The Kingdom of Saudi Arabia, in accordance with Saudi Vision 2030 to expand the range and quality of hospitality and tourism services has launched Asfar, a newly established subsidiary of their Public Investment Fund (PIF). With the objective to draw in both domestic and international visitors, Asfar is a prestige project for the Kingdom aimed to capitalize on its strategic position between Asia, Africa, and Europe, its natural beauty, and cultural diversity.
Developing Attractive Destinations
Asfar will focus on the untapped destinations throughout the Kingdom, with the aim of contributing to the Kingdom’s national objective of hosting 100 million visitors annually by 2030. The subsidiary will collaborate with the cities of Saudi Arabia to optimize their individual tourism services and expand tourism and entertainment offerings.
Transforming Saudi Arabia into a Global Tourist Hotspot
Asfar’s primary goal will be to boost tourism by building 100,000 additional hotel rooms, attracting more visitors each year, enhancing important tourist destinations, improving infrastructure, and showcasing the country’s culture, heritage, and entertainment. With PIF at the forefront, Asfar has the potential to drive significant growth in the Kingdom’s tourism sector.
According to Mishary Alibraheem, Head of Entertainment, Leisure and Sports sector in MENA Investments at PIF:
“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. PIF tourism projects and companies are working side by side, supporting and strengthening the tourism ecosystem. 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.”
Investing in the Local Tourism Value Chain
PIF now owns several strategic companies, including Aseer Investment Company (AIC) and Saudi Downtown Company (SDC), which are dedicated to investing in and developing tourism destinations across Saudi Arabia. AIC aims to transform Aseer into a year-round tourism destination, while SDC focuses on building and developing downtown areas within the country. Also, partnerships with private businesses can create an attractive environment for tourism projects. It benefits the local economy and contributes to the sustainability and development of the tourism industry as well.
About Public Investment Fund (PIF)
The Public Investment Fund (PIF) is a sovereign wealth fund in Saudi Arabia that has been chaired by Crown Prince His Highness Mohammad bin Salman since 2015. It aims to contribute to the country’s economic transformation and diversification and has established 84 companies since 2017. PIF’s strategy aims to invest in 13 strategic sectors and create partnerships with the private sector, injecting at least 150 billion riyals annually into the local economy. The fund works to transfer technologies and localize knowledge to build a prosperous and sustainable economy domestically. It also builds strategic alliances and partnerships with prestigious international institutions and organizations to achieve long-term value for Saudi Arabia and align with Vision 2030 objectives. The PIF has created an operational governance model that enhances transparency and effectiveness in decision-making.
Bottomline
The launch of Asfar demonstrates PIF’s commitment to unlocking opportunities in the tourism sector, reinforcing strategic partnerships, and driving economic development in Saudi Arabia. By capitalizing on its unique advantages and investing in tourism infrastructure, Saudi Arabia aims to become a leading global tourism destination.
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