The Public Investment Fund (PIF) has launched Saudi Arabia’s first duty-free operator as the kingdom targets 150 million annual visitors by the end of the decade, according to a statement.
Al Waha Duty-Free Company (Al Waha), a wholly owned unit of the sovereign fund, aims to secure a “large” share of passenger spending to boost the local economy, the statement said.
Saudi Arabia imposes some customs duties, a 15 percent VAT rate, and additional taxes on tobacco and soft drinks.
The company will develop retail outlets in locations nationwide, selling merchandise, including high-quality Saudi products, the statement said.
Al Waha will also operate airport outlets on a duty-free basis and explore additional retail opportunities at land border crossings and seaports, as well as inflight shopping, the statement said.
“There is considerable potential for Saudi Arabia to gain a larger share of travel retail spending in the future, said Majed Al-Assaf, head of consumer goods and retail in Mena Investments at PIF.
He said that the continued increase in visitors coming to Saudi Arabia and global events being hosted locally offer new opportunities to generate sustainable travel retail revenues.
Saudi Arabia is seeking to to attract 100 million visitors each year by 2030, increase tourism’s GDP contribution to 10 percent and create one million jobs.
More than 106 million tourists visited Saudi Arabia in 2023, surpassing the kingdom’s 2030 target.
Since 2017, PIF has established 103 companies, as the kingdom seeks to move to a more sustainable economy through investments and partnerships in the Saudi public and private sectors.
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