Tabuk’s business journey — a navigation of growth and vision

NEOM, which positions itself as a cognitive city, offers unparalleled connectivity for doing business and will enable advanced technologies. (Shutterstock)
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Updated 22 March 2025
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Tabuk’s business journey — a navigation of growth and vision

  • Tabuk has ambitious plans for further development, growth, and economic diversification

RIYADH: A young workforce, strong demand and attractive tourist offerings are helping transform Tabuk into one of Saudi Arabia’s most dynamic regions.

Earlier in March, the area’s mayor, Hussam bin Muwafaq Al-Youssef, talked up the investment potential of the region during a speech as part of the “Chamber’s Diwaniya” events during Ramadan.

Addressing business leaders, he said the municipality has over 120 available investment prospects across different sectors, including large, medium and small-scale projects.

He highlighted some of the region’s competitive advantages, such as manufacturing, agriculture, mining, energy and tourism, which have contributed to boosting Tabuk’s investment appeal.

Al-Youssef’s comments came after a stellar 2024 for Tabuk, which saw significant achievements in its business landscape, such as the launch of Sindalah island in NEOM and the inauguration of Nujma, a Ritz-Carlton Reserve, in the Red Sea.

Global engagement was amplified through events such as the Tabuk Toyota Rally, and efforts were also directed towards enhancing infrastructure.

Tabuk’s business journey

Nicholas Nahas, partner at Arthur D. Little, Middle East, said the region has worked to raise its profile in the business world by expanding output and leasing agreements in the Tabuk industrial city.

“It also advanced on its plans to upgrade key infrastructure, including Tabuk airport, which increased flight operations by 25 percent, bringing more people to the region to increase tourism and economic activity,” he added.

Ian Khan, a technology futurist and author, shed light on how Tabuk has benefited benefited from the Saudi government’ funding the Saudi government to highlight the region’s forward-thinking strategies and commitment to growth.

“The Ministry of Investment’s identification of nearly $13.3 billion in investment opportunities speaks volumes about Tabuk’s bold vision — particularly in renewable energy, agriculture, tourism and entrepreneurship. These sectors position Tabuk as a burgeoning hub along the Red Sea, primed to attract future-focused ventures and travelers alike,” Khan told Arab News. 




Wadi Al-Disah in the Tabuk region is one of the most famous valleys in western Saudi Arabia. (Shutterstock)

He added that the Roads General Authority “truly accelerated” Tabuk’s connectivity by developing over 8,000 km of new networks and constructing more than 200 bridges. 

“These roads and bridges don’t just help people get from A to B — they connect Tabuk to key mega-projects like NEOM, Amaala, and the Red Sea,” Khan said, adding: “This synergy multiplies Tabuk’s commercial, touristic, and social opportunities, creating a dynamic ecosystem where innovation thrives.”

The author went on to say one of the most exciting recognitions for Tabuk came in April 2024, when the World Health Organization designated the region as a “Healthy City.”

He said: “This honor underscores Tabuk’s unwavering dedication to enhancing residents’ quality of life through robust health and environmental initiatives, setting a powerful precedent for future urban development in the Kingdom.”

Tabuk’s plans 

Tabuk has ambitious plans for further development, growth, and economic diversification in tourism, information and communications technology, agriculture and renewable energy.

From ADL’s point of view, Nahas explained that in the tourism sector, even with NEOM, Red Sea and Amaala opening up their first attractions, Tabuk still has much to offer. 

“The region includes many heritage sites, including the ‘Saudi Grand Canyon,’ an area between Hisma Mountains and Qaraqir Valley, with offerings ranging from sun and sand to adventure sports to culture,” he said.

“The region has 27 hotels and 60 furnished apartments, accounting for almost 4,000 available rooms. To successfully navigate its journey, Tabuk should continue attracting tourists to maximize occupancy while increasing hotel and hospitality supply.”

Beyond tourism, the Tabuk province will also contribute to the ICT and renewable energy sectors.

Tabuk’s strides mirror the exact ethos of Saudi Vision 2030 — resilience, diversification and boundary-pushing innovation.

Ian Khan, technology futurist and author

NEOM, which positions itself as a cognitive city, offers unparalleled connectivity for doing business and will enable advanced technologies, including self-driving vehicles and augmented reality/ virtual reality experiences, according to Nahas.

“NEOM’s ambition will fuel the province’s ICT ambition and will contribute to the country’s overall innovation ambitions. In the renewable energy sector, due to Tabuk’s extensive natural resources of sun and wind, Tabuk will offer opportunities for photovoltaic power plants and coastal wind farms,” added Nahas.

Similarly, Khan said Tabuk was not slowing down as it looked ahead, citing international investment forums and a new logistics hub as moves that will turbocharge Tabuk’s status as a prime destination for global investors.

The author added: “On the tourism side, Tabuk Investment & Tourism launched four subsidiary companies in January 2024, focusing on hospitality, facility management, events and eco-friendly services. These ventures exemplify how Tabuk is pairing world-class hospitality with sustainability — perfectly in line with the overarching goals of Saudi Vision 2030.”

Khan believes that Tabuk’s “multi-pronged roadmap” — ranging from health initiatives to tourism and tech — reflects a future-focused mentality, anchored firmly in the transformative power of Saudi Vision 2030. 

“It’s not just about building roads or eco-friendly hotels; it’s about shaping a legacy that will define the Kingdom’s next chapter. And from my vantage point as a futurist, Tabuk’s story is just getting started,” he said.

Tabuk — a key player in economic diversification

Unlocking these opportunities will require private and foreign investment, along with strong collaboration across the region’s stakeholders to fully realize the region’s potential and ensure an integrated approach to infrastructure and promotion.

Nahas from ADL said that according to the Saudi Ministry of Investment, SR40 billion ($13.3 billion) of investment opportunities remained available.

It is certainly becoming easier for speculators to visit the region, which boasts three airports; Tabuk International, NEOM Bay and Al Wash Airport connect it to key international destinations such as Dubai and Cairo, as well as local hubs including Riyadh and Madinah. 

FASTFACT

Tabuk has over 120 available investment prospects across different sectors, including large, medium and small-scale projects.

From ADL’s perspective, these airports will need to continue to expand operations and connectivity to bring people to the region. 

“Connectivity by road and sea will also be important. Tabuk boasts one of the region’s most connected road networks, which (is) further being upgraded to accommodate the region’s economic development for the movement of people and goods,” Nahas said.

He added that promoting the region would also require an integrated approach across its development clusters and, in addition to the Saudi Tourism Authority, it would also need to work closely with destination management companies and marketing organizations. 

“These stakeholders will be able to coordinate, promote, and sell Tabuk’s rich portfolio of offerings in an integrated portfolio to the world. These initiatives will further raise Tabuk’s status as a business and tourism destination for the world, in 2025 and beyond,” said Nahas. From Khan’s point of view, Tabuk’s strides mirror the exact ethos of Saudi Vision 2030 — resilience, diversification and boundary-pushing innovation.

“By harnessing its abundant sunlight and wind resources, Tabuk is doubling down on renewable energy projects that support the national objective of generating 50 percent of electricity from renewables by 2030. This is not just an energy strategy; it’s a blueprint for building a sustainable, future-ready economy,” he said.

Khan stressed that by attracting substantial foreign investment, NEOM broadens Tabuk’s economic base and unlocks new possibilities across construction, tech and services. 

“Moreover, the University of Tabuk is nurturing a new generation of disruptors and innovators. By offering specialized programs in engineering, computer science, health sciences and business administration, the university ensures that Tabuk’s workforce is prepared to sustain this wave of progress across multiple industries,” he said.


PepsiCo opens regional headquarters in Riyadh, unveils $8m R&D center

Updated 21 April 2025
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PepsiCo opens regional headquarters in Riyadh, unveils $8m R&D center

RIYADH: Global beverage giant PepsiCo has opened its new Middle East regional headquarters in Riyadh’s King Abdullah Financial District, reinforcing the company’s long-term commitment to the region.

Spanning 2,800 sq. m, the state-of-the-art facility will accommodate more than 150 employees and serve as a central hub for PepsiCo’s operations across the Middle East.

“Our new RHQ in Riyadh signals our firm and long-term commitment to this region’s future and its people – through job creation, agricultural partnerships, social impact and environmental stewardship,” said Ahmed El-Sheikh, president and general manager for Middle East, North Africa, and Pakistan Foods.

The inauguration ceremony drew attendance from top PepsiCo executives, including Chairman and CEO Ramon Laguarta, alongside senior Saudi officials and business leaders.

As part of its regional growth strategy, PepsiCo also announced plans to launch a new research and development center in the Kingdom, with an investment of SR30 million ($7.99 million). The R&D hub will focus on innovation in product development and packaging tailored to regional preferences.

The facility will feature a culinary lab and an immersive sensory studio designed to refine products in alignment with local consumer tastes.

In addition to serving as a business and innovation center, the Riyadh headquarters will also house PepsiCo’s flagship social impact programs, including Tamakani and MENA Innovates, both aimed at empowering youth and fostering sustainable innovation.

PepsiCo has invested over SR9 billion in Saudi Arabia over the past eight years. In 2023 alone, the company allocated SR199 million to expand its Dammam manufacturing facility.

Today, PepsiCo operates across 86 locations in the Kingdom and employs nearly 9,000 people through direct operations and its franchise network.


Closing Bell: Saudi indices end day in the red

Updated 21 April 2025
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Closing Bell: Saudi indices end day in the red

RIYADH: Saudi Arabia’s stock market closed lower on Monday, with the Tadawul All Share Index falling 77.94 points, or 0.67 percent, to end the session at 11,548.66.

Total trading turnover stood at SR3.5 billion ($953.3 million), as 45 stocks advanced while 195 declined.

The Kingdom’s parallel market, Nomu, also closed in the red, shedding 340.41 points, or 1.17 percent, to finish at 28,637.78.

Of the listed stocks, 29 rose while 44 declined. The MSCI Tadawul Index dipped by 8.02 points, or 0.54 percent, closing at 1,466.51.

Alistithmar Capital REIT was the session’s top performer on the main index, jumping 9.92 percent to close at SR7.98.

Saudi Printing and Packaging Co. followed closely, gaining 9.86 percent to reach SR12.70. Nice One Beauty Digital Marketing Co. also saw notable gains, rising 4.78 percent to SR38.35, while Zamil Industrial Investment Co. climbed 3.92 percent to SR38.40.

On the other end of the spectrum, Dar Alarkan Real Estate Development Co. posted the steepest decline, falling 5.51 percent to SR22.30. Eastern Province Cement Co. dropped 4.48 percent to SR34.10, and Riyadh Cables Group Co. slid 4.26 percent to SR126.

National Gypsum Co. announced a 22.03 percent year-on-year increase in revenue for the fiscal year ending December 31, 2024, reporting SR63.32 million compared to SR51.89 million the previous year. Despite the rise in sales, the company posted a net loss of SR14.72 million, reversing a profit of SR5.13 million a year earlier.

The loss was attributed to higher sales costs and a decline in other income, including a SR10.7 million fine paid to the General Authority for Competition and the absence of land compensation income that had been recorded the prior year. Shares of National Gypsum Co. dropped 1.59 percent to settle at SR19.80.

Banque Saudi Fransi reported a 16.38 percent increase in net profit for the first quarter ending March 31, 2025, reaching SR1.34 billion compared to SR1.15 billion in the same quarter of the previous year.

The bank’s total operating income rose 13.17 percent year on year to SR2.64 billion, driven by increases in special commission income and trading income.

Net income growth was supported by an 8.1 percent rise in net special commission income, while operating expenses grew by 12.16 percent. Total comprehensive income more than doubled to SR1.92 billion, up 120.85 percent from the same period last year. The bank’s share price rose 0.92 percent to SR17.50.

Riyad Bank posted a 19.39 percent year-on-year increase in net profit for the first quarter of 2025, reaching SR2.49 billion compared to SR2.07 billion in the same period last year.

Total operating income grew 10.18 percent year on year to SR4.5 billion, while total comprehensive income increased by 23.62 percent to SR2.68 billion.

The bank attributed the rise in profitability to growth in net special commission income, trading income, exchange income, and net fee and commission income.

Operating expenses fell due to lower impairment charges for credit losses and other financial assets, though this was partially offset by higher employee and premises-related costs. Despite the strong earnings, Riyad Bank’s share price slipped 0.82 percent to SR30.15.


Davos meet founder Klaus Schwab quits as WEF chair

Updated 21 April 2025
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Davos meet founder Klaus Schwab quits as WEF chair

ZURICH: Klaus Schwab, founder of the World Economic Forum, whose annual gathering of business and political leaders in the Swiss mountain resort of Davos became a symbol of globalization, has resigned as chair of its trustees.

The Geneva-based WEF made the announcement on Monday after revealing earlier this month that the 87-year-old Schwab, who for decades has been the face of the Davos get-together, would be stepping down, without giving a firm timeline.

“Following my recent announcement, and as I enter my 88th year, I have decided to step down from the position of Chair and as a member of the Board of Trustees, with immediate effect,” Schwab said in a statement released by the WEF.

The forum did not say why he was quitting.

The WEF board said in the statement it had accepted Schwab’s resignation at an extraordinary meeting on April 20, with Vice Chairman Peter Brabeck-Letmathe serving as interim chairman while the search for a new chair began.

The German-born Schwab established the WEF in 1971 with the aim of creating a forum for policymakers and top corporate executives to tackle major global issues.

The village of Davos gradually became a fixture on the international calendar in January when political leaders, CEOs and celebrities got together in discreet, neutral Switzerland to discuss the agenda for the coming year.


Saudi Arabia, Algeria deepen economic ties with new business pacts

Updated 21 April 2025
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Saudi Arabia, Algeria deepen economic ties with new business pacts

JEDDAH: Saudi Arabia and Algeria signed a series of agreements to boost trade and investment as officials and executives from both countries convened in Algiers for a high-level forum. 

The Saudi-Algerian Business Forum, held on April 20 in the Algerian capital, featured extensive discussions on enhancing bilateral economic cooperation across sectors including tourism, agriculture, construction, and manufacturing, the Saudi Press Agency reported. 

This comes as Saudi Arabia and Algeria maintain long-standing economic and diplomatic ties, anchored by their membership in the Arab League and OPEC. Trade between the two has steadily grown, with Saudi Arabia becoming a key supplier of industrial goods, petrochemicals, and plastics to Algeria. 

In a speech at the opening of the forum, Saudi Ambassador to Algeria Abdullah bin Nasser Al-Busairi described the economic meeting as a key driver for strengthening bilateral relations, highlighting the commitment of both countries’ leaderships to deepening ties across all sectors.

He pointed out that “the forum is an opportunity to discuss joint cooperation in light of the positive indicators witnessed by trade exchange between the Kingdom and Algeria, which amounts to nearly $1 billion,” SPA reported.  

Al-Busairi highlighted the notable growth of Saudi investments in Algeria, particularly in the pharmaceutical and food industries, “calling on Saudi investors to explore the opportunities available in the Algerian market, in light of the guarantees and benefits provided by the new investment law.”  

Al-Busairi expressed his confidence that “the bilateral meetings between Saudi and Algerian businessmen will result in practical initiatives that serve the interests of both countries and enhance the level of cooperation and partnership between them,” the SPA added. 

The chairman of the Saudi-Algerian Business Council, Raed bin Ahmed Al-Mazrou, emphasized that the time has come to elevate bilateral relations, particularly in the economic sector.  

He highlighted the strong support from the leaderships of both countries for this initiative and their commitment to strengthening and advancing it. 

He noted the investment opportunities offered by the Algerian market, the long-standing Saudi experience spanning more than five decades, and the openness of the Saudi market to initiatives by Algerian investors, in order to advance and enhance cooperation between the two countries.  

Kamel Moula, president of the Algerian Council for Economic Renewal, said the forum offers a valuable platform to establish successful ventures and exchange expertise, contributing to sustainable growth in both countries. 

He pointed to promising opportunities in sectors such as food manufacturing, iron and steel, tourism and entertainment, and information and communication technology. 


Dubai inflation eases to 2.79% in March as housing, transport costs moderate

Updated 21 April 2025
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Dubai inflation eases to 2.79% in March as housing, transport costs moderate

RIYADH: Dubai’s annual inflation rate eased in March, hitting its lowest level since October 2024, according to official data released by the Dubai Statistics Center.

The inflation rate in the emirate slowed to 2.79 percent in March, down from 3.15 percent in February. The decline was primarily driven by a deeper deflation in food and beverage prices, which dropped by 3.34 percent year-on-year, compared to a 0.85 percent decline in the previous month.

Dubai continues to report relatively moderate inflation compared to other major cities in the region. Analysts attribute this trend to the government’s proactive measures to maintain price stability while fostering economic growth.

Despite persistent global inflationary pressures, Dubai’s economy remains resilient, supported by a diverse mix of sectors including tourism, real estate, and trade.

Looking ahead, the UAE Central Bank has forecast nationwide inflation at 2 percent for 2025 —well below the global average. Non-tradable components of the consumer basket are expected to be the main contributors to price movements in the coming year.

The March data also pointed to continued deflation in other key categories. Food and beverage prices posted a monthly deflation rate of 0.31 percent, slightly higher than the 0.21 percent recorded in February.

Clothing and footwear prices declined 2.69 percent year on year, mirroring the previous month’s figures. Meanwhile, prices in the information and communication sector saw a 1.96 percent annual drop in March, compared to a 1.95 percent decline in February.

The data also showed a continued rise in prices within several key sectors. The housing, water, electricity, gas, and other fuels category recorded a 7.16 percent increase in March, slightly down from 7.36 percent in February.

The insurance and financial services sector experienced notable inflation as well, with prices rising 5.83 percent, up from 5.20 percent the previous month.

Price increases were also observed across health, education, and personal care, social protection, and miscellaneous goods and services. Health costs climbed 3.1 percent, education rose 2.76 percent, and personal care and related services increased 2.52 percent.

For comparison, September’s figures showed no change in health and education, while personal care had risen by 1.48 percent.

The tobacco sector registered a 2.12 percent year-on-year increase, unchanged from February. Meanwhile, prices in the recreation, sport, and culture category grew 1.66 percent, though at a slower pace compared to 3.93 percent in the previous month.

Additional monthly gains were recorded in insurance and financial services, which edged up 1.47 percent in March versus 1.41 percent in February. Prices for furnishings, household equipment, and routine maintenance rose 0.36 percent, matching the previous month’s rate. The restaurants and accommodation services category saw a 0.25 percent increase, down from 0.72 percent in February.

In a separate report published in December, FOREX.com, a subsidiary of US-based StoneX Group Inc., projected strong economic resilience for the UAE in 2025.

The outlook was supported by solid consumer spending, record-high foreign direct investment, and the nation’s ongoing economic diversification efforts, despite regional challenges.