[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] O [/yt_dropcap]n March 24 last, al-Sarraj dissolved his Petroleum Ministry and formally acquired direct control over the National Oil Company (NOC), namely the single Libyan oil company. Pending the very fierce civil war following the ousting of Gaddafi and his regime, NOC had remained substantially impartial and, despite the net decrease in oil extraction, it had managed to ensure part of proceeds to all the parties involved.
This happened also after Khalifa Haftar’s troops conquering the oil terminals of Es Sider and Ras Lanuf. According to the forecasts of the NOC Chairman, Mustafa Sanalla, the Libyan oil company could reach 1.25 million barrels / day late this year and 1.6 million barrels / day by 2022.In a recent conference in London, Sanalla said that all the existing contracts will be honoured by the structures of the Central Bank of Libya, which is aligned with al-Sarraj’s GNA.
Sanalla, however, made it clear that also the LNA government has a “key” to open the oil door and “both keys” – namely the key of al-Sarraj’s GNA and the LNA’s key – are needed to have access to funds. Clearly NOC is the only Libyan institution still believing in the future unity of the national territory.
Hence the choice of al-Sarraj – the only Libyan politician recognized by the United Nations and by the inept European Union who, however, does not even control the city where his government is based, namely Tripoli – is a choice reflecting the separation between the various parts of the old united Libya.
Indeed, division into three areas, namely Cyrenaica, Tripolitania and Fezzan, was the solution that Bevin and De Gasperi found in the aftermath of World War II – a choice that would have given the primary oil field, namely Tripolitania, to Italy, and Fezzan and Cyrenaica to France and Great Britain, respectively.
We would thus have avoided that real “war against Italy” which was the operation against Gaddafi.
Today, on the contrary, if the old Libya splits into its three traditional components, we will have Egypt in Cyrenaica, which is a primary strategic area for this country, Algeria in Fezzan and, in all likelihood, a mix of Great Britain and France in Tripolitania – hence Italy will be excluded from any game in Northern Africa.
As you make your bed, so you must lie on it.
Furthermore, at the end of last February, Sanalla had signed an agreement with Russia’s Rosneft so as to raise – even in a complex situation as Libya’s – the funds required to invest in technological upgrading and repair of extraction and distribution networks.
That was NOC’s primary problem during the Libyan civil war.
Also the Austrian OMV, which is certainly not in line with the French-British strategic balance, has renewed an old contract of 2008 with NOC for oil exploration and extraction in the Murzuq field, south of Tripoli.
Al-Sarraj political choice is clearly a reaction to Sanalla’s autonomy and responds to the need for the Western supporters of the Tripoli-based GNA to exclude other competitors in the still rich Libyan oil region.
Mustafa Sanalla’s reaction to al-Sarraj’s attempt to control NOC on his own was clear. In fact, the Chairman of the Libyan oil company said that only the two Parliamentary bodies based in Tripoli and Tobruk could jointly decide on NOC, which indeed funded both sides, as well as General Haftar’s troops.
Nevertheless Al-Sarraj’s move, designed to withdraw all financial support from his opponents, was not successful.
On March 25 last, just one day after the declaration of the GNA leader, the five permanent members of the UN Security Council issued a joint statement in which Sanalla’s position in favour of NOC independence was maintained.
Hence, also for the traditional supporters of the GNA and its President, al-Sarraj, the latter is no longer the only possible counterpart in Libya’s political scenario.
Therefore Russia jumped at the opportunity: on March 30, after a meeting in Jordan between al-Sarraj himself and the Russian Vice-Foreign Minister, Bogdanov, Russia said: “We need comprehensive negotiations among all the parties concerned”.
Hence Russia stands as the only mediator and broker between all Libyan factions, so as to keep the country united (a primary interest for Russia) and fill the void that the inept and idealistic West has created by betting only on al-Sarraj.
Therefore the even more inept al-Sarraj lost the support of the only international body legitimizing him, namely the United Nations, and created an opportunity for Russia to mediate between all the parties involved, thus becoming the only arbiter of Libya’s future.
The European Union and Italy do not seem yet to have noticed the new situation which has emerged in Libya, while their only point of reference, namely the GNA leader, al-Sarraj, is losing power. Russia is entering onto the whole Libyan scene, not only the Cyrenaica region of the Tobruk-based government, already supported by it, but also directly into the “Operation Dignity” of General Haftar, whose forces are now trained and supported by Russia.
The two NOC old factions, namely Tripoli’s and the other one based in Al-Bajda, have always fought each other and the plan of al-Sarraj’s GNA to gradually reduce the weight of the Tripoli-based NOC and the Al-Bajda-based NOC has been lasting for long time.
Initially, the Tobruk-based government had planned to take control over all the three Libyan financial organizations based in Tripoli: NOC, the Central Bank of Libya and the Libyan Investment Authority.
Although the Tobruk-based government appointed new managers for the three major Libyan companies, they have all chosen the line of autonomy, so as to continue operating legally on international markets and avoid excessive costs arising from the support of one single armed faction.
Since the beginning of civil war, the Libyan National Bank has adopted the budget for the two main parties involved autonomously, by also refusing to consider the demands drawn up by the two governments.
Hence NOC has transferred its earnings only to the Central Bank of Libya, which pays almost all public salaries.
Furthermore, the Tobruk-based government has not tried to officially separate its Al-Bajda-based NOC from the Tripoli-based one, but it has tried in every way to bring in foreign companies and transport companies in Libya and later make the agreements be signed only by the Al-Bajda-based NOC.
In this way the “new” Tobruk-based NOC has honoured all the international agreements reached before March 2015, the date marking the informal separation between the two NOCs, but it does not accept any subsequent contract, such as the very important one signed with Glencore by the primary Tripoli-based NOC.
It is an agreement giving to the Anglo-Swiss company the rights on the crude oil extracted from the Sarir and Messla oil fields up to the Marsa al-Hariga oil terminal near Tobruk.
At that juncture, the political and industrial choice made by the Al-Bajda-based NOC was to extract oil on its own and make it reach oil terminals.
For the time being, there is only an agreement under discussion, with an Egyptian company, but the Al-Bajda-based NOC claims it has negotiations underway with at least 40 other extraction companies which, however, are all small companies located in the Middle East.
One of the problems to be solved was also the one relating to Ibrahim Jadhran, the former Commander of the Petroleum Defense Guards.
Now Haftar has definitely taken possession of the terminals in the Libyan “oil crescent” and it has knocked out Jadhran and his Petroleum Defense Guards but, in 2014, the Head of the Petroleum Defense Guards and of the “Cyrenaica Self-Defense Force” had tried to sell oil on his own, with the only tough resistance put up by the United States.
Moreover, from August 2013 to April 2014, the Al-Bajda-based NOC – at the time still formally united with the Tripoli-based one – had tried to block ports, thus finally receiving the guarantee – by the then President al-Thinni, the current Head of the Tobruk-based Parliament – to decentralize the joint NOC and move it eastwards.
Considering that currently al-Sarraj’s attack on the only NOC which realistically works, namely the Tripoli-based one, has failed, a new oil-based Russian policy is shaping in Libya.
It is worth recalling that Russia was already present in Libya, shortly before Gaddafi’s fall in 2011, with two companies, namely Gazpromneft and Tatneft.
Rosneft always works much in the Middle East and it has recently acquired major research activities in Iraq, as well as 30% of the offshore extraction activities of Zohr, in Egyptian waters.
Hence the Russian support to Haftar regards the ability of the “Operation Dignity” forces to effectively control the wells and the terminals of the Libyan “oil crescent”.
With the likely presence of its special forces in Benghazi, Russia currently sees the real possibility of ensuring both the Libyan oil and its new presence in the Mediterranean basin, with a future military base in Cyrenaica.
Today we can only imagine to what extent the presence of a Russian military base on the Libyan coast would change the NATO strategy.
Conversely, if – as happened in Syria – Russia’s presence steps up the clash between factions in Libya, Europe’s geopolitical destabilization is a matter of time.
Now that Haftar has taken hold of oil terminals, he may decide to keep on cooperating with the Tripoli-based NOC – as he did in the past – or manage the oil transit and sale on his own, by distributing the proceeds according to his political interests.
Sanalla has also asked for the creation of new independent “Petroleum Defense Guards” by “Operation Dignity”, while the East-based Parliament has reaffirmed its clear non-involvement in al-Sarraj’s GNA.
Hence an ever more evident rift between Eastern and Western Libya with the oil network in the hands of Haftar, who is linked to the Tobruk-based government, but can easily become independent from both political camps, by playing exactly on control over oil terminals.
He is supported by Al Sisi’s Egypt, by the Russian Federation, the United Arab Emirates and Saudi Arabia. If Haftar won without the support and a sound agreement with the EU, they would kick most European companies out of the Libyan oil system.
Iran and Sudan’s Rapprochement in 2023: New Changes in the Regional Geopolitics of the Middle East
The Middle East is a strategic region that connects Asia, Africa, and Europe and has significant natural resources, especially oil and gas. The Middle East is also a source of various conflicts and crises that pose threats to regional and global peace. The change in Middle East politics can shape the social and political transformations of the people and societies in the region, as well as their relations with other regions. With that, Iran and Sudan’s rapprochement has brought a new dynamic into the politics of the Middle East.
Iran and Sudan have been allies since the 1989 coup that brought Omar al-Bashir to power, but their relations have been strained by the political and economic crisis in Sudan, the US sanctions on both countries and the regional rivalry with Saudi Arabia and Egypt. The rapprochement between Iran and Sudan in 2023 adds a new dimension to the regional geopolitics of the Middle East. It has strengthened Iran in the region, as it gained Sudan as a strategic ally and a potential gateway to Africa.
Currently in Sudan, the civil war erupted in April 2023 after a failed coup attempt by a faction of the military against the transitional government that replaced al-Bashir in 2019. The instability and conflict in both countries have affected their domestic and foreign policies. Iran has been facing internal challenges, such as protests, corruption, inflation, and environmental crises. Iran has also been involved in regional conflicts, such as the war in Yemen, the civil war in Syria, the tensions with Israel, and the nuclear standoff with the US. Sudan has been undergoing a political transition since the ouster of Omar al-Bashir in 2019, but the process has been disrupted by a military coup in October 2021. Sudan has also been dealing with humanitarian crises, such as food insecurity, displacement, and violence in Darfur and other regions.
By restoring ties with Sudan, Iran can expand its economic and political influence, as well as its access to natural resources and markets. Sudan can also serve as a counterweight to Saudi Arabia and Egypt, which have been hostile to Iran and have supported the opposition forces in Sudan’s civil war. This has challenged the Saudi-led coalition in the region, which has been trying to contain Iran and its allies. Saudi Arabia and its partners, such as the UAE, Bahrain, and Israel, have formed a bloc to counter Iran’s regional ambitions and to promote their interests. The rapprochement between Iran and Sudan can undermine their efforts and create new security threats for them. For example, Sudan can provide Iran with access to the Red Sea and the Bab al-Mandeb Strait, which are vital for Saudi Arabia’s oil exports.
The change in the US outlook on the Middle East has reduced its involvement and influence in the region. The US has shifted its focus to other strategic priorities, such as countering China’s rise, addressing climate change, and dealing with domestic challenges. The US has also withdrawn its troops from Afghanistan, Iraq, and Syria, and reduced its military aid and arms sales to its allies in the region. The US has also adopted a more balanced approach to the Israeli-Palestinian conflict, supporting a two-state solution and restoring aid to the Palestinians. The US has also resumed negotiations with Iran over its nuclear program, which was abandoned by the previous administration. The change in the US policy has created more space for regional actors to pursue their interests and initiatives without external interference or pressure.
Iran’s interest in Sudan’s Red Sea coast is mainly driven by its strategic and economic objectives. Iran wants to strengthen its influence in the region. Iran has decided to send military support to the Sudanese army in 2023, following talks between the foreign ministers of Sudan and Iran in Baku in July. Iran wants to secure the Red Sea and the Bab al-Mandeb Strait, which are vital for its oil exports and maritime trade. Iran has been hosting its naval fleets in Port Sudan for decades, to the dismay of Saudi Arabia, which lies opposite Port Sudan on the other side of the waterway. Also, Iran wants to expand its economic and political ties with other African countries, especially with the involvement of China as a mediator. China’s role can help reduce tensions and violence in the region, as well as foster greater integration and cooperation.
The position that the rapprochement between Iran and Sudan has reduced the US leverage in the region, as it lost a key ally and a potential partner in Sudan. The US has been supporting the democratic transition in Sudan and has lifted some of the sanctions that were imposed on the country for its human rights violations and its support for terrorism. The US has also provided humanitarian and development assistance to Sudan, as well as diplomatic and military support to the transitional government. The US has hoped to use its influence in Sudan to advance its interests and values in the region, such as promoting peace and stability, countering extremism, and resolving the conflicts in South Sudan, Darfur, and Ethiopia. However, the rapprochement between Iran and Sudan can undermine these efforts and weaken the US position.
It has increased challenges for the US in the region, as it faces a more assertive and resilient Iran and its allies. Iran and Sudan have been subject to US sanctions for their alleged support for terrorism, human rights violations, and nuclear activities. The sanctions have hampered their trade and investment opportunities, as well as their ability to import essential goods and services. The US has been pursuing a dual-track policy of pressure and diplomacy with Iran over its nuclear program and its regional activities. The US has imposed severe sanctions on Iran and its proxies, such as Hezbollah, Hamas, and the Houthis, and has supported Israel’s right to defend itself against Iranian threats. The US has sought to prevent Iran from acquiring nuclear weapons and to curb influence in the region. However, the rapprochement between Iran and Sudan can complicate these objectives and increase the risks of confrontation.
From a regional perspective, Saudi Arabia and its partners, such as the UAE, Bahrain, and Israel, have formed a coalition to counter Iran’s regional ambitions and promote their interests. They have also intervened militarily in Yemen, Syria, Iraq, and Libya to support their proxies and allies. Saudi Arabia has also offered economic and military assistance to Sudan and other African countries, such as Djibouti and Somalia, in exchange for cutting ties with Iran. Previously, Sudan has been a major contributor to the Saudi-led coalition fighting against the Iran-backed Houthi rebels in Yemen since 2015, but its participation has been controversial and costly for the Sudanese people.
The easing of tensions between Riyadh and Tehran has enabled Iran to restore ties with some of the Sunni-led Arab states that were previously aligned with Saudi Arabia against Iran, such as Sudan, Oman, Iraq, and Qatar. Also, it challenges the influence of UAE and Egypt in Sudan, which have been supporting the military-led transitional government since the ouster of Omar al-Bashir in 2019. The UAE and Egypt have been wary of Iran’s presence in the Red Sea and the Horn of Africa, and have sought to limit its access to ports and trade routes in the region. The Sudan-Iran rapprochement could undermine their efforts and create more competition for resources and influence in Sudan.
In conclusion, the Middle East is an arena of competition and cooperation among various regional and external powers. So, the rapprochement between Sudan and Iran has brought change in Middle East politics can alter the balance of power and interests among these actors, and create new opportunities or challenges for dialogue and partnership.
Sisi and the “New Republic” model in Egypt
Egypt’s participation came through President Abdel Fattah El-Sisi in the G20 meetings held in the Indian capital, New Delhi, over the course of September 9 and 10, 2023, as confirmation of what the new Egyptian Republic has achieved during the era of President “El-Sisi” at the Arab, regional and international levels, and what the new Egyptian Republic enjoys. From a pivotal and influential role in the region as a result of the vision and efforts of President “El-Sisi” in restoring Egypt to its position on the global stage. In addition to President Sisi’s vision of the new republic of Egypt in an attempt to re-integrate it to create balance with the new world order, and to emphasize its shift from unipolar control, to creating one world under the umbrella of “One Family… One Future”, India also chose a name and slogan for that summit. The reason for inviting Egypt to attend the G20 summit in India comes as a result of its status among the major countries organizing the summit, as the summit includes the largest international economic and political bloc, accounting for 85% of the global economic output and 75% of the volume of global trade. The observation worth noting remains that the differences between the major powers around the world, such as the United States of America, China and Russia, have been reflected in each party’s attempt to find new allies, by deepening the concept of a multi-power system, by creating a stronger world based on increasing the involvement of developing countries in the global economic processes, such as welcoming Egypt, the Emirates, and Ethiopia to join the BRICS economic group earlier at the G20 summit in India, in an effort to win the favor of many international parties from African and developing countries to reduce the financing gap and restructure debts that limit countries’ abilities to grow, and thus gain new allies from before. Various international powers. This was reflected in the agenda of the Egyptian leadership of President El-Sisi through understanding the mechanisms of this competition between China and the United States of America in neutralizing differences and diversifying Egypt’s economic relations with various international partners.
During his participation in the G20 summit in India, President El-Sisi is trying to present (the features of the new Egyptian Republic), which were reflected in the transformation of Egypt into a leading global commercial, logistical and industrial center, thanks to the national projects that were established in the new Egyptian Republic, whether in infrastructure and ports, in addition to establishing 17 industrial cities that include thousands of new factories, in addition to encouraging the establishment of factories to provide production requirements and raw materials in the new Egyptian Republic. Building the new republic during the era of President Sisi and promoting its most prominent features and projects confirms that Egypt is at the heart of the map of international and regional interactions, presents visions and approaches to Egypt’s economic dealings around the world at this time, and creates a kind of balance for Egypt in its relations around the world. In addition to marketing the national economy in Egypt, and confirming the merit of the political transformation in the new Egyptian Republic, in addition to reserving a role for Egypt in the economic partnerships and international blocs that are now being formed, such as Egypt’s joining of the world’s leading BRICS group of countries immediately before the G20 summit in India.
The conditions for holding the G20 summit internationally at the present time come in the midst of the Russian military operation in Ukraine and its effects on the shape of the international system and the Middle East, where the global order is being restructured again, as well as the architecture of the Middle East again, and it is in the interest of Egypt and the major G20 economic countries, to not be far from all these developments, and to restructure their relations in a way that allows them to benefit from all these developments. In light of these variables, the importance of President Sisi’s participation to discuss the mechanism and ways of providing effective support from the G20 countries to developing countries to achieve sustainable development goals, to confront the negative repercussions of the Russian-Ukrainian war on the economy, food, and energy, and what it led to many successive global crises. Also, in view of the multiple regional, continental and international roles that Egypt plays and the influential and major role it has now enjoyed with all parties, the features of the Egyptian project for modernization and development through which the new republic in Egypt, led by President “El-Sisi”, presents a model for comprehensive and sustainable development, as it adopts a multi-dimensional strategy.
If we analyze the final statement of the G20 Summit in India in the presence of President “El-Sisi”, we will see that it reflects the Egyptian agenda in the international action necessary to confront the challenges that the world is currently witnessing, whether on the security, military, political, economic and development levels, or the problems of hatred and discrimination and the importance of respecting the cultures and beliefs of peoples or anything related to confronting them. Climate problems. The statement also adopted the Egyptian point of view regarding Africa’s demands and the need to support the development efforts of its people. Knowing that the African Union has been accepted as a member of the G20, which is a major and notable qualitative development in the African march of advancement led by Egypt, under the leadership of President “El-Sisi”. This is if we focus on the speech of President “El-Sisi”, in his capacity as Chairman of the Steering Committee of Heads of State and Government of the “African Union Development Agency” (NEPAD), and his announcement of setting specific goals in consultation with African partners to support the countries of the continent, including enhancing continental economic integration, implementing the African development agenda and activating Continental Free Trade Agreement.
The note worth noting for me remains that President Sisi’s meetings during the G20 summit were not limited only to the leaders of the participating countries, but rather extended to the heads and representatives of international organizations and groups on various continents and those responsible for them, the most prominent of which is President Sisi’s participation in the African-European Summit. The mini conference, which was held on the sidelines of the G20 summit. The most important agenda put forward at the top of President Sisi’s agenda, during his participation in the summit of the Group of Twenty major economic countries, was the emphasis on strengthening Egyptian and international efforts to facilitate the integration of developing countries into the global economy in an equal manner, against the backdrop of the mutual opportunities and advantages that this provides. It contributes to attracting investments and achieving economic growth and development for all parties. Also, in light of Egypt’s previous hosting of the “COP27” climate summit in Sharm El-Sheikh, President “El-Sisi” will be keen to determine the extent of developed countries’ commitment to their pledges within the framework of international agreements and mechanisms to confront climate change, and to enable developing countries to increase their reliance on new and renewable energy sources.
Accordingly, President “El-Sisi” was keen to present the features of the new Egyptian Republic during the G20 Summit in India, which was a source of great confidence from all international partners in the strength of the Egyptian economy. This is not the result of the moment, but the result of great economic work undertaken by Egypt since years during the era of President “El-Sisi”, and it reflected positively on the increase in foreign investment inside Egypt, and on the occurrence of many successes in the field of cooperation between Egypt and major international companies, especially with the strength of the Egyptian economic situation now, as a result of the reform measures taken by the new Egyptian Republic during the era of President “El-Sisi”. Therefore, during his participation with the permanent members of the G20 in the India Summit, President “El-Sisi” was keen on a pioneering plan aimed at enhancing trade between India, Egypt and various countries of the Middle East and Europe, as it will thus link the regions that represent about a third of the global economy, which represents the pinnacle of success for the New Republic of Egypt during the era of President “El-Sisi”.
The Surge in Saudi Arabia’s Tourism
Saudi Arabia, a land traditionally synonymous with oil and Hajj pilgrimages, is making headlines with its burgeoning tourism sector. Over a three-month period, the kingdom witnessed a staggering inflow of 7.8 million people, generating a revenue of $9.86 billion in the first quarter of this year. This unprecedented growth has not only stimulated the Saudi economy but has also thrown a spotlight on the country’s untapped potential in sectors beyond oil.
Saudi Arabia has long been a destination for religious tourism, particularly for the Muslim pilgrimages of Hajj and Umrah. With the sacred cities of Mecca and Medina within its borders, the Kingdom has drawn millions of devout Muslims from around the world. This influx has inevitably contributed to the revenue stream, especially in sectors like hospitality, food, and travel.
Saudi Arabia’s Vision 2030, an ambitious blueprint for diversifying its economy, aims to reduce dependency on oil revenues and invest heavily in various sectors, including tourism. Spearheaded by Crown Prince Mohammed bin Salman, Vision 2030 encompasses transformative projects like the Red Sea Resort and NEOM, a planned $500 billion megacity. These initiatives intend to open Saudi Arabia to international tourists, attracting a demographic that goes beyond religious pilgrims.
Saudi Arabia has gradually eased its travel restrictions and visa policies to make it more tourist friendly. The introduction of the e-visa system, in particular, has made it easier for travelers to visit the Kingdom.
The recent revenue of $9.86 billion from tourism serves as an immediate economic shot in the arm for Saudi Arabia. The numbers are impressive, especially when compared to other nations with robust tourism sectors. The surge in tourism directly translates into increased Gross Domestic Product (GDP) and employment opportunities. The tourism sector has started to become a pivotal component of the Saudi economy, potentially contributing to a percentage rise in the annual GDP. The massive inflow of tourists is also expected to generate job opportunities, especially in hospitality, retail, and transport.
Saudi Arabia has recently been grappling with a fragile economic situation, exemplified by a current account deficit. The influx of tourism revenue significantly ameliorates this concern, facilitating a healthier balance of payments and boosting financial reserves. The robust earnings from tourism herald a new phase of financial diversification for Saudi Arabia. As the country reduces its dependency on oil revenues, a balanced economic portfolio incorporating tourism revenue minimizes vulnerability to global market fluctuations in the oil sector.
The surge in tourism is also a strong magnet for foreign investment. Investors are likely to see the economic uptick as a signal to invest in Saudi tourism and related sectors. Moreover, it opens doors for international collaborations and partnerships. Whether it’s in marketing strategies to promote tourism or technology transfer for sustainable practices, global partnerships are expected to enrich Saudi Arabia’s tourism landscape in multiple dimensions.
The tourism boom also brings a wave of cultural interchange. The conservative nation is now exposed to various global perspectives, which could be a step toward more progressive societal norms. However, this sudden rise in international exposure raises questions about the country’s cultural ethos. How will a traditionally conservative Saudi society balance its deeply rooted customs and religious norms with the more liberal attitudes of a diverse global tourist populace?
Saudi Arabia’s staggering earnings in a short period elevate it to the league of nations like the United Arab Emirates, which earned $44.4 billion in tourism. It is clear that Saudi Arabia has not only joined the tourism competition but has also managed to give some of the leading nations a run for their money.
Impact on Industries
The sheer number of tourists flocking to Saudi Arabia in such a short span undoubtedly places a considerable demand on the hospitality industry. Hotels, resorts, and other lodging options need to be ready to accommodate millions, which creates a positive ripple effect in related sectors like construction, interior design, and facility management. Moreover, there’s a corresponding need for improved public infrastructure, including roads, airports, and mass transit systems to cope with the influx of visitors.
As part of the country’s broader digital transformation goals, the Saudi government is looking at adopting smart city technologies not only for its futuristic NEOM project but also in existing cities to facilitate smooth tourism operations. This could mean the rise of app-based services that guide tourists, digital information kiosks, electronic payment gateways, and similar tech-savvy enhancements that modern travelers expect.
With a multicultural visitor base, the demand for a diverse range of food options is inevitable. This change is likely to fuel a boom in the food and beverage industry, perhaps even encouraging a more cosmopolitan culinary scene in Saudi Arabia, which is traditionally dominated by Middle Eastern cuisine.
Any surge in tourism comes with environmental ramifications, and Saudi Arabia is no exception. From pollution and waste management to natural resource consumption, the country needs to invest in sustainable practices to mitigate the environmental impact of its booming tourism sector.
Saudi Arabia is located in a geopolitically sensitive area, and thus security is a significant concern. The country will need to invest in both physical and cyber security measures to protect its visitors and its newfound economic interests.
Saudi Arabia’s astronomical rise in tourist numbers and the corresponding billions earned in revenue mark an unprecedented shift in the country’s economic and social landscape. It is a bellwether not just for Saudi Arabia but also for how countries can pivot their economies in the 21st century. The transformation from a mono-economy, dependent on fossil fuels, to a diversified portfolio that includes a burgeoning tourism sector, could serve as a model for other nations seeking to adapt and thrive in a rapidly changing global marketplace.
The next ten years will be crucial for Saudi Arabia, not only to maintain this momentum but also to address the associated challenges effectively. If managed wisely, this sea change in Saudi tourism could be a cornerstone in the country’s long-term growth and stability, fundamentally altering its role and reputation in the global arena. With strategic planning, investment in sustainable practices, and a commitment to evolving without losing sight of its cultural heritage, Saudi Arabia is well on its way to defining a new future for itself and setting a precedent for the world to follow.
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