Qatar hospitality scores big; hotel rooms to rise 89% by 2023

Qatar hospitality scores big; hotel rooms to rise 89% by 2023
Tourism is expected to contribute 12 percent of Qatar’s global domestic product, or $55 billion, and the country hopes to receive close to 7 million tourists by 2030. (Reuters)
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Updated 06 November 2022
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Qatar hospitality scores big; hotel rooms to rise 89% by 2023

Qatar hospitality scores big; hotel rooms to rise 89% by 2023
  • Qatar will temporarily expand its hotel capacity by adding 3,900 cabins to two luxury cruise ships moored off its coast, with another on the way

RIYADH: Qatar’s hospitality market could grow by 89 percent to over 56,000 hotel keys by 2025. The planned hotel room supply delivery is expected to cost around SR26.3 billion ($7 billion), according to global real estate consultant Knight Frank.

That is not all. Tourism is expected to contribute 12 percent of Qatar’s global domestic product, or $55 billion, and the country hopes to receive close to 7 million tourists by 2030, according to Adam Stewart, head of Qatar for the consultancy firm.

“While there is palpable excitement in Doha as the FIFA World Cup draws near, for the country’s hospitality sector, the best is yet to come,” said Faisal Durrani, Knight Frank’s head of Middle East Research, in its latest report. 




Faisal Durrani

With nearly 27,000 hotel keys waiting to be delivered in the next three years, Qatar’s hotel offering will undergo a huge transformation by 2025, Durrani added.

He said that following the World Cup, Qatar expects to see an influx of visitors once the excitement of the tournament subsides. This wave will lead to nearly double the capacity to over 56,000 rooms.

“Officially, around 30,000 keys had been delivered by the end of 2021, and we estimate that another 3,800 keys will have been delivered by the time the World Cup commences,” Stewart said.

Market recovery

Knight Frank’s research stated that tourist arrivals are slowly recovering as travel restrictions linked to COVID are being relaxed by the authorities, and visits from Gulf Cooperation Council states are already exceeding pre-pandemic levels.

However, visitors from India, which historically has been the largest source of inbound arrivals, are about a third lower than last year.

Stewart said Qatar would temporarily expand its hotel capacity by adding 3,900 cabins to two luxury cruise ships moored off its coast, with another on the way. Additionally, Stewart said cabin-style rooms are being quickly constructed across seven fan villages to accommodate 1 million World Cup fans.

Knight Frank’s research also indicated a shift in the top hotel operators in Qatar by 2025, with InterContinental Hotels Group falling out of the top three. 




Adam Stewart

Durrani explained: “The Marriott Group will continue to fortify its position as Qatar’s leading hotel operator, with about 8,800 rooms under management by 2025, up 152 percent from today.”

Accor and Hilton Hotels & Resorts round out the top three, together controlling nearly 19,000 rooms, or about a third of total hotel keys.

However, he added that there would be a significant change as IHG would slide into fourth place from second place, with around 3,500 rooms.

Moreover, Knight Frank’s analysis showed international hoteliers will control 62 percent of Qatar’s hotel keys, up from 59 percent today, Stewart said.

“In reality, this could be even higher as 17 percent of rooms are yet to be allocated to an operator,” Stewart added.

Ultimate in luxury

Turab Saleem, Knight Frank’s head of hospitality, tourism and leisure, said that prices in the region are very much focused on the upper end of the market. 




Turab Saleem

“Just 14 percent of the expected hotel keys are in the three-star and lower category; however, this is the segment that could present the greatest opportunity to transform Qatar’s appeal to a wider audience, particularly in the wake of the World Cup, which will put the country in the global spotlight,” Saleem said.

According to Knight Frank’s analysis, 76 percent of the planned rooms would be four- or five-star accommodations. Today, 69 percent of Qatar’s hotel rooms fall into this category.

Therefore, operators will need to actively target tourists seeking affordable, budget holidays by offering all-inclusive packages that are already popular in markets such as Spain, Greece, Turkey, and the Caribbean.


Egypt, Maersk’s C2X sign $3bn agreement to produce green fuel in Suez Canal  

Egypt, Maersk’s C2X sign $3bn agreement to produce green fuel in Suez Canal  
Updated 8 sec ago
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Egypt, Maersk’s C2X sign $3bn agreement to produce green fuel in Suez Canal  

Egypt, Maersk’s C2X sign $3bn agreement to produce green fuel in Suez Canal  

RIYADH: Egypt is poised to produce green fuel through its recent agreement with Maersk’s C2X worth up to $3 billion signed on Wednesday, according to its prime minister’s office.  

The deal, signed during a meeting between Egyptian Prime Minister Mostafa Madbouly and C2X CEO Brian Davis, is aimed at producing green fuel for ship supplies and achieving zero carbon emissions. 

The agreement was formalized during a signing ceremony involving the General Authority for the Suez Canal Economic Zone, the Sovereign Fund of Egypt, the New and Renewable Energy Authority, the Egyptian Electricity Transmission Co., and the C2X company. 


Egyptian AI startup Intella raises $3.4m from Saudi investors 

Egyptian AI startup Intella raises $3.4m from Saudi investors 
Updated 26 min 46 sec ago
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Egyptian AI startup Intella raises $3.4m from Saudi investors 

Egyptian AI startup Intella raises $3.4m from Saudi investors 

RIYADH: In a significant development for Saudi Arabia’s technology sector, Egyptian deep tech firm Intella has successfully secured $3.4 million in a pre-series A funding round. This funding round was led by Saudi-based HALA Ventures and Wa’ed Ventures, the venture arm of Aramco. 

The capital injection is set to accelerate Intella’s foray into the Saudi market and underpin the development of artificial intelligence models tailored for the Middle East and North Africa audience.    

To demonstrate its commitment to the market, Intella is strategically relocating its headquarters to Saudi Arabia, positioning itself in the midst of the Kingdom's growing tech and AI landscape. 

“Saudi Arabia is quickly becoming a hub for technological advances. This move fits perfectly with our plans for expansion,” said Nour Taher, CEO and co-founder.   

In its pursuit of technological excellence, Intella’s Voice system achieved a 95.73 percent accuracy rate after extensive testing involving 30,000 hours of Arabic audio. This accuracy rate surpasses industry giants like Google and IBM Watson. 

Omar Mansour, Intella’s co-founder and chief technology officer, highlighted the Arabic-focused voice technology, emphasizing its move into advanced audio analytics.   

Hailing Intella’s pioneering approach, Ali Abussaud of HALA Ventures noted: “We’re excited to back Intella’s vision. They’re making significant strides in connecting global AI progress with the needs of the Arab-speaking community, and it’s exactly the kind of initiative the region needs right now.”   

As Intella aims to lead the way in Arabic voice technology, this funding brings it closer to its goal of aligning the MENA region with global tech advancements. 

The funding round also received contributions from Sanabil500, INSEAD’s alumni angel network, and several other prominent investors.


SADAFCO partners with NTSC to implement zero-emission vehicles 

SADAFCO partners with NTSC to implement zero-emission vehicles 
Updated 57 min 40 sec ago
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SADAFCO partners with NTSC to implement zero-emission vehicles 

SADAFCO partners with NTSC to implement zero-emission vehicles 

RIYADH: In a bid to further strengthen its commitment to sustainability, Saudia Dairy & Foodstuff Co. has entered into an agreement with National Transport Solutions Co. to introduce zero-emission vehicles into its fleet. 

According to a press statement, this initiative, aimed at reducing carbon emissions, aligns with SADAFCO’s Sustainability 2030 Vision. Under the agreement, NTSC will assist SADAFCO in quantifying the current carbon emissions produced by its vehicle fleet and will help formulate a comprehensive roadmap for the transition to ZEVs. 

“SADAFCO is committed to creating a sustainable future through decarbonization. The decarbonization journey with NTSC is another crucial step toward creating a more sustainable future,” said Patrick Stillhart, CEO of SADAFCO.  

He added: “By switching to electric vehicles, SADAFCO will reduce carbon emissions and help create a cleaner, healthier world. Decarbonization is a long-term goal that requires a transformation of the energy systems. At SADAFCO, we have already set up our solar-powered warehouses and are planning to add more.”   

The proposed project will be executed in several phases. In the initial phase, an analysis will be conducted to assess the current carbon emissions generated by SADAFCO’s vehicle fleet.  

Subsequently, the focus will shift to assessing the availability of zero-emission vehicles in Saudi Arabia. This will be followed by integrating emissions data, fleet composition, operational cycles, and ZEV availability to formulate a strategic roadmap for the transition. 

“This partnership underscores SADAFCO’s unwavering commitment to reducing its carbon footprint, driving sustainability initiatives, and fostering a greener future. Both SADAFCO and NTSC are eager to set a precedent for responsible corporate citizenship in the region with this move toward sustainable transportation,” stated the company in the press statement.   

In July, SADAFCO, one of the prominent names in Saudi Arabia’s food market, announced a net profit of SR107.63 million ($28.69 million) for the first quarter of 2023, compared to SR56.27 million in the same period the previous year. 


Oil Updates — crude falls $1 on demand fears

Oil Updates — crude falls $1 on demand fears
Updated 04 October 2023
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Oil Updates — crude falls $1 on demand fears

Oil Updates — crude falls $1 on demand fears

LONDON: Oil fell on Wednesday, as Saudi Arabia’s announcement to continue crude output cuts to the end of 2023 was offset by demand fears stemming from macroeconomic headwinds.

Brent crude oil futures were down 87 cents, or 0.96 percent, to $90.05 a barrel at 1:14 p.m. Saudi time, while US West Texas Intermediate crude fell 94 cents, or 1.05 percent, to $88.29 per barrel.

Both contracts traded more than $1 lower than Tuesday’s settlement price at their intraday on Wednesday, with Brent falling to $89.83 a barrel, and WTI to $88.11 a barrel.

Prices remain under pressure from demand fears driven by macroeconomic headwinds.

“Oil prices are resuming their decline amid concerns over high interest rates for longer, hurting the demand outlook and as investors look ahead to the OPEC (Organization of the Petroleum Exporting Countries) meeting,” said Fiona Cincotta, analyst at City Index.

Saudi Arabia’s energy ministry confirmed on Wednesday it will continue its voluntary 1 million barrel per day crude supply cut until the end of this year.

Russia said it will continue its current 300,000 bpd crude export cuts until the end of the year, and will review its voluntary 500,000 bpd output cut, set back in April, in November.

Russia was also discussing partial permission for fuel exports “at all levels,” state-run TASS agency reported on Wednesday, citing Russian Energy Minister Nikolai Shulginov.

The Kremlin could be ready to ease its diesel ban in coming days, according to a daily Kommersant report on Wednesday citing unidentified sources.

A strong US dollar could also be weighing on investor sentiment.

The current dollar strength is “a rally that will continue to haunt all markets including oil, even when, as is now, there is a compelling fundamental backdrop,” PVM analyst John Evans said.

As the trade currency of oil, a strong dollar makes oil comparatively expensive for holders of other currencies, which can dampen demand.

Elsewhere, latest purchasing managers’ index data showed a score of 47.2 in September for the euro zone, edging higher from 46.7 in August. Anything below 50 implies economic contraction.


Makkah Chamber bags economic excellence award  

Makkah Chamber bags economic excellence award  
Updated 04 October 2023
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Makkah Chamber bags economic excellence award  

Makkah Chamber bags economic excellence award  

RIYADH: The Makkah Chamber of Commerce has been honored with this year’s Economic Excellence Award in recognition of its commitment to providing constructive economic solutions for the business sector in the city. 

According to the Saudi Press Agency, the announcement was made on Monday by the governorate of Makkah, which organizes the award annually.  

The chamber had previously received the Urban Excellence Branch Prize, SPA reported. 

Over the recent period, the organization has undertaken numerous projects and initiatives of significant economic and social value while playing a crucial role in supporting various business sectors. 

One of the notable initiatives was the tripartite benefits agreement, which brought together the Makkah Chamber, the Madinah Chamber and the Islamic Chamber of Commerce, Industry and Agriculture to transform the two cities into centers for financial and commercial activities in the Islamic world.