PIF launches Saudi Arabia's first duty-free company to boost travel retail market

11/03/2025 05:56 AST

Saudi Arabia's Public Investment Fund has launched Al Waha Duty Free Operating Co. as part of its strategy to capture a larger share of the Kingdom's travel retail market, contributing to the nation's economic growth.

In a press statement, it was announced that Al Waha is the first Saudi-owned duty-free operator. The company plans to develop luxury retail outlets in select locations across the country, offering a range of products, including unique items from Saudi Arabia.

With assets under management totaling $925 billion, PIF is one of the world's most influential sovereign wealth funds. It is also leading Saudi Arabia's efforts to diversify its economy and reduce its reliance on oil revenues.

"By establishing Al Waha as a national travel retail champion, PIF intends to grow the Saudi travel retail industry and further support its ambitions for the tourism sector in Saudi Arabia," said Majed Al-Assaf, head of Consumer Goods and Retail in Middle East and North Africa Investments at PIF.

He added: "Al Waha will offer a distinctive traveler experience across Saudi travel retail touch points through diverse product offerings, a duty free operation and a superior digital customer journey."

The company will also operate its airport outlets on a duty-free basis and explore additional travel retail opportunities at land border crossings and seaports, as well as through channels like inflight shopping.

The launch of Al Waha aligns with Saudi Arabia's broader ambition to become a leading global tourism destination by the end of this decade. The Kingdom is aiming to attract 150 million visitors by 2030.

Al-Assaf emphasized that Saudi Arabia has a significant opportunity to capture a larger share of travel retail spending in the future, as the Kingdom continues to establish itself on the global tourism map and prepares to host several major international events in the years ahead.

"There is considerable potential for Saudi Arabia to gain a larger share of travel retail spending in the future, and the continued increase in visitors coming to the Kingdom - as well as global events being hosted locally - offer new opportunities to generate sustainable travel retail revenues," he added.

Some of the major global events that Saudi Arabia will host in the coming years include the 2027 Asia Cup, the 2029 Asian Winter Games, Expo 2030, and the 2034 FIFA World Cup.

To further accelerate the Kingdom's tourism sector, the PIF has launched several key initiatives, including Riyadh Air, the new national carrier aimed at transforming Riyadh into a major international air travel hub, and Cruise Saudi, based in Jeddah, which seeks to position Saudi Arabia's coastline as a top global destination.

PIF's retail investments also include Saudi Coffee Co., Al Madinah Heritage Co. (focused on high-quality date production), and Sawani, a producer of camel milk products.

Arab News