?Geopolitical Briefing: Saudi Arabia
25 May 2025
- Saudi Arabia’s Public Investment Fund (PIF) has launched a $100 million initiative to develop luxury golf resorts, aiming to boost tourism and diversify the economy.
- Saudi Aramco is considering asset sales to generate funds amid declining oil prices, aligning with broader economic diversification efforts.
- The kingdom plans to partially lift its alcohol ban at 600 tourist locations by 2026 to attract international visitors ahead of major global events.
- The UN Special Envoy for Yemen concluded meetings in Riyadh, discussing the ongoing conflict and humanitarian efforts.
- Saudi Arabia’s National Debt Management Center closed a SAR 4.081 billion sukuk issuance, reflecting ongoing financial strategies to support Vision 2030.(Financial Times, Reuters, The Irish Sun, ReliefWeb, Ministry of Finance Saudi Arabia)
Saudi Arabia’s Public Investment Fund (PIF) has partnered with Canadian entrepreneur Jim Balsillie to invest $100 million over five years in developing luxury golf resorts across the kingdom. The initiative aims to construct seven to ten golf courses by 2027, with plans to expand up to 100 courses eventually. This move is part of the kingdom’s Vision 2030 strategy to diversify its oil-dependent economy and promote tourism, targeting both international tourists and domestic visitors, including Muslim pilgrims visiting Mecca . By investing in upscale recreational infrastructure, Saudi Arabia seeks to enhance its global tourism appeal while fostering economic growth independent of oil revenues.(Financial Times)
In response to declining crude oil prices, Saudi Aramco is reportedly considering asset sales to generate funds. The company has engaged investment banks to propose strategies for monetizing its assets, though specific details have not been disclosed. Aramco also plans to reduce its dividend payouts by nearly a third due to reduced revenues. These measures align with broader efforts to improve efficiency and lower costs as part of Saudi Arabia’s economic diversification strategy . Such financial adjustments reflect the kingdom’s commitment to sustaining economic stability amid fluctuating oil markets.(Reuters)
Saudi Arabia plans to partially lift its longstanding alcohol ban at 600 designated tourist locations by 2026, aiming to attract international tourists in preparation for major global events, including the 2030 Expo and the 2034 FIFA World Cup. Under the changes, wine, beer, and cider will be permitted at licensed venues such as five-star hotels and luxury resorts, while spirits and public alcohol consumption remain banned. This initiative is part of Crown Prince Mohammed bin Salman’s Vision 2030, seeking to modernize the kingdom’s image and boost foreign investment while preserving Islamic cultural values . The policy change represents a delicate balance between modernization and tradition, signaling Saudi Arabia’s desire to become a competitive global tourism destination without compromising its cultural integrity.(The Irish Sun)
The UN Special Envoy for Yemen, Hans Grundberg, concluded a series of meetings in Riyadh, where he met with Yemeni officials and other stakeholders to discuss the ongoing conflict and humanitarian efforts. These discussions are part of continued international efforts to find a peaceful resolution to the Yemeni crisis, with Saudi Arabia playing a pivotal role in facilitating dialogue and supporting stability in the region . Such diplomatic engagements underscore the kingdom’s strategic interest in regional security and its influence in Middle Eastern geopolitics.(ReliefWeb)
Saudi Arabia’s National Debt Management Center announced the closure of its May 2025 issuance under the government’s domestic sukuk program, raising a total of SAR 4.081 billion. The issuance was divided into four tranches with maturities ranging from 2029 to 2039. This financial strategy reflects the kingdom’s ongoing efforts to manage its debt portfolio effectively and support the funding of Vision 2030 projects through Islamic finance instruments . The successful sukuk issuance indicates investor confidence in Saudi Arabia’s economic reforms and fiscal policies.(Ministry of Finance Saudi Arabia)
