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Campaign ME
08-07-2025
- Business
- Campaign ME
Brands and tourism in KSA: From vision to investment
The completion of Saudi Arabia's Fiscal Sustainability Programme in early 2025 marks more than the achievement of a financial target – it signals a critical shift in the Kingdom's readiness to partner with private-sector brands in shaping its next era of tourism, culture and placemaking. What began in 2016 as the Fiscal Balance Programme has helped position Saudi Arabia for long-term economic resilience and growth. For brands, this is a rare window: the public sector has laid the groundwork, and now the private sector is being invited to help define the experience layer through culture, entertainment, retail and technology. A new era for brand-led tourism With Expo 2030 Riyadh and the FIFA World Cup 2034 ahead, Saudi Arabia is strategically developing tourism infrastructure that emphasises commercial sustainability. But this isn't limited to Riyadh or Jeddah. Other cities such as Abha, Hail and Al Ahsa are becoming dynamic zones for culture, retail and immersive brand experiences. It's a diversification strategy that brings with it untapped potential, especially for brands looking to grow with the market rather than follow it. Tourism in the Kingdom is structured around three core pillars: domestic travel, religious pilgrimage and international tourism. For each of these audiences, the infrastructure and intent to create deeply engaging experiences exists, and brands are increasingly seen as partners in delivering them. What's different now? Opportunities for brands Saudi Arabia's enhanced fiscal position is accelerating the delivery of some of the region's most iconic tourism and cultural developments. Destinations such as Diriyah Gate, The Red Sea Project and the King Salman Park aren't just government initiatives, they are canvases for brand expression. These places need the kind of experiences only brands can deliver, from hospitality and retail to live activations and immersive storytelling. But what matters most is how brands show up. The new Saudi tourism landscape demands authenticity. It's not enough to be present; experiences must align with local culture, values and aesthetics. The strongest brand activations will be those that listen closely, collaborate meaningfully and reflect regional identity while offering world-class engagement. ''It's not enough to be present; experiences must align with local culture, values and aesthetics.' Sustainability is also front and centre. From eco-tourism in coastal zones to adventure offerings in mountainous regions, there's growing space for purpose-driven partnerships. Brands that align with this national focus – not just in message, but also in action – stand to gain long-term equity with visitors and Saudi residents. Meanwhile, the rapid development of a local tourism workforce creates fresh opportunities for brands to embed themselves more deeply. Hospitality academies, cultural ambassador programmes and entrepreneurial initiatives are producing a new generation of storytellers, guides and innovators. Co-creating with this talent not only builds relevance; it builds trust. And finally, technology is reshaping every touchpoint. Smart tourism systems, immersive heritage experiences and seamless digital infrastructure are making Saudi Arabia a future-ready tourism market. For digitally fluent brands, the possibilities are endless, from personalised engagement to scalable flagship activations. Why it matters now By 2030, Saudi Arabia aims to welcome more than 100 million visitors annually and to rank among the top global tourism destinations. That scale isn't just a national ambition but a global platform for brand visibility, relevance and growth. The first movers will have an edge. Early investment, whether in hospitality, retail, entertainment or content creation, will position brands as foundational to Saudi Arabia's tourism identity. The government is actively inviting public-private collaboration across these sectors, making this a moment of strategic alignment. Helping shape the future of tourism in Saudi Arabia At Imagination, we work at the intersection of government vision and brand creativity. We've helped shape tourism strategies and placemaking initiatives across the Kingdom – from Riyadh to Jeddah, and from AlUla to Hail. Our work goes beyond execution, helping brands navigate the nuances, legal frameworks, cultural codes, multi-layered approvals and deliver experiences that resonate deeply and perform commercially. Whether it's activating stories at Diriyah, designing digital experiences for tourism visas, or supporting cultural initiatives in the south, we understand that success here depends on insight, agility and respect. Saudi Arabia isn't just building infrastructure; it's building meaning, identity and invitation. For brands ready to think beyond traditional sponsorships or campaigns, this is a historic opportunity to co-create something enduring. To stand out in the next phase of global tourism, brands must not only be seen, they also must be felt. In Saudi Arabia, the moment to make that impact is now. By Sara Faisal, Senior Strategist, Imagination Saudi.
Canada News.Net
07-07-2025
- Business
- Canada News.Net
Aramco mulls gas plant divestment as state seeks more payouts
DUBAI, U.A.E.: Saudi Aramco is exploring asset sales as part of a broader push to unlock capital, with gas-fired power plants among the assets that could fetch billions of dollars, sources told Reuters. The state-backed oil company is considering selling four to five gas-fired plants that supply energy to its refineries, a move that could generate around US$4 billion, according to two sources familiar with the matter. The plan reflects increasing pressure on Aramco to boost profitability and maintain payouts to the Saudi government amid lower oil revenues. Saudi Aramco, the world's most profitable company and the kingdom's economic backbone, has been reviewing its portfolio in recent months to streamline operations and reduce costs, as previously reported. The company is also set to cut its dividend payouts by nearly a third this year, hit by declining oil prices. These payouts — which include royalties and taxes — are vital to the government, which directly owns 81.5 percent of Aramco. The power plant divestments are part of a broader fundraising effort. According to two of the sources, in addition to the energy assets, Aramco could also sell housing compounds, pipelines, and potentially port infrastructure. A third confirmed that the ports may be included. Aramco declined to comment on the prospective asset sales or on how much money the company expects to raise. The Saudi government's communications office did not respond to Reuters' requests for comment. A timeline for the sales was not confirmed, and all three sources requested anonymity due to the private nature of the process. One of the sources noted that local Saudi utility firms could emerge as potential buyers. According to Aramco's 2024 financial report, the company owns or co-owns 18 power plants and related infrastructure across Saudi Arabia that support operations at gas plants and refineries. Additional facilities, such as the Tanajib Gas Plant, are expected to begin operations later this year. These possible sales come as Crown Prince Mohammed bin Salman continues to pursue large-scale domestic initiatives to shift Saudi Arabia's economy away from its heavy oil dependency. The economic diversification push includes investments in high-profile events like Expo 2030 and the FIFA World Cup 2034, alongside infrastructure mega-projects. Still, oil remains central to state finances. Last year, 62 percent of government revenues came from oil, and despite Aramco's $199 billion contribution, the 2024 Saudi budget shows a deficit of over $30 billion. To support the country's fiscal needs, Aramco has also turned to debt markets. In May, it raised $5 billion via bond sales and hinted at further borrowing to finance infrastructure and meet capital demands. Aramco is seeking external investors to help fund infrastructure projects as it navigates shifting global energy dynamics and internal economic pressures.
Kuwait Times
05-07-2025
- Business
- Kuwait Times
Aramco plans to sell power assets to raise cash
DUBAI: Saudi oil giant Aramco is looking to sell up to five gas-fired power plants, three sources with knowledge of the matter told Reuters, part of a broader effort to free up funds that could generate tens of billions of dollars. The potential sale of four or five gas-fired plants that power refineries could alone raise around $4 billion as the Saudi government pushes Aramco to increase profits and payouts to the state, two of the sources said. Aramco, the world's most profitable company and the main source of Saudi state income, has been looking to sell some assets, improve efficiency and cut costs, Reuters has reported. The company will also slash dividend payouts by nearly a third this year as lower oil prices hit its income. The state, which directly owns 81.5 percent of Aramco, is heavily reliant on the payouts, which include royalties and taxes. Besides the sale of the gas-fired plants, the company could divest assets such as housing compounds and pipelines, two of the sources said. Port infrastructure assets could also be up for sale, one of them and a third person said. Aramco declined to comment on the potential asset sales and had no immediate comment on the amount of money the fundraising drive could yield. The Saudi government communications office did not respond to Reuters requests for comment. Reuters could not determine a timeline for the sale. The three sources spoke on condition of anonymity because the process is private. Local businesses like Saudi utility firms could be interested buyers, one of the people said. Aramco fully or partly owned 18 power plants and related infrastructure locally supplying energy to its gas plants and refineries, according to its 2024 financial report. Other power plants are expected to come onstream soon. The Tanajib Gas Plant project is expected to start operations this year. The potential asset sales by Aramco coincide with Saudi Arabia Crown Prince Mohammed bin Salman's planned massive domestic projects to diversify the economy from oil while facing pressure from tumbling crude prices. Oil receipts made up 62 percent of state revenues last year with the Saudi budget showing a deficit of more than $30 billion in 2024 despite a $199 billion windfall from Aramco. Aramco sold $5 billion of bonds in May and signaled more borrowing. The country is pouring hundreds of billions of dollars into projects including showpiece events like the Expo 2030 world fair and soccer's FIFA World Cup 2034. Aramco is also seeking to raise funds for infrastructure by bringing in investors, Reuters reported in May. — Reuters
New Straits Times
04-07-2025
- Business
- New Straits Times
Saudi Aramco considers power assets sale to raise billions
DUBAI: Saudi oil giant Aramco is looking to sell up to five gas-fired power plants, three sources with knowledge of the matter told Reuters, part of a broader effort to free up funds that could generate tens of billions of dollars. The potential sale of four or five gas-fired plants that power refineries could alone raise around US$4 billion as the Saudi government pushes Aramco to increase profits and payouts to the state, two of the sources said. Aramco, the world's most profitable company and the main source of Saudi state income, has been looking to sell some assets, improve efficiency and cut costs, Reuters has reported. The company will also slash dividend payouts by nearly a third this year as lower oil prices hit its income. The state, which directly owns 81.5 per cent of Aramco, is heavily reliant on the payouts, which include royalties and taxes. Besides the sale of the gas-fired plants, the company could divest assets such as housing compounds and pipelines, two of the sources said. Port infrastructure assets could also be up for sale, one of them and a third person said. Aramco declined to comment on the potential asset sales and had no immediate comment on the amount of money the fundraising drive could yield. The Saudi government communications office did not respond to Reuters requests for comment. Reuters could not determine a timeline for the sale. The three sources spoke on condition of anonymity because the process is private. Local businesses like Saudi utility firms could be interested buyers, one of the people said. Aramco fully or partly owned 18 power plants and related infrastructure locally supplying energy to its gas plants and refineries, according to its 2024 financial report. Other power plants are expected to come onstream soon. The Tanajib Gas Plant project is expected to start operations this year. The potential asset sales by Aramco coincide with Saudi Arabia Crown Prince Mohammed bin Salman's planned massive domestic projects to diversify the economy from oil while facing pressure from tumbling crude prices. Oil receipts made up 62 per cent of state revenues last year with the Saudi budget showing a deficit of more than US$30 billion in 2024 despite a US$199 billion windfall from Aramco. Aramco sold US$5 billion of bonds in May and signalled more borrowing. The country is pouring hundreds of billions of dollars into projects including showpiece events like the Expo 2030 world fair and soccer's FIFA World Cup 2034. Aramco is also seeking to raise funds for infrastructure by bringing in investors, Reuters reported in May.
Time of India
04-07-2025
- Business
- Time of India
Saudi Aramco considers power assets sale to raise billions
Saudi oil giant Aramco is looking to sell up to five gas-fired power plants , three sources with knowledge of the matter told Reuters , as part of a broader effort to free up funds that could generate tens of billions of dollars. The potential sale of four or five gas-fired plants that power refineries could alone raise around $4 billion as the Saudi government pushes Aramco to increase profits and payouts to the state, two of the sources said. Aramco, the world's most profitable company and the main source of Saudi state income , has been looking to sell some assets, improve efficiency and cut costs, Reuters has reported. The company will also slash dividend payouts by nearly a third this year as lower oil prices hit its income. The state, which directly owns 81.5 per cent of Aramco, is heavily reliant on the payouts, which include royalties and taxes. Besides the sale of the gas-fired plants, the company could divest assets such as housing compounds and pipelines, two of the sources said. Port infrastructure assets could also be up for sale, one of them and a third person said. Aramco declined to comment on the potential asset sales and had no immediate comment on the amount of money the fundraising drive could yield. The Saudi government communications office did not respond to Reuters requests for comment. Reuters could not determine a timeline for the sale. The three sources spoke on condition of anonymity because the process is private. Local businesses like Saudi utility firms could be interested buyers, one of the people said. Aramco fully or partly owned 18 power plants and related infrastructure locally supplying energy to its gas plants and refineries, according to its 2024 financial report. Other power plants are expected to come onstream soon. The Tanajib Gas Plant project is expected to start operations this year. The potential asset sales by Aramco coincide with Saudi Arabia Crown Prince Mohammed bin Salman 's planned massive domestic projects to diversify the economy from oil while facing pressure from tumbling crude prices. Oil receipts made up 62 per cent of state revenues last year, with the Saudi budget showing a deficit of more than $30 billion in 2024 despite a $199 billion windfall from Aramco. Aramco sold $5 billion of bonds in May and signalled more borrowing. The country is pouring hundreds of billions of dollars into projects including showpiece events like the Expo 2030 world fair and soccer's FIFA World Cup 2034. Aramco is also seeking to raise funds for infrastructure by bringing in investors, Reuters reported in May.
