Saudi Press

Saudi Arabia and the world
Thursday, Jul 24, 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

Saudi Press
0:00
0:00
Close
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
×