Umrah and Eid Al-Fitr revive GCC region’s hospitality industry

Umrah and Eid Al-Fitr revive GCC region’s hospitality industry
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Saudi Arabia’s Ministry of Tourism worked on raising pilgrim capacity in Makkah and Madinah ahead of the holy month to meet the growing demand for accommodation during the season. (SPA)
Umrah and Eid Al-Fitr revive GCC region’s hospitality industry
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Over 9 million pilgrims were reported to have performed Umrah during the first 10 days of Ramadan. (SPA)
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Updated 24 April 2023
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Umrah and Eid Al-Fitr revive GCC region’s hospitality industry

Umrah and Eid Al-Fitr revive GCC region’s hospitality industry
  • Saudi Arabia’s hotel sector witness significant resurgence due to the huge surge in demand

RIYADH: The holy month of Ramadan is a period of self-reflection and spiritual growth for Muslims all around the world. This year was no different.

Other than increase in worship, giving charity and helping others in need, one practice that tends to increase manifold during the month of Ramadan is the performance of Umrah, a pilgrimage to Makkah that can be undertaken at any time of the year.

During the first 10 days of Ramadan alone over 9 million pilgrims were reported to have performed Umrah, according to Gulf News. This was reflected in Saudi Arabia’s hotel sector which witnessed a significant resurgence.

Surge in hotel occupancy and rates

Room occupancy in Makkah’s central areas hit 100 percent during the last 10 days of the holy month, the highest level since the pandemic, according to Bassam Khanfar, manager of one of the hotels in the Aziziyah neighborhood. Umrah pilgrims increase significantly during the last 10 days of the month as they are considered the holiest and most blessed days of the month.

This resulted not only in high room occupancies in Makkah but also in record room rates which climbed to new highs due to the huge surge in demand, according to the chairman of the Hajj and Umrah Committee of the Makkah Chamber, Abdullah Al-Qadi.

Al-Qadi noted that hotel rates, particularly in Makkah, are determined by certain factors including supply and demand, proximity to the Grand Mosque, room views and amenities.

Well-being of Umrah pilgrims

There is no doubt that Saudi Arabia’s Ministry of Tourism has a significant role to play when it comes to the well-being of Umrah pilgrims during Ramadan.

In fact, this year, the ministry worked on raising pilgrim capacity in Makkah and Madinah ahead of the holy month to meet the growing demand for accommodation during the season. 

Back in February, the Kingdom’s Tourism Minister Ahmed Al-Khateeb, on his Twitter page, said that the ministry was planning to operate an additional 9,000 hotel rooms in Madinah before Ramadan.

By March, Abdulrahman bin Abdulaziz Al-Sudais, one of the nine imams of the Grand Mosque, announced that all services provided at the Two Holy Mosques namely the Grand Mosque and the Prophet’s Mosque were fully ready.

The operational status of all escalators, elevators, the sound system and all technical service, engineering, awareness and guidance services were ready to accept visitors from all over the world, Al-Sudais stressed.

In addition to this, there was a specialized team that supervised the provided services to ensure that they were implemented in accordance with certain established standards using top-notch technologies.

Rise in demand from GCC countries

Other Gulf Cooperation Council countries like Qatar and the UAE also witnessed a significant jump in demand for Umrah pilgrims this year especially in the period prior to and during the holy month.

For instance, owners and managers of Umrah and Hajj campaigns in Qatar disclosed that the number of pilgrims during Ramadan surged 100 percent mainly due to the fact that land travel has resumed further boosting demand, according to Gulf Times newspaper.

Similarly, the UAE experienced an increase in Umrah pilgrimage both prior and during the holy month to the extent that Umrah operators in the country confirmed that over 5,000 people traveled from the UAE to Makkah by bus on a weekly basis, according to Jaffer Pulappatta, who facilitates Umrah pilgrimage for large groups.

In general, since the end of the COVID-19 pandemic, the Saudi government has taken major steps to enhance the Hajj and Umrah experience. 

One of the steps undertaken by the government in an attempt to enhance and further elevate the Umrah experience is to apply digital transformation and artificial intelligence to play an active role in the mobility of worshippers and visitors to holy sites.

The newly introduced AI technologies around the mosques have been helping to control crowds, ensuring that the right number of people is present anywhere around the sites at any given time. AI will be a game-changer for the ease and convenience of crowd mobility, which will reduce risks of unfortunate accidents or stampedes.

Impact of Eid Al-Fitr holidays

After Ramadan season comes Eid Al-Fitr holidays, which is also seen to have quite a significant impact on hotel occupancy in key markets in the GCC region.

According to an STR report, which is a benchmarking tool that compares a hotel’s performance in relation to a group of similar hotels, Abu Dhabi and Dubai have showed a spike in occupancy bookings on Saturday, April 22, at 59.7 percent and 60.3 percent respectively.

“While typically slower during Ramadan, leisure travel within the Middle East is set to resume during Eid,” said STR’s account executive, Middle East and Africa, Kostas Nikolaidis.

FASTFACTS

• Hotel rates, particularly in Makkah, are determined by certain factors including supply and demand, proximity to the Grand Mosque, room views and amenities.

• The UAE experienced an increase in Umrah pilgrimage both prior and during the holy month to the extent that local Umrah operators confirmed that over 5,000 people traveled from the UAE to Makkah by bus on a weekly basis.

“Many countries offer paid holidays for three to five days post-Ramadan, which is where we typically see spikes in occupancy,” he added.

In Qatar, for instance, the occupancy on the books is at its peak on Sunday, April 23, at 42.3 percent.

This comes as “this year Qatar announced an 11-day holiday, further extending the length of travel time available to celebrate the end of the holy month,” Nikolaidis explained.

“Qatar naturally operates at a lower occupancy when compared to Abu Dhabi and Dubai. The extended Eid holiday period in the market this year may lead to lower occupancy peaks as demand could spread across more days,” he continued.

Overall, Umrah and Eid Al-Fitr holidays are playing a key role in reviving the hospitality industry, signaling a return to the strong and sturdy performance recorded across the GCC region.


Saudi Arabia announces oil production cuts extension to the end of 2023

Saudi Arabia announces oil production cuts extension to the end of 2023
Updated 13 sec ago
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Saudi Arabia announces oil production cuts extension to the end of 2023

Saudi Arabia announces oil production cuts extension to the end of 2023

RIYADH: Saudi Arabia will continue the voluntary cut of one million barrels of oil per day starting November until the end of December 2023, the Ministry of Energy has announced.

The Kingdom's production for the final two months of the year will be approximately 9 million bpd.


Saudi Ports Authority rises in global maritime index Q3 report

Saudi Ports Authority rises in global maritime index Q3 report
Updated 03 October 2023
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Saudi Ports Authority rises in global maritime index Q3 report

Saudi Ports Authority rises in global maritime index Q3 report

RIYADH: Confirming the progressive trajectory of Saudi Arabia’s maritime sector, the Saudi Ports Authority, commonly known as Mawani, has jumped in the global maritime index for the third quarter of 2023.  

As outlined in a recent report from the UN Conference on Trade and Development, the data highlights a leap from 76.16 points in the second quarter to 77.66 points in the third quarter of the year, the Saudi Press Agency reported.

The uptick reflects Mawani’s commitment to strengthening the competitive capabilities of Saudi ports on the global stage, bolstering the maritime transport sector, enhancing networks, and refining logistics services.

Commenting on the achievement, Saleh Al-Jasser, Saudi minister of transport and logistics services and chairman of Mawani, emphasized that the Kingdom’s advancement is in alignment with the objectives of the National Strategy for Transport and Logistics Services.  

He also pointed to Mawani’s success in improving maritime shipping, with the introduction of 24 new services in 2023 alone.  

This move fortifies trade and export activities and strengthens the Kingdom’s connection to global markets through enhanced operational capabilities, maritime communication routes development, and an uplifted competitive stature.

The maritime network connectivity index, which gauges the interconnection levels of global ports with shipping line networks quarterly, incorporates several sub-indicators, including the scheduled ship visits to the country per week and the number of regular service routes offered by vessel lines to and from the national ports.

Earlier this year, Saudi Arabia celebrated climbing 17 global ranks in the Logistics Performance Index issued by the World Bank.  

On a separate ranking, the Kingdom’s ports rose to the 16th position in the UN Conference on Trade and Development’s Liner Shipping Connectivity Index in June.  

Moreover, Saudi Arabia achieved significant progress in the World Bank’s Logistics Performance Index, jumping 17 places to reach the 38th position in 2023.  

This marks a notable improvement compared to its rankings of 55 in 2018 and 52 in 2016.  

The Kingdom currently has 97 shipping links that connect to 348 international ports.


UAE’s ADNOC obtains global certification to supply sustainable aviation fuel 

UAE’s ADNOC obtains global certification to supply sustainable aviation fuel 
Updated 03 October 2023
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UAE’s ADNOC obtains global certification to supply sustainable aviation fuel 

UAE’s ADNOC obtains global certification to supply sustainable aviation fuel 

RIYADH: The UAE is all set to lead the Middle East in producing sustainable aviation fuel, with Abu Dhabi National Oil Co.’s Ruwais refinery receiving the International Sustainability and Carbon Certification. 

According to the Emirates News Agency, or WAM, the certification makes ADNOC the first company in the Middle East to supply the aviation sector with SAF and reinforces its sustainability pledge. 

The SAF is produced using cooking oils as feedstock and is blended with jet fuel at the Ruwais refinery. 

“Developing sustainable aviation fuel is an essential part of the company’s strategy to provide low-emission fuel to its customers,” said Sultan Albigishi, the acting CEO of ADNOC Refining, in a statement. 

Based in Cologne, ISCC is a global system for certifying the sustainability of agricultural, industrial, and food products. ISCC covers a wide range of products across multiple markets. 

By obtaining the international certificate for SAF production through its existing refineries, ADNOC can supply biofuel to international airlines in Abu Dhabi.  

According to WAM, the company will release its first batch of SAF later this month, which will be enough to fuel a 787-10 Dreamliner flight from Abu Dhabi to Paris. 

“Obtaining the international certificate for sustainability and carbon represents an important progress in ADNOC’s journey to achieve sustainability,” said Ahmad bin Thalith, the acting CEO of ADNOC Global Trading, in the statement. 

ADNOC Global Trading is responsible for providing vital raw materials suitable for refining operations. Trading operations include biofuels and other sustainable fuel alternatives to its global and local customers. 

The group continues to implement a qualitative shift and take practical steps to make today’s energy cleaner while investing in future clean energies to enhance its position as a reliable global energy provider. 

As part of its ongoing efforts to support the UAE’s strategic initiative to achieve climate neutrality by 2050, ADNOC recently announced that it will bring the date of attaining its climate neutrality goal closer to 2045 instead of 2050. 


Closing bell — Saudi main index drops 54 points to close at 10,952

Closing bell — Saudi main index drops 54 points to close at 10,952
Updated 03 October 2023
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Closing bell — Saudi main index drops 54 points to close at 10,952

Closing bell — Saudi main index drops 54 points to close at 10,952

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend for the third consecutive day, as it shed 53.60 points or 0.49 percent to close at 10,952.34 on Tuesday.

The total trading turnover of the benchmark index was SR4.89 billion ($1.30 billion) as 74 stocks advanced, while 143 declined.

Saudi Arabia’s parallel market Nomu slipped on Tuesday, declining by 247.82 points to 22,544.21, while the MSCI Tadawul Index also fell by 0.44 percent to close at 1,407.13.

Alinma Tokio Marine Co. was the best-performing stock of the day on the main index. The company’s share price soared by 9.99 percent to SR15.20.

Other top firms include Middle East Healthcare Co. and Al Sagr Cooperative Insurance Co., whose share prices edged up by 4.92 percent and 3.69 percent, respectively.

Electrical Industries Co. was the poorest performer of the day, with its share price declining by 8.02 percent to SR1.95.

On the announcements front, Saudi Top for Trading Co., listed on the Kingdom’s parallel market, announced that it has signed a Shariah-compliant credit facility agreement with Riyad Bank worth SR30 million.

The newly-listed company said that SR20 million would be allocated to repay suppliers’ dues, while the remaining SR10 million will be used to issue letters of guarantee.

Meanwhile, Saudi multinational dairy firm Almarai said that its board has approved an investment plan of SR405 million to increase its fresh bakery capacity, expand its products, and enter the frozen bakery segment in the Kingdom.

According to a Tadawul statement, the new investment plan will be financed by Almarai’s internal cash flow, with an expected completion period of two years.


Bahrain’s economy grows 2% as non-oil sector expands

Bahrain’s economy grows 2% as non-oil sector expands
Updated 03 October 2023
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Bahrain’s economy grows 2% as non-oil sector expands

Bahrain’s economy grows 2% as non-oil sector expands

RIYADH: Bahrain recorded a 2 percent growth in real gross domestic product in the second quarter compared to the same period last year, according to its Ministry of Finance and National Economy. 

In its latest report, the department disclosed that the growth in real GDP was fuelled by a rise in the non-oil sector, also of 2 percent. 

The transportation and communication activities topped the rankings, reporting an annual growth of 13.3 percent in the second quarter, followed by hotels and restaurants, which grew by 9.6 percent. 

Real estate and business activities rose 4.9 percent, while financial corporations advanced by 4.7 percent annually over the second quarter of last year. 

The oil sector also reported an annual increase of 2.2 percent in business activity, spurred by a 2.9 percent rise in the combined production of Abu Sa’afa and the onshore Bahrain oil fields.   

Like many oil-dependent nations, Bahrain has recognized the need to diversify its economy.   

Various initiatives have been taken to support this, including in the financial services, tourism and hospitality, and real estate sectors.

The report further stated that the non-oil industry contributed 82.9 percent of Bahrain’s real GDP between April and June,

The financial sector made up the largest segment of the total, with its size reflecting the government’s focus on financial technology and digital banking.

The oil sector was the second-largest contributor to real GDP at 17.1 percent, while government services came in third, accounting for 14.1 percent.

The manufacturing sector dropped by 0.9 percent in the second quarter compared to last year’s corresponding period yet controlled 13.6 percent of the country’s real GDP. 

Bahrain has also been promoting the manufacturing and industrial sectors to reduce dependency on oil, including nurturing Aluminum Bahrain – one of the largest producers of the metal in the world – and growing the petrochemical industry. 

These diversification efforts align with Bahrain Economic Vision 2030, a comprehensive development plan to transform the country’s economy. 

The quarterly report further projects real GDP growth of 2.9 percent in 2023 and 3.2 percent in 2024, with the non-oil sector growing by 3.5 percent and 3.8 percent, respectively, during those years.