Saudi Arabia has established a new investment company as it plans for a major tourism boom The Public Investment Fund (PIF), the kingdom's sovereign wealth fund, announced the launch of the Saudi Tourism Investment Company (Asfar) on July 27, 2023. The company aims to support the growth of the country's tourism sector by investing in new projects and developing attractive destinations across the kingdom.
Asfar is a $10 billion initiative that will be founded by the PIF. The company has made a mandate to invest in a range of tourism-related projects, including hotels, resorts, themed parks, and cultural attractions. Asfar also invests in infrastructure projects that will support the tourism sector, such as airports, roads, and railways.
The launch of Asfar is part of Saudi Arabia's Vision 2030, which aims to diversify the kingdom's economy and reduce its dependence on oil. Tourism is seen as a key driver of economic growth in Saudi Arabia, and the government is investing heavily in the sector.
Asfar is expected to play a key role in the development of Saudi Arabia's tourism sector. The company has strong financial backing and a clear mandate to invest in projects that will attract tourists around the world. Asfar is well-positioned to help Saudi Arabia achieve its goal of becoming a major tourism destination by 2030.
Impact Of Asfar
The launch of Asfar is expected to have a number of positive impacts on Saudi Arabia's tourism sector. First, it will help to attract more investment into the sector. Asfar's strong financial backing will give investors confidence in the tourism sector, and the company's mandate to invest in a wide range of projects will provide investors with a number of opportunities.
Second, Asfar will help to develop new tourism destinations in Saudi Arabia. The company will be able to identify and develop projects that have the potential to attract tourists from around the world. This will help to diversify Saudi Arabia's tourism offering and attract a wider range of visitors.
Third, Asfar will help to improve the quality of tourism in Saudi Arabia. The company will invest in projects that will improve the infrastructure, amenities, and services available to tourists. This will make Saudi Arabia a more attractive destination for visitors and help to improve the overall experience of visiting the kingdom.
The launch of Asfar is a positive development for Saudi Arabia's tourism sector. The company has the potential to make a significant contribution to the development of the sector and help Saudi Arabia achieve its goal of becoming a major tourism destination.
Asfar will focus on enhancing the hospitality, tourist attractions, retail, and focus food and beverage offerings in cities across Saudi Arabia, in addition to investing in the local tourism value chain. The company will also enable the private sector through co-investment opportunities and by private sector through co-investment opportunities and by creating an attractive environment for local suppliers, contractors, and small and medium-sized enterprises (SMEs) to develop tourism projects and destinations. Asfar will see to create a competitive environment that will improve the variety and quality of the tourism offered in the country.
The company will leverage Saudi Arabia's unique strategic locations between the three continents of Asia, Africa, and Europe as well as the competitive advantages of its cities. It will benefit from the natural beauty and diversity of the country's terrain and culture to further enhance tourism experiences in the country. The company's vision is to attract domestic and international tourists to a large number of untapped destinations across the country and contribute to the national target of attracting 100 million visitors per year by 2030.
Mishary Aliraheen, Head of Entertainment, Leisure and Sport sector in MENA Investments at PIF, said: "Asfar will activate the role that Saudi Arabia's cities play in supporting the national economy. It will enable each city to play in supporting the national economy. It will enable each city to make the most of its unique tourism offering, further diversifying and enriching the tourism and entertainment experience in Saudi Arabia. PIF tourism projects and companies are working side by side, supporting and strengthening the tourism ecosystem. The creation of the company is in line with PIF's strategy to create opportunities in the tourism sector and reinforce strategic partnership opportunities with the private sector, creating jobs and diversifying sources of income for the local economy in line with Saudi Vision 2030".
Asfar is one of several strategic companies that PIF owns or supports that aim to invest and develop Saudi tourism destinations. These include Aseer Investment Company, which aims to transform Aseer into a year-round tourism destination, as well as Saudi Downtown Company, mandated to build and develop downtown areas within Saudi Arabia.
The launch of Asfar is in line with PIF's strategy to unlock opportunities in the tourism sector and reinforce strategic partnership opportunities with the private sector, creating jobs and diversifying sources of income for the local economy in line with Saudi Vision 2030.
The establishment of Asfar reflects Saudi Arabia's ambition to become a global tourism destination that offers diverse and unique experiences for visitors.
