The further lifting of travel restrictions by Saudi Arabia is “only a matter of time”, according to a leading business expert.
And Paul Arnold, managing director of Sovereign Saudi Arabia, told Arabian Business that, when they do, “the flood-gates will open and business travel between the UAE and KSA returns to levels witnessed prior to March 2020”.
On Wednesday morning Saudi reopened travel for citizens to the UAE, as well as to South Africa and Argentina.
Paul Arnold, managing director of Sovereign Saudi Arabia.
It came just a day after talks between Saudi Crown Prince Mohammed bin Salman and UAE leader Abu Dhabi Crown Prince Mohammed bin Zayed, where it was reported the two discussed “the prospects of further consolidating the strategic cooperation” between the two countries.
However, at the moment, confusion surrounds the relaxation over whether it applies to Saudi citizens only or also includes those from the corresponding three countries entering the kingdom.
Scott Livermore, ICAEW economic advisor and chief economist at Oxford Economics, told Arabian Business: “This is an important first step in normalising connectivity between the two main economic centres in the Gulf and will be of particular benefit for Saudis with business in the UAE.
“It is not clear when restrictions on UAE residents travelling to the kingdom will be eased and this would significantly simplify business for both countries.”
Scott Livermore, ICAEW economic advisor and chief economist at Oxford Economics.
The Saudi travel ban has been in place since July this year, as borders were closed to contain the further spread of coronavirus.
Aidan Healy, owner of Dubai-based Healy Consultants Group, said the reopening was a “hugely positive development”. He added: “We expect to see a pick-up in bilateral trade and business development between the two nations, although do not anticipate the same level of business travel as before the pandemic.”
While that may be so, given the consistent popularity of video conferencing software and continued concerns in some quarters over travel in the Covid world, Ciaran Kelly, managing director, Middle East and Africa, at FCM, one of the world’s largest travel management companies, was sure that this week’s decision would “bring confidence to the business community in the MEA region”.
Aidan Healy, owner of Dubai-based Healy Consultants Group.
Historically, Saudi Arabia has been a key source market for the UAE and represented the second biggest source market for Dubai in 2019, with 9 percent of all international visitors hailing from the kingdom.
Richard Stolz, associate director, advisory, KPMG Lower Gulf, told Arabian Business: “Even last year, despite challenges caused by the effects of Covid-19, Saudi Arabia still maintained the second biggest source market of travellers visiting Dubai.”
The move comes with just a matter of weeks to go before the UAE welcomes the world to Expo 2020 Dubai, the six-month global showcase, which is set to run from October 1 through to March 31 next year and is projected to have 25 million visits.
Richard Stolz, associate director, advisory, KPMG Lower Gulf.
Livermore said: “This is timely, especially for Dubai who in normal times consider Saudi Arabia to be an import origin market – we saw earlier in the summer how Saudi visitors were drawn to Dubai.
“However, it is doubly important with Expo 2020 less than a month away as in the early weeks of the Expo2020 visitors a much more likely to come from nearby than further afield such as from Europe or the US.”
And Bruno Trenchard, senior manager – Hotels and Hospitality, CBRE Middle East, agreed that it was “very good news” for the hotel industry in Dubai. He said: “Saudis have been incredibly loyal to Dubai as a tourism destination since its beginnings and they will most likely be one of the key market segments of the Expo2020 – provided travel restrictions don’t change back.
Bruno Trenchard, senior manager – Hotels and Hospitality, CBRE Middle East.
“The programme of the expo also seems especially relevant in the context of Saudi travelers: lots of events, many kids-friendly options, and a KSA Pavillion that is anticipated to be a must-see.”
A spokesperson for Dubai-based low-cost carrier Flydubai said the latest news was “welcome”.
They said: “We remain committed to providing safe and convenient travel options for our customers and any future route launches and schedule updates will be published on flydubai.com.”
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