Riyadh, Saudi Arabia.

The Public Investment Fund (PIF) of Saudi Arabia has established Al Waha Duty-Free Company (Al Waha), the Kingdom’s inaugural Saudi-owned duty free operator.

In a significant development for the industry emerging today (10 March), the wholly owned PIF entity has set its sights on becoming ‘a leader in travel retail’ while securing ‘a greater share of passenger spending for the Saudi economy’, read a statement.

Al Waha will develop luxury retail outlets in select locations carrying a variety of merchandise, including local products.

In addition to duty free airport sales, Al Waha will explore ‘additional travel retail opportunities’ at land border crossings and seaports, plus airline retail.

Majed Al-Assaf, Head of Consumer Goods and Retail in MENA Investments at PIF, said: “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.

“Al Waha will offer a distinctive traveller experience across Saudi travel retail touch points through diverse product offerings, a duty-free operation and a superior digital customer journey.

“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 Saudi Arabia – as well as global events being hosted locally – offer new opportunities to generate sustainable travel retail revenues.”

The announcement follows a series of investments by PIF in sectors such as tourism, aviation and retail to unlock promising sectors in a bid to diversify the country’s economy.

These include King Salman International Airport in Riyadh, its masterplan of which was launched in 2022, which is set to handle 120 million passengers annually by 2030.

PIF has also launched flag-carrier Riyadh Air as part of efforts to fuel Riyadh as a major international air travel hub.

Other PIF tourism investments include Jeddah-based Red Sea Cruise Company Cruise Saudi and retail investments such as the Saudi Coffee Company, Al Madinah Heritage Company and Sawani.

Click below to read recent articles on the evolving duty free and travel retail landscape in KSA, including a trade exclusive video interview with KKIA.

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