Saudi Arabia’s PIF sets up company to boost tourism sector

The new company will invest in new tourism projects and develop attractive destinations in cities across the kingdom

July 28, 2023

Image courtesy: Eric Lafforgue/ Getty Images

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has launched a new company to advance the growth of the kingdom’s tourism sector.

The new company, the Saudi Tourism Investment Company (Asfar), will invest in new tourism projects and develop attractive destinations with hospitality, tourist attractions, retail, and food and beverage offerings in cities across the country.

Asfar will enable the 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.

The company will leverage Saudi Arabia’s unique strategic location between Asia, Africa and Europe to create a competitive environment that will enhance the variety and quality of the hospitality and tourism offerings.

#PIF announced the establishment of the Saudi Tourism Investment Company, #Asfar, to support the growth of the country’s tourism sector.

Read more: https://t.co/mY9L6khgrv pic.twitter.com/s2Ge8zy9kb

— Public Investment Fund (@PIF_en) July 27, 2023

It will seek to benefit from the natural beauty and diversity of the kingdom’s terrain and culture to further enhance tourism experiences in the country. This is expected to attract domestic and international tourists to many untapped destinations across Saudi Arabia while contributing to the national target of attracting 100 million visitors per year by 2030.

“Asfar will activate the role that Saudi Arabia’s cities 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,” said Mishary Alibraheem, head of Entertainment, Leisure and Sports sector in MENA Investments at PIF.

“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.”

PIF said the launch of Asfar is in line with its strategy to unlock opportunities in the tourism sector and reinforce strategic partnership opportunities with the private sector. The company will boost job creation and diversify sources of income for the local economy in line with Saudi Vision 2030.

PIF’s sprawling portfolio

Meanwhile, PIF has launched 86 companies in 13 strategic sectors while creating more than half a million direct and indirect jobs. The $700bn sovereign wealth fund has been creating companies across a wide range of industries as it takes on an increasingly assertive role in diversifying the domestic economy away from oil.

Earlier this week, the wealth fund established a new company to foster the growth and development of Saudi Arabia’s date industry. Al Madinah Heritage Company will play a key role in improving the quality and production capacity of Ajwa dates in the Madinah region.

PIF set up Sawani Company earlier in July to advance the growth of the kingdom’s camel farming industry and actively contribute to its sustainable development. The fund also unveiled the Pharmaceutical Investment Company (Lifera) in June to boost Saudi Arabia’s biopharma growth, strengthen national resilience and advance the kingdom’s position as a global pharma manufacturing hub.

PIF also invested in the National Unified Procurement Company, one of the biggest providers of medical procurement, storage and distribution services for medicines to the Saudi healthcare sector. The investment is aimed at boosting the local supply chain of medicines.

Other companies that were created in the recent past include the Saudi Coffee Company, the Halal Products Development Company and the Saudi Agricultural Investment and Livestock Production Company.

PIF also owns stakes in tech companies such as ride-hailing firm Uber Technologies, soccer teams including English Premier League’s Newcastle United, electric carmakers Lucid and Ceer and is funding a host of new cities in the desert such as the $500bn futuristic NEOM City and the Red Sea Development Company’s mega tourism project.