TRSDC — More than just a sustainable tourism site powered by green energy: Year in Review

Special TRSDC — More than just a sustainable tourism site powered by green energy: Year in Review
Short Url
Updated 24 April 2022

TRSDC — More than just a sustainable tourism site powered by green energy: Year in Review

TRSDC — More than just a sustainable tourism site powered by green energy: Year in Review
  • A growing public sector infrastructure also means new opportunities for local citizens

RIYADH: The Red Sea Development Co., known as TRSDC, made great strides in 2021 in its mission to build the world’s largest tourism spot powered by renewable energy on Saudi Arabia’s west coast.

The Kingdom’s Public Investment Fund-owned TRSDC was established in 2018 to drive the development of The Red Sea Project, known as TRSP. It is one of the key large-scale giga-projects announced by Crown Prince Mohammed bin Salman the year before.

Last month, a Saudi ACWA Power-led consortium secured $1.33 billion of financing to operate the renewable power-based multi-utilities infrastructure that will serve the site.

The multibillion-dollar project, based between the cities of Umluj and Al Wajh, covers 28,000 square kilometers — an area the size of Belgium — which includes over 90 untouched islands, miles of desert dunes and mountain landscapes. 

Alignment to Vision 2030

TRSP, as part of the Kingdom’s giga-projects, falls in line with its Vision 2030 roadmap that aims to diversify the economy and reduce reliance on oil. The plan seeks to boost tourism revenue from its current 3 percent to 10 percent of gross domestic product when it is completed in eight years. 

A growing public sector infrastructure also means new opportunities for local citizens. The company is set to create a significant number of jobs, aiming to employ around 60,000 people directly and a further 60,000 indirectly.

This will contribute toward the Kingdom’s plans to boost the Saudi job rate, and lift women’s participation in the workforce from 22 percent to 30 percent by 2030. 

TRSDC also partnered with the government’s Human Resources Development Fund last August to deliver high-quality vocational local training programs.

The move follows a series of previous steps taken by the company to lift local opportunities, such as a program to prepare 500 young Saudis for careers to support the eco-tourism complex. 

Besides shaping diverse professional development opportunities, TRSDC also expands social and economic opportunities for local communities such as advancements in agriculture through a partnership with social investment company Ethmar and charitable foundation Ghoroos, the company told Arab News.




TRSDC has a huge program to protect the sea turtles in the area where it builds the project. This turtle is now becoming an iconic figure for TRSDC. 

Contribution to Saudi economy 

The Red Sea project is expected to contribute as much as SR22 billion ($5.9 billion) to the Kingdom’s gross domestic product once completed.

It also aims to attract 1 million tourists a year, without compromising the region’s natural resources.

Environmental, Social, and Governance achievements 

The Red Sea Development Co. has achieved an overall score of 91 out of 100 in this year’s environmental, social, and governance assessment by the Global Real Estate Sustainability Benchmark, beating the score of 84 it accomplished in its first-ever assessment last year. 

This puts the company in the top 20 percent of organizations participating in this year’s assessment. 

In November 2021, the company was given the ESG Initiative of the Year award at The Chartered Governance Institute UK & Ireland’s 2021 Awards.

This followed TRSDC’s launch of its Good Governance Toolkit a month earlier to guide other organizations in Saudi Arabia on best governance practices. 

The company plans to hit a net positive conservation benefit of 30 percent by 2040 "by enhancing key habitats of coral, mangroves and seagrasses to allow biodiversity to flourish and to provide safe havens for rare species such as green and hawksbill turtles, sooty falcons,” it said.

Opinion

This section contains relevant reference points, placed in (Opinion field)

TRSP timeline 

The final quarter of 2023 will see the completion of the project’s first phase, which includes the building of 16 hotels with 3,000 rooms across five islands and two inland sites. This milestone will also see the development of air, land, and sea transport hubs.

Recently, the company announced the signing of a deal to operate nine hotels that are set to open in the first phase, with five of them opening in 2022.

The plan will see the site host a luxury marina, an 18-hole golf course, leisure facilities, and an international airport that is expected to serve up to one million passengers by 2030. The hub was officially registered with the International Air Transport Association in December. 

Once complete, TRSP will feature as many as 50 hotels with 8,000 hotel rooms and 1,300 residential properties across 22 islands and six inland sites. 

The developer of the project has so far handed out over 800 contracts worth over SR18 billion up to November. 

What’s ahead in 2022?

Apart from welcoming its first visitors in the last quarter of next year, the Red Sea Development Company aims to raise as much as SR10 billion in green financing for Amaala — another luxury tourism site being developed along the northwestern Red Sea coastline — which was recently merged with the company. 

Amid the uncertainty produced by the pandemic, TRSDC has performed strongly, marking significant milestones as it moves toward driving the Kingdom’s tourism sector to new heights.


Qatar plans to produce 500k bpd oil outside its borders by 2023: MEED

Qatar plans to produce 500k bpd oil outside its borders by 2023: MEED
Updated 15 sec ago

Qatar plans to produce 500k bpd oil outside its borders by 2023: MEED

Qatar plans to produce 500k bpd oil outside its borders by 2023: MEED

RIYADH: Qatar is planning to produce 500,000 barrels of oil outside its borders by 2030, MEED reported citing QatarEnergy’s CEO.

Moreover, the country is committed to maintaining its oil production at 650,000 barrels per day, the longest possible, Saad Sherida Al-Kaabi said.

Qatar, which joined the Organization of the Petroleum Exporting Countries nearly 60 years ago, ended its membership in a surprise announcement in December 2018.

Al-Kaabi indicated that he did not regret Qatar's decision to leave OPEC.

Qatar has no voice in the group of oil-producing countries due to its relative size, he explained.


Qatar’s non-oil private sector growth continues in September

Qatar’s non-oil private sector growth continues in September
Updated 9 min 53 sec ago

Qatar’s non-oil private sector growth continues in September

Qatar’s non-oil private sector growth continues in September

RIYADH: Qatar’s non-oil economy continued its growth in September, as the nation gears up to host the 2022 FIFA World Cup, according to the latest Purchasing Managers’ Index survey data from Qatar Financial Center, prepared by S&P Global.

Qatar’s PMI stood at 50.7 in September, down from 53.7 in August, which indicates a softer improvement in business conditions in the nation’s non-energy sector.

S&P considers any readings above 50 as growth while those below 50 are marked as contraction.

According to the report, the rate of expansion in total activity gained momentum with output rising markedly in September.

The new orders, however, fell for the first time in 27 months, while back-to-back contractions were seen in employment and inventories due to demand retreat.

“Qatar’s non-oil economy continued to grow in September, rounding off another solid quarterly performance. There were, however, divergences in the latest data with a sharp and substantial increase in output contrasting with a renewed fall in demand,” said Yousuf Mohamed Al-Jaida, CEO of QFC Authority.

He added: “Anecdotal evidence suggested clients were placing orders on hold in preparation for the World Cup while Qatari businesses were at the same time increasing output in anticipation of greater demand.”


Saudi economic growth projected at 8.3 percent in 2022: World Bank

Saudi economic growth projected at 8.3 percent in 2022: World Bank
Updated 06 October 2022

Saudi economic growth projected at 8.3 percent in 2022: World Bank

Saudi economic growth projected at 8.3 percent in 2022: World Bank

RIYADH: The economic growth of Saudi Arabia is expected to accelerate to 8.3 percent in 2022 according to a forecast by the World Bank. 

In its report, the World Bank noted that the economic growth of the Kingdom will be moderated to 3.7 and 2.3 percent in 2023 and 2024, respectively.

According to the report, the oil sector will be the key driver of this economic growth with the output estimated to grow by 15.5 percent in 2022, while the non-oil sector is also expected to continue its growth trajectory estimated at 4.3 percent this year. 

“The Saudi Arabian economy is on an accelerated growth path in 2022; driven by higher oil and non-oil activities as the oil sector strengthens and pandemic pressures fade,” wrote the World Bank in the report. 

The report further noted that headline inflation is expected to stay subdued during 2022 and hover around 2.5 percent as a result of a stronger US dollar, subsidies and price controls, and stable rents. 

The report added that inflation is expected to average 2.3 percent in the medium term. 

The World Bank projected that the budget balance will register a surplus of 6.8 percent of gross domestic product in 2022, the first surplus in nine years, driven by higher oil receipts. 

On Oct.4, S&P Global revealed that Saudi Arabia continues to maintain ongoing expansion in its non-oil economy as output and new orders recorded gains, leaving the Kingdom’s Purchasing Managers’ Index at 56.6 in September. 

Earlier in October, Al-Rajhi Capital projected that Saudi Arabia’s real gross domestic product would increase by nearly 8 percent year-on-year in 2022 and 3.1 percent year-on-year in 2023. 

Inflation is expected to be 2.6 percent and 2.1 percent in 2022 and 2023 respectively, Al-Rajhi said. 

In September, a report published in Economist Intelligence said that Saudi Arabia is expected to become the fastest growing economy in 2022, outpacing Asian giants like China, India, and other struggling economies in Western Europe and North America. 

The Economist Intelligence report also projected that the GDP of the Kingdom is expected to reach 7.5 percent this year, the kingdom’s fastest rate of growth since 2011. 

 


Oil Updates — Crude up; Kuwait says OPEC+ works to serve global economy

Oil Updates — Crude up; Kuwait says OPEC+ works to serve global economy
Updated 06 October 2022

Oil Updates — Crude up; Kuwait says OPEC+ works to serve global economy

Oil Updates — Crude up; Kuwait says OPEC+ works to serve global economy

RIYADH: Oil prices rose for a fourth session on Thursday, with Brent at a three-week high, after the Organization of the Petroleum Exporting Countries and its allies, including Russia, known as OPEC+, agreed to cut output by about 2 million barrels per day, the largest reduction since 2020.

Brent crude futures for December settlement rose 12 cents, or 0.13 percent, to $93.49 per barrel by 08.30 a.m Saudi time, after settling 1.7 percent higher in the previous session.

US West Texas Intermediate crude futures for November delivery gained 11 cents, or 0.13 percent, to $87.87 per barrel. 

OPEC+ works to serve the global economy not threaten it: Kuwait

Kuwait’s acting oil minister Mohammed Al-Fares said on Wednesday that the OPEC+ decision to cut production by 2 million barrels per day will have positive ramifications on the oil markets, the state news agency reported.

“The decision places a big responsibility on us to follow up on market developments in case supply or output increases,” Al-Fares told the agency in an interview.

He asserted OPEC+ works to serve the global economy, not threaten it.

Russia may cut oil output if price caps introduced

Russian Deputy Prime Minister Alexander Novak said on Wednesday that Russia may cut oil production in order to offset the negative effects of price caps imposed by the West.

Novak was also cited by the TASS news agency as saying that Russia will produce 530 million tons of oil, equivalent to 10.6 million bpd in 2022 and 490 million tons in 2023.

He said Russia was ready to supply gas to Europe via one line of the Nord Stream 2 pipeline if necessary.

(With input from Reuters)


Shares of Tihama jump 10% after CMA approves 700% capital hike

Shares of Tihama jump 10% after CMA approves 700% capital hike
Updated 37 min 52 sec ago

Shares of Tihama jump 10% after CMA approves 700% capital hike

Shares of Tihama jump 10% after CMA approves 700% capital hike

RIYADH: Tihama Advertising and Public Relations Co.’s shares soar in early trading, after receiving the Capital Market Authority’s clearance to increase its capital by 700 percent.

Tihama’s shares jumped 9.81 percent, leading the market’s gainers at SR105.20 ($28), as of 10:15 a.m. Saudi time.

The marketing firm’s capital will be increased from SR50 million to SR400 million, according to a bourse filing.

Tihama is issuing rights worth SR350 million for the capital increase.

The final clearance is subject to the approval of the shareholders and the completion of the necessary procedures.