Dubai’s Al-Habtoor eyes hotel and leisure business in Saudi Arabia

The Al-Habtoor Group recently broke relations with Marriott International which was managing a major new project on the Dubai Canal. (Shutterstock)
Updated 05 August 2018
0

Dubai’s Al-Habtoor eyes hotel and leisure business in Saudi Arabia

  • Al-Habtoor Group, the Dubai-based hotelier and leisure group, is considering a big move into Saudi Arabia
  • Hotels and leisure developments are a major element of the economic transformation of Saudi Arabia

DUBAI: Al-Habtoor Group, the Dubai-based hotelier and leisure group, is considering a big move into Saudi Arabia to take advantage of the new entertainment opportunities available under the Vision 2030 transformation.

In an exclusive interview with Arab News, Mohammed Al-Habtoor, chief executive and vice chairman of the family-owned conglomerate, said he was planning a fact-finding mission to the Kingdom soon and was already in contact with potential business partners there.

“We have done business there in the past, but now there is more and more news and events happening there. I’ve learned more about Saudi Arabia in the past year than ever before. I’m planning a fact-finding mission there soon to go around the Kingdom and see the opportunities for myself.

 

“I will not just be in Riyadh, but in the big tourism areas outside too. I see big potential for the hospitality business there. We are in contact with potential business partners and plan to take it further after the summer. Saudi is very interesting for us. It is the biggest market in the region and Al-Habtoor is a well known name there. Saudis know it from their leisure visits to Dubai. We will definitely be doing more business there in the future,” he said.

Hotels and leisure developments are a major element of the economic transformation of Saudi Arabia, which is seeking to diversify away from oil dependency. Projects such as NEOM, the Red Sea Resort and Al-Qiddiya present big business opportunities for leisure companies as the Kingdom aims to keep more tourist riyals in the country, rather than being spent abroad.

Al-Habtoor also revealed that the group — which has other interests in automotive sales, real estate and education in addition to hotels in the Middle East, Europe and the US — was still considering an initial public offering of shares on a stock market. It got close to an IPO three years ago, but eventually decided against going public.

“We’ve been looking at it as a possibility for 20 years or so. All the time, we are looking at the figures and talking to investment bankers. It was a good decision three years ago not to go for an IPO, but maybe we’ll look at it again when the whole region is more stable.

“We’re always thinking about it, and we’ll think again. There is cash and liquidity in the region, which are essential for an IPO. There will be a Al-Habtoor IPO sooner or later, the only question is when,” he added.

FASTFACTS

Al-Habtoor's origins

Al-Habtoor started life as a small engineering firm in 1970 before growing into a vast conglomerate with a global network of hotels.


Turkey set to begin oil and gas drilling off Cyprus

Updated 21 February 2019
0

Turkey set to begin oil and gas drilling off Cyprus

  • “In the coming days we will start drilling with two ships around Cyprus,” Turkish foreign minister said
  • Turkey and the Cypriot government have overlapping claims of jurisdiction in the eastern Mediterranean

ISTANBUL: Turkey will begin drilling for oil and gas near Cyprus in coming days, state-owned news agency Anadolu reported Foreign Minister Mevlut Cavusoglu saying on Thursday, a move that could stoke tensions with neighboring Cyprus and Greece.
Turkey and the internationally recognized Greek Cypriot government have overlapping claims of jurisdiction for offshore oil and gas research in the eastern Mediterranean, a region thought to be rich in natural gas.
“In the coming days we will start drilling with two ships around Cyprus,” Cavusoglu was quoted as saying in a speech to a business conference in western Turkey’s Aydin province.
“Let those who come to the region from far away, and their companies, see that nothing can be done in that region without us. Nothing at all can be done in the Mediterranean without Turkey, we will not allow that,” Cavusoglu said.
Turkey launched its first drillship “Fatih” in October to drill off the coast of Turkey’s southern Antalya province. It said a second ship that it purchased would operate in the Black Sea, but was diverted to the Cyprus area.
Breakaway north Cyprus, which is supported by Turkey, says any offshore wealth also belongs to them, as partners in the establishment of the Republic of Cyprus in 1960.
The island was divided in 1974 after a Turkish invasion triggered by a brief Greek-inspired coup. Countless peacemaking endeavours have failed, and offshore wealth has increasingly complicated peace negotiations, with Greek Cypriots saying the matter is not up for discussion.