Sports and entertainment driving Saudi real estate boom, say Deloitte experts
Updated 21 sec ago
Miguel Hadchity
RIYADH: Saudi Arabia’s real estate sector is gaining momentum as investments in sports and entertainment create new opportunities for infrastructure development and economic stability, according to industry experts.
During a panel discussion on the final day of the Real Estate Future Forum, Chris Styring, director of the Sports Business Group at Deloitte, highlighted the potential for long-term benefits from sports infrastructure projects.
The Kingdom’s real estate sector is growing, with 192 project licenses issued in 2024, totaling SR147 billion ($39 billion), while the sports market is set to grow from $8 billion to $22.4 billion by 2030.
This surge in sports investment is driving real estate expansion, fueling demand for stadiums, training facilities, and mixed-use developments.
With the nation preparing to host the FIFA World Cup in 2034, Styring emphasized the urgency of upskilling local professionals.
“The World Cup seems a long way away, but it’s not. You’ve got to prepare. You’ve got to upskill the next generation of people who will be the event managers, the commercial managers, the people who deliver, the hospitality sector, and the real estate sector that’s actually building the infrastructure,” he said.
The Deloitte official believes there is “a great opportunity” to build sports infrastructure that can “give back”, adding that Saudi Arabia is well-positioned to host major sporting events in the future.
“I foresee that one day you’ll have a world-class marathon,” he predicted at the Riyadh event.
Simon Oaten, lead partner for Travel, Hospitality, and Leisure at Deloitte UK, underlined that preparations for such large-scale events are already accelerating. “Deadlines really focus the mind, and we’re starting to see that in a way that we weren’t seeing it nine to 12 months ago,” he observed.
Beyond sports, regulatory clarity and tax planning are crucial factors for investors in Saudi Arabia’s real estate sector, according to Hadeel Biyari, partner for Indirect Tax at Deloitte Middle East.
“All investors, whether they’re local or foreign, they look for certainty,” she said
Biyari also pointed out that Deloitte is actively developing local real estate expertise, adding: “That’s not only from a tax perspective but also from a legal perspective because I deal with tax disputes and litigation.”
As Saudi Arabia continues to drive innovation across all sectors in line with Vision 2030, the experts agreed that preparation, investment, and strategic planning will be key to ensuring the real estate sector thrives alongside the Kingdom’s growing sports and entertainment industries.
Saudi-UK aviation ties set for growth amid investment push
Updated 19 sec ago
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia aims to strengthen aviation ties with the UK as officials from both countries met to boost investment and collaboration, amid the Kingdom’s push to upgrade its airports and expand global connectivity.
A senior Saudi delegation, led by Mohammed bin Fahd Al-Khuraisi, executive vice president for strategy and business intelligence at the General Authority of Civil Aviation, participated in a Saudi-British roundtable in London, the Saudi Press Agency reported.
The meeting, which brought together top British aviation companies, CEOs, and experts, focused on enhancing strategic cooperation and unlocking new opportunities in the aviation sector, aligned with Saudi Arabia’s Vision 2030 goals.
These initiatives align with Saudi Arabia’s National Aviation Strategy, which aims to double passengers capacity to 330 million annually, increase air cargo capacity to 4.5 million tonnes, and expand connectivity to over 250 destinations worldwide.
In his speech, Al-Khuraisi highlighted the UK’s role as a key European market for Saudi Arabia, with passenger traffic between the two nations more than doubling in 2024 to 1.338 million, compared to 2022. This surge in demand underscores the need for continued investments in aviation infrastructure and international partnerships.
The two nations maintain strong trade and cultural ties, with Al-Khuraisi highlighting that in December, both countries agreed to increase bilateral trade to $37.5 billion by 2030, underscoring the value of their relations and mutual economic benefits.
He also noted the success of the trade partnership, with over 1,000 British companies holding investment licenses in Saudi Arabia and 55 firms, including BAE Systems and Rolls-Royce, operating regional headquarters in the Kingdom.
The Saudi delegation showcased the Kingdom’s aviation ecosystem, highlighting ongoing infrastructure projects, digital transformation efforts, and investment opportunities, including Riyadh Air’s launch and the King Salman International Airport master plan.
The presentation also detailed investment prospects in Saudi airports, covering implementation strategies, funding volumes, business opportunities, and incentives for investors.
Concluding his speech, Al-Khuraisi invited UK investors and aviation leaders to seize new opportunities for collaboration, further strengthening the global aviation sector.
The Saudi delegation also participated in the Civil Aviation Supply Forum, engaging with representatives from the British Aviation Group, UK Air Navigation Services, the UK Civil Aviation Authority, and other global aviation companies.
The meetings, attended by British government officials and Saudi embassy representatives, focused on investment opportunities in civil aviation and airport development.
Public-private collaborations crucial to tackling unemployment, Saudi minister says
Updated 36 min 51 sec ago
REEM WALID
RIYADH: Stronger working between governments, the private sector, and international organizations is needed to address the global unemployment crisis, according to a top Saudi official.
During the opening remarks of the Global Labor Market Conference taking place in Riyadh from Jan. 29 – 30, the Kingdom’s Minister of Human Resources and Social Development Ahmad bin Sulaiman Al-Rajhi highlighted that with 67 million young people unemployed across the world — and over 20 percent of youth in some regions outside of education, employment, or training — targeted policies are urgently needed to tap into this labor market potential.
Global employment grew in 2024, along with the expanding labor force, keeping the unemployment rate steady at 5 percent, the same as in 2023. However, the growth in employment was too weak to address the ongoing global shortage of decent work, according to the International Labor Organization.
“While the challenges may vary, the solutions require collaboration between governments, the private sector, and international organizations. By working together, we develop strategies that benefit everyone,” Al-Rajhi said.
“The numbers are concerning, and the urgency is clear. These figures are not just statistics, they represent untapped potential in all of our labor markets,” the official added, stressing that addressing youth unemployment with the right strategies is essential for driving economic growth and social progress worldwide.
The minister went on to note that freelance work has become a growing opportunity in Saudi Arabia.
“Registered freelancers increased from 400,000 in 2020 to 2.2 million this year. This growing industry now contributes almost SR72.5 billion ($19.33 billion) to the economy. The majority of these freelancers are young people,” Al-Rajhi said.
He concluded his opening remarks by saying: “The following critical questions will guide our efforts to shape effective policies that can transform our labor markets at home while also shaping the global labor market. What innovative policies for strengthening youth employment have been applied and with what results? What new initiatives our trials can help us better to understand how to quickly get job seekers into jobs? How is technology impacting youth employability?”
The minister added that the GLMC is a platform for discussion and a space for action. It exists to identify policies and strategies that can be adapted and scaled across countries, with a clear focus on the young people who will quickly form the core of the global labor market.
We are pleased to inaugurate the second edition of the #GlobalLaborMarketConference with an International Ministerial Meeting. His Excellency, Minister of Human Resources and Social Development, Eng. @Ahmed_S_Alrajhi, chaired the meeting and announced eight decisive actions for a… pic.twitter.com/xNOm8FlF5S
Vice Minister for Labor Sector in Saudi Arabia Abdulla Nasser Abuthnain highlighted that empowering young people with skills, opportunities, and support is vital to achieving Saudi Vision 2030.
“Our approach focuses in creating pathways to quality jobs that drive productivity and innovation,” Abuthnain said.
“Here in Saudi Arabia, the Ministry of Human Resources and Social Development has introduced a comprehensive youth development strategy designed to address the most pressing challenges facing young Saudis. As a result, the need rate for youth aged 15 to 24 has decreased from 17.8 percent in 2022 to 13.7 in the second quarter of 2024,” he added.
The minister continued to stress that with regard to the freelance market, Saudi Arabia is working on enhancing workforce flexibility by offering 690 contracts under flexible work arrangements and more than 204,000 remote work contracts.
“Finally, we are enhancing job matching through digital platforms. Our unified national employment platform Edarat integrated AI (artificial intelligence) to connect to job seekers with employees, ensuring more efficient and tailored matching process,” Abuthnain said.
“In closing, Saudi Arabia remains committed to fostering dynamic labor market that empowers its youth, equip them for future and position them as a key contributor to global economy,” he added.
The Kingdom is emerging as an international leader in addressing labor market challenges, skill development, and workforce requalification, according to a report released by GLMC in December.
The inaugural report, issued by the conference hosted by Saudi Arabia’s Ministry of Human Resources and Social Development, emphasized the government’s initiatives to bridge the gap between academic qualifications and market demands.
These efforts include enhancing education and training programs and preparing young job seekers for the rapidly evolving global labor landscape.
Saudi labor market transformation ‘spectacular,’ says former Swedish minister
Updated 29 January 2025
Reina Takla Nirmal Narayanan
RIYADH: Countries around the world can take lessons from the transformation of Saudi Arabia’s labor market, a former Swedish employment minister has insisted.
Speaking to Arab News on the sidelines of the Global Labor Market Conference in Riyadh, Sven Otto Littorin praised the Kingdom’s progress since the launch of Vision 2030, which has seen female workforce participation doubling in nearly six years.
The changes have seen Saudi Arabia emerge as a global leader in addressing labor market challenges, skill development, and workforce prequalification, as highlighted in the inaugural GLMC report in December.
The findings align with Vision 2030’s goal to reduce unemployment from 11.6 percent in 2017 to 7 percent by the end of the decade.
“I would go as far as to say that most other countries could learn a thing or two from Saudi Arabia. The transformation of the Saudi labor market since the start of Vision 2030 is truly nothing less than spectacular. The Kingdom has made so much progress in such a short time it is hard to choose,” said Littorin, who is also an international business and policymaking expert.
He praised the significant increase in female workforce participation, noting that Saudi Arabia achieved a twofold rise in just six years, a feat that took Sweden 40 years to accomplish.
“Roughly 35 percent of women in the workforce have leadership positions, and I saw an opinion poll recently that stated that over 75 percent of Saudi men saw this as very favorable to family life,” he added.
Unprecedented progress
The Kingdom’s labor market reforms align with Vision 2030 goals, as recent data from Saudi Arabia’s General Authority for Statistics shows the overall unemployment rate fell to 3.7 percent in the third quarter of 2024, a 0.5 percentage point drop from the previous year.
Unemployment among Saudi nationals was 7.8 percent, while female participation reached 36.2 percent.
Littorin emphasized the broader societal impact of these changes, saying: “As a foreigner, I have to say that it is so gratifying to see these women in the labor market, earning their own money, contributing to their families and to the growth of the country with their productivity, their grit, and ambition.”
He added: “Saudi Arabia is a richer nation for it, where everyone is involved in the growth of the country.”
Saudi Arabia’s young workforce is another key driver of its economic transformation, Littorin noted. “The Gulf Cooperation Council region and Saudi Arabia, in particular, have a very young workforce. This is a great advantage compared with many other places around the world. A young workforce is versatile, agile, and finds it easier to learn new skills than others,” he said.
The former minister also pointed to the Kingdom’s growing appeal to international investors and tourists. “When I first came to Riyadh in 2017, I was almost the only foreigner on every flight I took into the Kingdom. Now, these flights are filled with tourists and investors alike. The interest in Saudi Arabia has exploded,” Littorin said.
A November report by BlackRock Investment Institute echoed this sentiment, predicting that Saudi Arabia’s future growth will be driven by its young population and abundant natural resources. However, the report cautioned that success will depend on governance, regulatory improvements, and labor market reforms.
Sustainable growth
Littorin stressed the importance of international cooperation to sustain this growth. He suggested partnerships between Saudi Arabia and countries like Sweden to enhance the Kingdom’s job market.
“Saudi Arabia might want technological solutions in waste management from Sweden, for instance,” Littorin said.
He added that the Saudi workforce is young and eager to learn from abroad, suggesting that joint venture solutions could foster mutual learning, with the possibility of exchanging workforces for a period to strengthen bonds between companies, economies, and countries.
“Solutions like this would create larger markets for the companies involved, enhance job training for both Swedes and Saudis, broaden international exposure and contacts while increasing relevancy to both countries. The world is global, and so are its solutions,” Littorin added.
Global platform
The Global Labor Market Conference in Riyadh. AN
The second edition of the GLMC is taking place at the King Abdulaziz International Convention Center on Jan. 29-30, drawing over 5,000 attendees and 200 speakers, including ministers, CEOs, and experts from more than 50 countries.
Littorin, a keynote speaker at the event, described the conference as a global platform for dialogue on future labor market trends. This year’s conference focuses on skills and productivity, exploring how education, skilling, upskilling, and reskilling can better meet tomorrow’s demands.
“Solutions in economic policy, education policy, and labor market policy need to go hand in hand to support the transformation of our economies for the good of both people, companies, and countries,” he said.
Littorin emphasized the need for upskilling and reskilling to adapt to the fast-evolving job market. “The long-term key to economic growth and prosperity is not only to find ways to create more jobs but to create better jobs; jobs that through higher productivity are more rewarding to the individual and contribute more to the economy,” he said.
The former minister highlighted the role of advanced technologies like artificial intelligence in shaping global labor markets, particularly in the Middle East, emphasizing that “technology, digital transformation, and AI are key in so many aspects.”
“Technology will enhance our ability to better understand where we are and where we are going. Digitalization will improve productivity not only in general terms but specifically in education and job matching,” Littorin said.
Oil Updates — prices ease on rising US inventories, Libyan output
Updated 29 January 2025
Reuters
SINGAPORE/TOKYO: Oil prices slid on Wednesday, giving up some of last session’s gains, as an increase in US crude stockpiles and easing worries over Libyan supplies weighed on prices, although the decline was limited by potential US tariffs on Canadian and Mexican imports.
Brent crude futures fell 18 cents, or 0.2 percent, to $77.31 a barrel by 8:48 a.m. Saudi time, while US crude futures declined 15 cents, or 0.2 percent, at $73.62 a barrel.
“While markets are tackling demand side pressures, easing backdrop on supply side is equally weighing over oil prices,” said Priyanka Sachdeva, senior market analyst at Phillip Nova in Singapore.
“Markets are under pressure with Trump’s plans to boost US oil production and await further clarity on Trump’s energy policies.”
US President Donald Trump began his term last week issuing several executive orders to ease the permitting of energy infrastructure and boost already record-high oil and gas output.
US crude oil and gasoline stocks rose last week, while distillate inventories fell, market sources said on Tuesday, citing American Petroleum Institute figures.
The Energy Information Administration, the statistical arm of the US Department of Energy, is due to release its weekly data at 6:30 p.m. Saudi time on Wednesday.
The resolution of supply concerns in Libya has also added to selling pressure, said Chiyoki Chen, chief analyst at Sunward Trading in Tokyo.
Those fears eased after the state-run National Oil Corp. said on Tuesday export activity was running normally after it held talks with protesters demanding a halt of loadings at one its main oil ports.
The White House said on Tuesday that President Trump still plans to issue 25 percent tariffs on Canada and Mexico on Saturday.
It remains unclear how any new tariffs could affect oil imports to the US from the countries. Canada supplied 3.9 million barrels per day of oil to the US in 2023, roughly half of overall imports for the year, while Mexico supplied 733,000 bpd, according to data from the EIA.
Saudi Arabia’s energy minister and several of his OPEC+ counterparts have held talks following Trump’s call for lower oil prices and ahead of a meeting next week of OPEC+ oil-producing countries, according to official statements and sources.
Oil benchmarks fell to multi-week lows early this week as news of surging interest in Chinese startup DeepSeek’s low-cost artificial intelligence model prompted concerns over energy demand to power data centers, rattling the overall energy sector, while weak economic data from China further soured the demand outlook.
Technology stocks regained ground on Tuesday, a day after the DeepSeek rattled markets.
Saudi Arabia’s property market set for growth with billions in new projects
The largest PIF projects in the Kingdom are in the Asir region
At least 50 percent of the country’s tourism is expected be centered in Riyadh
Updated 29 January 2025
Reina Takla Nour El-Shaeri
RIYADH: The Saudi real estate landscape is poised for substantial growth, as industry leaders, policymakers, and investors gathered at the Real Estate Future Forum in Riyadh to unveil major developments in property investment and tourism.
Highlighting the Kingdom’s ambitious Vision 2030 objectives, Asir Gov. Prince Turki bin Talal revealed the Public Investment Fund is spearheading nine major projects in the region, with four already launched and five in progress. “The largest PIF projects in the Kingdom are in the Asir region,” the governor said, emphasizing the region’s pivotal role in Saudi Arabia’s evolving property market.
The governor highlighted the region’s growing hospitality sector, with between 6,000 and 8,000 approved hotel rooms currently available.
He also announced that Abha’s World Cup bid had been officially recognized as the best in the Kingdom by the Ministry of Sports.
Meanwhile, Al-Ahsa Gov. Prince Saud bin Talal unveiled plans to expand the region’s hospitality offerings. “Our pipeline includes over seven or eight hotels and more than 25 rural lodges, including three five-star hotels: Hilton, Radisson Blu, and Hilton Garden Inn,” he said. Saudi Tourism Minister Ahmed Al-Khateeb noted the rapid expansion of the Kingdom’s hospitality industry, with hotel room capacity expected to grow from 475,000 to 675,000 by 2030. Al-Khateeb also discussed the impact of major infrastructure projects, such as the King Salman International Airport expansion and the launch of Riyadh Air, which are central to the Kingdom’s hyper-tourism strategy.
He forecast that at least 50 percent of the country’s tourism will be centered in Riyadh, but emphasized efforts to keep the capital’s share from exceeding 80-90 percent. In the financial sector, Mohammed El-Kuwaiz, chairman of the Capital Market Authority, discussed the increasing role of real estate in the Kingdom’s investment market.
“Around 20 percent of the 55 initial public offerings currently under review involve real estate companies,” he revealed.
El-Kuwaiz emphasized the importance of financial stability and transparency for companies looking to list, advising them to treat investors as partners.
In a significant move, he also announced that listed companies owning properties in Makkah and Madinah can now welcome foreign investors immediately.
