London Daily

Focus on the big picture.
Friday, Jun 20, 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
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×