By Andrew Hammond

Saudi tourism is to undergo a massive expansion with religious travellers remaining its bedrock – but some hotel operators are wary of an overheated market.

The kingdom is aiming to bring in 150 million visitors per year by 2030, with tourism accounting for 10 percent of non-oil GDP, playing a key role in its economic transformation plan valued at $1.25 trillion.

The Saudi Tourism Authority displayed the country’s offerings – from the futuristic luxury resorts in Neom, to wellness holidays in AlUla and mountain climbing in Aseer – at this year’s Arabian Travel Market in Dubai. 

The plans include an additional 320,000 hotel rooms by 2030 according to property consultant Knight Frank, with more than half of them expected to be in the holy cities of Mecca and Medina.

“Knight Frank’s analysis of hotel supply in Mecca and Medina reveals a significant figure of 221,000 hotel rooms announced, planned or under construction,” said the consultancy. Super-rich Muslims are also seeking homes there. It added that of the 320,000 extra hotel rooms, 251,500 will be in the luxury and upscale brackets, raising the share of high-end hotels from 66 to 72 percent of the total.

The high percentage of religious tourism is telling. As the location of the annual Hajj pilgrimage and the year-round pilgrimage known as Umrah, Saudi Arabia can be sure to attract a solid base of these visitors who still account for nearly 50 percent of tourism.

Pilgrimage tour and hotel operators say the opening up of the visa system since 2019 and the end of restrictions on businesses requiring a local partner have revolutionised the sector.

“The strategy for 2030 means they need pilgrims from everywhere,” said Ahmed Saber, CEO of Indonesia-based Diar Al Manasik International.

“Before it was difficult to get the visa, difficult to get the package. But now it’s easy, you can go online.

“Businesses used to need a Saudi partner but now you can bring your company from outside and start business (registering) with the government,” he said, adding he had set up new offices in nine countries over the past year offering pilgrim tours.

Earlier this year the government began offering visas on arrival for pilgrims who are resident in the EU, US and UK or who possess a valid visa for those countries. Nationals of Australia, Canada, China, Malaysia, Norway, Russia, South Africa, South Korea, Thailand and Turkey can receive an Umrah visa on arrival.

The Saudi market is so frenzied that few hoteliers seem to worry about cannibalisation amid the plethora of projects underway.

Red Sea Global, a key tourism-focused giga-project, says it will have 79 hotels by 2030. Neom is to host at least 12 resorts. Even cutting edge mall projects like Cenomi Central’s Jawharat Riyadh, which is due to open in 2027, will contain hotels.

Mandarin Oriental, which has only one luxury hotel in Riyadh among a number across the Gulf, is taking a cautious approach in contrast to some brands.

“Whilst we want to expand in Saudi Arabia, we are probably not on that progressive trajectory like some other luxury players,” said Michael Koth, general manager of the Emirates Palace Mandarin Oriental in Abu Dhabi.

“I dont think on a global scale it’s the only country one wants to invest in, but it’s one of the countries one needs to invest in. Other luxury operators have chosen to do it differently.”

By Aamer Yaqub

In recent years, the global cosmetic industry has witnessed a significant shift towards more ethical, sustainable, and inclusive products, with halal cosmetics emerging as a powerful trend reshaping fashion in 2024. This isn’t just a niche market anymore; it’s a burgeoning phenomenon that’s making waves across the fashion industry, influencing consumer choices and brand strategies alike. Here’s a look at the top 8 ways halal cosmetics are transforming the landscape of fashion today.

1. Expanding Consumer Base

One of the most significant impacts of halal cosmetics is their appeal to a broader audience. Initially targeted at Muslim consumers who seek products that comply with Islamic law, halal cosmetics have transcended cultural boundaries to attract non-Muslim buyers too. This broad appeal is largely due to the ethical manufacturing processes and the absence of harmful ingredients, which resonate with the growing global demand for cleaner, safer beauty products. This expansion is not just reshaping who shops for these products but also how companies market them.

2. Emphasis on Ethical Production

Halal cosmetics are not only defined by their compliance with Islamic law but also by their commitment to ethical production standards. These products are often cruelty-free, not tested on animals, and manufactured using fair labor practices, which appeals to ethically conscious consumers. As sustainability becomes a cornerstone in consumer products, halal cosmetics lead the way, showing how fashion and ethics can coexist harmoniously.

3. Boost in Natural Ingredients

At the heart of many halal cosmetic products is the use of natural and organic ingredients. Avoiding alcohol and animal-derived substances is a requirement for halal certification, which has encouraged brands to innovate with plant-based and mineral-based ingredients. This shift is significantly influencing broader fashion trends, as consumers increasingly seek products that are both ethically produced and beneficial for their health and the environment.

4. Influence on Product Transparency

Transparency is a big buzzword in the beauty industry, and halal cosmetics are at the forefront of this movement. Brands specializing in halal products often provide extensive information about ingredient sourcing, manufacturing processes, and supply chains. This transparency reassures consumers and sets a standard that many other brands are now aspiring to meet, thus reshaping expectations and demands within the fashion industry.

5. Enhancement of Brand Images

Companies that offer halal cosmetics are often viewed favorably for their inclusive and ethical business practices. This positive brand image can translate into increased customer loyalty and market share. As fashion brands seek to differentiate themselves in a crowded market, adopting halal principles can be a powerful tool for enhancing their reputation and attracting a diverse customer base.

6. Innovations in Product Offerings

The rise of halal cosmetics has spurred innovation across the beauty industry. From halal-certified nail polishes that allow water penetration for wudu (Islamic purification rituals) to breathable makeup that maintains skin health while meeting religious standards, these innovations are not only practical but also revolutionary, influencing broader beauty trends and consumer expectations.

7. Growth in Market Niches

Halal cosmetics have carved out significant niches in the beauty market, prompting even mainstream brands to develop halal-certified lines to cater to this growing demographic. This development is reshaping the competitive landscape, compelling brands to diversify their offerings and consider religious and ethical factors in product development.

8. Global Market Expansion

Finally, the global reach of halal cosmetics highlights the impact of globalization in the fashion industry. With major growth in regions like Southeast Asia, the Middle East, Europe, and North America, these products are fostering cross-cultural exchanges and broadening the global market landscape. Brands are not only selling internationally but also incorporating global influences into their products, which in turn influences fashion trends worldwide.

Halal cosmetics are more than just a compliance label; they are a movement towards more ethical, inclusive, and conscientious fashion. By addressing the needs and values of a diverse consumer base, promoting ethical production practices, and driving innovation, halal cosmetics are indeed reshaping the fashion industry in 2024. As this trend continues to grow, we can expect to see even more significant transformations in how products are made, marketed, and embraced by consumers around the globe. Whether you adhere to a halal lifestyle or simply seek more ethical beauty solutions, the rise of halal cosmetics is a development that offers exciting possibilities for everyone in the fashion ecosystem.