Saudi Arabia’s National Debt Management Center to launch sukuk savings program: CEO

Saudi Arabia’s National Debt Management Center is on track to launch a sukuk savings program to further develop the local market, the center’s CEO, Hani Al-Medaini, revealed on Monday.
Saudi Arabia’s National Debt Management Center is on track to launch a sukuk savings program to further develop the local market, the center’s CEO, Hani Al-Medaini, revealed on Monday.
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Updated 13 February 2023
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Saudi Arabia’s National Debt Management Center to launch sukuk savings program: CEO

Saudi Arabia’s National Debt Management Center to launch sukuk savings program: CEO

RIYADH: Saudi Arabia’s National Debt Management Center is on track to launch a sukuk savings program to further develop the local market, the center’s CEO, Hani Al-Medaini, revealed on Monday.

Speaking at the Capital Market Forum, he highlighted several initiatives his center has planned to help the domestic market grow and strengthen.

“Several milestones have been achieved so far to launch the first sukuk savings program that is aimed directly toward the retail investor,” Al-Medaini said.

He also told the forum that the NDMC is planning to get riyal-denominated sukuk included in global indices with the help of the Capital Market Authority.

“The Capital Market Authority is leading us on that front while providing full support. That will help in creating more liquidity in our domestic market,” the NDMC chief added.

Al-Medaini said the center has plans to expand its local and international investors base. “This is also an area of focus that will help in deepening the market not only for the sovereign as an issuer but also as a private sector issuer,” the CEO emphasizes.

Al-Medaini also spoke about the development of the sukuk market, which included extending the local curve to 12, 15, and 30 years as well as reducing the face value of the sukuk from SR1 million ($266,000) to SR1,000, he added.

 Between 2019 and 2020, several products such as the sukuk mutual funds and the exchange-traded funds were introduced to the market, he added.

During the same period, the first-ever liability management for the Kingdom was conducted, Al-Medaini underlined.

Between 2021 and 2022, there was also the activation of the linkage between Edaa – Saudi Securities Depository Center Co. – and Clearstream and Euroclear – European financial firms, the CEO added.


Saudi hospitality sector emerging as new global benchmark

Saudi hospitality sector emerging as new global benchmark
Updated 8 sec ago
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Saudi hospitality sector emerging as new global benchmark

Saudi hospitality sector emerging as new global benchmark

ABU DHABI: Saudi Arabia’s tourism and hospitality sector is in high gear to achieve industry targets set under Vision 2030, industry leaders said during a panel on Tuesday.

“No sector matches tourism in creating jobs, especially in rural areas and communities that are currently suffering from unemployment. One in every five jobs globally today is supported by tourism, so that’s tourism is such an important sector,” Badr Alherbish, chief strategy officer of Saudi Arabia’s Tourism Development Fund, said in one of the sessions of the three-day Future Hospitality Summit in Abu Dhabi.

One example of Saudi Arabia’s ambitious development push is the Rua Al Madinah project — a mega mixed-used real estate development to the east of the Prophet’s Mosque — which, according to Ahmed Al-Juhani, CEO of Rua Al Madinah Holding, required laser focus to work around logistical issues to deliver this massive project.

“(Since) the launch, the master plan and infrastructure work… there has been a lot of work done on the ground. We actually took over the land and we made all the detours around the urban development. We completed the design of 5,000 rooms, we signed a hotel management agreement with three companies for these rooms.”

The value of contracts and execution is now more than SR5.3 billion ($1.4 billion), Al-Juhani added, and the company will next month go to the market for the tender of the 5,000 rooms.

“We also have another 7,000 rooms under design right now and in the concept stage and also another 8,000 rooms when start design in November,” he said.

“We are talking about 20,000 rooms before the year ends at different stages: under design, under construction, or in the middle of the design.”

Meanwhile, the Boutique Group headed by Mark DeCocinis is renovating three historic palaces: Al-Hamra Palace which will offer 77 keys including 33 luxury palace suites and 44 luxury villas in Jeddah; Tuwaiq Palace which will provide 96 keys including 40 luxury palace suites and 56 luxury villas; and the Red Palace will offer 71 keys including 46 luxury suites, and 25 luxury guest rooms. Both Tuwaiq and Red Palace are located in Riyadh.

“We’re renovating and restoring these balances, which takes time and it takes a lot of love and attention to detail. Our guest profile, we target the very top of regional and international travelers… we want to provide that exceptional service and personalized service,” DeCocini told the panel.

“I believe Saudi hospitality will be the new benchmark in the world globally.”


Saudi Arabia holds Radisson’s best regional portfolio: top executive 

Saudi Arabia holds Radisson’s best regional portfolio: top executive 
Updated 27 min 3 sec ago
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Saudi Arabia holds Radisson’s best regional portfolio: top executive 

Saudi Arabia holds Radisson’s best regional portfolio: top executive 

ABU DHABI: Saudi Arabia has become an investment magnet with its travel and tourism sector growing at an exponential rate attracting key industry players from all around the world.

Due to the attractive investment environment in the Kingdom, Radisson Hotels is placing the best of its regional portfolio in the Kingdom, a top executive told Arab News during an interview on the sidelines of the Future Hospitality Summit in Abu Dhabi.

“Reflecting on our journey in Saudi Arabia, we began in 2010 with five properties nationwide. Now, we not only have 10 establishments in Riyadh but 45 throughout Saudi Arabia. This growth is a testament to our dedication and passion in the region,” said Elie Milky, Radisson Hotel’s vice president of development.

Radisson aims to operate 100 hotels in the Kingdom by 2030, which will account for over half of the company’s regional presence, he told Arab News. 

“We now have the best of our regional portfolio in Saudi Arabia,” Milky said. 

Milky highlighted the strategic importance of the newly opened Radisson Blu hotel in Riyadh, owned by the Riyadh Chamber of Commerce. 

The collaboration with the chamber made Radisson Blu’s launch pivotal. This property boasts over 200 rooms and is directly linked with the Riyadh International Conference and Exhibition Center, Milky noted. 

“Today, we are set to announce the signing of more than 10 hotels across the Middle East. This encompasses the unveiling of over 1,000 rooms in the past year and plans to introduce 2,000 more in the coming 12 months, primarily in Saudi Arabia,” Milky revealed. 

Highlighting Saudi Arabia’s potential, Milky credited the country’s robust governmental reforms and its stature as the region’s dominant economy for propelling the hospitality sector forward. 

Aiming to fortify its presence, the company plans to enhance its workforce in the Kingdom, targeting 20,000 employees by 2030, a significant leap from the current 7,000. 

On expanding to Saudi Arabia’s secondary cities, Milky emphasized the company’s goal to recruit local talent, capitalizing on the vast skill set these communities offer. 

On the issue of sustainability, Milky remarked on the industry’s evolution, pointing out that while development costs remain high, operational costs will become more economical.


UAE economy set for 3% growth in 2023, driven by non-oil sectors: S&P 

UAE economy set for 3% growth in 2023, driven by non-oil sectors: S&P 
Updated 26 September 2023
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UAE economy set for 3% growth in 2023, driven by non-oil sectors: S&P 

UAE economy set for 3% growth in 2023, driven by non-oil sectors: S&P 

RIYADH: The UAE is expected to achieve 3 percent economic growth in 2023 driven primarily by the non-oil sector, as outlined in a report by Standard and Poor’s.

The analysis from the ratings agency forecasts a further expansion rate of 4 percent next year.

S&P is bullish regarding the prospects of the UAE’s tourism industry, attributing its growth to the successful hosting of major events and activities. 

Trevor Cullinan, a sovereign ratings analyst at the agency, pointed to the impressive expansion of the UAE’s non-oil sector, citing significant strides in services and industrial domains, reported the Emirates News Agency, also known as WAM. 

Identifying key sectors that are steering the UAE’s economic growth, Cullinan mentioned oil and gas, wholesale trade, and industry, as well as real estate, construction, and financial services. 

He expects the non-oil sector to sustain its momentum, with factors like an influx of expatriates and tourists, positive sentiments among investors and consumers, and private sector development playing pivotal roles.   

These projections align with the “We Are the UAE 2031” vision, a national strategy aimed at boosting trade and increasing the tourism sector’s contribution to the gross domestic product through collaborative efforts between government entities and the private sector, the WAM report stated.  

Tatiana Liskova, a corporate ratings analyst at S&P, sees the UAE’s travel and hospitality industries as a key driver of economic growth, citing Dubai’s achievement in attracting 14.7 million international visitors in 2022, double that of the previous year. 

She expects the sector’s growth to continue, bolstered by high-profile events like the UN Framework Convention on Climate Change, or COP28, a major step toward the UAE’s ambitious goal of welcoming 40 million visitors by 2030 and expanding its hotel room capacity to 250,000.  

Liskova pointed out that both Abu Dhabi and Dubai will maintain their positions as leaders in attracting business and tourists to the country. 

Meanwhile, other emirates such as Ras Al Khaimah and Sharjah are making significant progress in diversifying their tourism offerings, enhancing their overall appeal. 

Mohamed Damak, a financial institution ratings analyst and global head of Islamic Finance at S&P, predicts continued strength in the UAE’s banking sector.  

Improved profitability, surpassing pre-COVID-19 levels, and benefiting from rising interest rates are on the horizon, with UAE banks also set to capitalize on technological advancements.  


Abu Dhabi National Hotels CEO reveals expansion plans at Future Hospitality Summit

Abu Dhabi National Hotels CEO reveals expansion plans at Future Hospitality Summit
Updated 26 September 2023
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Abu Dhabi National Hotels CEO reveals expansion plans at Future Hospitality Summit

Abu Dhabi National Hotels CEO reveals expansion plans at Future Hospitality Summit

RIYADH: Abu Dhabi National Hotels is exploring expansion opportunities in North Africa and Europe, the company’s CEO revealed during the Future Hospitality Summit on Tuesday.

This development strategy points to the company’s growth ambitions, giving access to new customer segments and markets, Khalid Anib indicated.

The executive also emphasized ADNH’s commitment to environmental responsibility, stating: “As owners, we are embracing sustainability and are ready to enhance our buildings to be more sustainable.”

The Future Hospitality Summit, a gathering of industry figureheads and key stakeholders, witnessed prominent business leaders sharing their insights on expansion and ambitions for growth within the market. 

Adeeb Ahamed, the managing director of Lulu Financial Holdings & Twenty14 Holdings, addressed the hospitality industry’s pivotal role in job creation.

Ahamed stated: “One in 11 jobs are generated by the hospitality sector, making it a priority in every market.”

He stressed that despite technological advancements, the hospitality sector remains unique, with limited job displacement, as the human touch remains integral.

Ahamed also highlighted the growing appeal of the region as a tourist hot spot, drawing parallels with popular European destinations.

He noted: “The countries in the GCC (Gulf Cooperation Council) are becoming very attractive in terms of tourism, and this is very good news for the entire economy. Like in Europe where people visit multiple countries in one holiday, the GCC is creating something of that sort and this is where we like to capitalize, we like to see how we can do it in Oman, in Saudi Arabia, in Qatar. And this would give more reasons to travel here.”

In response to the rapid growth of the hospitality sector in neighboring Saudi Arabia, Ahamed commented: “I think Saudi Arabia is not a competition. It’s a combined effort that’s going to bring more confidence to investors to invest in the region, so more awakening done by neighboring countries is definitely going to boost the ecosystem.”


Saudi Arabia’s transport plans play crucial role in global carbon emissions battle 

Saudi Arabia’s transport plans play crucial role in global carbon emissions battle 
Updated 26 September 2023
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Saudi Arabia’s transport plans play crucial role in global carbon emissions battle 

Saudi Arabia’s transport plans play crucial role in global carbon emissions battle 

RIYADH: Saudi Arabia’s sustainable transport plans are a vital part of the Kingdom’s drive to reduce global carbon emissions by 4 percent, said a government official on Tuesday.   

Speaking at the Global Sustainable Transport Forum held in Beijing from Sept. 25-26, the Saudi Transport and Logistics Services Minister, Saleh bin Nasser Al-Jasser, stressed that sustainability is a fundamental element of the Kingdom’s Vision 2030. 

Al-Jasser underscored that the Kingdom’s strong commitment to sustainability has been smoothly incorporated into the transport and logistics sector through the National Strategy for Transport and Logistics.    

The strategy includes reducing carbon emissions per person by 2 percent in a year, increasing sustainable mobility, electrifying transport and implementing them across the logistics value chain.   

It also includes developing the necessary infrastructure to meet future demand, with the primary goal of minimizing traffic fatalities. 

According to Al-Ekhbariya, the minister also pointed out that cooperation, innovation and the exchange of best practices create the foundation for achieving common goals. 

He also revealed that there has been significant progress over the years, with the number of fatalities falling from 28 per 100,000 people in 2016 to 13.5 in 2020. 

Through the implementation of a national safety program that emphasizes infrastructure development, road safety awareness and governance improvements, the goal is to lower the fatalities to less than five by 2030. 

Al-Jasser also emphasized how the COVID-19 pandemic hugely affected the global logistics and transportation industry, causing supply chains to break down and some transport sectors to collapse. 

This fact underlines how crucial it is to balance the social, economic, and environmental pillars of sustainable development to create green transportation networks. 

Furthermore, the minister said in August that Saudi Arabia’s master plan to develop logistics centers in the Kingdom will help improve transport services and contribute to infrastructure development. 

He noted that the new master plan will also strengthen Saudi Arabia’s connection with global markets, as the Kingdom is strategically placed in the middle of three continents.   

Saudi Arabia’s NSTL aims to position the Kingdom as one of the top 10 countries globally in the logistics performance index by the end of this decade, aligned with the goals outlined in Vision 2030.