Prime Highlights: 

Saudi Arabia’s Public Investment Fund (PIF) has launched the first Saudi-owned duty-free operator to capture a larger share of the Kingdom’s travel retail market. 

Al Waha plans to develop luxury retail outlets in select locations across Saudi Arabia, offering diverse products, including exclusive items from the Kingdom. 

Key Background: 

The Public Investment Fund (PIF) of Saudi Arabia has launched Al Waha Duty Free Operating Co., marking a significant milestone in the country’s travel retail sector. This move is part of Saudi Arabia’s broader strategy to capture a larger share of the travel retail market and support the nation’s economic diversification. 

Al Waha is the first Saudi-owned duty-free operator and is set to develop luxury retail outlets at select locations across the country. These outlets will offer a diverse range of products, including exclusive items that showcase the rich cultural heritage of Saudi Arabia. The company’s retail presence will span across airports, land border crossings, seaports, and even inflight shopping channels. 

As one of the world’s most influential sovereign wealth funds with assets totaling $925 billion, PIF plays a crucial role in driving Saudi Arabia’s economic transformation. The establishment of Al Waha aligns with the nation’s ambitious goal to become a leading global tourism hub by 2030, with an aim to attract 150 million visitors. This development also complements PIF’s ongoing efforts to diversify the economy beyond oil revenues. 

Majed Al-Assaf, PIF’s head of Consumer Goods and Retail in the MENA region, highlighted that Al Waha’s launch will enhance the Kingdom’s travel retail experience. By offering a wide variety of products and a superior digital shopping journey, Al Waha aims to become a key player in the growing Saudi travel retail industry. Furthermore, the company’s expansion will tap into the increasing influx of international visitors, driven by global events such as Expo 2030, the 2027 Asia Cup, and the 2034 FIFA World Cup. This initiative is part of PIF’s broader efforts to support Saudi Arabia’s tourism sector, alongside other projects like Riyadh Air and Cruise Saudi, both of which aim to establish the Kingdom as a prominent global travel destination.