Interview: Meshaal bin Omairh
How can the public and private sectors enhance collaboration to expand investment opportunities in commercial and retail development?
MESHAAL BIN OMAIRH: It is important to recognise government efforts to advance the private sector. This commitment is exemplified by measures such as providing the necessary support, forging enduring alliances, and amplifying the sector’s investment horizons and opportunities for sustainability. These collective actions are directed towards the development of the real estate sector and the attainment of national objectives. Notably, this public-private synergy has empowered many local developers to launch major projects and contribute to the Kingdom’s real estate competitiveness.
To underscore the cooperative relationship between the public and private sectors, an agreement has been forged with the Quality of Life Programme, a Vision Realisation Programme under Vision 2030, to strengthen the private sector’s ability to elevate the quality of life of individuals and families, and offer a range of choices that promote positive lifestyles. Additionally, an agreement with the Tourism Development Fund is in place to develop several projects in the Kingdom to enhance infrastructure in key destinations.
In what ways can real estate development be leveraged to boost tourism and entertainment?
BIN OMAIRH: The rapid progression of the tourism sector aligns with the objectives of Vision 2030. Notably, the Kingdom ranked second globally in terms of growth in international tourists in the first quarter of 2023, experiencing an increase of 64%. Vision 2030 aims to elevate the sector’s contribution to GDP by attracting both domestic and foreign investment. This endeavour hinges on substantial investment in tourism infrastructure and entertainment, capitalising on the Kingdom’s natural resources. The potential of the tourism sector to support economic transformation and diversification is promising. This pursuit involves an increase in domestic and foreign investment, alongside the aim of creating around 3m jobs and hosting over 100m annual visitors.
Capitalising on current growth trends, the tourism sector and domestic businesses are set for expansion – evidenced by the ongoing and upcoming projects aligned with Vision 2030. The hospitality sector has also seen recent development, positioning the Kingdom as one of the fastest-growing hospitality markets in the world, with a pioneering role in the Middle East. Forecasts from the Tourism Development Fund anticipate a 14% increase in supply in 2022, and a 42% overall increase between 2021 and 2025. At the same time, the entertainment sector in the Kingdom is also experiencing continuous evolution, as evidenced by ongoing projects and updates to existing initiatives.
What can be done to enhance opportunities for private sector participation and foreign investment?
BIN OMAIRH: Saudi Arabia already holds a prominent position as an economic power in the MENA region, located between Asia, Europe and Africa. The Kingdom has a robust economy and actively engages as a key player in the G20. This strategic positioning and economic influence contribute to a diversified investment landscape, underpinned by a range of high-performing sectors and competitive strengths.
What sets the Kingdom apart is its proactive pursuit of a more conducive investment climate, supported by a series of comprehensive economic reforms. These measures are strategically designed to bolster investment across promising economic sectors, while simultaneously driving non-oil exports from their current 16% share to at least 50% of non-oil GDP by 2030. This ambitious target aligns itself with the overarching vision of transforming Saudi Arabia into a global investment destination. Central to this transformation is the establishment of a comprehensive framework, carefully structured to foster investment opportunities and attract both domestic and international investors.
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