PIF sets up first Saudi-owned duty-free operator
To boost Saudi travel retail sector
Saudi Arabia’s Public Investment Fund (PIF) has established Al Waha Duty-Free Company, marking a significant milestone as the country’s first Saudi-owned duty-free operator.
Al Waha, a wholly owned subsidiary of PIF, is set to become a major player in the Middle East’s travel retail sector. It will position itself as a leader in the industry while contributing to the growth of the Saudi economy through increased passenger spending.
Al Waha plans to develop luxury retail outlets in key locations across Saudi Arabia, focusing on providing products that showcase high-quality, distinctive Saudi merchandise. The company will operate duty-free stores at airports, offering a premium shopping experience to travellers. Moreover, Al Waha is exploring additional travel retail opportunities, including outlets at land border crossings, seaports, and potentially inflight shopping services.
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 touchpoints through diverse product offerings, a duty-free operation, and a superior digital customer journey.”
Al-Assaf also highlighted the substantial potential for Saudi Arabia to capture a larger share of the global travel retail market in the coming years, especially as the country continues to attract international visitors slowly and hosts global events.
“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,” he added.
The launch of Al Waha is part of PIF’s broader strategy to diversify Saudi Arabia’s economy by investing in strategic sectors. This announcement follows a series of significant PIF investments in tourism, aviation, and retail that aim to enhance the country’s infrastructure and promote growth in various industries.
One such initiative is the King Salman International Airport in Riyadh, which, with its masterplan launched in 2022, is set to become one of the world’s largest airports upon its completion. The airport will feature a vast array of retail stores and restaurants and is designed to accommodate 120 million passengers annually.
In addition, PIF has launched Riyadh Air, the Arabian Gulf state’s new flag carrier, which is poised to establish Riyadh as a central international air travel hub. PIF’s tourism investments include the Red Sea Cruise Company and Cruise Saudi, which aims to position the Saudi coastline as a premier global cruise destination. Other key retail investments include the Saudi Coffee Company, Al Madinah Heritage Company, renowned for its high-quality date production, and Sawani, which produces camel milk products.
Image: The launch of Al Waha is part of PIF’s broader strategy to diversify Saudi Arabia’s economy by investing in strategic sectors. Credit: Riyadh Air
