Tabuk’s business journey — a navigation of growth and vision

Tabuk’s business journey — a navigation of growth and vision
NEOM, which positions itself as a cognitive city, offers unparalleled connectivity for doing business and will enable advanced technologies. (Shutterstock)
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Updated 22 March 2025

Tabuk’s business journey — a navigation of growth and vision

Tabuk’s business journey — a navigation of growth and vision
  • Tabuk has ambitious plans for further development, growth, and economic diversification

RIYADH: A young workforce, strong demand and attractive tourist offerings are helping transform Tabuk into one of ’s most dynamic regions.

Earlier in March, the area’s mayor, Hussam bin Muwafaq Al-Youssef, talked up the investment potential of the region during a speech as part of the “Chamber’s Diwaniya” events during Ramadan.

Addressing business leaders, he said the municipality has over 120 available investment prospects across different sectors, including large, medium and small-scale projects.

He highlighted some of the region’s competitive advantages, such as manufacturing, agriculture, mining, energy and tourism, which have contributed to boosting Tabuk’s investment appeal.

Al-Youssef’s comments came after a stellar 2024 for Tabuk, which saw significant achievements in its business landscape, such as the launch of Sindalah island in NEOM and the inauguration of Nujma, a Ritz-Carlton Reserve, in the Red Sea.

Global engagement was amplified through events such as the Tabuk Toyota Rally, and efforts were also directed towards enhancing infrastructure.

Tabuk’s business journey

Nicholas Nahas, partner at Arthur D. Little, Middle East, said the region has worked to raise its profile in the business world by expanding output and leasing agreements in the Tabuk industrial city.

“It also advanced on its plans to upgrade key infrastructure, including Tabuk airport, which increased flight operations by 25 percent, bringing more people to the region to increase tourism and economic activity,” he added.

Ian Khan, a technology futurist and author, shed light on how Tabuk has benefited benefited from the Saudi government’ funding the Saudi government to highlight the region’s forward-thinking strategies and commitment to growth.

“The Ministry of Investment’s identification of nearly $13.3 billion in investment opportunities speaks volumes about Tabuk’s bold vision — particularly in renewable energy, agriculture, tourism and entrepreneurship. These sectors position Tabuk as a burgeoning hub along the Red Sea, primed to attract future-focused ventures and travelers alike,” Khan told Arab News. 




Wadi Al-Disah in the Tabuk region is one of the most famous valleys in western . (Shutterstock)

He added that the Roads General Authority “truly accelerated” Tabuk’s connectivity by developing over 8,000 km of new networks and constructing more than 200 bridges. 

“These roads and bridges don’t just help people get from A to B — they connect Tabuk to key mega-projects like NEOM, Amaala, and the Red Sea,” Khan said, adding: “This synergy multiplies Tabuk’s commercial, touristic, and social opportunities, creating a dynamic ecosystem where innovation thrives.”

The author went on to say one of the most exciting recognitions for Tabuk came in April 2024, when the World Health Organization designated the region as a “Healthy City.”

He said: “This honor underscores Tabuk’s unwavering dedication to enhancing residents’ quality of life through robust health and environmental initiatives, setting a powerful precedent for future urban development in the Kingdom.”

Tabuk’s plans 

Tabuk has ambitious plans for further development, growth, and economic diversification in tourism, information and communications technology, agriculture and renewable energy.

From ADL’s point of view, Nahas explained that in the tourism sector, even with NEOM, Red Sea and Amaala opening up their first attractions, Tabuk still has much to offer. 

“The region includes many heritage sites, including the ‘Saudi Grand Canyon,’ an area between Hisma Mountains and Qaraqir Valley, with offerings ranging from sun and sand to adventure sports to culture,” he said.

“The region has 27 hotels and 60 furnished apartments, accounting for almost 4,000 available rooms. To successfully navigate its journey, Tabuk should continue attracting tourists to maximize occupancy while increasing hotel and hospitality supply.”

Beyond tourism, the Tabuk province will also contribute to the ICT and renewable energy sectors.

Tabuk’s strides mirror the exact ethos of Saudi Vision 2030 — resilience, diversification and boundary-pushing innovation.

Ian Khan, technology futurist and author

NEOM, which positions itself as a cognitive city, offers unparalleled connectivity for doing business and will enable advanced technologies, including self-driving vehicles and augmented reality/ virtual reality experiences, according to Nahas.

“NEOM’s ambition will fuel the province’s ICT ambition and will contribute to the country’s overall innovation ambitions. In the renewable energy sector, due to Tabuk’s extensive natural resources of sun and wind, Tabuk will offer opportunities for photovoltaic power plants and coastal wind farms,” added Nahas.

Similarly, Khan said Tabuk was not slowing down as it looked ahead, citing international investment forums and a new logistics hub as moves that will turbocharge Tabuk’s status as a prime destination for global investors.

The author added: “On the tourism side, Tabuk Investment & Tourism launched four subsidiary companies in January 2024, focusing on hospitality, facility management, events and eco-friendly services. These ventures exemplify how Tabuk is pairing world-class hospitality with sustainability — perfectly in line with the overarching goals of Saudi Vision 2030.”

Khan believes that Tabuk’s “multi-pronged roadmap” — ranging from health initiatives to tourism and tech — reflects a future-focused mentality, anchored firmly in the transformative power of Saudi Vision 2030. 

“It’s not just about building roads or eco-friendly hotels; it’s about shaping a legacy that will define the Kingdom’s next chapter. And from my vantage point as a futurist, Tabuk’s story is just getting started,” he said.

Tabuk — a key player in economic diversification

Unlocking these opportunities will require private and foreign investment, along with strong collaboration across the region’s stakeholders to fully realize the region’s potential and ensure an integrated approach to infrastructure and promotion.

Nahas from ADL said that according to the Saudi Ministry of Investment, SR40 billion ($13.3 billion) of investment opportunities remained available.

It is certainly becoming easier for speculators to visit the region, which boasts three airports; Tabuk International, NEOM Bay and Al Wash Airport connect it to key international destinations such as Dubai and Cairo, as well as local hubs including Riyadh and Madinah. 

FASTFACT

Tabuk has over 120 available investment prospects across different sectors, including large, medium and small-scale projects.

From ADL’s perspective, these airports will need to continue to expand operations and connectivity to bring people to the region. 

“Connectivity by road and sea will also be important. Tabuk boasts one of the region’s most connected road networks, which (is) further being upgraded to accommodate the region’s economic development for the movement of people and goods,” Nahas said.

He added that promoting the region would also require an integrated approach across its development clusters and, in addition to the Saudi Tourism Authority, it would also need to work closely with destination management companies and marketing organizations. 

“These stakeholders will be able to coordinate, promote, and sell Tabuk’s rich portfolio of offerings in an integrated portfolio to the world. These initiatives will further raise Tabuk’s status as a business and tourism destination for the world, in 2025 and beyond,” said Nahas. From Khan’s point of view, Tabuk’s strides mirror the exact ethos of Saudi Vision 2030 — resilience, diversification and boundary-pushing innovation.

“By harnessing its abundant sunlight and wind resources, Tabuk is doubling down on renewable energy projects that support the national objective of generating 50 percent of electricity from renewables by 2030. This is not just an energy strategy; it’s a blueprint for building a sustainable, future-ready economy,” he said.

Khan stressed that by attracting substantial foreign investment, NEOM broadens Tabuk’s economic base and unlocks new possibilities across construction, tech and services. 

“Moreover, the University of Tabuk is nurturing a new generation of disruptors and innovators. By offering specialized programs in engineering, computer science, health sciences and business administration, the university ensures that Tabuk’s workforce is prepared to sustain this wave of progress across multiple industries,” he said.


Closing Bell: Saudi main index ends lower at 10,899

Closing Bell: Saudi main index ends lower at 10,899
Updated 10 August 2025

Closing Bell: Saudi main index ends lower at 10,899

Closing Bell: Saudi main index ends lower at 10,899
  • Parallel market Nomu dropped 199.33 points to close at 26,449.38
  • MSCI Tadawul Index edged up 0.03% to reach 1,407.12

RIYADH: ’s Tadawul All Share Index declined on Sunday, losing 31.19 points, or 0.29 percent, to close at 10,899.11. 

The total trading turnover of the benchmark index stood at SR3.51billion ($935.8 million), with 77 listed stocks advancing and 169 declining. 

The Kingdom’s parallel market Nomu also dropped 199.33 points to close at 26,449.38 

The MSCI Tadawul Index slightly edged up by 0.03 percent to reach 1,407.12. 

The top performer on the main market was Red Sea International Co., whose share price rose 10 percent to SR42.24. 

The share price of Tamkeen Human Resource Co. increased 7.94 percent to SR57.1. 

Saudi Reinsurance Co. saw its stock price increase by 5.91 percent to SR47.66. 

Jahez International Co. for Information System Technology witnessed a drop in its share price by 10 percent to SR25.02. 

The company’s share price decreased following the announcement that its net profit for the second quarter fell 21.9 percent year on year to SR23.6 million, down from SR30.2 million in the same quarter last year. 

In corporate announcements, Zamil Industrial Investment Co. posted a net profit of SR25.28 million in the second quarter, a 314.5 percent increase from SR6.1 million in the same quarter in 2024. 

The company attributed the rise in quarterly profit to higher sales across its air conditioning, steel, and insulation sectors, which drove a 25.7 percent increase in gross profit.

This was further supported by a SR1.5 million rise in share of results from associates and joint ventures, lower financial charges by SR4.7 million, and a SR6.9 million reduction in zakat and income tax expenses. 

The company’s share price closed 0.51 percent higher at SR39.80. 

United International Transportation Co., known as Budget Saudi, reported a net profit of SR85.63 million in the second quarter, up 20.8 percent from SR70.87 million last year. 

The company attributed the quarterly increase in profit to higher revenues driven by growth in its rental and lease fleet, improved operational efficiency, and stronger cost control measures, which boosted gross and operating margins. 

The company’s share price ended 2.04 percent lower at SR72.20. 


Egypt’s annual inflation slows to 13.9% in July

Egypt’s annual inflation slows to 13.9% in July
Updated 10 August 2025

Egypt’s annual inflation slows to 13.9% in July

Egypt’s annual inflation slows to 13.9% in July
  • Fruit, vegetable, and meat prices record steep declines
  • Hotels and restaurants recorded a 0.6% increase

RIYADH: Egypt’s annual urban inflation rate eased to 13.9 percent in July, down from 14.9 percent the previous month, as falling food costs helped temper price pressures, official data showed.

Figures from the Central Agency for Public Mobilization and Statistics revealed that the monthly inflation rate declined by 0.6 percent, with the general consumer price index standing at 256.5 points.

The moderation was largely driven by significant drops in key food categories. Fruit prices plunged 11 percent, vegetables fell 7 percent, and meat and poultry were down 4.9 percent. Personal belongings also recorded a marginal decline of 0.5 percent.

However, price increases persisted in some segments. Grains and bread rose 0.4 percent, while dairy products, eggs and cheese each edged up 0.2 percent. Fish and seafood prices also gained 0.2 percent, as did beverages, coffee, tea and cocoa, while mineral water, soft drinks and natural juices climbed 0.8 percent.

Outside the food sector, inflation trends were mixed. Tobacco products saw the steepest rise at 7.8 percent. Clothing and footwear gained 0.3 percent, supported by a 0.4 percent increase in ready-made garments and a 0.2 percent rise in footwear.

FASTFACT

HIGHLIGHTS

Monthly inflation fell 0.6 percent, with the CPI at 256.5 points.

Tobacco increased 7.8 percent, while housing costs rose 0.7 percent.

Some food categories, including grains and bread, posted modest increases.

Housing costs advanced 0.7 percent, driven by a 0.8 percent increase in actual rents and a 1.7 percent rise in home maintenance expenses. 

Furnishings, household equipment and routine maintenance were up 0.7 percent, home textiles rose 2.6 percent, glassware and tableware 0.6 percent, and gardening and household tools 1.2 percent.

Healthcare prices climbed 0.3 percent, reflecting a 0.6 percent increase in outpatient services and a 1.1 percent jump in hospital fees. 

Transportation costs edged higher by 0.1 percent, boosted by a 0.2 percent increase in vehicle purchases and a 0.3 percent rise in private transport expenses.

Communication services rose 0.6 percent, while recreation and culture gained 0.3 percent, supported by higher spending on cultural and entertainment activities and organized tourist trips.

Hotels and restaurants recorded a 0.6 percent increase, with ready meals up 0.5 percent and hotel services up 1.5 percent. Miscellaneous goods and services grew 0.7 percent, led by a 1.2 percent rise in personal care items.


Saudi ports post 12% rise in July container volumes  

Saudi ports post 12% rise in July container volumes  
Updated 10 August 2025

Saudi ports post 12% rise in July container volumes  

Saudi ports post 12% rise in July container volumes  
  • Increases reflect expansion of trade exchange with global markets
  • Maritime traffic expanded 11.27% to 1,017 ships from 914 ships last year

RIYADH: ’s ports handled 722,502 twenty-foot equivalent units in July, marking a 12.01 percent year-on-year increase as infrastructure upgrades and expanded logistics services boosted throughput. 

According to the Saudi Ports Authority, also known as Mawani, the gain was led by a 35.34 percent jump in transshipment volumes to 175,666 TEUs, while export containers climbed 12.86 percent to 275,098 TEUs. Imports recorded a modest 0.10 percent rise to 271,738 TEUs. 

The July performance follows strong growth in May, when Saudi ports handled 720,684 TEUs, up 13 percent year on year.  

The uptick in activity supports the goals of ’s National Transport and Logistics Strategy, which aims to position the Kingdom as a global logistics hub under Vision 2030. 

In a release, Mawani stated: “These increases reflect the expansion of trade exchange with global markets, the stimulation of sectors related to maritime transport, the enhancement of supply chain efficiency, the growth of maritime activity, the support of the Kingdom’s food security, the expansion of economic activity, and the creation of jobs.”   

Total cargo tonnage, comprising general cargo, dry and liquid bulk, grew 2.81 percent to 21.1 million tonnes from 20.6 million tonnes a year earlier. General cargo reached 461,958 tonnes, dry bulk 4 million tonnes, and liquid bulk 16.6 million tonnes.  

Livestock imports climbed 13.18 percent to 582,708 head. The number of ships calling at Saudi ports rose 11.27 percent to 1,017, passenger traffic grew 41.70 percent to 73,953, while vehicle volumes fell 22.66 percent to 69,969 units.  

Maritime traffic expanded by 11.27 percent to 1,017 ships from 914 ships last year. Passenger numbers climbed 41.70 percent to 73,953 compared to 52,191 a year earlier, while vehicle volumes fell 22.66 percent to 69,969 units.  

In August, Mawani signed an SR500 million ($133.2 million) contract with Petrotank to establish an integrated marine bunkering hub at King Fahad Industrial Port in Yanbu, a project aimed at enhancing fuel storage and bunkering capacity, attracting more vessels, and boosting the competitiveness of Saudi ports.  

Spanning 110,700 sq. meters and operating under a 20-year lease, the facility will boost fuel and oil storage capacity, increase vessel traffic, and strengthen the Kingdom’s competitiveness in global shipping. 


Deflation to shape global outlook despite inflation risks, QNB says

Deflation to shape global outlook despite inflation risks, QNB says
Updated 10 August 2025

Deflation to shape global outlook despite inflation risks, QNB says

Deflation to shape global outlook despite inflation risks, QNB says
  • Bank says global economy has entered new phase characterized by structural fluctuations
  • Shifts in prices of key goods and services remain among most closely monitored macroeconomic indicators

RIYADH: Long-term deflationary forces are set to dominate global trends, interrupted by brief inflation surges triggered by geopolitical and structural shocks, Qatar National Bank has warned. 

In its weekly report, carried by the Qatar News Agency, the bank said the new macroeconomic phase will be defined by structural fluctuations, not a purely inflationary or deflationary environment, with prices periodically jolted by supply disruptions and policy shifts. 

The assessment comes as the International Monetary Fund forecasts global inflation to ease to 4.2 percent this year and 3.6 percent in 2026, even as major economies send mixed signals, with US consumer prices rising 2.7 percent year on year in June and China’s consumer price index edging up to 0.1 percent after months of decline. 

“The bank pointed out that the global economy is no longer stable in a purely inflationary or contractionary environment, but has entered a new phase characterized by structural fluctuations,” QNA reported. 

It said shifts in the prices of key goods and services remain among the most closely monitored macroeconomic indicators, alongside economic growth rates, as they directly impact purchasing power, consumer confidence, investment decisions, and monetary policy.  

Inflation vs. deflation 

While moderate inflation is considered normal and even necessary for economic growth, QNB said excessive inflation or sharp deflation can lead to structural imbalances and long-term economic disruptions. 

The report cited the “Great Moderation” in advanced economies as an example of stable growth under controlled inflation. However, it cautioned that central banks’ aggressive monetary tightening in response to inflation can also trigger recessions or financial stress.  

QNB’s report said some geopolitical development could have deflationary consequences by reducing efficiency and demand, under certain conditions. QNA

On the other hand, deflation — a sustained drop in price levels — often signals deeper structural weaknesses, such as weak demand, financial deleveraging, or demographic decline. While falling prices may seem beneficial at first glance, QNB said they can reduce consumption, delay investment, increase real debt burdens, and trap economies in a low-growth cycle. 

Japan’s “Lost Decade” was cited as a prime example of deflation’s damaging long-term effects, with other major economies facing similar challenges after the 2007-08 financial crisis.  

Post-pandemic uncertainty 

The report said the post-COVID-19 era, combined with supply shocks, led to unusually high inflation, but economists remain divided on whether inflation or deflation will dominate in the medium to long term.  

QNA said “some analysts highlight that one of the main reasons why inflation is returning to the fore as a source of economic concern lies in the disintegration of many structural factors that supported the Great Moderation.” 

Rising geopolitical fragmentation has disrupted global trade, while supply chain reconfigurations, green transition costs, and demographic pressures could keep inflation structurally higher.  

Others believe technology-driven deflationary forces will prevail. Innovations in automation, artificial intelligence, and digital services continue to reduce costs, offsetting inflationary pressures. 

A July report by Morgan Stanley said the ongoing AI wave continues to dominate global markets, with significant investments projected in data centers. 

The report forecasted that global data center spending would reach $2.9 trillion by 2028, covering hardware such as chips and servers, and infrastructure, including construction and maintenance. 

QNB also said some geopolitical developments, including trade fragmentation, could have deflationary consequences by reducing efficiency and demand, under certain conditions.


Saudi industrial output jumps 7.9% in June on manufacturing gains

Saudi industrial output jumps 7.9% in June on manufacturing gains
Updated 10 August 2025

Saudi industrial output jumps 7.9% in June on manufacturing gains

Saudi industrial output jumps 7.9% in June on manufacturing gains
  • Mining and quarrying, which include crude oil production, increased 6% annually
  • Index of oil activities advanced 7.7% year on year in June

RIYADH: ’s industrial production climbed 7.9 percent year on year to 111.9 in June, driven by a sharp rebound in manufacturing and higher crude output, official data showed. 

Figures from the General Authority for Statistics also revealed a 1.6 percent month-on-month rise in the Industrial Production Index, underscoring momentum in the Kingdom’s non-oil economy. 

The IPI, which measures changes in industrial output across mining, manufacturing, utilities, and waste management, is a key indicator for ’s Vision 2030 diversification drive. 

The June IPI figure, reflecting continued growth in the manufacturing sector, affirms ’s progress in its economic diversification efforts aimed at reducing its decades-long reliance on crude revenues. 

In its latest report, GASTAT stated: “Preliminary results indicate a 7.9 percent increase in the IPI in June 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity, electricity, gas, steam, and air conditioning supply activity and water supply, sewerage and waste management and remediation activities.”   

Mining and quarrying — which include crude oil production — increased 6 percent annually as Saudi output rose to 9.36 million barrels per day, up from 8.83 million bpd in June 2024.  

The authority revealed that the sub-index for manufacturing activities rose 11.1 percent year on year in June, supported by an increase in the manufacture of coke and refined petroleum products, which jumped 15.3 percent, and the production of chemicals and chemical products, which rose 18.7 percent. 

In May, a separate report released by GASTAT revealed that the Kingdom’s gross domestic product grew 2.7 percent year on year in the first quarter, driven by strong non-oil activity. 

Commenting on the GDP figures, ’s Minister of Economy and Planning, Faisal Al-Ibrahim, who also chairs GASTAT’s board, said at the time that the contribution of non-oil activities to the Kingdom’s economic output reached 53.2 percent — an increase of 5.7 percent from previous estimates. 

The sub-index of electricity, gas, steam, and air-conditioning supply activity increased 5.6 percent in June, compared to the same month in 2024. 

The authority added that the sub-index of water supply, sewerage, waste management, and remediation operations increased 6.9 percent year on year in June. 

Overall, the index of oil activities advanced 7.7 percent year on year in June, while the index of non-oil activities rose 8.6 percent during the same period. 

On a monthly basis, manufacturing activity in increased 1.4 percent, supported by growth in the production of coke and refined petroleum products, which rose 1.7 percent. 

Compared to May, mining and quarrying activities in the Kingdom also increased 1.9 percent in June. 

Overall, the index of oil activities increased 1.9 percent in June from May, while non-oil activities expanded 1.1 percent during the same period. 

The Industrial Production Index measures changes in industrial output based on the International Standard Industrial Classification framework, covering mining, manufacturing, utilities, and waste management sectors. 

S&P Global data show the Kingdom’s non-oil private sector remained robust in July, with its Purchasing Managers’ Index at 56.3, outpacing the UAE at 52.9, Kuwait at 53.5, and Qatar at 51.4.