Saudi Arabia's Commission for Tourism and National Heritage has set aside 397 million riyals ($105.86 million) for 2017 to support a new lending program for hospitality and tourism projects, according to a statement on state news agency SPA. The announcement may be a sign that the Saudi government is unlocking funding for its National Transformation Program (NTP), a set of ambitious development targets announced in June that has been slow to get off the ground amid a fiscal crunch.
According to the NTP, which aims to develop new private sectors and diversify the Saudi economy beyond oil, the tourism lending program will total 3 billion riyals over five years.
So far, the Commission has received 40 requests for funding from investors working on hotel and tourism projects, of which 8 totalling 424 million riyals have been sent to the Ministry of Finance for approval, the statement said.
The Commission is still reviewing a further 11 requests totalling 190 million riyals.
The total five-year budget for NTP initiatives is 268 billion riyals, but few of the ministries and other prospective recipients specified in the document have announced short-term spending plans.
Some have complained of delays in funding allocations.