Saudi Arabia's Asir region revitalizes 95% of stalled projects

29/05/2025 02:28 AST

Saudi Arabia's Asir region has successfully revitalized 95 percent of its previously delayed project, an important milestone that is strengthening investor confidence as the region moves forward with SR29 billion ($7.73 billion) worth of initiatives across various sectors.

In an interview with Arab News, Hashim Al-Dabbagh, CEO of Asir Region Development Authority, stated that a dedicated committee, chaired by Asir Gov. Prince Turki bin Talal, was formed several years ago to tackle long-standing investment challenges that had stalled progress in the region.

"The total number of cases that have been brought to this committee to address has been 63, all brought to the table," Al-Dabbagh said.

He continued: "Of these 63 cases that have been brought to this committee to address and to solve, 60 cases have been solved, and three are in the pipeline right now, and they're working on them, and they're going to solve them relatively soon."

Of the 60 resolved, 57 were concluded with outcomes that satisfied investors, reflecting a resolution rate of nearly 95 percent.

"This committee and the work that they have done has created some very positive vibes across the investment ecosystem in Saudi Arabia, which you sense in this forum because there are some very large investors that are coming to Asir, some coming back to Asir which had not been interested in this region in the past," Al-Dabbagh said.

The board operates in collaboration with various public and private entities, including ASDA, the Ministry of Investment, the Ministry of Tourism, the Tourism Development Fund, and King Khalid University, ensuring a unified approach to accelerating investor activity in the region.

This resolution mechanism plays a key role in supporting the region's development strategy, which focuses on unlocking investment potential across various sectors.

"First of all, we have a strategy that drives everything that we are doing," Al-Dabbagh said.

He added: "The strategy has been approved by the center of government, and it says that Asir should be a year-round preeminent destination, so already we know that we need to focus on the tourism sector and complementary and adjacent sectors to the tourism sector. That's one, and that gives us a lot of momentum in working with the government ecosystem and the private sector."

Al-Dabbagh emphasized that Asir is more than just a tourism destination, noting that it is a vast region in the Kingdom with a population exceeding 2 million people.

"Within the Asir Development Authority, we have a whole department called Economic Development Department, and they are working diligently this year on sectoral studies across the board."

He added: "This includes, obviously, tourism-related sectors, but also other ones, so just as an example, we are looking at sports, we are looking at construction. We're looking at fisheries and agriculture. We're looking at renewable energy. We're looking at mining among other sectors."

The authority is also aligning its economic strategy with educational institutions to ensure the region's workforce is equipped to meet the demands of upcoming sectors.

"We are working closely with King Khalid University, the TVTC (Technical and Vocational Training Corp.), Bishop University, and other educational institutions to align the strategies and to make sure that their graduates are able to find jobs in the opportunities that are going to be realized as we realize this strategy," he said.

On attracting investments, Al-Dabbagh stated: "What I call the investment ecosystem in Asir, it's the framework that we use to assess investments, is comprised of three components. The first component is the Invest in Asir committee, and that's headed by Prince Turki in his capacity as the chairman of the Aseer Development Authority and includes all the public and private sectors."

He explained that the region offers a compelling opportunity for early movers due to its untapped potential, strategic government backing, and the ability to enter key sectors before they reach full maturity, providing investors with a critical advantage in shaping long-term development.

"Asir relative to those mature, tourism destinations, offers relatively less mature areas, so when they're coming in, they're coming in early and they're going to have a ... not a first mover advantage, but an early mover advantage compared to people that are going to see this place for five years or 10 years down the road when all these incumbents are already on the ground."

Attracting FDIs
Foreign direct investment is also gaining momentum in Asir, with growing interest from global players seeking early opportunities in the region's evolving landscape.

"One of the speakers in today's forum was Fatih (who is managing partner of FTG Development), and they are looking at an investment worth billions in Asir. That is just one example, and foreign direct investors, they look for successful local investors to partner with," Al-Dabbagh said.

He concluded: "Our doors are open. We're very happy to meet with the investors from anywhere."

Arab News