In preparation for a significant tourism expansion, Saudi Arabia has introduced a new investment entity. The Public Investment Fund (PIF) has revealed the formation of the Saudi Tourism Investment Company (Asfar) with the aim of bolstering the country’s tourism sector.
Asfar’s primary focus will be on funding new tourism initiatives and creating appealing destinations featuring hospitality services, tourist attractions, retail establishments, and food and beverage options in various cities throughout the kingdom. Additionally, the company will invest in the local tourism value chain to further enhance the sector’s development.
In order to catalyse the growth of Saudi Arabia’s tourism sector, Asfar, the newly established investment company by the Public Investment Fund (PIF), will facilitate co-investment opportunities for the private sector. By fostering an attractive environment for local suppliers, contractors, and SMEs, Asfar aims to support the development of tourism projects and destinations.
The company’s objective is to create healthy competition, leading to an enriched and diverse hospitality and tourism offering in the country. Leveraging Saudi Arabia’s strategic location at the intersection of Asia, Africa, and Europe, as well as the competitive advantages of its cities, Asfar seeks to capitalise on the nation’s natural beauty and cultural diversity to enhance tourism experiences.
The vision is to attract both domestic and international tourists to numerous untapped destinations across the country, contributing to the ambitious national goal of welcoming 100 million visitors annually by 2030.
A unique tourism potential
Mishary Alibraheem, Head of Entertainment, Leisure, and Sport sector in MENA Investments at PIF, emphasised that Asfar will empower Saudi Arabia’s cities to play a pivotal role in supporting the national economy. Each city will be encouraged to leverage its unique tourism potential, thereby enriching the overall tourism and entertainment experience in the kingdom.
Asfar’s establishment aligns perfectly with PIF’s broader strategy to unlock opportunities in the tourism sector and foster strategic partnerships with the private sector. These endeavours
are aimed at generating employment opportunities and diversifying income sources for the local economy, in line with the ambitious goals set forth in Saudi Vision 2030.PIF’s ownership of various strategic companies further demonstrates itscommitment to investing in and developing Saudi tourism destinations. Notably, Aseer Investment Company is devoted to transforming Aseer into a year-round tourism hotspot, while Saudi Downtown Company is mandated to build and develop downtown areas within the country.
The launch of Asfar reinforces PIF’s dedication to advancing the tourism sector, forging vital partnerships with the private sector, and propelling economic growth in line with the bold aspirations of Saudi Vision 2030.