saudi tourism report

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Saudi Arabia records 156% surge in international tourism arrivals in 2023

Kingdom’s tourism sector emerges as global powerhouse with strong visitor spending

Dubai: Saudi Arabia has marked a significant milestone in its tourism sector, recording a staggering 156 per cent increase in international arrivals in 2023 compared to 2019, according to the World Tourism Organisation’s (UNWTO) Barometer report.

The remarkable growth not only signals a robust recovery from the pandemic’s impact but also establishes the Kingdom as a key catalyst in the resurgence of Middle Eastern tourism, which saw an overall 22 per cent increase in 2023.

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Despite the global tourism sector being 12 per cent below pre-pandemic levels, there were about 1.3 billion international arrivals in 2023. International tourism revenues neared $1.3 trillion, reaching 93 per cent of the 2019 levels. The sector’s direct contribution to the global GDP was around 3 per cent, amounting to $3.3 trillion.

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The UNWTO forecasts a complete recovery in global tourism by 2024, expecting a 2 per cent increase over 2019 figures. Saudi Arabia’s tourism sector, leading the G20 in growth and ranking as the second fastest-growing tourist destination globally in the first three quarters of 2023, stands out significantly.

The Kingdom has witnessed a surge in visitor spending, with the Saudi Central Bank reporting over SR100 billion in international visitor expenditures.

The travel balance of payments indicated a 72 per cent rise from 2022, showcasing a surplus of 37.8 billion Saudi riyals by the third quarter of 2023. These achievements underscore Saudi Arabia’s ascent as a global tourist hotspot, driven by increased traveller confidence in its diverse attractions.

Looking ahead to 2024, the Ministry of Tourism is set to maintain this upward trajectory. The Kingdom plans to highlight destinations such as AlUla, Diriyah, Yanbu, and Abha and host major events like the Saudi Arabian Grand Prix, Diriyah E-Prix, and cultural festivals.

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Travel, Tourism & Hospitality

Tourism industry in Saudi Arabia - statistics & facts

Saudi arabia’s tourism revolution, entertainment and media fueling the tourism boom, key insights.

Detailed statistics

Total inbound tourist expenditure Saudi Arabia 2015-2022

Total inbound tourist expenditure Saudi Arabia 2021, by province

Share of tourist trips Saudi Arabia 2022, by purpose

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

Number of Hajj pilgrims in Saudi Arabia 1999-2022

Share of travel and tourism contribution to GDP in Saudi Arabia 2015-2032

Leading inbound travel markets from Middle East Saudi Arabia 2022

Related topics

Recommended.

• Hotel industry in Saudi Arabia
• Hotel industry in GCC
• Tourism industry in UAE
• Tourism industry in Qatar

Recommended statistics

Regional overview.

• Basic Statistic Inbound visitor growth in the Middle East 2011-2025
• Basic Statistic Outbound visitor growth in the Middle East 2011-2025
• Premium Statistic Targets of international tourist arrivals GCC 2023, by country
• Premium Statistic Expected revenue of hospitality industry in the GCC 2026, by country
• Premium Statistic Expected revenue of hospitality industry in the GCC 2021-2026, by country

Inbound visitor growth in the Middle East 2011-2025

Inbound visitor growth in the Middle East from 2011 to 2025

Outbound visitor growth in the Middle East 2011-2025

Outbound visitor growth in the Middle East from 2011 to 2025

Targets of international tourist arrivals GCC 2023, by country

Targets for international tourist arrivals in the Gulf Cooperation Council as of 2023, by country

Expected revenue of hospitality industry in the GCC 2026, by country

Forecasted share of the hospitality revenue in the Gulf Cooperation Council in 2026, by country

Expected revenue of hospitality industry in the GCC 2021-2026, by country

Forecasted revenue of the hospitality industry in the Gulf Cooperation Council in 2021 and 2026, by country (in billion U.S. dollars)

Economic indicators

• Premium Statistic Share of the GDP of the tourism sector in Saudi Arabia 2013-2028
• Premium Statistic Total inbound tourist expenditure Saudi Arabia 2015-2022
• Premium Statistic Outbound tourism expenditures Saudi Arabia 2018-2022
• Premium Statistic Domestic tourist expenditure Saudi Arabia 2018-2022
• Premium Statistic Distribution of inbound tourist spending Saudi Arabia 2022, by purpose of visit
• Premium Statistic Outbound tourist spending Saudi Arabia 2022, by purpose of visit

Share of the GDP of the tourism sector in Saudi Arabia 2013-2028

Share of the GDP of the tourism sector in Saudi Arabia from 2013 to 2028

Total inbound tourist expenditure in Saudi Arabia from 2015 to 2022 (in billion Saudi riyals)

Outbound tourism expenditures Saudi Arabia 2018-2022

Outbound tourism expenditures in Saudi Arabia from 2018 to 2022 (in billion Saudi Riyals)

Domestic tourist expenditure Saudi Arabia 2018-2022

Domestic tourist expenditure in Saudi Arabia from 2018 to 2022 (in billion Saudi riyals)

Distribution of inbound tourist spending Saudi Arabia 2022, by purpose of visit

Distribution of inbound tourist expenditure in Saudi Arabia in 2022, by purpose of visit

Outbound tourist spending Saudi Arabia 2022, by purpose of visit

Expenditure of outbound tourists from Saudi Arabia in 2022, by purpose of visit (in billion Saudi riyals)

Types of tourism

• Premium Statistic Distribution of inbound tourist trips Saudi Arabia 2022, by purpose of visit
• Premium Statistic Total inbound tourist trips Saudi Arabia 2022, by purpose
• Premium Statistic Number of leisure inbound tourist trips Saudi Arabia 2015-2022
• Premium Statistic Total outbound tourist trips in 2022, by purpose and nationality
• Premium Statistic Number of outbound leisure tourist trips Saudi Arabia 2022, by country
• Premium Statistic Total domestic tourist trips Saudi Arabia 2022, by purpose

Distribution of inbound tourist trips Saudi Arabia 2022, by purpose of visit

Distribution of inbound tourist trips to Saudi Arabia in 2022, by purpose of visit

Total inbound tourist trips Saudi Arabia 2022, by purpose

Total inbound tourist trips in Saudi Arabia in 2022, by purpose (in millions)

Number of leisure inbound tourist trips Saudi Arabia 2015-2022

Number of leisure inbound tourist trips in Saudi Arabia from 2015 to 2022 (in 1,000s)

Total outbound tourist trips in 2022, by purpose and nationality

Number of Saudi and non-Saudi outbound tourist trips in Saudi Arabia in 2022, by purpose (in 1,000s)

Number of outbound leisure tourist trips Saudi Arabia 2022, by country

Number of outbound leisure tourist trips from Saudi Arabia in 2022, by destination country (in thousands)

Total domestic tourist trips Saudi Arabia 2022, by purpose

Total domestic tourist trips in Saudi Arabia in 2022, by purpose (in millions)

Inbound tourism

• Premium Statistic Number of inbound tourists Saudi Arabia 2018-2022
• Premium Statistic Total number of inbound tourists Saudi Arabia 2022, by region of origin
• Premium Statistic Number of inbound tourists Saudi Arabia 2022, by country of origin
• Premium Statistic Leading cities in inbound tourist arrivals Saudi Arabia 2022, by city
• Premium Statistic Share of inbound tourists Saudi Arabia 2022, by accommodation
• Premium Statistic Average length of stay of inbound tourists Saudi Arabia 2015-2022

Number of inbound tourists Saudi Arabia 2018-2022

Number of inbound tourists to Saudi Arabia from 2018 to 2022 (in millions)

Total number of inbound tourists Saudi Arabia 2022, by region of origin

Total number of inbound tourists in Saudi Arabia in 2022, by region of origin (in millions)

Number of inbound tourists Saudi Arabia 2022, by country of origin

Number of inbound tourists to Saudi Arabia in 2022, by country of origin (in millions)

Leading cities in inbound tourist arrivals Saudi Arabia 2022, by city

Number of inbound tourist arrivals to leading destinations in Saudi Arabia in 2022, by city (in millions)

Share of inbound tourists Saudi Arabia 2022, by accommodation

Share of inbound tourists in Saudi Arabia in 2022, by accommodation type

Average length of stay of inbound tourists Saudi Arabia 2015-2022

Average length of stay of inbound tourists in Saudi Arabia from 2015 to 2022 (in nights)

Outbound tourism

• Premium Statistic Number of outbound departures from Saudi Arabia 2015-2022
• Premium Statistic Total outbound tourist trips Saudi Arabia 2022, by region and nationality
• Premium Statistic Share of outbound Saudi tourist trips Saudi Arabia 2022, by destination country
• Premium Statistic Share of outbound non-Saudi tourist trips Saudi Arabia 2022, by destination
• Premium Statistic Share of Saudi outbound tourists Saudi Arabia 2022, by accommodation type
• Premium Statistic Share of non-Saudi outbound tourists Saudi Arabia 2022, by accommodation type

Number of outbound departures from Saudi Arabia 2015-2022

Number of outbound tourists from Saudi Arabia from 2015 to 2022 (in millions)

Total outbound tourist trips Saudi Arabia 2022, by region and nationality

Total outbound tourist trips in Saudi Arabia in 2022, by region and nationality (in millions)

Share of outbound Saudi tourist trips Saudi Arabia 2022, by destination country

Share of outbound trips of Saudi nationals in Saudi Arabia in 2022, by destination country

Share of outbound non-Saudi tourist trips Saudi Arabia 2022, by destination

Share of outbound trips of non-Saudi residents in Saudi Arabia in 2022, by destination country

Share of Saudi outbound tourists Saudi Arabia 2022, by accommodation type

Share of Saudi outbound tourists from Saudi Arabia in 2022, by accommodation type

Share of non-Saudi outbound tourists Saudi Arabia 2022, by accommodation type

Share of non-Saudi outbound tourists from Saudi Arabia in 2022, by accommodation type

Domestic tourism

• Premium Statistic Number of domestic tourists Saudi Arabia 2018-2022
• Premium Statistic Leading cities in domestic tourist trips Saudi Arabia 2022, by city
• Premium Statistic Number of domestic Hajj pilgrims in Saudi Arabia 1999-2022
• Premium Statistic Share of domestic tourists Saudi Arabia 2022, by accommodation

Number of domestic tourists Saudi Arabia 2018-2022

Number of domestic tourists in Saudi Arabia from 2018 to 2022 (in millions)

Leading cities in domestic tourist trips Saudi Arabia 2022, by city

Number of domestic tourist trips to leading destinations in Saudi Arabia in 2022, by city (in millions)

Number of domestic Hajj pilgrims in Saudi Arabia 1999-2022

Annual number of domestic Hajj pilgrims within Saudi Arabia from 1999 to 2022

Share of domestic tourists Saudi Arabia 2022, by accommodation

Share of domestic tourists in Saudi Arabia in 2022, by accommodation type

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Tourist arrivals in Saudi Arabia exceeded pre-pandemic levels in 2023, UN report says

Middle east is the only region that recorded tourism growth over 2019 levels.

Tourists in Al Ula, Saudi Arabia. The kingdom recorded a 156 per cent increase in tourist arrivals last year compared with 2019, according to a UN World Tourism Organisation report. PA

Saudi Arabia recorded a 156 per cent increase in tourist arrivals last year compared with 2019 amid the recovery of the tourism sector following the pandemic, according to Saudi state news agency SPA, which quoted a World Tourism Organisation report.

The Middle East is the only region that achieved tourism growth over pre-pandemic levels, receiving 122 per cent more tourists last year than in 2019, the report from the UN agency said.

“The global rate of tourism recovery in 2023 stood at 88 per cent of pre-pandemic levels, registering an estimated 1.3 billion arrivals,” the report said.

“International tourism revenue reached $1.3 trillion, approaching 93 per cent of the $1.5 trillion achieved in 2019.”

Saudi Arabia, the world's biggest oil exporter, is transforming its economy under its Vision 2030 diversification agenda as it aims to reduce its dependence on oil, boost domestic industries and support jobs growth.

It is developing several large projects in line with this strategy, including Qiddiya, as well as Neom, a $500 billion futuristic city , the Red Sea Project and the Diriyah Gate heritage development.

Midway through the Vision 2030 implementation, “strong performance has been achieved against many of the economic goals”, a report by consultancy PwC in October found.

Saudi Arabia’s mega projects “have made significant progress in the last few years, moving from the conceptual phase to construction”, the report said.

The kingdom was fifth in a global ranking of international arrivals in 2023, returning to pre-Covid levels for inbound visitors and buoyed by Hajj pilgrims, investment in marketing the country as a tourism destination and efforts to diversify its economy, the Global Travel Trends report by travel analysis company ForwardKeys showed.

The kingdom followed the Dominican Republic, Colombia, Mexico and Greece in the top five, which was dominated by “sun and beach” destinations.

The UN agency estimated the direct contribution of the global tourism sector to gross domestic product last year at 3 per cent to reach $3.3 trillion, the SPA reported.

Saudi Arabia boosts tourism credentials – in pictures

Hegra After Dark. Photo: RCU Commission

The Madrid-based company estimated the global tourism industry to fully recover from the pandemic during 2024 and to further grow by 2 per cent compared with 2019.

Saudi Arabia topped G20 countries for number of arriving tourists last year, and ranked second among the fastest-growing tourist destinations in the world in the first three quarters of last year, according to SPA.

Various tourist destinations in the kingdom recorded a significant increase in the number of visitors, both domestic and foreign last year, and registered a record in spending by overseas visitors, according to data issued by the Central Bank of Saudi Arabia.

Tourism revenue in Saudi Arabia was worth more than 100 billion Saudi riyals ($26.7 billion) for the first three quarters of 2023, a 72 per cent annual increase, the central bank data showed.

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Table of Contents

Saudi arabia tourism report.

Our 2024 outlook for Saudi Arabia's tourism sector is positive. We project an increase in arrivals over 2024, with the arrivals for the year building on from the 2023 level. We believe that 2023 marked a full recovery in the arrivals market. Saudi Arabia's arrivals will continue to increase over our forecast period (2024-2028). We expect the Middle East to remain a key source of arrivals for Saudi Arabia over the short-to-medium term. This will be followed by Asia-Pacific and Africa. Over the medium-to-long term, the kingdom's tourism-related investments, along with greater marketing efforts, should bolster the diversification of source markets.

Providing expert analysis, independent forecasts and competitive intelligence on the tourism industry.

Report includes: Industry View, Industry SWOT Analysis, Industry Forecasts, Economic Forecasts, Company Profiles and Global, Regional and Country Industry Overviews.

Why you should buy this report

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• Understand the threats to your operations and investments and protect your company against future risks
• Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
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The Saudi Arabia Tourism Report has been researched at source and features BMI’s independent assessment and forecasts for tourist expenditure; government expenditure on tourism; passenger arrivals and departures by mode of transport, reason for travel, origin and destination; and the accommodation market.

BMI’s Saudi Arabia Tourism Report provides industry professionals and strategists, corporate analysts, associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the countries tourism industry.

Key Benefits

• Benchmark BMI’s independent tourism industry forecasts to test other views - a key input for successful budgetary and planning in the tourism market
• Target business opportunities and risks in the tourism sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments
• Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity)

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Saudi tourism sector decoded in comprehensive trend report by SkiftX & Seera Group

• 04 Dec 2019
• Brand transformation
• Consumer Travel
• Hajj & Umrah
• Travel Management

 ·         Significant opportunity for Saudi Arabia to grow domestic, religious, outbound, business and international inbound travel, says new report

·         Titled, ‘Decoding the Saudi Arabian Travel & Tourism Industry’, the report offers understanding of inbound, outbound and domestic travel trends

London, UK; November 7, 2019: Saudi Arabia is making significant gains in inbound and domestic travel that complements the already lucrative outbound travel segment,  to emerge as one of the world’s fastest growing and leading tourism destinations. In line with these significant developments, a new report commissioned by Seera Group, the region’s leading provider of travel and tourism services, decodes the opportunities for travel from, to and within the Kingdom.

Prepared by SkiftX, the in-house content marketing studio of Skift, the largest intelligence platform providing media, insights and marketing for key sectors in the travel sector, the report was unveiled around the World Travel Market 2019. Titled ‘Decoding the Saudi Arabian Travel and Tourism Industry,’ the report offers a comprehensive understanding of travel trends and traveller preferences.

Among the highlights, the report provides insights on how the Kingdom is working to achieve the Saudi Vision 2030 goal of welcoming 100 million international and domestic overnight visits a year and increasing tourism’s contribution to the GDP by 10%. It underlines that the ongoing transformation of the sector will translate to more socio-economic progress including the creation of new jobs for Saudi nationals and the growth of a vibrant Saudi SME value chain.

Abdullah Al-Dawood, Board Member and Group CEO of Seera Group, said: "Saudi Arabia is well-positioned to be one of the world’s leading tourism destinations. This is reflected in the findings of our first-of-its-kind report, which presents compelling insights on how the Kingdom’s tourism landscape is currently evolving. We are confident that it will help strengthen awareness, partnerships and inward investments in the Kingdom’s tourism sector. Having announced an investment of over SAR1 billion to cover tourism promotion, distribution, infrastructure and Saudi human capital development, we, at Seera Group, are challenging ourselves to drive the transformational growth of Saudi Arabia’s travel and tourism sector."

The report describes that opening Saudi Arabia to tourism and introducing simplified visa processes, including e-visas and visa on arrival for citizens of 49 nations, is a key driver of inbound tourism. The strategy by Saudi Commission for Tourism and Heritage to entice first-time visitors to ‘discover Saudi’ from 2019 to 2022 and its subsequent extension to ‘experience Saudi’ will contribute to significant gains for the industry.

This will be supported by the ambitious undertakings such as the Red Sea Project that taps the undiscovered natural beauty of the Kingdom to attract luxury travellers as well as projects such as NEOM, the megacity; Seven, building entertainment centres nationwide; and Amaala, a wellness focused resort, among others, which will serve as magnets for visitors from around the world. The roll out of Saudi Seasons and events such as the Winter at Tantora festival are other key initiatives that will promote the tourism and travel sector’s dynamic growth.

Hajj & Umrah tourism is also poised for growth, especially with visitors now being able to complete Umrah pilgrim trips any time during the year and not needing specialised Umrah visas anymore. The report states that Hajj and Umrah travellers are the primary inbound segment to Saudi Arabia and their numbers have been growing year-on-year. Research by Mawasim, Seera Group’s Hajj and Umrah focused brand, which offers religious tour packages to tour operators in key source markets, shows that the most popular request from Hajj and Umrah travellers is for accommodations near the Haram Mosque. Mawasim also found that after completing their pilgrimage, many travellers wanted to stay in Jeddah and explore the city.

Among key trends identified by the report are insights on Saudi outbound traveller behaviour. Typically, there are four segments of Saudi leisure travellers – Family travellers, Take-it-easy travellers, Grown-up explorers and Honeymooners. According to research by Seera Group’s flagship consumer travel brand, Almosafer, Saudi Arabians like to take at least one trip every year as family, if not more.

Take-it-easy travellers are younger and they typically look for a place where they can go to relax and be comfortable, with beach resorts being very popular. Grown-up explorers are young too but look for adventure, an experience they never had before or something unique. Honeymooners seek security and comfort and want to be assured that everything about the journey is taken care of and arranged before they arrive. Further, the report observes that with women now being allowed to travel without being accompanied by a male relative, women travelling in groups or individually are also expected to increase in numbers.

The report identifies that Saudi Arabians travel much more frequently and spend more per trip by a significant margin. While London, Dubai, Paris, Cairo and Sharm El-Sheikh are the top five all-time favourite destinations, Baku, Tbilisi, Kuala Lumpur, Dubrovnik and Jakarta are currently trending.

In booking trends, the report cites research by Seera Group which states that men make most of the travel bookings, but actual decisions were made by women. On their inspiration for travel, they rely on three sources: Friends & family, social media and popular culture. Seera Group also identified that when choosing to travel to a place for the first time or when not recommended by a family or friend, Saudi Arabians look for online reviews by other Saudis. The younger generation increasingly look up to social media influencers and YouTube vloggers. Among the most popular sources of travel information are: friends & family (44%), vloggers and bloggers (16%), travel providers on social media (25%) and travel websites (39%)

In other key trends, on average, Saudi travellers book their international trip 26 days in advance, and from January to August 2019, Seera Group observed that 77% of international bookings were made between 0 to 25 days.

When it comes to overarching travel spend habits, Seera Group’s data, from January to August 2019, reveals that over 80% of Saudi Arabians prefer to travel via full-service airline carriers and 86% book four or five-star properties for their international travels with an average spend of over US$180 per night. The group’s data also reveals that over 45% of international travellers take trips of nine days or more. In terms of domestic travel, 79% Saudi Arabians book four or five-star hotels and 41% take trips of three days or more, with bookings made nine days in advance, during January to August 2019.

According to reports from Elaa, Seera Group’s corporate and government travel unit, the number of business travel transactions between January and August grew by 38% to over 1.1 million with nearly 90% of the travel volume accounted for by government-related travel. Most business travellers travel domestically (72.73%) with 3.5% travelling to Africa. Outside of the GCC region, Egypt, India and Sudan are the most popular business travel destinations.

At WTM, Seera Group has also launched ‘Discover Saudi’, a SAR500 million investment, to develop necessary assets such as desert camps, city bus tours, unique guided tours and other tourism experiences. It is part of the Group’s overall strategy for tourism development in addition to building the mid-market hospitality sector and developing Saudi human capital by training Saudi youth for careers in the tourism industry.

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Oil demand growing at a slower pace as post-Covid rebound runs its course

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IEA (2024), Oil demand growing at a slower pace as post-Covid rebound runs its course , IEA, Paris https://www.iea.org/commentaries/oil-demand-growing-at-a-slower-pace-as-post-covid-rebound-runs-its-course, Licence: CC BY 4.0

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Global oil demand growth returns to historical trend

Global oil demand growth is currently in the midst of a slowdown and is expected to ease to 1.2 million barrels a day (mb/d) this year and 1.1 mb/d in 2025 – bringing a peak in consumption into view this decade. This is primarily the result of a normalisation of growth following the disruptions of 2020-2023, when oil markets were shaken by the Covid-19 pandemic and then the global energy crisis sparked by Russia’s invasion of Ukraine.

Despite the deceleration that is forecast, this level of oil demand growth remains largely in line with the pre-Covid trend, even amid muted expectations for global economic growth this year and increased deployment of clean energy technologies.

Annual oil demand growth, 2011-2025

In both 2022 and 2023, global oil consumption rose by more than 2 mb/d as economies continued their recoveries from the Covid-19 shock and saw spikes in personal mobility, along with exceptional releases of pent-up demand for travel and tourism. While there are reasonable grounds for uncertainty about how complete the global recovery is, both oil demand data and mobility indicators suggest that its pace has slowed sharply and that the period of demand growth above the historical average is coming to an end.

China’s post-Covid rebound is running out of steam

Without a steep fall in oil prices, a sudden resurgence in the post-pandemic recovery or an acceleration in economic activity, it is unlikely that global oil demand growth will approach the levels seen in 2022 and 2023. Indeed, the pace of gains slowed substantially in the second half of 2023, and the latest data shows that the trend continued at the beginning of 2024.

Oil use increased by an estimated 1.6 mb/d year-on-year in the first quarter of 2024, down from 1.9 mb/d in the fourth quarter of 2023 and more than 3 mb/d during the middle of last year. Given that China was the last major economy to lift public health restrictions related to the pandemic and saw an abrupt economic recovery in mid-2023, this easing of year-on-year demand growth is likely to continue during 2024.

Quarterly oil demand growth, 2022-2025

Indeed, because the timing of Chinese lockdowns was quite different from the rest of the world, global oil demand growth in 2023 was extremely dependent on the country. With the explosive phase of the pandemic rebound largely complete elsewhere, China contributed to more than three-quarters of the global increase in demand (1.7 mb/d out of 2.3 mb/d). The world’s second largest economy will remain the mainstay of global expansion this year. However, gains are projected to fall to 540 kb/d. In the absence of a dramatic acceleration in other countries, this will result in a wider global slowdown.

In the decade up to 2023, almost two-thirds of all oil demand growth came from China. Over this period, the nation’s GDP grew at an annual average rate of 6%. An expected slackening in economic growth, to a rate of between 4% and 5% in 2024 and 2025 – combined with the rapid domestic uptake of oil-substituting technologies such as electric vehicles (EVs) and high-speed rail – means that in 2024 and 2025, only a little over one-third of oil demand growth is expected to come from China.

Demand for aviation fuel is easing as air traffic stabilises

The other major driver of rising oil consumption in 2022 and 2023 was a steady recovery in air traffic as pandemic-era travel restrictions were relaxed. Demand for jet fuel/kerosene, primarily from the aviation sector, grew by more than 1 mb/d in both years and contributed almost half of the increase in global oil demand.

However, gains have moderated since the first half of 2023, according to Airportia data. As a result, the increase in demand for jet fuel/kerosene in 2024 is forecast to be far smaller, at 230 kb/d. In addition to a stabilisation in air traffic, there have also been large gains in the fuel efficiency of aircraft since 2019. This has meant that, despite roughly equivalent activity, fuel demand from the sector was more than 6% lower in the second half of 2023 than in the same period in 2019. This trend is set to continue as more new planes with vastly improved fuel economy enter the global fleet, helping to restrain the impact of increasing demand for air travel on oil use during the medium term.

Demand for jet fuel/kerosene lags global miles flown as aircraft fuel efficiency improves

Global consumption of oil is set to peak, but its centrality remains.

While we expect growth in oil consumption in 2024 (1.2 mb/d) and 2025 (1.1 mb/d) to remain robust by historical standards, structural factors will lead to a gradual easing of oil demand growth over the rest of this decade. Continued rapid gains in the market share of EVs, particularly in China; steady improvements in vehicle fuel economies; and, notably, efforts by Middle Eastern economies, especially Saudi Arabia, to reduce the quantity of oil used in power generation are together expected to generate an overall peak in demand by the turn of the decade.

Oil remains extremely important to the global economy, and across some of its key applications, alternatives still cannot easily be substituted. In the absence of additional energy and climate policies and an increased investment push into clean energy technologies, the decline in global oil demand following the peak will not be a steep one, leaving demand close to current levels for some time. Nevertheless, cooling Chinese demand growth and considerable progress on the deployment of clean energy transition technologies mean that the oil market is set to enter a new and consequential period of transformation.

Oil Market Report - April 2024

The IEA Oil Market Report (OMR) is one of the world's most authoritative and timely sources of data, forecasts and analysis on the global oil market – including detailed statistics and commentary on oil supply, demand, inventories, prices and refining activity, as well as oil trade for IEA and selected non-IEA countries.

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Aerial view of Abu Dhabi, United Arab Emirates, high-rise buildings and some of the emirate's ... [+] 200-plus islands.

In Abu Dhabi, two modern high-rises bookend a cluster of multi-story, low-lying buildings. At the moment, the structures appear in renderings for what would be the world’s first esports island. But while investments in esports have been cooling off in many places around the globe, plans for the industry-defining megaproject are heating up in the capital city of the United Arab Emirates.

News of the esports island emerged as True Gamers, an operator of a global network of gaming lounges and clubs, announced intentions for a $280 million investment in what is projected to be a $1 billion development. The island would include a digital technology and innovation workspace in one tower, a resort hotel in another tower, a complex of training and meeting spaces, and an arena designed for hosting multi-format events and exhibitions. Even in concept, the project advances Abu Dhabi among regional destinations that are rapidly growing as global centers for sports and sports-led development.

The location being eyed for the esports island is in the centrally-located Al Raha district of residential, retail, commercial, and recreational properties nearby the city’s Zayed International Airport. It sits across a waterway from the sports- and leisure-focused Yas Island .

Yas is renowned for hosting prestigious sports events like the Formula 1 season finale, UFC mixed martial arts cards, NBA exhibition games, and DP World Tour golf tournaments. It welcomes hundreds of thousands of visitors to its Ferrari World, Waterworld, Warner Bros. World, and SeaWorld theme parks. Luxury hotels, shopping malls, golf courses, restaurants, and nightlife venues lend to an entertaining year-round atmosphere. For most of the time since opening in 2009, Yas has also presented a range of health and fitness sessions for the public, including making the entire F1 track available twice weekly for walking, running, or bicycling by people of all ages, abilities, and interests.

While Yas may stand out as a prominent destination for sports-related amenities among Abu Dhabi's array of 200 islands, it is not alone. Another is Huydayriat Island , a 3000-hectare (approximately 7500-acre) fitness- and nature-focused island that includes a surf park, cycling tracks, a velodrome, football pitches, basketball and tennis courts, running and walking trails, skate parks, an obstacle course, watersports, and sixteen kilometers (about ten miles) of beaches. Saadiyat Island has cultural, heritage, educational, residential, recreational, hospitality, and tourism offerings, including kayaking routes that wind around and into the Louvre Abu Dhabi museum.

Department of Culture and Tourism Abu Dhabi chairman Mohamed Khalifa Al Mubarak recently shared that the emirate’s tourism strategy considers more than $10 billion in state-sponsored and public-private partnership infrastructure investments between now and the end of the decade . The results of those projects figure to add $24.5 billion to the nation's annual gross domestic product. An island that caters to esports and gaming would fit in among those plans and the range of nature preserves, cultural sites, leisure spots, tourist attractions, and commercial centers across the emirate’s existing islands.

But an esports investment wouldn’t come into being for purposes of economic opportunism or public relations gains. It would be because it aligns with the objectives and goals of Abu Dhabi Vision 2030 , the roadmap set forth by the government in 2006 to ensure a sustainable economy.

During the past two decades, governments of cities and nations across the Gulf region have been making massive investments into transforming their economies from a reliance on oil-based operations to an interest in knowledge-based organizations. The strategy aims to enable self-sustaining industries in anticipation of the day in the middle of this century when the bulk of oil reserves are figured to run dry.

The model that the UAE is following to achieve that is “unique and novel,” says Robert Salomon, dean of the NYU Stern School of Business at NYU Abu Dhabi and a professor of management at NYU Stern. “The traditional model in the developing world has been export-led growth. For Abu Dhabi, it’s ‘let's just jump from an oil-based, developing economy and go straight toward services and a knowledge-based economy.’”

The trillions of dollars of investment being committed to these changes are not being driven primarily by economic development, though. They are being powered more so by social impact.

The Abu Dhabi economy is fashioned around a society designed for living, working, and connecting. In terms of approach, it bucks the classical model that puts economics over society. In terms of culture and worldview, it places a premium on improving social pursuits as a means to stirring economic opportunities. Sports and sports-led development are part of that ambition.

“One of the features that defines a developed country is leisure time. And one of the things that people do when they have leisure time is they dedicate more time to sport,” Salomon says. “Sport is one of the markers of a society that has developed.”

From Salomon’s perspective, Abu Dhabi’s local and global investments in sports, the arts, entertainment, film, and creative services are indicators that the emirate has arrived at an inflection point in its evolution. That opens its leadership and people into a new round of thinking-through the questions about what developed countries do and what developed countries can do. “A project like the esports island is consistent with that happening,” he says.

As the esports island emerges on the horizon, Abu Dhabi has a well-established track record of hosting esports events. For example, it recently welcomed back the Blast Premier World Final, an international tournament with a $1 million prize pool, for the second time. Events like that highlight the region’s growing presence in the esports industry.

Esports-related revenue in the region had an annual increase of nearly eight percent to almost $2 billion last year and is on pace to continue rising through the end of the decade, according to a report by Niko Partners . Saudi Arabia generated more than half of the revenue, followed by the UAE with almost one-third of it. This surge in esports, alongside Abu Dhabi's increasing focus on gaming and digital entertainment, is evident decisions such as the integration of Abu Dhabi Gaming—a government-led initiative that aggregates the local gaming ecosystem around talent development, game development, digital education, and esports—into the portfolio of the Department of Culture and Tourism Abu Dhabi late last year.

From ancient times through the middle of the past century, the Abu Dhabi economy was fueled by fishing and pearl diving. Then came oil and trade. Now and in the foreseeable future, it is knowledge and culture. With plans for projects like the world’s first esports island on the rise, Abu Dhabi is primed to further its status as a global sports hub.

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Saudi Arabia Scales Back Futuristic Desert City NEOM Plans, Vision 2030 Commitments

S audi Arabia has scaled back on its plans to develop desert megapolis Neom. Neom is the biggest project undertaken by Crown Prince Mohammed bin Salman as he plans to diversify the Saudi Arabian economy that has been heavily reliant on oil.

According to a report by news agency Bloomberg , the Saudi Arabian government hoped that Neom would house 1.5 million residents living in The Line. The Line is a futuristic city which will be situated between a pair of mirror-clad skyscrapers. However, officials believe that it will house fewer than 300,000 residents by that time.

The officials also said that they will be able to complete only 2.4 kilometres of the project by 2030 while speaking to Bloomberg on condition of anonymity. The proposed plan envisages the linear megacity to span across a 170-kilometer stretch of desert along the coast.

The Bloomberg report also said that one contractor has started to dismiss a portion of its workers it had employed on the site.

Crown Prince Mohammed aims to make Neom, a $1.5 trillion project along the Red Sea coast, a key feature in Saudi Arabia’s economic transformation. It will also serve as a testing ground for innovative technologies, including The Line, an ambitious urban development initiative. Neom’s vision encompasses various components such as an industrial city, ports, and tourism hubs. Additionally, it is scheduled to host the Asian Winter Games in 2029, featuring a mountain resort named Trojena.

Meanwhile, work is ongoing in several other projects and an island in the Red Sea is being turned into a luxury tourist destination known as Sindalah, which is due to open this year.

The report said the kingdom’s sovereign wealth fund has yet to approve Neom’s budget for 2024 which led to the reframing of the targets associated with The Line.

“(Longer period of time needed to) build factories, build even sufficient human resources. The delay or rather the extension of some projects will serve the economy,” Saudi Finance Minister Mohammed Al Jadaan was quoted as saying by Bloomberg earlier in December.

Analysts speaking to Al-Monitor also said that Saudi Arabia will continue to scale back its Vision 2030 commitments to help the domestic economy remain healthy.

According to official data, foreign direct investment (FDI) in Saudi Arabia saw a notable increase, with net inflows reaching 13.1 billion riyals ($3.49 billion) in the fourth quarter of 2023. This marked a 16% rise from the third quarter’s 11.4 billion riyals ($3.04 billion). However, analysts observed that the actual FDI fell short of the Saudi government’s initial expectations.

The sovereign wealth fund Public Investment Fund’s (PIF) cash reserves dropped to $15 billion as of September.

The news agency also said lower oil prices led to the revision of the targets by the Saudi Arabian government and important engagements like hosting the Expo 2030 trade fair and the FIFA World Cup in 2034 also led to steps that indicate that the Saudi government is scaling back on its plans for 2030.

Aircraft Diverted and Airspace Restricted as Iran Launches Attack on Israel

Meghna Maharishi and Gordon Smith, Skift

April 13th, 2024 at 9:06 PM EDT

Airlines have halted service to Tel Aviv as tensions in the Middle East escalate due to Iran’s drone attack on Israel.

Airlines changed routes and canceled flights in response to an escalation in tensions between Israel and Iran on Saturday.

Iran launched dozens of drones and missiles at Israel Saturday night. The widely anticipated attack was seen as retaliation after an airstrike on the Iranian consulate in Syria last week.

In addition to diversions and cancellations into Tel Aviv, airspace over Israel, Iran, Iraq and Jordan was either closed or heavily controlled from Saturday evening until Sunday morning. Some restrictions remain in place.

Daniel Hagari, the spokesperson for the Israel Defense Forces, said Saturday night that most of the missiles had been intercepted, and that the strikes caused minor damage, according to a post on X , formerly known as Twitter.

While Iran’s retaliation against Israel was quick and caused minimal damage, it’s unclear what the next phase of the conflict will be.

Airlines Cancel Flights

American Airlines canceled its flights between Philadelphia and Doha, Qatar on Saturday due to the attacks.

Israeli national carrier El Al said on Saturday it was canceling more than a dozen flights from Tel Aviv due to the situation.

United Airlines was among the major carriers to cancel its service to Tel Aviv on Saturday. The U.S. carrier later said it was also canceling its Saturday flight to Amman, Jordan. It is currently not planning to cancel its Sunday service to Tel Aviv.

“We have canceled Saturday’s planned flight from Newark to Tel Aviv and its associated return flight due to restrictions on Israeli airspace,” a United spokesperson said. “We are closely monitoring the situation and will make decisions on upcoming flights with a focus on the safety of our customers and crews.”

EasyJet has also cancelled Tel Aviv services, with flights currently suspended until Tuesday. “Due to the evolving situation in Israel, easyJet has taken the decision to pause operations to and from Tel Aviv on the 14th and 15th April. The safety and security of our passengers and crew is always easyJet’s highest priority,” it said in a statement.

Etihad reported changes to its routes: “Following notification of the closure of airspace over Israel, Jordan and Iraq, Etihad is re-routing a number of its European and North American flights on Sunday 14 April to overfly the Kingdom of Saudi Arabia and Egypt. This is likely to cause some disruption and delay to a number of flights over the course of the day.”

As of Saturday night, Etihad said it decided to cancel flights to Tel Aviv and Amman on Sunday. Etihad said it would resume service to Tel Aviv and Amman on Monday as airspace over Israel and Jordan reopened.

Swiss said it would suspend its “flight operations to and from Tel Aviv until further notice….as many airspaces are closed due to the current situation, we are currently assessing to what extent flights that have already taken off need to be diverted.” Swiss added: “Following Iran’s attack against Israeli territory, all SWISS aircraft are avoiding the airspaces of Iran, Iraq and Israel.”

Due to the attacks, Swiss said it would suspend flights to Beirut up to and including April 18. The carrier said it would continue avoiding Iranian airspace, adding an additional 90 minutes for flights between Zurich and Hong Kong, Bangkok, Singapore, Delhi and Mumbai.

Flydubai also reported disruptions. “Some of our flights have been impacted by the temporary closure of a number of airspaces in the region,” said a Flydubai spokesperson. “We continue to closely monitor the situation and will make any amendments to our schedule accordingly.”

Delta Air Lines recently resumed service to Israel in March, but it’s unclear if the carrier has stopped flights to Tel Aviv due to the attack. Delta did not immediately respond to a request for comment.

Qantas Airways said Friday that it would not fly over Middle East airspace. Kuwait Airways said Saturday that it would divert all its flights from “the areas of tension.”

Aviation tracking service Flightradar24 reported on Saturday evening that airspace in neighboring countries, including Iraq, was closed or heavily restricted, a notable development as the air corridors are usually used by hundreds of flights a day flying between Europe and Asia.

Situation according to official NOTAMs at 21:35 UTC time. * Iran airspace closed to VFR flights only. * Jordan airspace closed. * Iraq airspace closed. * Lebanon airspace closed. * Israel airspace closed. pic.twitter.com/vOeG2Qjcp4 — Flightradar24 (@flightradar24) April 13, 2024

As of Sunday morning, Flightradar24 was reporting that most closures had been lifted:

Update as of 07:00 UTC time based on official NOTAMs. * Iran airspace – OPEN for IFR flights 🟢 * Jordan airspace – OPEN 🟢 * Iraq airspace – OPEN 🟢 * Lebanon airspace – OPEN 🟢 * Israel airspace – OPEN 🟢 pic.twitter.com/ZZI2F8TzXG — Flightradar24 (@flightradar24) April 14, 2024

Airlines Take Precautions

U.S. intelligence agencies reported earlier in the week that an attack from Iran on Israel was imminent. In response, Lufthansa suspended flights to Tehran after the intelligence reports became public. Qantas said Friday it would not fly over Middle East airspace.

It is unclear if the U.S. would impose any similar restrictions over Middle East airspace if tensions continue to escalate. The FAA said to Skift that it was not changing any restrictions at the moment. 

Most international carriers halted all flights to Tel Aviv after the start of  the Israel-Gaza war in early October 2023 . Many airlines including Delta Air Lines, easyJet and British Airways had recently resumed services to the country.

This story is developing and will be updated. 

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Tags: delta air lines , iran , israel , israel-hamas war , united airlines

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