Al Riyadh Daily – May 22, 2025: Economic Impact of Vision 2030, Saudi-Chinese Security Cooperation Meeting, Gaza, West Bank

This source appears to be excerpts from a Saudi Arabian newspaper published on May 22, 2025. The articles cover a diverse range of topics, including the economic impact of Saudi Vision 2030, particularly concerning the Hajj and Umrah sectors, international relations highlighted by a Saudi-Chinese security cooperation meeting, various local news from different Saudi regions detailing events like graduations, cultural initiatives, and development projects, and discussions on the global economy, including oil prices and the gold market. The excerpts also feature reporting on the ongoing Israeli actions in Gaza and the West Bank, alongside cultural pieces like poetry and articles on social themes and the significance of Saudi identity.

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Saudi Investments and Services for Hajj and Umrah

Based on the sources, the Hajj and Umrah sector is highlighted as a vital and attractive area for investment and development in the Kingdom.

The Saudi government has invested significant amounts, specifically billions of riyals, in expanding the Two Holy Mosques in Makkah Al-Mukarramah and Madinah Al-Munawarah, as well as constructing airports, ports, and roads. These efforts aim to upgrade accommodation and lodging services and enhance the experiences of the Guests of Rahman (pilgrims). The sources indicate that reforms and features in the Hajj and Umrah sector have contributed to an increase in its competitiveness. This has supported a rise in both local and foreign direct investments (DDI and FDI), leading to an increase in job opportunities within this promising sector and its related fields. A report from the Ministry of Investment, in cooperation with the Ministry of Hajj and Umrah and the Guests of Rahman Program, discusses the investment environment in the Hajj and Umrah services sector.

Several initiatives and services are implemented to support Hajj and Umrah pilgrims:

• The “Makkah Route” initiative involves Saudi female cadres from the Ministry of Interior working at airports, such as Kuala Lumpur International Airport, to serve Guests of Rahman and facilitate and ease the performance of the Hajj.
• The Passports Directorate has declared its readiness to complete the procedures for Guests of Rahman for the Hajj season across international air, land, and sea ports.
• The Saudi Red Crescent Authority provides emergency medical and humanitarian services to Hajj pilgrims arriving from Yemen via the Al-Wadiah border crossing. These services include first aid, medical care, and providing informational and cultural materials. A seasonal first aid center is operated on the Sultanah-Sharourah road, and the readiness of centers along the routes leading to Makkah Al-Mukarramah is increased, covering all 17 first aid centers in the region.
• The General Directorate of Civil Defense has strengthened its seasonal centers and land routes at the ports leading to the Holy Sites. They are exerting considerable effort during the Hajj season (1446 AH) by preparing 25 seasonal centers and 64 first aid teams to maintain the security and safety of the Guests of Rahman. These centers follow the general plan for Civil Defense and support the main centers in dealing with emergencies.
• In Makkah Al-Mukarramah, the Makkah Health Cluster, represented by King Abdullah Medical City, is utilizing artificial intelligence technologies to improve patient services, such as analyzing facial images to read vital signs. While not explicitly limited to pilgrims, this technology is employed in the location of the Holy Capital and is likely relevant to the comprehensive healthcare services provided during peak seasons.

The sources also mention strengthening cooperation between friendly countries through promoting concepts of tolerance and moderation, which aligns with the vision led by the Kingdom’s leadership.

Saudi Arabia’s Vision 2030 Transformation

Based on the sources, the Saudi development Vision, particularly Vision 2030, is presented as a significant and transformative national effort.

Vision 2030 is described as an “icon” and a “document for crossing into the future”, which is planned and executed “with reality”. The sources indicate that Vision 2030 has been successful in achieving “most of its goals”, bringing about an “unprecedented economic transformation”.

Key aspects and achievements of the Vision highlighted in the sources include:

• Economic Diversification: A primary objective is to diversify the economy away from natural resource dependence and build an economy based on knowledge and innovation.
• Private Sector Empowerment: The Vision aims to empower the private sector to become the main engine for growth.
• Job Creation and Reduced Unemployment: The transformation driven by Vision 2030 has led to a rise in non-oil exports, the creation of over 2.4 million jobs, and a decrease in the unemployment rate to its lowest historical levels.
• Development of the Hajj and Umrah Sector: This sector is recognized as a vital and attractive area for investment and development. Billions of riyals have been invested in expanding the Two Holy Mosques in Makkah and Madinah and constructing essential infrastructure such as airports, ports, and roads. These efforts aim to upgrade accommodation and lodging services and enhance the experiences of the Guests of Rahman (pilgrims). Reforms in this sector have increased its competitiveness, attracting both local (DDI) and foreign direct investments (FDI) and creating more job opportunities. The “Guests of Rahman Program” is associated with these initiatives.
• Promoting Tolerance and Moderation: The Vision, led by the Kingdom’s leadership, aligns with strengthening cooperation with other countries by promoting concepts of tolerance and moderation.
• Enhancing National Identity: Efforts are underway to strengthen the Saudi national identity and promote its balanced cultural and religious heritage. This includes utilizing sectors like tourism and entertainment and supporting cultural initiatives, such as a film festival dedicated to identity cinema.
• Sports Development: The sports sector is also a focus, with initiatives like “Saudi Golf” and “Go Golf” aimed at developing golf skills within the Saudi community. Strong support from the King and Crown Prince is mentioned for the development and spread of sports, alongside the hosting of major sports events and the development of infrastructure like King Abdullah Sports City.
• Wildlife Development: Efforts related to wildlife development and preserving the natural balance, supported by national centers and licensed reserves, also feature in the sources, suggesting a focus on environmental aspects.

Overall, the sources portray the Saudi development Vision as a multi-faceted initiative driving significant economic, social, and cultural changes, with a strong focus on diversification, investment attraction, infrastructure development, and enhancing key national sectors like Hajj, Umrah, and sports.

Saudi Foreign Relations and Partnerships

Based on the provided sources and our conversation, Saudi Arabia is actively engaged in various aspects of foreign relations, driven in part by its national development vision.

Key points regarding Saudi foreign relations from the sources include:

• Strategic Partnerships and Cooperation:The sources highlight the importance of strengthening strategic partnerships and cooperation with other countries.
• Specific bilateral relationships are mentioned:
• China: There is a focus on enhancing Saudi-Chinese cooperation and partnership. A joint Saudi-Chinese committee for security affairs exists, and its fifth meeting at a high level was held, resulting in the signing of the meeting’s minutes. A Saudi ambassador participated in this meeting.
• United States: The Saudi Crown Prince emphasized the deepening of the strategic partnership between Saudi Arabia and the United States during the Saudi-American Investment Forum in Riyadh.
• Japan: A memorandum of understanding (MOU) was signed between the Saudi Minister of Justice and his Japanese counterpart, focusing on cooperation in the judicial field. This includes the exchange of expertise and information in legal and judicial domains, as well as in education and research.
• Jordan: An MOU was signed between the Saudi Food and Drug Authority and the General Institution for Food and Drug in Jordan. This is seen as an extension of the “distinguished historical relations” between the two “brotherly countries”. It aims to boost cooperation in food and drug sectors, including exchanging legislation, standard specifications, technical expertise, and registration/evaluation systems. Both sides stressed the importance of aligning regulatory efforts with international standards through sustainable institutional partnerships, describing the Saudi-Jordanian partnership as a “pivotal pillar” and a “qualitative step” towards integration. Additionally, an MOU between the Saudi Ministry of Culture (Museums Authority) and a museum in Jordan involves cooperation in research, publishing, archaeological loans, and temporary exhibitions to enrich cultural content.
• Promotion of Values: The Kingdom’s leadership, through its vision, aligns with strengthening cooperation with friendly countries by promoting concepts of tolerance and moderation. This suggests a foreign policy dimension focused on projecting certain values.
• Regional Security Context:The sources touch upon regional security challenges, such as the situation in the Red Sea, where commercial shipping is deemed “high risk” due to actions by Houthi fighters reportedly supported by Iran. This indicates complex regional dynamics impacting international trade routes and likely influencing Saudi foreign policy in the region.
• The situation in southern Lebanon and comments about the need to disarm “Hezbollah” by a US envoy are mentioned, highlighting ongoing regional tensions.
• The Palestinian President’s calls to world leaders regarding the humanitarian situation in Gaza and the need for urgent action, including the implementation of the two-state solution according to international legitimacy, point to the enduring significance of the Israeli-Palestinian conflict in regional foreign relations.

Overall, the sources indicate that Saudi foreign relations involve robust bilateral cooperation in various sectors (security, judicial, regulatory, cultural, economic/investment) with key partners, are guided by a vision that promotes tolerance and moderation, and operate within a complex regional security environment marked by various tensions and conflicts.

Global Economic Indicators and Saudi Vision 2030

Based on the sources and our conversation, several economic indicators are discussed, primarily within the context of Saudi Arabia’s Vision 2030 and broader global economic dynamics.

The sources highlight that Saudi Arabia’s Vision 2030 has successfully achieved “most of its goals” and has brought about an “unprecedented economic transformation”. This transformation aims to diversify the economy away from natural resource dependence towards one based on knowledge and innovation, empowering the private sector.

Specific economic indicators mentioned include:

• Job Creation and Unemployment: The Vision 2030 transformation has led to the creation of over 2.4 million jobs and a decrease in the unemployment rate to its lowest historical levels.
• Non-Oil Exports: Non-oil exports have seen a rise, indicating progress in economic diversification efforts.
• Overall Investment: Total investments in the Saudi economy amounted to 82 billion USD in 2024.
• Sector-Specific Investments:The Hajj and Umrah sector is identified as a vital and attractive area for investment. Billions of riyals have been invested in expanding the Two Holy Mosques and related infrastructure (airports, ports, roads). Regulatory reforms and features in this sector have increased its competitiveness, supporting an increase in both local (DDI) and foreign direct investments (FDI) and boosting job opportunities.
• In the Artificial Intelligence (AI) sector, investments and projects in the Kingdom amounted to over 14.9 billion USD during the first quarter of the current year.
• The real estate, tourism, entertainment, and hospitality sectors in areas like North Taif are experiencing significant growth and demand for investment.
• Capital Markets:Gulf markets have shown a notable recovery, with the consumer discretionary sector leading in initial public offering (IPO) revenues in the first quarter of 2025.
• The value of issued bonds and Sukuk in the region increased significantly, reaching 4.6 billion USD in the first quarter of 2025, compared to 1.6 billion USD in the same period last year. Sukuk, in particular, saw growth, valued at 4.1 billion USD.
• Oil Prices: Oil prices increased, with Brent and WTI futures contracts rising. This rise is linked to growing supply concerns and geopolitical threats. US crude inventories unexpectedly increased in mid-May, potentially impacting prices. OPEC+ production by some countries, like Kazakhstan, is challenging output cut agreements. Production forecasts suggest US output could grow.
• Refining Margins: European refining margins have decreased significantly, by 60% annually, ending a period of record profits. However, long delivery times for fuel shipments from the Middle East and refinery closures in Europe have helped prevent further declines and maintained margins above historical averages.
• Shipping Costs/Insurance: Insurance prices for ships transiting the Red Sea have increased, likely due to the security situation. The volume and value of goods transported via the Red Sea have significantly decreased.
• Precious Metals Prices:Gold prices increased, reaching a weekly high. This is attributed to investors seeking a safe haven amidst uncertainty in the US financial situation, a weaker dollar, and geopolitical fears, particularly following reports of potential actions against Iranian nuclear sites.
• Silver, platinum, and palladium prices decreased.
• Inflation: US Federal Reserve officials mentioned price increases driven by rising tariffs and reduced imports. Consumer price inflation in the UK is expected to rise in April.
• Currency Values: The Dollar Index, measuring the US dollar against major currencies, decreased. The Japanese Yen strengthened against the dollar.

Middle East Conflict Updates

Based on the sources and our conversation, the regional landscape is marked by several significant conflicts and tensions:

• Gaza and other Palestinian Territories:
• The Israeli occupation forces have escalated their strikes on the city of Khan Yunis in the southern Gaza Strip.
• Over 25 homes have been destroyed in various areas of Khan Yunis due to a series of air strikes.
• A school for displaced people in Al-Fukhari was subjected to shelling.
• Occupation vehicles have advanced near Salah al-Din street, close to the European Hospital in eastern Khan Yunis.
• Occupation vehicles fired heavily north of the Nuseirat camp.
• Israeli warplanes conducted a strike near Al-Awda Hospital – Tal al-Zaatar in the northern Gaza Strip.
• The sources state that Israeli occupation forces have committed atrocities against Palestinians.
• Palestinian President Mahmoud Abbas has issued an urgent appeal to world leaders concerning the catastrophic humanitarian situation in the Gaza Strip. He called for urgent action to break the siege, allow humanitarian and medical aid by land, sea, and air, and for an immediate and permanent ceasefire. He also called for the release of all detainees and the implementation of the two-state solution according to international legitimacy.
• Beyond Gaza, Israeli bulldozers have demolished a tourist resort in the occupied town of Nahalin, south-west of Bethlehem, for the second time. They also demolished agricultural rooms and work facilities.
• Israeli occupation forces have raided several areas in Ramallah, Tulkarm, Jenin, Nablus, and Jericho. Confrontations and firing of live ammunition, gas bombs, and stun grenades by soldiers against Palestinians have occurred.
• Infrastructure, including water and electricity networks, has been bulldozed in Qabatiya, south of Jenin, with buildings raided and turned into a military barracks and mass arrests made. Bulldozers also destroyed civilian vehicles on the main street connecting Qabatiya to Jenin.
• In Jenin camp, estimates suggest approximately 15 roads have been bulldozed. Around 600 homes were completely destroyed, with others damaged and uninhabitable. Significant damage to facilities, homes, and infrastructure was reported in Jenin city.
• Southern Lebanon:
• An Israeli strike in southern Lebanon resulted in one person killed in the town of Ein Baal.
• Israel has carried out daily strikes this week, stating they target elements of “Hezbollah”, despite an existing ceasefire between the two sides.
• Nine people were injured in the Mansouri area due to a strike.
• The Israeli army announced it had “eliminated” an element in the Radwan Force, considered an elite unit of “Hezbollah”.
• The US Deputy Special Envoy to Lebanon commented that Lebanon still has “a lot” to do to disarm “Hezbollah”.
• Red Sea Security and Shipping:
• Navigation in the Red Sea is considered “high risk”.
• This is due to threats from Houthi fighters since the outbreak of the Gaza war in October 2023.
• Many ship operators are avoiding the Bab al-Mandab strait and choosing longer routes around the southern tip of Africa.
• The US Navy stated that vessels are currently moving, but at approximately 50% of the rate compared to before November 2023.
• Insurance prices for ships transiting the Red Sea have increased.
• The volume and value of goods transported via the Red Sea have significantly decreased. The potential resumption of full navigation could impact refined product markets in Europe.

These regional conflicts, particularly the security situation and geopolitical threats, are also cited as factors influencing economic indicators, such as rising oil prices and gold prices.

By Amjad Izhar
Contact: amjad.izhar@gmail.com
https://amjadizhar.blog

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