Riyadh: The Tourism Development Fund “TDF” unveiled its latest white paper today, “Catalysts of Change: How Startups Are Powering Sustainable Development and Transforming Tourism.” This release comes against a backdrop of COP30 in Belém and a vibrant month of tourism dialogue in Riyadh, marked by the UN Tourism General Assembly (26th Session) and the TOURISE Global Tourism Summit 2025. These events spotlighted the critical role of entrepreneurship in shaping the future of tourism through themes such as digital transformation, sustainability, and disruptive business models.
The release coincides with COP30’s thematic days of ‘Planetary and Community Stewardship,’ observed on 9th day of the event. The theme is dedicated to forests, oceans, biodiversity, local communities, youth, and small and medium entrepreneurs. The white paper highlights how startups are emerging as one of the most powerful forces shaping the future of sustainable tourism globally, and urges all stakeholders – entrepreneurs, regulators, investors, and enablers – to fast-track impactful solutions and seize the moment for decisive action.
In his comment on the white paper, Qusai Al-Fakhri, CEO of TDF, said: “This white paper demonstrates that investing in entrepreneurs and SMEs can have a significant impact on building a competitive tourism sector and delivering real change in destinations and communities, driven by their ability to innovate and overcome challenges.” He added: “The findings of this paper reaffirm the Fund’s strategy of empowering entrepreneurs and SMEs to generate tangible impact that supports sustainability, strengthens competitiveness, and creates value that reaches people, communities, and the environment. We see these results as a strong incentive for partners and investors to expand their investment in startups and help lead a new phase of growth in the tourism sector.”
The report outlines 4 key areas where startups are accelerating measurable progress:
- Turning Waste into Value: Circular solutions that transform plastics, food waste, and wastewater into usable resources.
- Decarbonizing Mobility and Operations: Clean mobility and shared solutions reducing emissions and operational costs.
- Restoring Natural Assets: Nature-positive tourism models that regenerate ecosystems and protect biodiversity.
- Empowering Women and Communities: Ventures that strengthen inclusion, cultural preservation, and local economic growth.
Through case studies from Saudi Arabia and around the world, the white paper presents impact stories demonstrating how founders are creating real environmental and social value while opening new avenues for destination competitiveness.
The report comes at a time of strong momentum for startups in the region. MENA startups across various economic sectors secured USD 228.4 million in April 2025, with Saudi Arabia capturing 70% of regional funding, underscoring the Kingdom’s emerging leadership in tourism innovation.
Aligned with Saudi Vision 2030, the Kingdom aims for SMEs, including startups, to reach 35% of national GDP by 2030. The Fund, through its non-financial enablement arm “TDF Grow,” supports micro, small, and medium tourism startups from ideation to scale. This includes capability-building, mentorship, market access, and incentive programs designed around practical sustainability KPIs across carbon, circularity, nature, inclusion, and local business growth.
To date, more than 10,000 beneficiaries have advanced through TDF Grow, complemented by over 3,000 beneficiaries and SMEs empowered through TDF’s Tourism Empowerment Programs -Specialized financing programs developed in collaboration with the financial sector, designed to support small and medium-sized enterprises (SMEs)-, reflecting the Fund’s expanding impact on people, destinations, and local economies.
With tourism as a sector being deeply connected to natural ecosystems and community livelihoods, the white paper provides a timely reference for policymakers, investors, industry leaders, and entrepreneurs navigating the intersection of sustainability and economic growth.
