Saudi Arabia's PIF plans to invest $3 billion in new tourism venture

The kingdom proposes to diversify its economy through tourism and wants the sector to contribute 10% of gross domestic product by 2030

Saudi Arabia’s Public Investment Fund (PIF) launched a new venture that will invest $3 billion in developing tourism and infrastructure in the southwestern Asir region, the state news agency SPA reported.

The kingdom, which opened its doors in September 2019 to foreign tourists by launching a new visa regime for 49 countries, hopes to diversify its oil-dependent economy through tourism and wants the sector to contribute 10% of gross domestic product (GDP) by 2030.

Crown Prince Mohammed Bin Salman has long pushed the PIF as a central plank in his plan to find ways of driving growth while weaning the economy off its dependence on oil. Crude exports still account for more than half the kingdom’s income.

The Soudah Development Company (SDC) will develop Soudah, a mountainous area located 3,015 metres (9,892 t) above sea level, and the ancient village of Rijal Alma’, into a tourist destination for residents and visitors. It aims to contribute an estimated $8 billion to the kingdom’s cumulative gross domestic product (GDP) by 2030.

The Asir region and its capital, Abha, are a favourite destination for Saudis and foreign residents for its pleasant cool and humid climate, making it ideal for short holidays to escape the desert weather in most of the kingdom.