Saudi Arabia’s Vision 2030 is now at the midpoint of its journey – already showing remarkable results. The diversification of Saudi Arabia’s economy, guided by sound economic policies, has gained tremendous momentum as the post-COVID economic performance shows a sustained growth in the non-oil private sector – a critical indicator for economic diversification. With the award of Expo 2030 to Riyadh city and the Football World Cup 2034, the country has well-defined missions that can further assist the organisation of its efforts to achieve Vision 2030 objectives.
The non-oil economic growth has accelerated since 2021 with a 4.8% growth rate in 2022. Spurred by domestic demand, the International Monetary Fund expects the 2023 non-oil growth to be 5%, despite a slowdown in the oil sector due to production cuts and a lower level of average oil prices during 2023. This sustained growth in the non-oil sector is a precursor for a resilient and well diversified economy of the Kingdom.
Talking about Saudi Arabia’s non-oil sectors, tourism stands out as one of the significant drivers of growth with the objective of sector becoming the second largest revenue generator by 2030. In 2023, the Kingdom revised its target for tourist visits by 2030, increasing it from 100 million to an ambitious 150 million. Notably, Saudi airports welcomed over 93.5 million tourists in 2022. In the second phase of “Investor Visa” eVisa scheme, Saudi Arabia has expanded the scheme from 60 countries to all countries in the world, facilitating businessmen to have a seamless experience of securing their multiple visit visas to explore business opportunities in the country.
To promote the country’s tourist attractions, the Kingdom’s Ministry of Tourism is showcasing its rich history, diverse landscapes, and cultural tapestry. A notable project within this framework is the ‘Most Innovative Tourism Destination Development Strategy,’ focused on promoting the Aseer province as a preeminent year-round destination.
Aseer is Saudi Arabia’s hidden gem and one of the most prominent tourist destinations for domestic and regional tourists. Aseer holds a unique position in country’s touristic landscape that will catapult the region to become one of the most captivating global destinations, and a significant contributor to achieving Saudi Arabia’s tourism goals and targets. The region is blessed with stunning natural attractions, rich history, and heritage. The most unique attribute of the region is its temperate climate throughout the year with the maximum average temperature during summer not exceeding 32oC and average minimum around 12 oC in early months of the year (the Soudah mountains can experience as low as -2 oC in January and summer temperatures do not exceed 25 oC).
The cover story of the January-March 2024 edition of the Global Business Outlook will delve into the strategic policy measures implemented by the Saudi government for the growth of the tourism sector. These measures particularly aim to position Aseer region as a prominent tourism hub, celebrated for its profound cultural heritage, stunning natural landscapes, historic villages, heritage art, diverse natural produce, and distinctive topography transitioning seamlessly from coast to mountain to desert. Our article on Aseer will highlight the region’s multifaceted traditions, emphasising its evolution into an unparalleled destination for domestic, regional, and global tourism.
A region full of possibilities
The aim is to position the south-western region of the Kingdom as a premier domestic, regional, and global tourist destination, anchoring its transformation on three fundamental pillars: Prosperity, ensuring robust economic opportunities supported by the region’s distinctive assets and a thriving community; People, cultivating a society deeply rooted in rich values while advancing toward a prosperous future; and Planet, committed to preserving Aseer’s natural surroundings for the benefit of future generations. These three pillars encapsulate the province’s comprehensive and sustainable approach to its transformation endeavours.
At the heart of Aseer’s transformation as a global tourist destination, lie infrastructure projects that will make the region the epitome of modernity, with authenticity and natural beauty at its core. The region will strike a balance between development and conservation by offering a wide range of entertainment, cultural and sporting opportunities, while harbouring a cohesive and inclusive society without encroaching upon Aseer’s natural environment.
The Saudi government is dedicated to ensuring seamless tourism experiences for the middle-class demographic while elevating Aseer’s prominence on the global tourism stage. The ambitious plan targets the attraction of over nine million tourists by 2030, a fifty percent increase from current figures. At the core of this strategy is a commitment to providing diverse local recreational activities and aligning with international tourism trends, marking a comprehensive approach to boosting growth and accessibility in the region’s tourism sector.
The pivotal role of steering Aseer’s comprehensive development has been entrusted to the Aseer Development Authority, serving as the central agency to plan and coordinate an array of projects with governmental agencies, semiprivate entities like the Public Investment Fund and the private sector. ASDA plays a critical role in ensuring a streamlined development of the region aligned with the vision and objectives of ‘Aseer Regional Strategy’.
The ‘Aseer Regional Strategy’ is a collaborative achievement, borne out of the concerted efforts led by the Aseer Development Authority, engaging with all segments of the local population of Aseer, and in coordination with all the relevant government bodies such as the Ministry of Tourism and the Development Authorities Support Centre (previously the Development Authorities Support Office) among many others. These key stakeholders have played a guiding role across all stages of strategy development, actively engaging local citizens, experts, businesses, as well as the crucial zonal secretariats, ministries, and municipalities.
The Aseer region, poised to welcome an estimated 9.1 million visitors by 2030, has a vibrant tourist economy. It is already a hub of domestic tourism receiving over 6 million domestic tourists from various parts of the country including the ones visiting their families and friends. The Aseer Regional Strategy is aimed at growth of the region’s tourism industry via increase in the number of international tourists, extending the length of stay and consequently the overall spending by visitors.
Apart from tourism, Aseer’s economy comprises diverse sectors such agricultural production (including indigenous products like honey, coffee, and dates), food products, minerals, renewable energy, cement, manufacturing, and mining industries. Reflecting its potential to thrive across various sectors and contribute significantly to regional economic development, the region’s climate, its strategic location, and diverse topography positions the area as a burgeoning growth engine in the near future.
Knowing the initiatives in detail
The overarching objective of the Aseer Development Authority is to orchestrate comprehensive sustainable development for the area, expanding its reach from a domestic destination into a regional/global tourist destination through an array of development and infrastructural initiatives and ensuing projects. These initiatives are poised to position the region as a symbol of modernity, seamlessly integrating authenticity and natural beauty at its core.
The initiatives are envisioned to provide Aseer with vital economic opportunities, backed by the region’s unique assets and ambitious community. The roadmap focuses on the development of four ‘Tourist Destination Areas’: (i) the Greater Abha region, (ii) Al-Namas, Tanumah, Balsamer, Majarda, (iii) Bisha, and (iv) Al-Sahel. Each of the TDAs offer unique value proposition that will enable designing a touristic journey across the four regions, with the prime objectives of substantial enhancement in the visitor’s length of stay and average spend – leading to a broader and larger economic impact.
The region’s history, culture and heritage are distinguishing characteristics for attracting a wide range of international and regional visitors. There are more than 4,000 historical sites dotted across the region. Aseer’s Regional Strategy envisions development of some of the prominent historical sites in collaboration with the Ministry of Culture and the Saudi Heritage Commission – in line with international guidelines for conservation of such heritage sites. Rijal Almaa is already the most famous site from the region, well recognised on the global heritage network and enlisted for recognition as the UNESCO Heritage site. These historical sites, coupled with modern developments will provide a multigenerational evolution of the region’s history, culture and traditions. The development of heritage sites will also enable active participation of the local community in making the region a year-round destination.
The topography and climate of the region also makes it an ideal destination for development of sports and year-round calendar of sporting events. Football is already the most famous sports with Aseer region represented in the Saudi Professional League by two of its clubs. The preparation for the Football World Cup 2034 in Saudi Arabia is expected to bolster the passion for the game and will be an impetus for a larger participation of the local community in sporty activities and larger development of the sports sector in the region.
With regards to sustainability, the transformation efforts will ensure that Aseer’s natural surroundings will be preserved for future generations. As a part of this, a detailed environmental survey will be undertaken. The plan also calls for initiating supporting mechanisms for the local coffee growers and honeybee producers. Afforestation and a perennial tree protection plan will be among the key pillars of this roadmap. Kodombol Island considered a jewel in the coast of Aseer (encompassing the historic port of Qahma) will also be developed as a tourist destination.
Furthermore, Aseer will undergo a governance enhancement, prioritising excellence in regional governance through efficient expenditure and the standardisation of budgetary allocation and management of projects. This strategic approach aims to align administrative processes with key policy goals, ensuring a streamlined and effective governance framework for the sustained progress of the region.
Humanising the urban landscape
While Aseer, like much of the Kingdom, has witnessed rapid urbanisation and population growth in recent years, it has negatively affected the fabric of its environment and landscape. ASDA is leading the development of the region’s masterplan as a grand initiative under its Regional Strategy. The masterplan will be founded on Aseer region’s ‘Urban Code,’ which will define the identity and urban character of the metropolitan areas, along with determining the general architectural guidelines and strategies to beautify the urban landscape and the formation of a legal framework and governance tools to support the Aseer government’s legislation efforts. “ASDA is leading the development of the regional, metropolitan, and local plans. Our regional masterplan and the Regional Strategy are intertwined and follow the shared vision and principles. The primary objective of our plans is to not only make Aseer a premier tourist destination but also the most liveable region in the GCC,” Engr. Hashim Al Dabbagh, the CEO of ASDA told the Global Business Outlook.
“The Aseer’s regional plan will create a platform to define a shared spatial vision for the development of the region among all the different national and local stakeholders enabling a clear governance among all concerned government entities. It will set strategies and policies for development, preservation of heritage, protection of the environment, quality of life, economic diversification & regeneration. It will promote a balance between urban and rural development, as well as prioritise infrastructure requirements and optimise allocation of investments. The metropolitan plans will optimise the development of the most populated area in the region, promote public transport corridors, define the peculiar urban character of each urban centre and support the optimal distribution of investments. The local plans will establish a streamlined system for building permits, implement walkability and humanised urban environments and support the implementation of the urban codes and architectural identities,” Engr. Hashim remarked further.
Projects galore
The implementation of Aseer Regional Strategy will be aided and accompanied by national and regional projects under the aegis of various stakeholders. Infrastructure development will be one of the key enablers of our strategy.
Given the focus on growth of the tourism industry, it is critical to work on connecting Aseer region through an expanded road network and expansion of Abha International Airport. Currently, ASDA is coordinating development of two highway projects connecting the region with Taif from the North and with Riyadh from the East. Aseer has recently announced new expansion of the Abha International Airport that is expected to be completed by 2028. The airport’s capacity will increase to accommodate over 13 million passengers annually, nearly nine times the current 1.5 million capacity. The airport’s unique and beautiful design by Foster and Partners is set to create a cluster of stone buildings inspired by traditional architecture of local villages. The design will consist of interconnected clusters and landscaped courtyards that draw upon the region’s local vernacular, setting a new precedent in designing airport buildings.
The region is also investing in upgrading and expanding its social infrastructure. One of the largest projects in this area is the establishment of King Faisal Medical City, a large-scale tertiary health cluster with over 1,000 beds. The project is expected to be completed by 2029 and it will complement construction of four more hospitals in Abha, Khamis Moshait and Rijal Almaa having an aggregate capacity 1,250 beds. The University City a cluster around the King Khalid University, is planned to have expanded campus facilities and physical accommodation for students and teachers.
The telecom infrastructure in the region currently includes over 2900 telecom towers installed with around 600 of these towers connected with the 5G infrastructure, improving the network’s connectivity, reliability, and redundancy.
With plans of investing up to SAR 3 billion in expanding and upgrading the existing infrastructure, Aseer region also has a presence in the industrial sector. Recently, ASDA launched the Second Industrial City in Aseer. The development extends over an area estimated at 17.3 million square metres. The city is expected to meet the growing demand for industrial investment in the region. The project falls within the framework of Modon in the National Industrial Development and Logistics Programme. The Second Industrial City integrates with the first industrial city in Aseer seamlessly to provide services and products that contribute to raising the capabilities of the industrial sector.
In October 2023, under the directive of Mohammed bin Salman, a royal edict has been issued to formally establish the Imam Faisal bin Turki Royal Reserve. Encompassing three strategic administrative regions within Saudi Arabia—Aseer, Makkah Al-Mukarramah, and Jazan—the reserve further extends its reach into the Kingdom’s territorial waters in the Red Sea. Remarkably, this marks the eighth addition to the distinguished roster of royal reserves in Saudi Arabia. The Imam Faisal bin Turki Royal Reserve meticulously developed, stand as pioneering solutions aimed at addressing pressing global environmental challenges.
Mega projects
The Public Investment Fund is spearheading several mega projects in the Aseer region. These projects are large-scale mixed-use developments in various parts of the region. One of the most prominent projects is Ardara’s Al Wadi project in downtown Abha, a mixed-use development spanning 2.5 million square metres that will encompass around 30 percent of open green spaces, a 16-km water destination, and a 17 km of sports tracks. The project will also provide facilities for cultural and community events. The second mega project is Soudah Peaks, spanning over 627 square kilometres in the highest peaks of the Soudah mountains and Rijal Almaa region offering adventure and sports, luxury residence and hospitality, nature, wellness, culture, and heritage. The project expects two million visitors by 2033. Salwan is the third mega project owned and developed by PIF, a mixed used development in the mountainous areas of the region, above the Habala hanging village focused on wellness and luxury retreats and high-end luxury living.
PIF has also established Aseer Investment Company with an initial paid-up capital of SAR 1 billion dedicated to investing in multiple projects in Aseer in various economic sectors including sports, food and agriculture, heritage, education, and healthcare.
In the city of Abha, near the Abha International Airport, a development by SEVEN with an investment exceeding SAR 1.3 billion is under construction. This entertainment destination strategically graces the landscape between the cities of Abha and Khamis Mushait. Spanning an expansive 64,000 square metres of land, the development stands tall with a remarkable built-up area exceeding 79,000 square metres. Designed by Gensler, a renowned global firm specialising in architecture, design, and planning, the architectural marvel draws inspiration from the timeless stone structures indigenous to the region, a deliberate nod to accentuate the distinct identity of Aseer. Meticulously aligning with the principles embedded in The Urban Code of Aseer Region, the design epitomises a commitment to fostering excellence in urban planning, design, landscape, and architecture—all while preserving and honouring the unique identity of this culturally rich region.
A glorious future ahead
Aseer is blessed with natural landscape, its year-round climate, great people, rich history and heritage and longstanding traditions. Already established as a tourism hub due to its unique attributes, the region is well positioned to significantly contribute to country’s growth aspirations and economic diversification goals. The region’s approved Regional Strategy gives ASDA a great head start to become a template for other regions in master planning, strategic execution, economic development, community inclusion and integration of mega projects in the development landscape.
The making of Aseer a preeminent year-round tourist destination in Saudi Arabia is in full flow under the pillars of its strategy, commitment of the Public Investment Fund and other public sector agencies, collaboration of the private sector, and overall coordination and oversight of the Aseer Development Authority. We expect to see a massive transformation in the region’s spatial and economic landscape, and Aseer being showcased as a role model of successful regional development and the best area to visit, work, and live in the GCC.