Saudi Arabia’s sovereign wealth fund on Monday introduced the formation of a brand new firm devoted to duty-free retail, the newest initiative within the kingdom’s efforts to draw international vacationers.
The corporate, Al Waha, was established by the Public Funding Fund (PIF).
Majed Al-Assaf, Head of Client Items and Retail in MENA Investments at PIF said: “There may be appreciable potential for Saudi Arabia to realize a bigger share of journey retail spending sooner or later, and the continued improve in guests – in addition to international occasions being hosted domestically – supply new alternatives to generate sustainable journey retail revenues.”
Al Waha’s launch is the newest effort by Saudi to make its journey and aviation sector extra globally aggressive.
In November 2022, PIF introduced an growth to the prevailing King Salman Worldwide Airport to make it one of many greatest on the earth. The plans state that the airport goals to accommodate as much as 120 million vacationers by 2030 and 185 million vacationers, with the capability to course of 3.5 million tons of cargo, by 2050.
By way of retail house, there shall be 12 sq. kilometers devoted to help amenities, residential and leisure amenities, stores, and different logistics. That is across the dimension of three Central Parks.
In March 2023, PIF launched Riyadh Air, its new nationwide provider, which plans to start business operations this summer season. Riyadh Air has beforehand introduced it goals to serve over 100 locations by the tip of the last decade, doubtlessly contributing as much as $20 billion to the Saudi financial system.
The thought of an obligation free enterprise was first talked about in February 2024 by the Moodie Davitt Report, which referred to it as “Mission Journey Retail.” PIF has confirmed to Skift that Al Waha and “Mission Journey Retail” are the identical initiative.
Al Waha will function its airport retailers on a duty-free foundation and discover extra journey retail alternatives at land border crossings, seaports, and inflight purchasing.
In January 2023, Saudi officers denied claims in media studies that it was contemplating promoting alcohol in airport duty-free shops.
