Saudi Arabia a model for tourism infrastructure development, says Croatian minister

Croatia’s Minister of Tourism and Sport Tonci Glavina. AN/Abdulrahman bin Shulhub
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Updated 11 November 2025
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Saudi Arabia a model for tourism infrastructure development, says Croatian minister

RIYADH: Tourism is evolving rapidly, shaped by global trends and emerging technologies. At the 26th UN Tourism General Assembly held in Riyadh this year, two themes dominated the discussions: sustainability and artificial intelligence.

On the sidelines of the event, Croatia’s Minister of Tourism and Sport Tonci Glavina spoke with Arab News about his country’s efforts to enhance its visibility as a global destination, the strategies behind that goal, and the impressive progress made by Saudi Arabia in building its tourism industry.

“When it comes down to sustainability, I’m happy to say that Croatia is definitely one of the world leaders in this segment, as we are the only country now that is performing a complete rehaul and reform process that’s generated on a national level, but at the same time reduced to local and regional levels,” Glavina said.

“We are implementing a major change in terms of running our destinations based on the principles of sustainability, and all of our tourism destinations are obliged by law to perform or to complete care and capacity studies.”

These studies help identify the challenges and limitations of each destination — from infrastructure and tourist traffic to energy and waste management — enabling authorities to control development, manage services, and regulate accommodation offerings.

“We also are doing the green satellite account. We are the only country in the world that’s doing it right now,” he said. “A satellite account traditionally measures the direct or indirect benefits of tourism on the economy. But for the first time, we are now implementing how much does it actually cost us on the energy level and infrastructure level, and what the input is in terms of how much electricity, water, and infrastructure in general we need.

“This is a good thing to exchange with the world because it’s based on the, now, new methodology that we have created, and it’s important that we’re going to be able to measure it — how it changes in the future and how much we’re positively or negatively affecting it as we manage and control our tourism.”

Glavina noted that Croatia has also established a Center for Sustainability under the University of Zagreb in partnership with UN Tourism, serving as a hub for knowledge exchange. To further promote sustainable practices, Croatia has launched a new sustainability award, also in cooperation with the UN body.

“When it comes down to sustainability, us definitely being one of the world leaders in that regard, there is a lot of knowledge that we can share with our partners here in Saudi Arabia,” he said. “At the same time, what’s been done here is great and it’s a model, an example, for the rest of us to learn from and see.”

Having previously visited Jeddah and the Red Sea, Glavina commended Saudi Arabia for its long-term vision and extensive investments in tourism infrastructure. He expressed hope for stronger cooperation between the two countries and the exchange of expertise in sustainable tourism.

“What’s impressive to hear is that before, 70 percent of arrivals in Saudi were religion related and now the number, what I’m told, is down to about 40 percent,” he said. “That means that you have grown so much and created new motives for visiting that particular destination. This is something that I would strongly applaud, of course.

“And what you have to applaud is it’s such a significant investment in tourism infrastructure, which is the toughest thing to do, and as a result of what’s going on right now, will reap benefits, generations from now.”

He noted that Saudi Arabia’s government-led model of investment is a bold but effective approach. “Usually if you leave it to the private sector, it takes time. It takes years. This way, the model that Saudi Arabia is doing in which it’s making a significant investment and then at some point, transferring over to the market is very impressive,” he said.

Croatia, traditionally known for its sun and sea tourism, is now diversifying into nautical, gastronomic, enological, and adventure tourism, Glavina explained.

“Another thing is our strong orientation toward sustainable tourism; our strong orientation toward showing the people how you can have a very amazing and very popular and visited country such as Croatia, but at the same time have such a preserved nature, cultural heritage, and especially quality of life for its residents,” he said.

“We have to make sure in these major tourism countries, such as Croatia, that our citizens at every point feel as though tourism brings benefits to their life, not the opposite, so they’re not unhappy about us, so they’re not on the streets protesting like you have in some of the countries.”

The General Assembly in Riyadh marked several milestones — including the largest gathering of tourism ministers ever and the 50th anniversary of UN Tourism. It also celebrated a historic first: the election of Shaikha Al-Nowais as the new secretary-general of the UN Tourism, becoming the first woman and first Gulf national to lead the global body.

“It’s a great message to the world that UN Tourism or even tourism as a whole, has selected a leader to be a woman, plus, one of the, if not the, youngest person elected in this position before,” Glavina said. 

“I think that’s a great message to the world, and I think that in itself carries a message of change and transformation. And I think this is something that’s completely evident in all of tourism around the world.”


S&P affirms UAE sovereign credit ratings at AA/A-1+ amid regional tensions

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S&P affirms UAE sovereign credit ratings at AA/A-1+ amid regional tensions

JEDDAH: The UAE’s sovereign credit ratings have been affirmed at AA/A-1+ with a stable outlook, as S&P Global Ratings highlighted the country’s strong fiscal buffers, diversified economy, and policy flexibility in the face of escalating regional conflict.

The agency cited the UAE’s consolidated net assets, estimated at 184 percent of gross domestic product in 2026, and its low general government debt of around 27 percent of GDP, as key buffers against economic shocks.

Sovereign credit ratings play a key role in determining a country’s borrowing costs and investor demand for its debt. A high rating signals strong fiscal health and policy stability, helping governments attract foreign investment and access global capital markets at favorable terms.

S&P noted that “our baseline forecasts carry a significant amount of uncertainty” amid heightened tensions involving Iran, Israel, and the US, including potential threats to key infrastructure.

The report added: “We also believe the authorities will deploy their substantial policy flexibility to counteract the effects of volatility stemming from geopolitical tensions in the Gulf region on economic growth, government revenue, and its external accounts.

“We believe this flexibility will enable the UAE to withstand periods of low oil prices and, more importantly, the temporary disruption of oil production and export routes.”

The UAE is facing a tense geopolitical environment amid escalating Iran-Israel-US conflicts. Threats around the Strait of Hormuz have nearly stopped vessel traffic, fueling oil market volatility and investor concern.

The ratings agency also emphasized the UAE’s diversified economic base, with non-oil sectors accounting for roughly 75 percent of GDP, as a stabilizing factor.

Strategic infrastructure, including the Abu Dhabi Crude Oil Pipeline to Fujairah, enables the country to bypass the Strait of Hormuz and safeguard oil exports, while ADNOC’s overseas storage investments further mitigate risk.

Despite the risks, S&P expects sectors such as financial services, trade, and tourism to remain resilient. It forecasts that UAE growth will moderate to 2.2 percent in 2026, down from 5 percent in 2025, reflecting potential impacts from expatriate outflows, reduced tourism revenue, and lower real estate demand.

S&P cautioned, however, that “we now expect weaker economic and external performance due to increased intensity, scope, and potential duration of conflict in the Middle East,” underscoring that prolonged disruption could weigh on fiscal and external accounts.

The affirmation underscores investor confidence in the UAE’s ability to navigate short-term geopolitical challenges while maintaining long-term stability. Analysts said the country’s large liquid asset buffer and effective policy tools will likely contain the credit impact of regional tensions and support continued economic growth.

The UAE has consistently maintained strong and stable sovereign credit ratings, reflecting a resilient and diversified economy, as well as prudent fiscal management.

Despite occasional caution during regional tensions or oil market swings, ratings have remained high, underscoring the country’s policy flexibility, fiscal strength, and appeal to global investors.