萝莉视频

Heritage meets high-tech: 萝莉视频鈥檚 bold vision for smart tourism

Heritage meets high-tech: 萝莉视频鈥檚 bold vision for smart tourism
From immersive historical reconstructions to personalized AI-driven tours, the Kingdom is setting a global benchmark for experiential and sustainable travel. Getty
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Updated 23 May 2025

Heritage meets high-tech: 萝莉视频鈥檚 bold vision for smart tourism

Heritage meets high-tech: 萝莉视频鈥檚 bold vision for smart tourism

RIYADH: Tourism is a critical part of 萝莉视频鈥檚 Vision 2030 diversification initiative, but far from solely relying on its rich heritage to attract visitors, the Kingdom is utilizing pioneering technology to bring the past to life and help deliver an economy for the future.

One of the key pillars of the government鈥檚 aim to move 萝莉视频 away from its reliance on oil revenues is to establish the Kingdom as a global tourism hub and increase the sector鈥檚 gross domestic product contribution from 3 percent to 10 percent.

Vision 2030鈥檚 initial visitor target was 100 million a year by the end of the decade, but after surpassing that milestone seven years ahead of schedule, the ambition has now grown to 150 million.

While modern tourism attractions 鈥 such as Expo 2030 and global sports events 鈥 have a key role, utilizing the Kingdom鈥檚 heritage also has a huge role to play in attracting tourists and fueling long-term growth.

Experts have told Arab News that the Kingdom is blending this offering with cutting-edge technologies such as artificial intelligence, virtual reality, and augmented reality to redefine tourism.

From immersive historical reconstructions to personalized AI-driven tours, the Kingdom is setting a global benchmark for experiential and sustainable travel.

According to Bain and Co.鈥檚 Sami Abdul Rahman and Joachim Allerup, given the country鈥檚 young and digitally savvy population, the tourism sector is increasingly embracing gamification to make heritage sites more engaging and interactive.

鈥淰R is being used to reconstruct ancient civilizations, allowing visitors to explore these locations as they once were, while AI personalizes tours based on visitors鈥 preferences, providing tailored insights and recommendations,鈥 Abdul Rahman and Allerup said in a joint statement.

鈥淚nteractive AR overlays further enrich the experience by offering real-time information about artifacts and historical events. These innovations do not merely serve as entertainment but function as powerful educational tools, fostering a deeper connection between visitors and 萝莉视频鈥檚 rich cultural heritage,鈥 they added.

The partners went on to highlight that the combination of digital technology and traditional storytelling ensures that historical sites remain relevant and captivating for modern audiences.

Maite Grau Garvin, principal at Arthur D. Little Middle East, shed light on how through AR virtual tours, interactive exhibits and VR powered reconstructions, visitors can explore Diriyah鈥檚 rich heritage and historic Najdi architecture in a way that is both engaging and immersive, far beyond the traditional experience.

鈥淔ilms and digital storytelling further enrich the experience, narrating the region鈥檚 deep-rooted history and cultural significance. Diriyah鈥檚 visitors can also interact with AI chatbots and voice assistants that deliver customized insights into Najdi architecture, key historical figures, and significant events,鈥 Garvin said.

She added: 鈥淚n AlUla, technology is transforming the way visitors experience Hegra, the ancient Nabataean site and 萝莉视频鈥檚 first UNESCO World Heritage Site. AR experiences allow visitors to use smartphones or wearable smart glasses to overlay digital reconstructions of holograms, tombs, and inscriptions, bringing the site鈥檚 history to life like never before.鈥

The principal went on to say that these innovations represent a significant step forward in heritage tourism, allowing visitors to not only observe history but engage with it in an immersive and interactive manner.

鈥淏y seamlessly integrating AI, VR, and AR, 萝莉视频 isn鈥檛 just preserving its history 鈥 it鈥檚 bringing it to life, setting a new global benchmark for experiential tourism,鈥 Garvin added.

Smart cities harmonizing with Saudi history聽




NEOM is redefining eco-friendly luxury in hospitality. Shutterstock

NEOM is at the heart of 萝莉视频鈥檚 Vision 2030, bringing together sustainability, automation, and cultural heritage to create unique tourism experiences. The smart city has over 900 heritage sites, including Nabataean tombs, ancient inscriptions and cultural landmarks.

From ADL鈥檚 perspective, unlike traditional tour experiences, where history is something you just observe, NEOM makes it interactive. Visitors will be able to experience them through immersive storytelling, digital reconstructions, and guided smart tours.

鈥淭heir entire tourism model is built around renewable energy-powered transport, smart visitor flow management, and low-impact exploration. Whether it鈥檚 electric shuttles through heritage zones or AI-driven crowd control, the goal is to preserve cultural landmarks while making them seamlessly accessible,鈥 Garvin said.

She added: 鈥淣EOM鈥檚 regenerative tourism model also protects and regenerates 95 percent of its land for nature, allowing visitors to explore heritage sites while engaging with the natural landscapes that have shaped Saudi culture for centuries.鈥

The ADL partner also highlighted how NEOM is redefining eco-friendly luxury in hospitality by creating carbon-neutral, renewable energy-powered hotels that blend seamlessly with the environment. Advanced water recycling, smart energy grids, and AI-driven sustainability efforts ensure minimal ecological impact.

鈥淭hese initiatives, among many other, help ensure that 萝莉视频鈥檚 history is not lost in its rapid modernization but instead enhanced through smart, sustainable tourism infrastructure ensuring world-class travel experience for generations to come,鈥 Garvin added.

Effect of developments like Diriyah and AlUla on 萝莉视频聽




AlUla. Shutterstock

Developments like Diriyah and AlUla give 萝莉视频 a clear edge when it comes to attracting tourists.

Garvin explained that while many countries have iconic historical sites, 萝莉视频 is creating something novel 鈥 immersive, technologically enabled, and sustainably developed heritage destinations that are purpose-built for 21st-century travelers.

鈥淎lUla鈥檚 integration of AR and digital storytelling, and Diriyah鈥檚 AI-driven visitor engagement, are raising the bar for how history is experienced. Add to that the quality of infrastructure, transport, and hospitality now emerging in these locations, which is further supporting Saudi establish itself as a major player on the global tourism stage 鈥 especially for culturally curious and experience-driven travelers,鈥 she said.

The principal added that these projects, particularly when anchored in sustainability and powered by advanced technology, give Saudi a first-mover advantage in what can be called 鈥渟mart heritage tourism.鈥澛

She continued: 鈥淎s the global tourism sector becomes more experience-driven, these developments place the Kingdom ahead of the curve.鈥

Garvin also shed light on how the Kingdom is opening up its tourism sector with a focus on providing diverse, enriching experiences.

She noted that the development of the sites is guided by a commitment to variety, from immersive cultural districts to accessible heritage attractions, ensuring that the offering caters to a broad range of travelers without necessitating elevated costs.

鈥淭hat said, a tiered model is likely. For instance, bespoke experiences 鈥 such as private AR-guided tours or luxury stays within heritage zones 鈥 could naturally carry a higher price point,鈥 the principal said.聽

General access to cultural landmarks, historical sites, and exhibitions is expected to remain competitively priced to encourage widespread domestic and international participation.聽

This approach aligns with the goals of Vision 2030: positioning tourism as a catalyst for cultural exchange, economic diversification, and job creation.聽

鈥淯ltimately, the return on these investments is expected to come from increased visitor numbers, longer stays, and higher overall trip value, rather than from charging more per individual experience,鈥 Garvin added.

High-tech solutions aligning with Vision 2030

The integration of high-tech solutions directly supports Saudi Vision 2030鈥檚 goals of diversifying the economy and positioning the Kingdom as a global cultural hub.

Abdul Rahman and Allerup from Bain & Co. explained that smart tourism initiatives mean people can experience what Saudi has to offer even before they arrive in the Kingdom.聽

鈥淎I-driven platforms can personalize travel recommendations, while VR and AR allow global audiences to explore 萝莉视频鈥檚 historical sites remotely, generating interest even before they arrive. This hybrid approach鈥 where physical and digital tourism coexist鈥 expands accessibility, ensuring that more people engage with Saudi culture regardless of their location.鈥 they said.

From ADL鈥檚 side, technology is enhancing the travel experience to 萝莉视频 with e-visa platforms and digital booking systems, simplifying entry for tourists. Upon arrival, AI-powered assistants offer real-time insights and personalized cultural experiences.

The ADL representative also clarified that digital platforms and the metaverse are expanding 萝莉视频鈥檚 cultural reach through virtual heritage tours and interactive storytelling on social media while emphasizing that these efforts preserve and promote the Kingdom鈥檚 history, engaging a global audience.

鈥淥n the sustainability front, AI and IoT-powered monitoring systems protect UNESCO-listed heritage sites while smart waste management and carbon-neutral tourism initiatives ensure responsible development,鈥 Garvin said.




Maite Grau Garvin, principal at Arthur D. Little Middle East. Supplied

Evolution of smart tourism

From Bain & Co.鈥檚 lens, by 2025, smart tourism in 萝莉视频 will be characterized by hyper-personalized experiences driven by AI and data analytics.

Abdul Rahman and Allerup shed light on how travelers will be able to use advanced digital assistants to plan their visits, receiving itinerary suggestions tailored to their interests and real-time adjustments based on preferences or changing conditions.

The partners added: 鈥淎dditionally, AI-driven customer service and smart infrastructure will streamline the travel experience, reducing friction and enhancing convenience. These advancements will position 萝莉视频 as a global leader in smart tourism, offering visitors not just a journey through history but a glimpse into the future of travel itself.鈥

Garvin from ADL believes that by the end of 2025, the Kingdom鈥檚 tourism sector will be one of the most technologically advanced in the world..

鈥淎s the Kingdom rapidly evolves, it has a unique opportunity to shape its identity as a global travel hub as it is a nation with a rich historical legacy yet a blank canvas in modern tourism,鈥 she said.

She added: 鈥溌芾蚴悠 isn鈥檛 just preserving its cultural legacy 鈥 it鈥檚 revolutionizing how the world experiences it, setting a new global standard for immersive, sustainable, and technology-driven tourism. By fusing innovation with tradition, 萝莉视频 is creating a truly future-proof tourism industry.鈥


Closing Bell: Saudi main market ends week in green聽

Closing Bell: Saudi main market ends week in green聽
Updated 8 sec ago

Closing Bell: Saudi main market ends week in green聽

Closing Bell: Saudi main market ends week in green聽

RIYADH: 萝莉视频鈥檚 Tadawul All Share Index closed Thursday鈥檚 trading session on a positive note, rising 36.51 points, or 0.34 percent, to 10,655.61. 
Trading turnover totaled SR3.24 billion ($864 million) with 153.19 million shares changing hands, as 123 stocks advanced and 117 declined. 
The MSCI Tadawul 30 Index also climbed, adding 6.24 points, or 0.45 percent, to 1,381.79.
In contrast, the parallel Nomu market edged down 113.44 points, or 0.44 percent, closing at 25,559.59, with 40 gainers and 48 losers. 
Leading the gains, Thimar Development Holding Co. rose 6.01 percent to SR45.50, while Saudi Fisheries Co. rose 4.21 percent to SR87.90. 
Al-Andalus Property Co., Cenomi Retail, and Saudi Enaya Cooperative Insurance Co. advanced 3.90 percent, 3.88 percent, and 2.86 percent, respectively. 
On the downside, Marketing Home Group for Trading Co. fell 5.66 percent to SR73.30, followed by Taiba Investments Co. down 4.37 percent and Alahli REIT 1 sliding 2.74 percent.
On the announcements front, Dr. Soliman Abdel Kader Fakeeh Hospital Co. secured two Islamic credit facilities totaling SR720 million to support operations and growth, including SR570 million with Saudi National Bank and SR150 million with Saudi Awwal Bank. Shares of Fakeeh Care closed slightly higher at SR39.86.
Ataa Educational Co. reported a 31 percent rise in net profit to SR82.8 million for the year ending July 31, 2025, up from SR63.4 million the previous year. 
Revenue grew 0.63 percent to SR640.7 million, while operational profit increased 6.57 percent to SR147.7 million, driven by higher student enrollment, increased non-recurring revenues, and a significant reduction in losses from discontinued operations. Shares of Ataa rose 1.46 percent to SR62.45.


萝莉视频鈥檚 FDI inflows rise 24% to $31.72bn

萝莉视频鈥檚 FDI inflows rise 24% to $31.72bn
Updated 36 min 33 sec ago

萝莉视频鈥檚 FDI inflows rise 24% to $31.72bn

萝莉视频鈥檚 FDI inflows rise 24% to $31.72bn
  • Manufacturing was biggest recipient, drawing SR35.12 billion
  • Wholesale and retail trade, including motor vehicle repair, attracted SR18 billion

RIYADH: Foreign direct investment inflows into 萝莉视频 rose 24 percent in 2024 to SR119 billion ($31.7 billion), even as global FDI slowed, official data showed. 

According to the General Authority for Statistics, manufacturing was the biggest recipient, drawing SR35.12 billion and accounting for 29 percent of total inflows. 

Under Vision 2030, the Kingdom aims to attract $100 billion in FDI annually by the end of the decade as part of efforts to diversify away from crude revenues. 

Commenting on the latest performance, Investment Minister Khalid Al-Falih said: 鈥淭he results of foreign direct investment in the Kingdom for 2024 come against the backdrop of global economic challenges and a slowdown in the growth rates of global direct investment flows internationally, which reflects the Kingdom鈥檚 ability to face all economic challenges,鈥 according to the Saudi Press Agency. 

In an X post, the Ministry of Investment said inflows in 2024 surpassed the National Investment Strategy鈥檚 annual target of SR109 billion. It added that 萝莉视频 has exceeded its FDI goals for four consecutive years, with annual targets set to climb from SR140 billion in 2025 to SR388 billion by 2030. 

Wholesale and retail trade, including motor vehicle repair, attracted SR18 billion, or 15 percent, followed by construction at SR17.51 billion, and financial and insurance activities at SR16.19 billion. Professional, scientific and technical activities accounted for SR9.81 billion. 

The information and communication sector received SR6.34 billion, while mining and quarrying drew SR5.15 billion. Transportation and storage attracted SR5.06 billion, followed by administrative and support services at SR1.58 billion, and accommodation and food services at SR1.10 billion. 

According to GASTAT, FDI outflows surged to SR39 billion in 2024 from SR10 billion a year earlier. Net inflows fell 6 percent to SR80 billion. The Kingdom鈥檚 FDI stock reached SR977 billion at year-end, up 9 percent from 2023. 

By stock volume, the UAE led with SR161 billion in 2024, followed by Luxembourg with SR101 billion, and France with SR69 billion. 

萝莉视频 attracted SR18.38 billion in new inflows from the UAE, SR14.94 billion from Germany, and SR14.65 billion from the US. In terms of net inflows, the US ranked first with SR11 billion, followed by the UAE with SR9 billion. 


Gold rush in the Gulf: UAE鈥檚 reserves soar in 2025 聽

Gold rush in the Gulf: UAE鈥檚 reserves soar in 2025 聽
Updated 04 September 2025

Gold rush in the Gulf: UAE鈥檚 reserves soar in 2025 聽

Gold rush in the Gulf: UAE鈥檚 reserves soar in 2025 聽
  • In Dubai, the price of 22-karat gold rose by 15.25 UAE dirhams per gram last week
  • While official sector demand continues to rise, consumer demand in the UAE has shown mixed trends

DUBAI: Gold is having a moment, again. Because when the world gets messy, investors reach for the metal that never flinches.  

The Central Bank of the UAE increased its gold reserves by nearly 26 percent in the first five months of 2025, bringing total holdings to $7.9 billion, as global economic uncertainty and geopolitical tensions continue to drive demand for safe-haven assets. 

According to data released by the central bank in its May 2025 bulletin, gold reserves rose from $6.255 billion at the end of 2024, making it one of the most significant increases in recent years.  

The move aligns with a global trend of increased gold accumulation by central banks amid rising inflation, currency volatility, and geopolitical risks. 

The UAE鈥檚 reserves growth comes alongside a surge in international gold prices, which have increased approximately 33 percent year-to-date, reaching a record high of more than $3,500 per ounce.  

In Dubai, the price of 22-karat gold rose by 15.25 UAE dirhams per gram last week 鈥 up from 376 dirhams to 391.25 dirhams, a 4.06 percent increase that brings it close to the 400 dirhams per gram threshold. 

鈥淭his fits the global pattern we鈥檝e seen over recent years, with gold used as a hedge against the dollar, interest rates, and geopolitical risks,鈥 Noureldeen Al-Hammoury, chief market strategist at Squared Financial, told Arab News.  

Al-Hammoury said that the UAE鈥檚 gold strategy appears to be a broader attempt to diversify its reserves and hedge against global financial instability:  

鈥淚t signals diversification away from pure FX reserves and readiness for tail-risk liquidity needs 鈥 a classic insurance strategy amid uncertain cycles.鈥 

Why gold now? Global reserve trends offer clues 

According to the World Gold Council, central banks have been net buyers of gold for more than a decade, with annual net purchases averaging about 1,000 tonnes in the past three years, roughly double the average seen during the previous decade.  

The WGC鈥檚 latest survey shows that 95 percent of central bank reserve managers expect global gold holdings to rise further over the next 12 months, while 43 percent plan to increase their own allocations. 

鈥淐entral banks will still be one of the biggest drivers of gold鈥檚 performance, around 20 percent of annual demand,鈥 Andrew Naylor, head of Middle East and Public Policy at the World Gold Council, told Arab News.  

While official sector demand continues to rise, consumer demand in the UAE has shown mixed trends.  

WGC data for the first half of 2025 indicates a 16 percent year-on-year decline in demand for gold jewelry, while demand for gold bars and coins surged by 25 percent, pointing to increased investment activity.  

UAE鈥檚 evolving role in global gold markets 

Although the UAE has historically not been among the world鈥檚 top official sector buyers, it has positioned itself as a major gold trading hub, surpassing the UK to become the second largest globally. In 2023, the UAE handled more than $129 billion in gold trade.  

The UAE鈥檚 growing reserves could influence broader institutional behavior in the region, said Prashant Tandon, CEO of investment firm Lighthouse Canton.  

鈥淲e may see more capital flow into gold-linked instruments, not in isolation, but as part of a broader trend toward alternative assets that provide resilience against systemic shock.鈥 

Implications for monetary policy and strategy 

Analysts say the accumulation of gold by the UAE Central Bank reflects a long-term strategy aimed at increasing financial resilience.  

鈥淚nvestment demand is driving gold鈥檚 increase. It鈥檚 primarily an investment story,鈥 said Naylor, noting the central bank purchases serve not only as financial hedges but as confidence signals during periods of economic instability. 

The shift also coincides with growing interest in de-dollarization, as emerging economies look to reduce their dependence on the US dollar.  

Conflicts in the Middle East, the ongoing war in Ukraine, and trade tensions with the US have further motivated sovereign wealth funds to diversify into gold and alternative assets.  

鈥淭he US鈥檚 increasingly assertive use of the dollar as a policy and negotiating tool has accelerated this trend, encouraging sovereigns to seek greater autonomy,鈥 Tandon said. 

Will the UAE continue buying? 

It is not clear whether the UAE will continue expanding its gold reserves at this pace.

In 2021, central banks added 463 tonnes of gold globally, marking a return to net purchases following the uncertainty of the COVID-19 pandemic.  

However, the scale of future buying is expected to be moderate.  

鈥淲e probably won鈥檛 see the record buying that we鈥檝e seen in recent years,鈥 Naylor explained, but said gold remains a core component of central bank reserves due to its performance during times of uncertainty. 

Still, analysts say a shifting macroeconomic environment could influence future reserve strategies. 

As gold prices continue to climb, investors are digging in, but regular consumers are still on the fence.

鈥淎s long as real yields stay contained and geopolitics remain uncertain, dips in gold prices should find support,鈥 said Al-Hammoury at Squared Financial. 

 


萝莉视频, UK announce $445m economic partnership

萝莉视频, UK announce $445m economic partnership
Updated 03 September 2025

萝莉视频, UK announce $445m economic partnership

萝莉视频, UK announce $445m economic partnership
  • Investments to create jobs across energy, financial services, and professional sectors

RIYADH: 萝莉视频 and the UK are set to strengthen their economic ties through more than 拢360 million ($445 million) in joint investments, Business Secretary Jonathan Reynolds said on Wednesday.

The British official was speaking at the Great Futures Summit in London, a high-profile gathering of C-suite executives aimed at boosting trade and unlocking growth opportunities between the two countries.

The new investments are expected to generate 187 jobs, including 97 in the UK, focusing on clean energy, professional, and financial services sectors. Reynolds highlighted that the summit offers a platform for collaboration aligned with the UK鈥檚 modern Industrial Strategy and 萝莉视频鈥檚 Vision 2030, demonstrating the countries鈥 commitment to shared economic growth.

Significant investments into the UK include Alfanar establishing its new headquarters in London as a global hub for transport decarbonization, and International Investment Gate opening its European headquarters in the capital to manage UK assets and a new property fund.

HIGHLIGHTS

Projects expected to create 187 jobs: 97 in the UK and 90 in 萝莉视频, spanning clean energy, professional services, and financial sectors.

Key UK investments include Alfanar鈥檚 拢94 million London HQ for transport decarbonization; IIG鈥檚 拢550 million UK assets and 拢60 million property fund.

Key Saudi projects include Howden reinsurance business, Control Risks regional HQ, and Salica Investments鈥 $75 million MENA fund.

The Alfanar office will deliver 拢94 million of investment, creating 80 skilled jobs to support the 拢2 billion Lighthouse Green Fuels project in Teesside, which is set to become the world鈥檚 largest sustainable aviation fuels facility. 

Similarly, IIG鈥檚 London office will oversee 拢550 million of UK assets and a 拢60 million property fund, creating new professional opportunities.

The partnership also extends to 萝莉视频, where companies such as Howden are launching a reinsurance business, potentially creating up to 30 jobs, and Control Risks is establishing a regional headquarters in Riyadh to employ more than 50 people while developing local talent.

Venture capital firm Salica Investments is launching a second $75 million MENA-focused fund, following the success of its $50 million Salica Oryx Fund I, which has already supported 13 early-stage technology companies operating in 萝莉视频. Payment technology provider Paymentology has also established operations in Riyadh, committing $7.5 million toward local hiring and infrastructure to support the Kingdom鈥檚 fintech ambitions.

Education and skills development form another key pillar of the partnership. Over 10 new initiatives are being launched to support human capability development in 萝莉视频, including Cambridge University Press and Assessment opening an office in Riyadh to advance educational transformation. These efforts are part of a broader strategy to foster long-term prosperity and strengthen the bilateral relationship.

Reynolds said: 鈥淏ritain is a thriving business hub, and today鈥檚 new investment announcements are not only a major vote of confidence in our economy but demonstrate our thriving partnership with 萝莉视频.
鈥淥ur modern Industrial Strategy is giving investors the confidence they need to plan not just for the next year, but for the next 10 years and beyond 鈥 helping to create economic growth as part of our Plan for Change.鈥

Since the launch of the Great Futures campaign in May 2024, the UK-Saudi partnership has already yielded significant milestones. 萝莉视频 has raised $39.2 billion via the London Stock Exchange in 2025, and the Public Investment Fund completed a 15 percent acquisition of Heathrow Airport.

Other successes include a joint venture between UK sustainability fintech World Wide Generation and Rawabi Holding under the initiative, SURJ Sports Investment acquiring a minority stake in sports streaming giant DAZN, and HSBC 萝莉视频 relocating its headquarters to Riyadh鈥檚 King Abdullah Financial District. UK academic institutions are also expanding in 萝莉视频, with the University of Strathclyde and London Business School planning physical offices in the Kingdom. Nearly 拢500 million worth of contracts from Saudi giga-projects have been awarded to UK firms since the campaign began.

Speaking on the occasion, Saudi Commerce Minister Majid Al-Qasabi said: 鈥淭he Saudi-British Strategic Partnership Council stands as a key platform for deepening economic ties between the two friendly nations.
鈥淭oday鈥檚 Great Futures Leadership Summit represents a defining moment in our strategic partnership with the United Kingdom, demonstrating how Vision 2030 and the UK鈥檚 Industrial Strategy create unprecedented opportunities for mutual prosperity.鈥

British Ambassador to 萝莉视频 Stephen Hitchen said: 鈥淎s my first major diplomatic engagement as ambassador to 萝莉视频, today鈥檚 summit perfectly captures the strength of the relationship between our two kingdoms 鈥 from groundbreaking innovation bridges to our transformative partnerships in clean technology, we鈥檙e building something far deeper than trade statistics, we're creating lasting bonds rooted in shared vision and mutual respect that will define our relationship for generations to come.鈥

The summit coincides with the UK government鈥檚 launch of both the Industrial and Trade Strategies this summer, as negotiations continue on a modern trade deal with the Gulf Cooperation Council. The deal is expected to increase trade between the nations by 16 percent, add 拢1.6 billion annually to UK鈥檚 gross domestic product, and contribute an additional 拢600 million to UK workers鈥 wages in the long term.


Global oil markets at critical point amid investment gap, says Arab Energy Organization chief

Global oil markets at critical point amid investment gap, says Arab Energy Organization chief
Updated 03 September 2025

Global oil markets at critical point amid investment gap, says Arab Energy Organization chief

Global oil markets at critical point amid investment gap, says Arab Energy Organization chief
  • Global oil demand forecast to grow 680,000 barrels per day in 2025, 700,000 barrels per day in 2026
  • Oil exploration and production investments this year expected to total about $480.6 billion

Global oil markets are at a 鈥渃ritical turning point鈥 as low investment, economic uncertainty, and rising crude supplies deepen what industry leaders describe as the 鈥渢riple energy challenge,鈥 according to a top Arab energy official.

In an interview with Independent Arabia, Jamal Al-Loughani, secretary-general of the Arab Energy Organization, formerly OAPEC, said that geopolitical and trade tensions, coupled with shifting economic policies, are weighing on global oil demand, even as production climbs.

鈥淕lobal oil markets are currently witnessing a critical turning point, especially in light of the uncertainty surrounding the global economy,鈥 Al-Loughani said.

He pointed to a range of macroeconomic and geopolitical risks, including signs of slowing growth in China, volatility in US trade policy, weak economic growth in Europe, and tensions in key production regions.

He said that escalating conflicts in the Middle East drove futures prices above $80 a barrel in mid-June 鈥 their highest since early 2022 鈥 before easing after a ceasefire agreement.

鈥淭his comes in addition to the ongoing Russian-Ukrainian crisis, the associated targeting of energy infrastructure, and the tightening of Western sanctions imposed on Moscow,鈥 Al-Loughani added.

Rising demand, tight supplies

Global oil demand is forecast to grow by 680,000 barrels per day in 2025 and 700,000 barrels per day in 2026, reaching 104.4 million barrels a day, according to the International Energy Agency.

Non-member nations of the Organization for Economic Co-operation and Development 鈥 led by India, other Asian economies, the Middle East, and Africa 鈥 are expected to drive most of the gains, while demand in OECD countries is projected to decline by about 8.5 million barrels a day over the same period.

Current estimates put global crude demand growth at roughly 1.2 million barrels a day in the third quarter of 2025, bringing total demand to around 105.5 million barrels a day, Al-Loughani said.

Secretary-General of the Arab Energy Organization Jamal Al-Loughani warned that a lack of investment poses the most significant risk to the market. OAPEC

He expects supplies to expand as OPEC+ gradually raises output, though production from non-OPEC+ countries is projected to drop to about 53.8 million barrels per day. Despite slight increases, oil inventories remain below the five-year average, underscoring what he called 鈥渟trong market fundamentals.鈥

The secretary-general also said that these factors drove the average price of the OPEC crude basket to about $71 per barrel in July, its highest level in four months, while Brent and West Texas Intermediate futures are now trading steadily between $65 and $70 per barrel.

Investment gap

Al-Loughani warned that a lack of investment poses the most significant risk to the market.

鈥淭he lack of global investment in oil projects is the most pressing challenge, affecting not only member states but the world at large, as it exacerbates the 鈥榯riple energy challenge鈥 of balancing energy security, sustainability, and affordability,鈥 he said.

Oil exploration and production investments this year are expected to total about $480.6 billion, leaving a gap of more than 16 percent compared with the $596.5 billion needed annually to meet growing demand through 2050.

He added that global oil demand is projected to reach about 105.1 million barrels per day in 2025, though it remains subject to uncertainty stemming from China鈥檚 economic slowdown and disruptions in US trade policy.

OPEC+ strategy

The secretary-general highlighted the role of OPEC+, which includes six AEO member states, in maintaining stability since the alliance was formed in 2016.

He said the group鈥檚 2025 strategy emphasizes production discipline while adopting a 鈥渇lexible, interactive鈥 approach to changing market dynamics.

The latest move 鈥 a decision by 萝莉视频, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman 鈥 will see the alliance raise production by 547,000 barrels per day in September, with the option to adjust output in response to shifting conditions.

Al-Loughani underscored that deeper cooperation among Arab oil producers and international partners remains vital.

鈥淗e noted that this cooperation proved effective during the COVID-19 pandemic, playing a key role in quickly restoring market balance and preventing prolonged collapses in oil prices,鈥 according to Independent Arabia.

US energy policy shift

Al-Loughani also addressed recent shifts in US energy policy under President Donald Trump鈥檚 second term, describing measures aimed at boosting domestic production.

He said the changes included declaring a national energy emergency to speed up the implementation of oil and gas infrastructure projects through the executive order 鈥淎merica鈥檚 Energy Launch,鈥 aimed at boosting local energy resources at affordable and reliable prices by removing regulatory barriers, easing environmental restrictions, and rolling back support for renewable energy.

He added that July鈥檚 passage of the 鈥淥ne Big Beautiful Bill鈥 reduced federal royalty rates, simplified drilling permits, extended their validity to four years, opened more federal lands for drilling, and eliminated methane fees imposed by the Inflation Reduction Act.

The law also approved wellbore commingling 鈥 producing crude from multiple reservoirs through a single well 鈥 enabling more efficient and cost-effective output.

鈥淗owever, Al-Loughani stated that these policy changes have not yet significantly impacted shale oil production, although they could enable approximately 225 new leases and 160 additional wells in 2026,鈥 Independent Arabia reported.