
Saudi Arabia Tops Global Tourism Revenue Growth in Q1 2025
According to the report, the Kingdom ranked third globally in the growth rate of international tourist arrivals in Q1 2025 compared to Q1 2019, and second in the Middle East during the same period.
Saudi Arabia recorded a 102% increase in international tourist arrivals during the first quarter of 2025 compared to the same period in 2019 — surpassing the global growth rate of 3% and the Middle East's growth rate of 44%. This reinforces its leading position on both the global and regional tourism landscapes.
The Kingdom's top ranking in global tourism indicators highlights the effectiveness of its ongoing efforts to develop the tourism sector and its steady progress toward achieving the ambitious tourism goals set out in Saudi Vision 2030.
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Arab News
2 hours ago
- Arab News
Saudi bank loans hit $845bn as corporate lending booms
RIYADH: Saudi banks' total outstanding loans reached SR3.17 trillion ($844.7 billion) at the end of May, an annual increase of 16.28 percent, according to the latest official data. Figures released by the Saudi Central Bank, also known as SAMA, show that this marks one of the fastest annual credit expansions in recent years, underscoring strong economic momentum in the Kingdom. The SAMA data revealed that business loans now comprise 55.35 percent of all bank credit, up from 52.87 percent a year ago. Corporate lending surged 21.73 percent year on year to SR1.75 trillion, far outpacing personal lending, which rose around 10 percent to SR1.41 trillion. This shift highlights how companies have become the dominant force in Saudi Arabia's lending landscape, as banks pivot from consumer finance to funding large projects and enterprises. The Kingdom's credit boom stands out within the region. Across the Gulf Cooperation Council countries, most banking sectors are expanding on the back of post-pandemic economic growth and government spending, but Saudi banks are leading the pack in loan growth. A Kamco Invest report published in May found the Kingdom posted the region's highest year-on-year loan growth in the first quarter of 2025, outpacing other Gulf markets. This growth was broad-based across sectors — including construction, real estate, education, and transport — whereas some neighboring countries saw more subdued or narrowly focused increases. The UAE, the region's second-largest banking market, is also seeing solid credit expansion supported by its own infrastructure and economic reforms. Gulf banks in general benefit from strong capitalization and government backing, which has kept credit flowing. The International Monetary Fund projects GCC economies to grow around 3.5 percent in 2025, with Saudi Arabia, the UAE, and Qatar driving non-oil growth. This trend aligns with the Kingdom's Vision 2030 diversification plan, which emphasizes infrastructure, industry, and non-oil sectors. It also indicates that after a decade of mortgage-fueled expansion, banks are rebalancing portfolios toward commercial lending in response to market demand and government priorities. This 'structural hand-off' means business lending is now the engine of Saudi banking — a significant change after years when consumer mortgages dominated credit creation. Real estate dominates; education and transport soar Within corporate lending, real estate developers remain the single largest borrower group according to SAMA data. Real estate activities accounted for 21.35 percent of outstanding corporate credit, totaling approximately SR374 billion in May. This segment grew by a remarkable 37.7 percent annually, reflecting heightened demand for housing, commercial infrastructure, and mega-project development across the Kingdom. Saudi Arabia's ambitious construction boom — from new housing in major cities to giga-projects like NEOM, the Red Sea tourism resorts, and large mixed-use developments — has driven banks to significantly increase financing for land purchases, building, and property development. According to a March report by real estate consultancy JLL, Saudi Arabia's real estate sector is set for sustained growth, driven by Vision 2030 diversification goals and robust non-oil economic expansion. The construction sector recorded $29.5 billion in project awards in 2024, while the property market is forecast by the Real Estate General Authority to reach $101.6 billion by 2029, growing at a compound annual rate of 8 percent. Grade-A office demand in Riyadh surged, with vacancy falling to just 0.2 percent by the end of 2024 and average rents reaching $609 per sq. meter. JLL noted that 326,000 sq. meters of leasable space was delivered in 2024, with an additional 888,600 sq. meters in the pipeline for 2025. The firm added that Jeddah is emerging as a competitive alternative, attracting regional and international firms, while rising office and logistics rents in both Riyadh and Jeddah indicate strong commercial demand. The report also highlighted real estate tailwinds from upcoming mega-events like the 2030 FIFA World Cup and Expo 2030, which are expected to inject significant capital and further boost infrastructure development across the Kingdom. Other major sectors in banks' corporate portfolios include wholesale and retail trade, around 12.2 percent of corporate credit, utilities like electricity, water and gas of 11 percent, and manufacturing at 11 percent. Each of these recorded healthy double-digit growth, supported by increased public and private investment and industrial reforms. This includes lending to the utilities sector growing to SR196 billion, as Saudi Arabia expands power grids, renewable energy projects, and water infrastructure to meet rising demand. Manufacturing loans — about SR191 billion — reflect ongoing expansion in petrochemicals, metals, and consumer goods production under diversification initiatives. Crucially, some of the fastest growth rates were seen in smaller, emerging segments, highlighting shifting priorities. Education sector credit, though making up only 0.55 percent of corporate loans, jumped by over 48 percent year on year to around SR9.58 billion. This was the highest growth of any sector, fueled by a national drive to expand and modernize educational institutions. Saudi Arabia is encouraging more private investment in schools, universities, and training centers as part of Vision 2030's human capital development goals. Transport and logistics is another booming area. Loans for transportation and storage climbed 43 percent year on year, reaching SR68 billion. This reflects Saudi Arabia's push to become a global logistics hub, building new ports, airports, railways, and warehouses. Huge projects such as the expansion of Riyadh's King Salman International Airport and the launch of a new national airline, as well as improvements in roads and shipping infrastructure, require significant funding. The government's National Transport and Logistics Strategy envisions $150 billion of investments in transport infrastructure by 2030, with 80 percent of these coming from the private sector via public-private partnerships and privatizations in airports and roadways. Banks are playing a key role by lending to contractors and logistics firms involved in these ventures. The result is that transport and logistics finance has seen one of the sharpest upticks across all industries, second only to education in growth rate. Going forward, Saudi lenders are expected to maintain a delicate balance, financing aggressive growth in the corporate sector while guarding against liquidity and risk pressures.


Arab News
7 hours ago
- Arab News
Umbrella thorn acacia: A vital ecological asset in Tabuk's coastal environment
UMLUJ: In Saudi Arabia's northwestern region of Tabuk, Acacia tortilis, commonly known as umbrella thorn acacia, thrives in the coastal plains. These trees are distinctive in coastal desert environments, providing significant ecological and aesthetic benefits. Highly adaptable to harsh climatic conditions, the umbrella thorn acacia grows around wadi estuaries, forming shaded canopies that moderate temperatures and provide shelter for wildlife. With gnarled, reddish-brown trunks and dense branches, these trees create a striking visual spectacle. Their shadows on the sand offer excellent photographic opportunities, attracting photography enthusiasts and nature explorers. As a vital plant species, the umbrella thorn acacia stabilizes soil and combats desertification. It also serves as a food source for bees, enhancing the production of high-quality wild honey. Environmental authorities prioritize preserving these trees to maintain plant diversity and improve local vegetation cover, aligning with the Saudi Green Initiative and national sustainability efforts.


Leaders
16 hours ago
- Leaders
Musk's xAI Explores Data Center Deal with Saudi-Backed Humain
Elon Musk's artificial intelligence venture, xAI, is in early-stage discussions to lease data center capacity in Saudi Arabia, according to people familiar with the matter. The move is part of xAI's broader strategy to expand its computing infrastructure in regions with low-cost energy and political alignment. xAI is in talks with two potential partners: Humain, a Saudi-backed AI firm offering a multi-gigawatt capacity deal, and a second unnamed company currently developing a smaller, 200-megawatt facility that could be operational much sooner. The individuals requested anonymity as the discussions are private. While Humain's offer is ambitious, it's still years away from being realized. Despite support from Saudi Arabia's Public Investment Fund, the company has yet to break ground on much of the promised infrastructure. Any agreement with xAI would therefore be a long-term bet, with no immediate impact on the startup's current computing needs. The second potential partner, already in the process of constructing its 200-megawatt facility, presents a more viable short-term solution. In both scenarios, xAI would lease — not own — space in the data centers to power its AI models, which require significant computational resources. xAI,Humain Representatives for xAI, Elon Musk, and Humain declined to comment. The competition for data center capacity is intensifying as companies like xAI, OpenAI, and Meta race to train and run large AI models, including chatbots such as xAI's Grok. These facilities are expensive to build and energy-intensive to operate. If Humain's multi-gigawatt proposal comes to fruition, it could rank among the largest data centers globally — a one-gigawatt center can consume as much electricity as nearly 900,000 homes annually, according to Carbon Collective. 'It makes a lot of sense. As power demand rises, balancing energy costs with operational needs will be key,' said Kathryn Huff, former head of nuclear energy at the U.S. Department of Energy and now at the University of Illinois at Urbana-Champaign. Speaking on Bloomberg Television, Huff suggested that countries investing in new nuclear infrastructure may become appealing hosts for data centers. Within Humain, infrastructure development is being led by Jeff Thomas, while commercial negotiations are managed by Saeed Al-Dobas. The project is also seen as an extension of Saudi Prince Alwaleed bin Talal's broader efforts to strengthen ties between Musk and the kingdom, including previous investments in xAI. The possible partnership with Saudi Arabia reflects Musk's global search for AI infrastructure in locations where electricity is cheap and financing is plentiful. The initiative comes as Musk faces mounting regulatory and political friction in the U.S., even while maintaining close ties with former President Donald Trump. xAI has already built a massive facility in Memphis, home to its 'Colossus' supercomputer, and Musk has hinted at another nearby expansion. Recently, xAI secured $10 billion in funding, evenly split between equity and debt. Musk has stated publicly that the company is well-capitalized, though how and where it will deploy that funding remains in flux. Ross Nordeen, a founding member of xAI and a former Tesla employee, is leading infrastructure negotiations for the startup. He is regarded internally as a key strategist and dealmaker, similar in role to Musk confidant Omead Afshar during their time at Tesla. On the technical side, former Tesla and X executive Andree Jacobson is helping steer development. In addition to Saudi Arabia, xAI is also exploring data center deals in the UAE and has held discussions with Abu Dhabi-based AI firm G42. Talks have also extended to several African countries with lower energy and operational costs. However, Saudi Arabia's combination of sovereign wealth and access to specialized AI chips currently makes it the most attractive prospect, according to two sources familiar with the situation. Related Topics: Saudi PIF Chairman Yasir Al-Rumayyan Spotted Sitting Next to Trump and Elon Musk at UFC Trump Names Elon Musk to Overhaul Government Efficiency Elon Musk in Future Investment Initiative: Robots to Exceed Humans by 2040 Short link : Post Views: 33