Saudi Arabia driving post-pandemic recovery of global tourism sector 

Saudi Arabia driving post-pandemic recovery of global tourism sector 
Global leaders gathered at the World Travel and Tourism Council summit in Riyadh where Saudi Minister of Investment Khalid Al-Falih also spoke. (Sreenshot)
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Updated 29 November 2022

Saudi Arabia driving post-pandemic recovery of global tourism sector 

Saudi Arabia driving post-pandemic recovery of global tourism sector 

RIYADH: As the travel and tourism industry has a critical role to play in the global economy’s recovery from the pandemic, Saudi Arabia is leading the way through collaboration and investment in the sector, a leading minister has confirmed.   

As the global leaders gathered at the World Travel and Tourism Council summit in Riyadh, Saudi Minister of Investment Khalid Al-Falih said his ministry and the Public Investment Fund are supporting the tourism sector as it is part of the Kingdom’s diversification strategy.

"We are investing in it for the greater good. Obviously, the impact it has on the standing of the country is very high,” he said during an appearance on a discussion panel. 




Saudi Minister of Investment Khalid Al-Falih

He said that the industry is a double-digit proportion of the global gross domestic product and this sector impacts all aspects of the economy. 

“We saw during the pandemic if the sector loses, everyone loses — society loses, the macro economy loses, and the spillover effect is quite incredible,” he said, adding that one shouldn’t measure the sector purely by macro numbers of 10, 12, or 15 percent of GDP. 

Despite a perception that travel and tourism is a difficult industry and was among the last to recover from the pandemic, the minister contested that it is a sector where one can make money, no matter where in the value chain someone is positioned. 

Collaborative approach  

Speaking at the same panel, Princess Haifa Al Saud, the Kingdom’s vice minister of tourism, emphasized the need for collaboration as the tourism industry recovers from the pandemic.  

“It means we all have to have one vision, set clear targets, and work together to deliver — which we are doing today in Saudi Arabia,” she said, adding that is why the Kingdom is the fastest growing economy within the G20 countries for tourism, with a 121 percent increase according to the UN World Tourism Organization.   

She revealed that during the G20 presidency, Saudi Arabia was the first country to bring the public and private sectors to the table to deal with the post-pandemic issues.  




Princess Haifa Al Saud, the Kingdom’s vice minister of tourism

The vice minister said the government is amending its regulations and policies as per the need of the industry after having feedback from the private sector.  

“For example, the criteria for hotel classifications which we launched three years ago are being amended based on the feedback we received from the private sector as we understand one size doesn’t fit all,” she said.  

The Princess also revealed that through the ease of doing business, the government is going to launch 28 initiatives this year in order to facilitate the investor’s journey.   

The UN World Tourism Organization Secretary General Zurab Pololikashvili, who was also part of the panel discussion, said that two years ago no one knew when the world would recover from the pandemic.  

"People were saying we will recover in 2027; some of them were saying 2023. But the first nine months of this year showed that 700 million travelers are back. This is 65 percent of the best year we had in 2018-19,” he said. 

Marriott International CEO Anthony Capuano agreed that anyone that had any questions about the resilience of travel has had those questions answered. “The speed with which travel has recovered has been remarkable,” he said.  

He pointed out that the recovery has been uneven, however, adding: “In many markets around the world, we have seen extraordinarily strong recovery. Opening of borders has been the catalyst to that recovery. But we look at Greater China, the zero-Covid policy has continued to dampen the recovery in a meaningful way.”

Tourism investment  

Many countries, when working on their post-recovery plan, chose to spend on other sectors first than tourism, a trend which Saudi Arabia bucked.

According to Greg O’Hara, founder and senior managing director of Certares, the Kingdom has been absolutely committed to investing in its own tourism infrastructure, and argued the world is going to change as all the developing nations are becoming more wealthy. 

“Where they are going to travel and how they are going to travel, are going to be completely different. Saudi Arabia is making a bet on itself and the rest of the world has to deliver to the travelers,” said O’Hara. 


Saudi Arabia, Miami share similarities in quality of life standards experts tell FII Priority

Saudi Arabia and Miami have a lot in common when it comes to quality of life and business opportunities, experts said
Saudi Arabia and Miami have a lot in common when it comes to quality of life and business opportunities, experts said
Updated 31 March 2023

Saudi Arabia, Miami share similarities in quality of life standards experts tell FII Priority

Saudi Arabia and Miami have a lot in common when it comes to quality of life and business opportunities, experts said
  • Kingdom made quality of life a priority in Saudi Vision 2030
  • Cities should invest in arts and culture, panelists say

MIAMI: Saudi Arabia and Miami have a lot in common when it comes to quality of life and business opportunities, experts said at the FII Priority conference in Miami on Thursday.

Both cities have, in the last few years, they said, promoted better living standards for their citizens through socio-economic policies.

“Miami had this incredibly welcoming spirit. It was set up for success from the top down,” said Jeff Zalaznick, restaurateur and managing partner of hospitality company Major Food Group. “I’ve really gotten to understand — with Vision 2030 and the things that they (Saudi Arabia) are looking for — that there are a lot of similarities between the quality of life and business (policies) in Miami and what’s happening in Saudi Arabia.”

The Kingdom made quality of life a priority in Saudi Vision 2030 and is one of the few countries in the world to have a minister dedicated to improving quality of life for its residents.

“Everything we do is based on quality of life. It is so important to the crown prince that he set up its own ministry,” said Jerry Inzerillo, group CEO of Diriyah Gate Development Authority, adding that “positivity and optimism” are the “fuel of that country.”

In the latest World Happiness Report, Saudi Arabia was ranked No. 2 in the Arab World, and 30th in the world.

Barry Sternlight, chairman and CEO of Starwood Capital Group, pointed out that cities that have not not invest in their citizens’ quality of life have seen their population decline.

“I think that quality of life is driving market share,” he said. “It’s driving the success of cities that are focused on improving the lives of their citizens.”

Sternlight observed that the parameters individuals use to determine quality of life are evolving and are no longer entirely centered on economic concerns.

“People are looking for meaning and purpose, and whether it’s sustainable development,” he said.

Sternlight added that people consider art and culture to be key aspects of quality of life in cities and emphasized that having museums, galleries, and artistic offerings as part of the fabric of a city is essential to its success.

The CEO of real estate development firm Daccra, Craig Robins, said that building an ecosystem around art and culture is crucial and should include supporting artists, small galleries, and other related businesses.

He cited Miami Design District as an example, and explained that since its launch in the early 2000s, the neighborhood has become a center of creativity and a thriving hub for culture and business — not only for Miami but the world.

“The goal was to create a sense of community that people would really love — something that was different, and something that could be a resource for all,” Robins said.


Saudi Arabia, UAE ‘play critical role in space exploration’

Saudi Arabia, UAE ‘play critical role in space exploration’
Updated 31 March 2023

Saudi Arabia, UAE ‘play critical role in space exploration’

Saudi Arabia, UAE ‘play critical role in space exploration’
  • Investment firm boss Brian Hook tells forum that people and funding will drive growth
  • Panel discussion hears ‘third space revolution’ is inspiring younger generations

MIAMI: Saudi Arabia and the UAE are playing a “critical role” in the future of space exploration, the boss of a major investment firm has told a panel of industry experts in Miami.

Brian Hook, the vice-chairman of Cerberus, told the FII forum that countries like the Kingdom and the UAE had greatly accelerated a new space race. “By putting both their people and their funding behind (it), they brought into existence this sort of new space economy,” he said.

He and other panelists examined the potential for development and investment in the space industry, and spoke about the breakthroughs and dynamics that make it appealing to the general public, investors and enterprises.

Hook said that allowing the private sector into the market had gained fresh momentum, and the overall market value was expected to surpass $1 trillion in the coming years.

“Private equity and venture capital have been funding and enabling some of the most innovative companies for space exploration,” he said.

Helene Huby, CEO of The Exploration Company, which wants “affordable, sustainable and open” space exploration, said there had been a renaissance in the industry in the last few years.

“We are living in the third revolution. The first was the Apollo mission, which was about access. The second was the industrialization of space exploration with the International Space Station,” Ruby said.

“And what we see now is a revolution that is not about access, it’s not about costs and industrialization. It’s about staying in space.”

Speakers said that current enthusiasm around space exploration and increased investments would play a critical role in addressing some of the world’s most pressing challenges, including climate change, food shortages and droughts.

“One of the things that people don’t consider is the effect that human spaceflight has not only on the people that fly but also the people on the ground,” said Jane Pointer, founder of carbon-neutral spaceflight company Space Perspective.

“Space is a great contribution to humanity,” added Alan Pellegrini, CEO of Thales North America, a defense and aerospace company.

“I was young at the time but Neil Armstrong’s landing on the moon transformed my life and inspired me to a career in aerospace. And I think it is having the same effect on younger generations today.”

“Space has always been a place where you can collaborate regardless of which nation you belong to, and I really hope that that spirit continues,” he added.

 


Medina Capital founder delivers cybercrime warning at FII Priority conference

Medina Capital founder delivers cybercrime warning at FII Priority conference
Updated 31 March 2023

Medina Capital founder delivers cybercrime warning at FII Priority conference

Medina Capital founder delivers cybercrime warning at FII Priority conference
  • Basic ‘common sense stuff’ will help people protect themselves, says Manuel Medina

MIAMI: Almost half of organizations globally will have experienced a cyberattack on their software supply chains by 2025, according to analyst firm Gartner.

As Manuel Medina, founder and managing partner of Medina Capital, said: “There are only two types of enterprises and government agencies today: the ones that have been hacked and the ones that are going to be hacked.”

Speaking at the FII Priority conference in Miami, Medina highlighted the risk of cyberattacks, and said: “The internet was not designed to do what it’s doing today.”

Globalization and technological advances, such as cloud computing, mobility and virtualization, have made the internet less secure.

Companies across a host of industries are spending billions digitizing their infrastructure, but that infrastructure is difficult to protect, he said.

On an individual level, it mostly comes down to common sense, Medina added.

Social media companies do not charge users on their platforms because they are monetizing the users themselves, and by sharing copious amounts of personal information, users are only making it easier for both social media companies and potentially hackers to access their data, he said.

“They (social media companies) take your personal identity, and everything that they do is (about) how they track you in order to get commerce and sell you stuff. So, that’s totally contradictory to protecting you.”

Medina Capital, which hires “elite hackers,” has a motto of not liking people, because “people are the weak link,” Medina said.

“You are as strong as your weakest link.”

He added: “You can have the best software and the best systems,” but “human weakness” is the reason for the collapse of a security system.

Cybercriminals do not need weapons, politics or strategy; all they need is a laptop and a network connection, and governments need to evolve and cooperate to tackle this kind of criminal, Medina said.

Prosecuting cybercriminals is difficult because of globalization and innovation whereby it is possible for some evidence or information to be stored on a server located in a different country than the one where the criminal is being prosecuted, he said.

“The system today is the same system that it was 80 years ago. So, one of the things that we need to do is bring ourselves up to date.”

Individuals, too, need to do some basic “common sense stuff” to protect themselves, such as using multifactor authentication and storing their passwords in a secure digital wallet, he said.

“You have to sacrifice a little bit of convenience in order for you to be able to sleep better at night.”


GCC banks to see ‘limited impact’ from global banking worries prompted by SVB collapse: Kamco

GCC banks to see ‘limited impact’ from global banking worries prompted by SVB collapse: Kamco
Updated 31 March 2023

GCC banks to see ‘limited impact’ from global banking worries prompted by SVB collapse: Kamco

GCC banks to see ‘limited impact’ from global banking worries prompted by SVB collapse: Kamco

RIYADH: Banks in the Gulf Cooperation Council region are set to see a limited impact from the banking crisis hitting the US and Europe, according to a report from Kamco Invest.

The investment banking subsidiary of Kuwait Projects Company argues that financial institutions in the GCC had limited exposure to Silicon Valley Bank – the US firm that collapsed in March prompting concerns of contagion sweeping across the world in the manner of the 2008 global crash.

The report says balance sheets of the banks in the region remain strong, and in the final quarter of 2022 both aggregate lending and customer deposits remained strong.

“The broader GCC banking sector is expected to see only a limited indirect impact from the ongoing banking sector crisis in the US and Europe,” said the report, adding: “Shares of banks globally and in the region, especially, were affected due to fears of a contagion as the collapse of SVB was the biggest lender failure since the global financial crisis of 2008. 

“However, the collapse had only marginal impact with minimal exposure of banks only in the UAE, while most of the other countries in the GCC remained unaffected. 

“The bulk of the exposure was from various startups and VCs that had accounts with SVB that may now bank with local banks, although under increased scrutiny.”

The report also shows that rising interest rates in the US and its almost full replication by most GCC central banks during 2022 resulted in higher aggregate net interest margin for the region’s banking sector. 

NIM for GCC banks averaged at a multi-year high of over 3 percent during the fourth quarter of 2022, despite partially reflecting the higher interest rates as bulk of the rate hikes were made during the second half of the year. 

Saudi Arabia’s banks reported the highest average margin of 3.2 percent during the quarter followed by UAE and Qatari banks with margins also above the 3 percent mark after several quarters.

Aggregate lending in the GCC remained strong during the final quarter of 2022, with  central bank data showing Qatari banks experienced the strongest lending growth during, while Bahrain and the UAE banks showed a slight decline. 

Customer deposits bounced back to a stronger growth over the same period, with a quarter-on-quarter increase of 2.5 percent to reach $2.2 trillion 


Riyadh chosen to host Global Real Estate Summit

Riyadh chosen to host Global Real Estate Summit
Updated 31 March 2023

Riyadh chosen to host Global Real Estate Summit

Riyadh chosen to host Global Real Estate Summit

RIYADH: Saudi Arabia will host the 42nd edition of the Global Real Estate Summit next December in Riyadh, it has been announced.

The summit is considered the industry's largest annual gathering, and sees real estate leaders and CEOs from all over the globe coming together, according to the Saudi Press Agency.

The event will address the Saudi real estate sector in light of the Kingdom's Vision 2030 and its successes achieved to date.

Workshops, meetings, and lectures aiming to deal with the challenges of the real estate industry as well as available investment opportunities will be held throughout the event. 

There will also be discussions on the role of the industry's leaders in creating revolutionary ideas through best international practices and the mechanism of their application in the region.

A visit to prominent major projects will also occur during the summit.

The Kingdom’s achievement in hosting this global summit comes after the World Real Estate Federation meeting in Cannes, France, held on March 15, with the participation of Eye of Riyadh, the media partner of the international real estate event MIPIM, held between March 14 to 17.