Saudi Arabia’s tourism sector is undergoing a dynamic transformation, and at the heart of this evolution is ASFAR, the Saudi tourism investment company and a Public Investment Fund (PIF) entity. ASFAR is rapidly expanding its footprint across the Kingdom, spearheading strategic partnerships that align with Vision 2030 and the Quality of Life Program. Through a series of landmark agreements, ASFAR is unlocking the potential of Saudi cities, transforming underutilised spaces into world-class tourism and lifestyle destinations.
This ambitious movement is part of Saudi Arabia’s broader cultural and heritage renaissance, a transformation that mirrors global successes. ASFAR CEO Dr. Fahad bin Mushayt highlights the importance of heritage-driven tourism, drawing parallels to countries like Italy, Egypt, and Japan, which have successfully leveraged their cultural assets to fuel economic growth. “Saudi Arabia’s commitment to showcasing its cultural diversity—including traditions, archaeological sites, and artistic expressions—is paving the way for a vibrant future,” he explains.
Revitalising Hail’s tourism landscape
ASFAR’s Memorandum of Understanding (MoU) with the Hail Region Development Authority (HRDA) is set to position Hail as a premier investment destination. Signed at Cityscape Global in Riyadh, this partnership will see 50,000 square metres of land transformed into an urban resort—ASFAR’s inaugural venture in Hail and one of eight cities in its investment strategy.
The new resort will include 100+ hotel keys, diverse food and beverage options, and a traditional souk, bridging existing gaps in retail and hospitality infrastructure. Omar Al-Abduljabbar, CEO of HRDA, highlighted that this partnership enhances Hail’s competitive edge, leveraging its natural beauty, cultural heritage, and moderate climate to attract domestic and international tourists.
ASFAR CEO Dr. Fahad bin Mushayt reaffirmed ASFAR’s commitment to driving economic growth in Hail, stating, “By investing in this region, we aim to leverage its unique attributes and enhance hospitality and retail offerings. Together, we are unlocking Hail’s potential to attract both domestic and international visitors.”
Transforming public spaces across Saudi Arabia
ASFAR’s MoU with the Ministry of Municipalities and Housing, also signed at Cityscape Global, underscores its role in shaping Saudi Arabia’s urban tourism infrastructure. This collaboration supports the Ministry’s nationwide “Joy” initiative, which aims to revamp parks and municipal assets, transforming underutilised spaces into vibrant cultural, entertainment, and recreational hubs.
Assistant Deputy Minister for Investment Promotion, Eng. Abdulmajeed Alaskar, emphasised the unprecedented opportunities for private sector engagement, stating, “By expanding green spaces across the Kingdom, we are enhancing the quality of life for both citizens and visitors.”
Dr. Fahad bin Mushayt reinforced ASFAR’s role in sustainable urban development, adding, “ASFAR is honoured to work alongside the Ministry to redefine urban spaces across the Kingdom. This MoU is a testament to our commitment to high-impact investments that contribute to Vision 2030.”
Redefining Al Khobar’s Southern Corniche
ASFAR has also partnered with the Eastern Province Municipality and Sharqia Development Authority (SDA) to revitalise Al Khobar’s Southern Corniche into a world-class integrated tourism destination. This initiative aligns with Vision 2030’s core objectives of sustainability, economic diversification, and enhancing quality of life.
The Baheej Tourism Development Company, a joint venture between ASFAR and the Tamimi-AWN Alliance, will lead this 414,000 square-metre transformation, integrating a 3-kilometre Corniche, a 10-hectare fishing harbour, and a blend of residential, entertainment, and marine-focused experiences. The development will also introduce smart city technologies, ensuring minimal environmental impact while enhancing public accessibility.
Eng. Omar Bin Saleh Al-Abdullatif, CEO of SDA, expressed enthusiasm, stating, “This agreement reflects our commitment to creating a vibrant urban environment that integrates culture, technology, and sustainability. Together, we are establishing Al Khobar as a landmark destination in line with Vision 2030.”
Baheej’s first destination in Yanbu
ASFAR’s Baheej Tourism Development Company has unveiled its first major tourist destination in Yanbu, covering 85,000 square metres. This waterfront development will feature:
- A Beach Escape
- A Tourist Activation Centre
- A Lifestyle Hotel
- Additional cultural and leisure elements
CEO of Baheej, Norah Al-Tamimi, highlighted Yanbu’s Red Sea Riviera potential, stating, “We believe destinations are not just built, but discovered. Baheej is dedicated to uncovering Saudi Arabia’s hidden gems and creating unparalleled tourism experiences.”
Reviving cultural heritage sites
ASFAR’s MoU with the Heritage Commission aims to restore and promote cultural heritage sites across the Kingdom, enhancing their appeal for both tourists and local communities. The agreement focuses on:
- Operational models for heritage tourism
- Site restoration and visitor engagement strategies
- Public-private partnerships to sustain cultural tourism
Dr. Jasser bin Suleiman Al-Harbash, CEO of the Heritage Commission, stated, “This collaboration is integral to advancing the national heritage and archaeology sector in alignment with Saudi Vision 2030.”
ASFAR’s role in Vision 2030’s tourism evolution
ASFAR’s multi-faceted approach to tourism investment is redefining urban spaces, unlocking new economic opportunities, and enhancing Saudi Arabia’s global tourism competitiveness. With an ambitious goal of welcoming 150 million visitors annually by 2030, ASFAR is actively contributing to the Kingdom’s economic diversification.
Dr. Fahad bin Mushayt summarised ASFAR’s mission, stating, “From the vibrant shores of Yanbu to the promising coast of the Eastern Province, ASFAR is transforming Saudi Arabia’s tourism landscape through strategic co-investments with the private and public sectors, unlocking the full potential of the Kingdom’s cities.”
Beyond ASFAR, Saudi Arabia’s broader heritage-driven tourism strategy is catalysing a socioeconomic transformation. Cultural tourism is an economic engine, with the World Travel & Tourism Council forecasting an 11% annual growth rate in the sector. The revival of traditional skills, crafts, and artistic expressions is fostering new opportunities for local artisans and entrepreneurs, while historic restorations and modern entertainment projects—such as Riyadh and Jeddah Seasons—are positioning the Kingdom as a global hub for cultural exchange.
As ASFAR continues to unveil new strategic partnerships, its commitment to shaping Saudi Arabia’s tourism sector remains unwavering, ensuring sustainable, high-impact development that aligns with the Kingdom’s broader economic and cultural vision.
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Research and text by GERARD LEFEBVRE
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