London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

RPT-Arabian nights buzz: staycations boost Saudi economy

RPT-Arabian nights buzz: staycations boost Saudi economy

When U.S. celebrity chef David Burke opened his second restaurant in Riyadh earlier in August, hudreds of Saudi men and women packed the venue to enjoy his dishes and fruity “mocktails” to a DJ’s mix of Arabic and Western pop.

While Saudis usually escape the desert country over the summer when temperatures can reach over 50 degrees Celsius, the coronavirus pandemic has seen them flock to restaurants and cafes in the open-air mall The Zone, bolstering Saudi Arabia’s consumer sector.

Noura, 21, a Saudi hostess at one such upscale restaurant said she has been booking up tables weeks in advance.

“Before, that would have been impossible in August because no one was here,” she said. “Now, we have some regulars who come here and spend hundreds every week.”

Saudi Arabia in May allowed citizens to travel abroad without prior official permission after a more than year-long ban, but it still maintains a ‘red list’ of states they cannot visit, so many are opting for staycations.

Private consumption grew by 1.3% in the first quarter from the same period in 2020, well above the quarterly readings before the pandemic and a drop in overseas spending is expected to keep it strong.

The value of point-of-sale transactions in the Gulf Arab state, one of the indicators of consumer spending, jumped 71.7% year-on-year in May, the popular vacation month, to 40.27 billion riyals ($10.7 billion).

It rose further 4.6% on an annual basis in June, primarily driven by a 96.7% jump in spending on restaurants and hotels and a 6.6% increase in spending on food and beverages, according to Al Rajhi Capital.

“Private consumption has rebounded quite strongly and is expected to be a key driver of the recovery in 2021,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “This reflects trapped spending and the early stages in the development of the tourism sector.”

Household consumption accounted for nearly 43% of Saudi Arabia's economy in 2020, according to World Bank data, and the bounce offers welcome relief as it recovers here from last year's double-punch of the pandemic and crumbling demand for oil, its top export.

DOMESTIC TOURISM


Restaurants, cafes, cinemas and hotels are full in the capital Riyadh, and new venues keep cropping up, helped by the gradual relaxation of strict rules guiding public life.

At Burke’s restaurant, the second of six he plans to open in the kingdom, young Saudi female and male staff mill about the industrial-chic venue while a female percussionist accompanies the DJ, a scene hard to image a decade ago.

De facto ruler Crown Prince Mohammed bin Salman has moved to open up the conservative kingdom, where gender segregation was once firmly enforced by religious police, in an effort to improve quality of life and attract foreign firms and talent.

Developing domestic tourism is a key ambition of the young prince, whose social and economic reforms have been accompanied by a crackdown on dissent in the absolute monarchy.

“Ten years ago, we would never have thought to open an F&B (food and beverages) business, with gender segregation in the restaurants and the strict regulations, it was not appealing and people didn’t enjoy the experience very much,” said Burke’s Saudi partner, Osamah Hussein.

“Now it is an ideal moment,” added Hussein, who owns restaurants and hotels across the kingdom.

Alcohol remains banned in the country, the birthplace of Islam, but authorities now allow public entertainment including concerts, cinema, live music and sporting events.

Abdallah Mansour, 28, and his wife Reem, were dining at upscale Italian restaurant Cipriani while visiting Riyadh from Dammam in the Eastern Province where they live.

“In past years, we would go to Europe with my parents for several weeks. But because we couldn’t travel during COVID, we decided to make the most of our time and have been doing weekends all over the country,” Mansour said.

While in Riyadh, they are frequenting the capital’s new restaurants, like Nobu and Mamo’s.

“They’re expensive, but it’s amazing they exist at all in Saudi Arabia. We used to have to go to London for Nobu – now it’s right here,” Reem said.

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×