the World Tourism and Travel Council, during the Future Investment Initiative held in Riyadh. 

The document evaluates the environmental impact of travel and tourism in 185 countries, spanning the years 2010 to 2021, with 2019 serving as a benchmark for insights into the sector’s sustainability. 

“Now we know the starting point,” stated Al-Khateeb, adding that “one of the challenges that the sector was facing is — how do we track and what is the starting point, how do we monitor what works and what doesn’t work?”  

The report highlights that Saudi Arabia’s tourism sector exhibits significantly lower greenhouse gas emissions compared to the broader Middle East and North Africa region, and these emissions are consistently decreasing.  

“Saudi Arabia will be investing heavily in this sector which is used to represent 3 percent of the gross domestic product in 2019. We want to take this 3 percent to 10 percent in 2030,” the minister said. 

He said tourism in Saudi Arabia is relatively new, with the issuance of tourist visas commencing in September 2019. This positions the Kingdom uniquely, as it can develop a sustainable industry from the outset, avoiding the need for retrofitting sustainability measures. 

Referring to the report as a “groundbreaking piece of work,” Simpson said: “Saudi Arabia is starting a pivotal major journey and pivoting a major part of its economy to tourism, investing $800 billion, and it’s almost like starting with a blank sheet of paper.”  

Speaking on the sidelines of FII, she told Arab News: “With major injections of funds and major redirection, and I think when you start something like that you are in a better position to say how can we do this really well.” 

Simpson stressed the importance of decoupling the sector’s growth from its environmental impact, which the report now makes possible. 

Globally, the findings reveal that while greenhouse gas emissions in tourism increased at an average rate of 2.5 percent annually, reaching 8.1 percent in 2019, the emission intensity of the sector consistently decreased.  

In 2010, every dollar generated in tourism produced 0.62 kg of emissions, but by 2019, this had fallen to 0.53 kg, demonstrating that sector growth is becoming less carbon-intensive.  

Nonetheless, 15 percent of greenhouse gas emissions from tourism and travel can be attributed to energy consumption. This underscores the critical importance of the sector using this benchmark as a driver to “switch our energy to renewables as soon as possible,” as highlighted by the WTTC president. 

The value of the data of this report and the implications of it do not impact Saudi alone. The Ministry of Tourism, along with the WTTC “do not only have a commitment to be sustainable in the country, but are helping the world by providing data of 184 countries globally,” Chief Special Advisor to the Saudi Tourism Minister, Gloria Guevara, told Arab News. 

While the sector aims to double its contribution to the global GDP in the next decade, the research highlighted that in 2019, global tourism was responsible for 8.1 percent of greenhouse gas emissions and constituted a 10.6 percent share of the total energy footprint associated with travel and tourism. Guevara underscored that this data illustrates that the sector, in proportion to its productivity, emits a relatively lower amount of carbon emissions.

In accordance with the Kingdom's sustainability agenda, as underscored by Guevara, this commitment is considered “very important,” as it necessitates that every initiative adheres to the mandate of the Crown Prince for sustainability. 

The World Tourism Council, in collaboration with Saudi Arabia, is facilitating opportunities for major hoteliers to meet their procurement needs by enabling global hotel companies to source all their energy requirements from a single global renewable energy provider.  

This approach eliminates the need for negotiating individual agreements with each country, streamlining the process and enhancing sustainability efforts in the hotel industry. 

The report seeks to address a data gap that was previously uncharted for many communities worldwide due to its clarity and ongoing insights. Guevara noted that “before this report, we had two reports, they didn’t match, and it was complicated.” 

“It’s easy to know what works if you have the research, but we didn’t have good research...this is why Saudi decided to fund this report,” she concluded. 


Saudi PIF executes 10 investment deals in MENA markets, says official 

Updated 11 December 2025
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Saudi PIF executes 10 investment deals in MENA markets, says official 

RIYADH: Saudi Arabia’s Public Investment Fund has executed more than 10 investment deals across several markets in the Middle East and North Africa over the past two years, according to Muteb Al-Shathri, head of PIF’s Securities Investments Private Equity Section, who described the returns as “rewarding.” 

Al-Shathri said these markets included Egypt, Bahrain, Jordan, and Oman, noting that the search for opportunities continues through collaboration with the fund’s public and private sector partners, provided a suitable investment climate exists in other regional markets. 

Muteb Al-Shathri, head of PIF’s Securities Investments Private Equity Section. AL-EQTISADIAH

He added that the launch of the fund’s regional investment companies reflects the attractiveness and promising opportunities in the MENA region — among the fastest-growing markets globally — while also aiming to strengthen the PIF’s investment partnerships, those of its portfolio companies, and Saudi private sector engagement with targeted regional markets. 

This approach, he added, supports the development of long-term strategic economic partnerships to achieve sustainable returns, enhance the fund’s assets, and diversify Saudi Arabia’s revenue sources in line with Vision 2030 objectives. 

Al-Shathri said: “The PIF’s recent regional activities are fully aligned with Saudi Arabia’s Vision 2030 strategy.” 

The regional investment companies also enable the Saudi private sector to expand its investment footprint across MENA, creating strategic economic collaboration opportunities with private sector players in target markets, while supporting the growth and diversification of the Saudi economy. 

Regarding the scale of the deals, Al-Shathri noted that some were announced as private acquisitions, while many of the companies PIF invested in are now publicly traded, adding that comparing share prices at the time of entry with current levels demonstrates strong returns. 

According to Al-Shathri, PIF has established offices for its regional investment companies in four key markets — Cairo, Manama, Amman, and Muscat — bringing together the fund’s investment expertise alongside national talent from each country. 

“These offices, set up more than two years ago, have been pivotal in identifying suitable opportunities and helping PIF’s companies and the Saudi private sector enter these markets,” he said. 

He further said that over the past two years, they have completed more than 10 investment deals across a range of companies and new projects, all of which have seen growth in size, scope, revenues, and profits. 

On the performance of regional companies, he explained that activity levels vary depending on market conditions, but operations and asset management continue, adding that the Egyptian market remains one of the largest, with many high-performing companies present. 

Highlighting key investments, Al-Shathri pointed to PIF’s 2021 investment in ADES, a well-known oil well drilling company that was traded on the London market before being taken private for two years and later publicly listed. ADES recently signed an agreement with the Syrian Petroleum Co. to develop oil and gas fields and operates in over 20 countries across four continents. 

Diverse and promising acquisitions 

Al-Shathri detailed specific market investments, beginning with the Saudi-Egyptian Investment Co., which initially acquired stakes in three private-sector companies: B.Tech, a leading electronics and home appliance distributor; CERA Group, the largest private education provider in Egypt; and Cleopatra Hospitals Group. 

The company also invested in four public-sector entities: Abu Qir Fertilizers and Chemicals Industries Co., Misr Fertilizers Production Co., e-Finance for financial and digital investments, and Alexandria Container & Cargo Handling Co., the latter of which was recently fully divested. 

The Saudi-Jordanian Investment Co. invested in three promising Jordanian firms: Opensooq platform, Capital Bank Group, and Al-Youm Bakery, and announced a major project in healthcare and medical education — the Kingdom Healthcare and Medical Education Project. 

The Saudi-Bahraini Investment Co. recently signed an agreement with Mumtalakat, Bahrain’s sovereign wealth fund, to enhance cooperation and investment in strategic sectors. This follows a memorandum of understanding between PIF and Mumtalakat in March 2024 to expand collaboration opportunities. 

Al-Shathri added that the Saudi-Omani Investment Co. acquired a 9.8 percent stake in Abraj Energy Services, 3.75 percent in OQ Basic Industries, and 4.9 percent in OQ Oman Gas Networks, for a total investment of $163 million. The company also signed an MoU with the Oman Investment Authority to expand cooperation and support new investment opportunities in the sultanate. 

Investment based on clear principles 

Al-Shathri emphasized that PIF establishes companies based on strict investment criteria, aiming for sustainable returns in line with calculated risk levels, stressing that returns are received as expected. 

“Our investment policy is open to all sectors in every market, though each market has its own competitive advantages,” he said. 

He added: “We always target quality investments with rewarding, sustainable returns while creating positive social and economic impact in each market.” 

Ongoing market monitoring and research 

As for future announcements, Al-Shathri said: “We are constantly monitoring the markets and have a team of experts at the fund working in the research sector. If we identify opportunities in other markets, they will be presented in line with PIF’s standard procedures.” 

He added that the fund always pays close attention to the capabilities of the company and other shareholders, “ensuring they are of a very high standard not just in terms of the company’s financial value, because financial value can only be preserved and grown by strong management and partners.” 

Domestic focus and strategic partnerships 

Regarding the Saudi economy, Al-Shathri said that domestic matters are a priority for the PIF, especially since Saudi Arabia has the largest economy in the region. 

He added: “We are always keen to allocate most of our investments within Saudi Arabia and attract investment funds to the country.” 

Recently, the fund closed a deal between a consortium of BlackRock investors and Saudi Aramco in the Al-Jafurah field. It is worth noting that BlackRock’s infrastructure investments in Saudi Arabia exceed $20 billion, according to previous announcements. 

On the key companies targeted by the fund, Al-Shathri said some will be announced soon, emphasizing that PIF’s strategy is clear: to seek high-growth companies that serve the fund’s objectives and align with Vision 2030 goals. 

He pointed out that the fund engages with numerous companies that see significant value in partnering with it, adding that PIF’s efforts go beyond launching investment opportunities and providing regional expansion capabilities, emphasizing that they also include contributing to the companies’ growth, improving governance, and enhancing prospects for public listing.