‘Middle East tourist plans far better than doom and gloom of Europe’: Accor CEO

‘Middle East tourist plans far better than doom and gloom of Europe’: Accor CEO
Sébastien Bazin, chairman and CEO of ACCOR said all the pieces were in place for the Middle East’s tourism industry to thrive. (Supplied)
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Updated 29 November 2022
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‘Middle East tourist plans far better than doom and gloom of Europe’: Accor CEO

‘Middle East tourist plans far better than doom and gloom of Europe’: Accor CEO

RIYADH: The head of the largest hospitality firm in Europe insists the world should be learning from the Middle East’s “mind boggling” tourism plans as he praised the region’s ambitions in the sector.

Speaking during a discussion at the World Travel and Tourism Council Global Summit in Riyadh on Nov. 29, Sébastien Bazin, chairman and CEO of Accor, said all the pieces were in place for the Middle East’s tourism industry — and Saudi Arabia and the UAE in particular — to thrive.

He added the key to attracting the next generation of travelers was to ensure the local economy was engaged with global ambitions, as tourists sought to experience authentic food and culture.

Reflecting on Saudi Arabia’s progress, Bazin said: “I've never ever seen a country in my life — I am 61 years old — where you have a leader, a plan, expertise, financial resources, the timeline. 

“It's mind boggling in ten years what is being built here, and I wish we can get that in many other countries. 

“I am leaving the doom and gloom of Europe, and finally coming to the Middle East, to Saudi, to the UAE.

“It’s funny you guys are teaching us a lot of things over the last ten years.”

Speaking about shifting the industry's mindset, Bazin said the key is encouraging travel sectors around the world to think locally, not globally. 

“The hotels of tomorrow should be catered for the locals, not for the travelers. That's a major shift, and if you succeed in seducing the locals, then the travelers will pick your hotel as a place to be,” he said, adding: “Make yourself one of the players domestically and the travelers will know you exist. Just be a local, act as a local, think as a local.”

The focus on thinking “local” was echoed by the UAE’s Minister of Economy Abdulla Bin Touq Al Marri.

He argued that the new generation of tourists is looking for sustainable travel where they have access to locally produced goods and goods.

“The future of infrastructure really depends on that sustainability aspect. The youth are smarter now, and consider what they want to be part of. For instance, a hotel with accessibility to the local market, to buy their fresh groceries, their apples from the local farms. And this is an aspect of infrastructure,” he said.

Stephen Scherr, CEO of The Hertz Corporation, used his contribution to the panel to talk about infrastructure's key role in growing tourism sectors around the world.

“You need to build infrastructure that is accommodating and inviting of the populations that you want to be traveling around,” he said.

Scherr went on to cite the importance of public-private partnerships in ensuring such infrastructure exists, and said: “The truth is for the private sector alone, the infrastructure that's necessary is too expensive, prohibitively expensive, in terms of investment that needs to made, so if you are going to serve a broader market the government needs to step in and make this kind of investment.”


Oman’s annual inflation rate reaches 0.3% in October

Oman’s annual inflation rate reaches 0.3% in October
Updated 22 sec ago
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Oman’s annual inflation rate reaches 0.3% in October

Oman’s annual inflation rate reaches 0.3% in October

RIYADH: A decline in prices for education, food and non-alcoholic beverages saw Oman’s inflation drop to 0.3 percent in October, compared to a rate of 1.27 percent in the previous month, official data has revealed. 

In October, education costs went down by 2.3 percent, while food and non-alcoholic beverage expenses slipped by 0.6 percent, compared to September, Oman News Agency reported, citing data from the National Center for Statistics and Information.  

The slowdown of inflation during October was also supported by stable prices across key sectors including clothes and footwear, housing and as well as water, electricity, gas and other types of fuel.  

In August, the inflation rate of Oman stood at 0.82 percent, while in July, it was 0.41 percent. 

Additionally, the report disclosed that the 0.3 percent inflation rate recorded in October was also lower compared to the 2.39 percent in the same month of the previous year.  

The annual drop in inflation was attributed to the drop in prices for education and transport which went down by 2.3 percent and 1.4 percent, respectively.  

On the other hand, expenses for miscellaneous goods and services rose annually by 2.6 percent in October, while tobacco products prices surged by 2.4 percent.  

In terms of governorates, the highest inflation rate was registered by Al Dhahirah at 0.6 percent, while the governorates of Dhofar and Muscat registered a rise in inflation rate by 0.4 percent each.  

On the other hand North Al Sharqiyah, South Al Sharqiyah, Al Dakhiliyah and North Al Batinah governates witnessed an inflation rate of 0.2 percent each.  

In October, Jihad Azour, the International Monetary Fund’s director for the Middle East and Central Asia region, stated that inflation is gradually coming under control in the region.   

IMF’s Regional Economic Outlook for the Middle East and Central Asia which was released in May had also echoed identical views and noted that possibilities of a rise in headline and core inflation in oil exporting countries will be low in 2023.  

“Headline and core inflation in many oil-exporting countries like Bahrain, Iraq, Kuwait, Oman, Qatar, and Saudi Arabia remain relatively lower than elsewhere — as subsidies and caps on certain products, the strengthening of the US dollar to which many of the countries peg their currencies, and limited share of food in the consumer price index basket have helped to offset imported inflationary pressures,” said IMF in the report.   


Qatar’s economy shows resilience with 1% growth in Q2: official data 

Qatar’s economy shows resilience with 1% growth in Q2: official data 
Updated 4 min 59 sec ago
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Qatar’s economy shows resilience with 1% growth in Q2: official data 

Qatar’s economy shows resilience with 1% growth in Q2: official data 

RIYADH: Qatar’s gross domestic product experienced a 1 percent growth in the second quarter of 2023 compared to the same period last year, according to official figures released by the Planning and Statistics Authority. 

The year-on-year GDP estimates, calculated at constant prices, reached 170 billion Qatari riyals ($46.7 billion) during the second quarter. This outpaced the revised estimates for the same period in 2022, which stood at 168.4 billion riyals.  

However, the GDP at current prices faced a downturn, declining by 13.7 percent in the second quarter of 2023, totaling 186.3 billion riyals. This contrasts with the estimate for the same quarter in the previous year, which reported a figure of 216 billion riyals.


Saudi Arabia, US collaborate to drive outer space exploration

Saudi Arabia, US collaborate to drive outer space exploration
Updated 14 min 14 sec ago
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Saudi Arabia, US collaborate to drive outer space exploration

Saudi Arabia, US collaborate to drive outer space exploration

RIYADH: Space exploration involving Saudi Arabia and the US will strengthen thanks to a new agreement aimed at advancing discovery methods.

Amid the visit made by the Minister of Communications and Information Technology and Chairman of the Saudi Space Agency Abdullah bin Amer Al-Swaha to the North American country, both nations agreed to further stimulate commercial opportunities as well as exploratory missions related to space, according to a joint statement. 

This move falls in line with the collaborative efforts between nations to push advancements within the sector. It also aligns well with recent partnerships formed in various fields and industries. 


Oil Updates – prices rise on weak dollar, expectations for OPEC+ output cuts

Oil Updates – prices rise on weak dollar, expectations for OPEC+ output cuts
Updated 28 November 2023
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Oil Updates – prices rise on weak dollar, expectations for OPEC+ output cuts

Oil Updates – prices rise on weak dollar, expectations for OPEC+ output cuts

SINGAPORE: Oil prices rose slightly on Tuesday due to a weak dollar, and expectations that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, would deepen and extend output cuts due to fears demand would remain subdued, according to Reuters.

Brent crude futures were up 11 cents, or 0.1 percent, at $80.09 a barrel at 8:10 a.m. Saudi time. 

US West Texas Intermediate crude futures were trading 4 cents higher, also 0.1 percent, at $74.90 a barrel. Both benchmarks pared some gains after rising sharply in early Asian trade.

OPEC+, which includes Russia, will hold an online ministerial meeting on Nov. 30 to discuss production targets for 2024.

The meeting comes amid a sharp decline in oil prices, due to concerns that the market was oversupplied despite output cuts by the OPEC+. Brent has fallen by more than 18 percent and WTI by over 21 percent since end-September highs. Strong production by non-OPEC countries such as the US have added to pressure on prices.

OPEC+ set oil prices tumbling last week by postponing its meeting in order to iron out disagreements over production targets for African producers. But it has moved toward a compromise, four OPEC+ sources told Reuters on Friday, potentially helping a consensus on the need to deepen output cuts.

The decline in prices could spare Riyadh any pressure from the US to limit output cuts, according to analysts.

“Saudi Arabia may be comforted that US gasoline prices have fallen for 60 straight days. This may soften the US opposition to any move to tighten oil markets and support prices,” ANZ Research said in a note on Tuesday.

The US dollar’s retreat to its lowest level in three months should bolster demand fronm countries who pay for their oil in other currencies.
 


PIF secures $5bn syndicated term loan covered by K-SURE 

PIF secures $5bn syndicated term loan covered by K-SURE 
Updated 28 November 2023
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PIF secures $5bn syndicated term loan covered by K-SURE 

PIF secures $5bn syndicated term loan covered by K-SURE 

RIYADH: Saudi Arabia’s Public Investment Fund has secured a term loan of $5 billion from a group of nine international lenders, covered by the Korea Trade Insurance Corp. This agreement signifies PIF's ongoing effort to diversify its funding sources in a strategic manner. 

This financing arrangement, with a tenor of 13 years, initially set at $3 billion and expandable to $5 billion, marks PIF’s first venture into funding covered by an export credit agency. 

Building on a memorandum of understanding signed in March 2022, PIF and K-SURE have translated their intentions into action, resulting in this significant K-SURE-covered term loan. 

Fahad Al-Saif, head of the global capital finance division at PIF, said: “This collaboration with K-SURE underscores PIF’s commitment to foster institutional partnerships as we continue to deliver on our medium-term capital raising strategy.” 

He added: “The financing is part of PIF’s four primary sources of funding and strengthens economic ties between Saudi Arabian and South Korean businesses.”

The collaboration aims to facilitate the export of Korean goods and services into projects and subsidiaries, either partially or fully owned by PIF, strengthening economic ties. 

“Through this financial support, Korean companies have not only gained technological competitiveness but also financial competitiveness to increase orders,” said Inho Lee, president of K-SURE.

He added: “We trust this support will contribute to strengthening the future-focused partnership between the two countries.” 

The deal follows PIF’s recent financial activities, including an international sukuk issuance of $3.5 billion, two green bond issuances totaling $8.5 billion, and a $17 billion corporate loan in 2022. 

These diverse funding initiatives align with PIF’s strategy to source capital from an expanding range of options, with loans and debt instruments being one of its primary sources. 

Beyond financial instruments, PIF drew funding from retained earnings from investments, capital injections from the government, and the transfer of state assets to PIF.

The fund holds a strong credit rating, with Moody’s allocating it “A1” with a positive outlook and Fitch giving it “A+” with a stable outlook, reinforcing its financial strength and stability.