Saudi Arabia Launches First Locally-Owned Duty-Free Retailer to Boost Travel Market

Saudi Arabia’s Public Investment Fund (PIF) has launched Al Waha Duty Free Operating Co., marking the Kingdom’s first Saudi-owned duty-free operator as part of a broader effort to expand its travel retail sector and stimulate economic growth.

In an official statement, PIF announced that Al Waha will develop luxury retail outlets at select locations across Saudi Arabia, offering a diverse range of products, including exclusive Saudi-made items. The company will operate duty-free shops at airports and explore retail opportunities at land borders, seaports, and inflight shopping channels.

Strengthening the Travel Retail Industry

PIF, one of the world’s largest sovereign wealth funds with $925 billion in assets under management, is leading Saudi Arabia’s economic diversification strategy, aiming to reduce the country’s dependence on oil revenues.

“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,” said Majed Al-Assaf, head of Consumer Goods and Retail for Middle East and North Africa Investments at PIF.

Al-Assaf emphasized that Al Waha will enhance the traveler experience by offering a wide variety of products, a seamless duty-free shopping experience, and an advanced digital retail platform.

Saudi Arabia’s Expanding Tourism Vision

The launch of Al Waha aligns with Saudi Arabia’s Vision 2030, which aims to transform the Kingdom into a leading global tourism destination. The country has set a target of attracting 150 million visitors by 2030.

“There is considerable potential for Saudi Arabia to capture a larger share of global travel retail spending, especially as the Kingdom continues to establish itself as a top destination and prepares to host major international events,” Al-Assaf added.

Saudi Arabia is set to host several high-profile global events, including the 2027 Asia Cup, the 2029 Asian Winter Games, Expo 2030, and the 2034 FIFA World Cup. These events are expected to drive increased visitor traffic and boost travel-related revenues.

PIF’s Broader Investments in Tourism & Retail

Beyond travel retail, PIF is making significant investments in Saudi Arabia’s tourism sector. Some of its key initiatives include:

• Riyadh Air – A new national carrier positioned to transform Riyadh into a major international travel hub.
• Cruise Saudi – A project based in Jeddah aimed at making Saudi Arabia’s Red Sea coastline a global cruise destination.

Additionally, PIF has invested in local consumer and retail brands, including Saudi Coffee Co., Al Madinah Heritage Co. (specializing in date production), and Sawani, a producer of camel milk products.

With Al Waha now positioned as Saudi Arabia’s flagship duty-free operator, the Kingdom is set to expand its presence in the global travel retail sector, further strengthening its economic and tourism ambitions.