Saudi Arabia needs to build at least 100,000 new hotel rooms to host EXPO 2030, which will largely benefit the Gulf Kingdom’s economy, a Saudi bank has said.
In a study published by the Saudi Al-Madina Arabic language newspaper on Monday, Al-Rajhi Bank said EXPO would boost Saudi Arabia’s non-oil GDP by an estimated 19 percent in 2030 and by nearly 0.75 percent annually over the next 25 years.
“In contrast with Dubai, Riyadh is not currently a tourism centre…for this reason, it needs to construct at least 100,000 hotel rooms to host EXPO,” the study said.
Several sectors will benefit from the global event, mainly infrastructure projects, the study said, adding that high spending on such projects would largely stimulate demand for building materials and consequently for bank loans.
According to the study, key beneficiaries before EXPO include banks, real estate, construction, stocks and insurance while sectors which will benefit during EXPO comprise aviation, logistics, hotels, transport and telecommunications, car rental services, insurance, advertisement and food & beverage.
(Writing by Nadim Kawach; Editing by Anoop Menon)
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