Happy Saturday everyone!

Saudi Arabia’s tourism sector just hit a record $41B in foreign visitor spending, pushing the kingdom closer to its Vision 2030 goals. Meanwhile, Turkey’s textile industry is in crisis, with companies relocating to Egypt to escape rising costs. And in the sports world, Gulf investors are eyeing European basketball, with the UAE, Qatar, and Saudi Arabia exploring rival leagues in a potential NBA expansion.

Let’s dive in!

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Saudi Arabia Breaks Tourism Revenue Record in 2024

📰 What is it about?

• Foreign tourists spent a record SAR154 billion ($41 billion) in Saudi Arabia in 2024, a 14% increase from the previous year.

• The kingdom recorded a SAR50 billion ($13 billion) travel surplus, as spending by inbound visitors outpaced what Saudis spent abroad.

• Tourism is a key pillar of Vision 2030, with Saudi Arabia aiming to attract 30 million religious pilgrims and 70 million foreign tourists by the end of the decade.

• To boost visitor numbers, Saudi Arabia has launched global promotional campaigns and simplified online visa applications.

💡 Why it matters?

• Saudi Arabia’s tourism industry is growing rapidly, surpassing its initial 100 million visitor target ahead of schedule.

• The country is diversifying beyond religious tourism, positioning itself as a luxury and global event destination.

• The World Travel and Tourism Council estimates Saudi Arabia’s tourism market could reach $500 billion in 2024and $223 billion by 2034, making up nearly 16% of GDP.

• An $800 billion investment in tourism infrastructure includes the construction of 53,000 new hotel rooms per year.

• Hosting major global events such as the 2029 Asian Winter Games, 2030 Riyadh Expo, and 2034 FIFA World Cupwill further boost the industry.

🔜 What’s next?

• Saudi Arabia aims to reach 150 million total tourists (domestic + foreign) by 2030, up from 30 million foreign visitors in 2024.

• Infrastructure expansion, including luxury resorts, entertainment hubs, and cultural attractions, will continue at a rapid pace.

• The kingdom will likely introduce more incentives, visa reforms, and global marketing to attract international travelers.

• With rising tourism revenues, Saudi Arabia could emerge as the leading travel hub in the Middle East, rivaling established destinations like Dubai.

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📰 What is it about?

• Odeum, the content studio built for modern media consumption, partnering with brands to deliver tailored content services while also creating original productions under the Augustus Media network.

💡 Why Choose ODEUM?

At ODEUM, we provide end-to-end media solutions to elevate your brand across multiple platforms.

• Video Production: From AI-powered videos to immersive live streaming and CGI storytelling.

• Animation Services: Dynamic 2D & 3D animation, motion graphics, and visually striking CGI. 

• Audio Production: Podcasting, sound design, and professional voiceovers that elevate content with immersive audio experiences.

• Original Content Development: Conceptualizing and producing shows, short films, and series that engage and inspire.

• Studio Rental: Fully equipped production spaces designed for seamless content creation, offering state-of-the-art filming, podcasting, and photography setups to bring creative visions to life.

🔜 What’s next?

• Have a project in mind? Let's make it happen!

• Book a studio or discuss your next big idea with us today.

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Markets

Turkey’s Textile Industry Faces Crisis as Firms Relocate to Egypt

📰 What is it about?

• Turkey’s once-thriving textile industry is struggling due to rising costs, declining orders, and competition from cheaper Asian manufacturers.

• The sector lost 65,000 jobs in 2023, with total job losses reaching 250,000 since 2022.

• More than 2,000 textile companies, mostly in apparel and ready-to-wear, shut down last year.

• Turkish textile exports dropped significantly, with ready-to-wear exports falling 7% to $18 billion and leather goods exports plummeting 18% to $1.5 billion.

• To stay competitive, many Turkish firms are relocating to countries with lower production costs, with Egypt emerging as the top destination.

💡 Why it matters?

• The decline in textile production threatens one of Turkey’s most integrated industries, spanning from cotton farming to high-end fashion.

• Turkey’s economy could suffer broader consequences as job losses extend beyond factories to cotton farmers and small workshops.

• Egypt is capitalizing on the shift, offering lower wages, cheaper cotton, and free trade zones to attract Turkish investment.

• The trend reflects a growing shift in global textile production, with businesses seeking cost-efficient locations to maintain profitability.

• Tunisia is also competing to attract Turkish firms, highlighting a regional race for foreign investment in textiles.

🔜 What’s next?

• More Turkish companies are expected to relocate as domestic production costs remain high.

• Egypt’s textile sector could experience a major boost, attracting further foreign investment.

• Turkey may need to introduce incentives or reforms to prevent further decline in its textile industry.

• The shift in production could alter global supply chains, impacting trade relations between Turkey and the EU.

• Industry experts warn that if the trend continues, Turkey risks losing its status as a leading textile producer.

Business of Sports: Gulf Funds Eye European Basketball as NBA Expands Globally

What is happening?

• Gulf financial powerhouses are exploring investments in European basketball, with the UAE, Qatar, and Saudi Arabia emerging as key players, according to AGBI.

• Reports suggest that the NBA, in collaboration with the International Basketball Federation (FIBA), is seeking Gulf backing for a new European league.

• The UAE’s Sheikh Mansour bin Zayed Al Nahyan and Qatar’s Investment Authority have been approached for potential franchise ownership.

• Saudi Arabia’s Public Investment Fund (PIF) is rumored to be considering a rival league spanning Asia and Europe, in partnership with Swiss bank UBS.

• The NBA’s proposed European league would feature 16 franchises, each reportedly priced at around $500 million.

Why it matters:

• A new European basketball league backed by Gulf wealth could shake up the global basketball landscape.

• The NBA is a commercial powerhouse, generating nearly $900 million in sponsorship revenue annually, and aims to replicate its success in Europe.

• European basketball currently lacks strong financial backing, with the EuroLeague holding less than a 1% share of the continent’s commercial sports market.

• Gulf nations have already made significant sports investments, including football clubs and golf, and see basketball as the next frontier.

• The rivalry between Gulf investors mirrors past competitions, such as Saudi Arabia’s LIV Golf challenge to the PGA Tour.

What’s next?

• The NBA continues discussions with investors to finalize plans for the European expansion.

• If the franchise model succeeds, the league could reshape the European basketball market, drawing top talent and sponsors.

• Saudi Arabia’s rumored alternative league could spark competition, creating a direct challenge to the NBA’s European ambitions.

• Investors will weigh economic, political, and cultural benefits before committing to major financial backing.

• The battle for basketball dominance in Europe will test which Gulf nation can score the ultimate slam dunk.

🔍In other news…

• Ajman issues new law to attract more investment in property sector.

• Middle East companies prepare for limited direct hit from new US tariffs, reports The National.

• OPEC+ to hike production in May to support oil market stability.

• UAE businesses slow new job additions in March: S&P Global.

• UAE, Saudi perfume brands feel the pinch as shipments get stuck.

• Lebanon central bank must counter money laundering and terrorist financing, new governor says.

• UAE’s non-oil sector slows as demand softens.

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