Investment in tourism driving KSA’s hospitality sector: report

Investment in tourism driving KSA’s hospitality sector: report
In Riyadh, average annual rents for super regional and regional malls increased by 9 percent and 8 percent, respectively.
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Updated 12 August 2023
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Investment in tourism driving KSA’s hospitality sector: report

Investment in tourism driving KSA’s hospitality sector: report

The Tourism Development Fund announced signing an agreement with the General Authority for Small and Medium Enterprises as part of efforts to offer support and expand SME operations in the tourism sector. Furthermore, in addition to ongoing visa reforms, a well-planned events calendar is driving the Kingdom’s performance in the hospitality sector, according to JLL’s KSA Real Estate Market Overview Report for Q2 2023.

These factors largely underpinned the strong performance across both Riyadh and Jeddah’s hospitality markets last quarter. The latest data from STR shows Riyadh’s occupancy reached 62 percent and the average daily rate climbed to $196 for year to June 2023, which led to revenue per available room rising by 15 percent year-on-year to $120.

Similar improvements were also noted in Jeddah’s hospitality market, with the occupancy rate increasing to 64 percent for YT June 2023. Additionally, for the same period, ADR rose to $215, which consequently resulted in RevPAR increasing by 21 percent to reach $137 when compared to the same period last year.

While the total existing hotel stock remained stable at 21,000 keys in Riyadh and 16,000 keys in Jeddah in the second quarter, approximately 1,400 keys are scheduled to be handed over in the capital and 600 keys are planned to be completed in Jeddah in the remainder of this year. 

Today, the Kingdom is being recognized as one of the world’s biggest investors in tourism, with existing and new investments set to drive its growth.

Saud Alsulaimani, country head, Saudi Arabia, at JLL

“As the Kingdom intends to draw 100 million visitors by 2030 in line with its ongoing diversification efforts, the robust performance in the hospitality sector reflects the success of its numerous strategic initiatives that are helping to boost tourism,” said Saud Alsulaimani, country head, Saudi Arabia, at JLL. “By streamlining visa processes, increasing air connectivity, developing multiple tourist attractions — and ultimately market accessibility — and hosting several local and global events, the Saudi government has made significant efforts to attract investment into the country. Today, the Kingdom is being recognized as one of the world’s biggest investors in tourism, with existing and new investments set to drive its growth and position it as a year-round tourist destination.”

The second quarter saw retail space in Jeddah grow by approximately 102,300 square meters to 1.9 million square meters, whereas the completion of two small neighborhood malls and an expansion of a regional mall added approximately 49,500 square meters of retail gross leasable area in the capital, increasing the total stock to 3.4 million square meters. 

In Riyadh, average annual rents for super regional and regional malls increased by 9 percent and 8 percent, respectively. However, Jeddah’s retail market softened, and average rents for super regional malls decreased by 17 percent year-on-year in Q2. Conversely, average rents in regional malls in Jeddah increased marginally by 1 percent when compared to the same period last year. 

Undergoing rapid growth and transformation, retail developments in the Kingdom are no longer seen as a place to shop alone. 

Malls have evolved into a place to socialize with an increased focus on enhancing the customer experience. Additionally, in line with the growing popularity of online e-commerce, there has been an increasing shift toward omnichannel retailing. As retailers aim to cater to the evolving needs of customers, they are offering the ability to shop online, in-store or through a combination of both channels. 

Meanwhile, the Kingdom’s residential sector continued to respond to market dynamics. Despite the addition of around 8,000 new units, pushing Riyadh’s residential stock to 1.4 million units, and about 4,000 units handed over in Jeddah in Q2 2023, a slowdown in residential transactions was observed due to increasing prices. The total number of transactions decreased by 2 percent in the capital and 17 percent in Jeddah, according to the latest data from the Real Estate General Authority. Demand for apartments and small units has been rising across the Kingdom owing to their relative affordability.


Amazon KSA expands Ramadan meal support drive with Eta’am

The ‘Ramadan Al-Khair’ program is a part of Amazon’s global efforts to combat food insecurity for underprivileged communities.
The ‘Ramadan Al-Khair’ program is a part of Amazon’s global efforts to combat food insecurity for underprivileged communities.
Updated 25 February 2024
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Amazon KSA expands Ramadan meal support drive with Eta’am

The ‘Ramadan Al-Khair’ program is a part of Amazon’s global efforts to combat food insecurity for underprivileged communities.

This holy month of Ramadan, Amazon Saudi Arabia expands its longstanding partnership with the Saudi Food Bank (Eta’am), further strengthening its support to serve families in need. Building on four years of collaboration to deliver iftar meals, pack and deliver food essentials, organize community iftars, and more, the company will now offer customers across Saudi Arabia a seamless way to contribute essential day-to-day food items to underprivileged families through Amazon.sa.
Customers can buy the special Ramadan Al-Khair Box on Amazon.sa and Amazon will deliver the box to Eta’am who will help provide these necessities to those in need during Ramadan. Alternatively, customers can also choose to have the Ramadan Al-Khair Box delivered through Amazon to a family in need of their choice by entering the beneficiary’s delivery details. The Amazon.sa Ramadan Al-Khair Box includes essential grocery items such as oil, sugar, flour, rice, milk powder, tea, pasta, tomato sauce, and dates.

This year our partnership with Eta’am takes on even greater significance as we enable millions of customers on Amazon.sa to provide essential food items to Eta’am or to a beneficiary of their choice through a simple click, says Abdo Chlala, Country manager, Amazon Saudi Arabia

The initiative is part of Amazon’s overarching “Ramadan Al-Khair” program that is dedicated to supporting the most pressing needs for the most vulnerable. In addition to the hundreds of Amazon employees who will volunteer their time and efforts to pack and deliver the iftar meals and the Ramadan Al-Khair Boxes, this year’s program will enable millions of Amazon customers to extend their generosity to thousands of families in need across both urban and remote locations through just one click on Amazon.sa.
Amazon’s scale, advanced logistics technology and last mile network will support Eta’am’s efforts to reach beneficiaries with fresh iftar meals across even the most remote areas in Saudi Arabia. Amazon’s support goes beyond leveraging its delivery network to spread the joy of the season, it mobilizes hundreds of employees to pack and deliver hundreds of thousands of iftar meals to underprivileged families in local communities.
Faisal Al Shoshan, chief executive officer of Saudi Food Bank Eta’am, said: “Eta’am is dedicated to preserving safe and sustainable food resources in Saudi Arabia and building alliances aimed at supporting vulnerable families and individuals. Our alliance with Amazon has grown from year to year and we are happy to see it approach a new dimension this year by enabling millions of customers who shop on Amazon.sa the ability to extend their support. We believe in the power of partnerships to reach more beneficiaries across the Kingdom. Amazon’s vast network and logistics technology goes a long way in touching the lives of more people every holy month.”
Inspired by Saudi Vision 2030 goals, Amazon continues its tradition of helping underserved communities during Ramadan and beyond through a combination of monetary support, delivery services and volunteer support throughout the year.
Abdo Chlala, country manager, Amazon Saudi Arabia, said: “As we continue to serve customers during this busy season, we are also leveraging our scale as a force for good through our ‘Ramadan Al-Khair’ program. This year our partnership with Eta’am takes on even greater significance as we enable millions of customers on Amazon.sa to provide essential food items to Eta’am or to a beneficiary of their choice through a simple click. By leveraging the holistic power of Amazon’s operations network, our technology, our people and now our customers, we are poised to meaningfully scale our efforts to benefit thousands of families and individuals this Ramadan.”
The “Ramadan Al-Khair” program is a part of Amazon’s global efforts to combat food insecurity for underprivileged communities. The company continues to provide critical support to local partners around the world who share this commitment.
 

 


Alfanar Engineering Services awarded at SATORP ceremony

Alfanar Engineering Services awarded at SATORP ceremony
Updated 25 February 2024
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Alfanar Engineering Services awarded at SATORP ceremony

Alfanar Engineering Services awarded at SATORP ceremony

Known for its outstanding projects execution, Alfanar Engineering Services, a leading engineering service provider of utility assets and electrical equipment, was awarded by Saudi Aramco Total Refining and Petrochemical Company for the work provided in the scheduled maintenance of the first production line during October 2023.
This commendation highlighted Alfanar Engineering Services’ significant role in completing the project, which included the scope of medium voltage switchgear, motor control centers, distribution panels, transformers, motors, and low voltage switchgear across five locations within the SATORP complex.

HIGHLIGHT

This commendation highlighted Alfanar Engineering Services’ significant role in completing the project, which included the scope of medium voltage switchgear, motor control centers, distribution panels, transformers, motors, and low voltage switchgear across five locations within the SATORP complex.

 This acknowledgment took place at a ceremony held by SATORP in Jubail, honoring contractors involved in the scheduled maintenance in 2023. SATORP is one of the most advanced refineries in the world with a daily processing capacity of 460,000 barrels of heavy crude for oil and petrochemicals production.
Abdullah Al-Suwailem, the CEO of SATORP, thanked Alfanar Engineering Services for their contribution in the completion of the scheduled maintenance ahead of time, emphasizing their reliability as a partner committed to delivering exceptional services.
 Executive Vice President at Alfanar Projects, Amer Al Ajmi, stated that based on the increasing growth of power and infrastructure industries, specialized business units have been established and structured under Alfanar Engineering Services.
The company, he expressed, has always been committed to clients, providing them with integrated solutions within the predefined time frame, and with strict adherence to quality standards and safety measures.
Alfanar Engineering Services owns one of the largest facilities in the Middle East with the most advanced equipment.
Their services include rewinding, repairing, and re-engineering of power transformers, motors, and generators, calibration and repair of electrical equipment, preventive and corrective maintenance, testing and commissioning of more than 1,000 projects across different regions in the Kingdom.

 


Tharwat for Financial Securities participates in Restatex Riyadh Real Estate Exhibition 2024

Photo: (Twitter @TharwatSa)
Photo: (Twitter @TharwatSa)
Updated 25 February 2024
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Tharwat for Financial Securities participates in Restatex Riyadh Real Estate Exhibition 2024

Photo: (Twitter @TharwatSa)

Tharwat for Financial Securities — a leading Saudi investment company specialized in the provision of funding, asset management, consulting, and financial services — has reinforced its commitment to advancing the transformation of the Kingdom’s real estate sector. The company participated in the 2024 edition of the Restatex Riyadh Real Estate Exhibition: Saudi Arabia’s largest real estate conference.
Held from Feb. 18 to 21  — under the patronage of the Minister of Municipal Rural Affairs and Housing, Majid bin Abdullah Al-Hogail — at the Riyadh Exhibition Center, the event brought investors, developers, leaders, and decision makers from the Kingdom’s real estate sector and beyond together to explore potential opportunities and solutions to pressing challenges.
In line with Vision 2030, the gathering served as a platform for innovation, showcasing cutting-edge developments and the latest technologies reshaping the wider real estate sector.
Tharwat for Financial Securities was represented at the exhibition by the company’s CEO Yazid Al-Huwaishel and other leading executives. As a company committed to accelerating the transformation of Saudi financial services — contributing to the Kingdom’s growth and development as a global investment hub — Tharwat for Financial Securities’ participation in the event extended the firm’s efforts to enhance the Saudi Arabian real estate ecosystem, strengthening the sector and boosting its financial prospects.
Yazid Al-Huwaishel, CEO, Tharwat for Financial Securities said: “Deeply rooted in the Kingdom and committed to creating a brighter future for the people, communities, and entities we serve across the country, we have firmly established ourselves as one of the leading proponents of Saudi wealth creation. Be it through real estate and investment funds, or empowering investors with a diverse and comprehensive suite of innovative investment product and services, we aim to play our part in achieving the goals of Vision 2030, creating a greater, more prosperous Saudi Arabia.”
He added: “As part of this mission, we were delighted to have taken part in this year’s Restatex Riyadh Real Estate Exhibition. The timely conference provided a unique opportunity for us to spotlight the wide-ranging investments we have been making in the Kingdom’s real estate space. It also enabled us to outline our vision for the future and showcase the latest investment opportunities in the sector.”
Tharwat for Financial Securities is an investment company that provides funding, asset management, consulting, and financial services. Managing real estate assets estimated at more than SR5 billion, the company aims to create additional value for investors through investment diversification and by building strategic alliances with regional and local partners..
Since its establishment in 2014, Tharwat for Financial Securities has worked in a fully-aligned manner with leading authorities to realize the Kingdom’s economic potential. The company aims to enhance governance principles and financial resources, leveraging its technical expertise and standing in the asset management and real estate investment sector to benefit its clients and partners.

Set apart by its extensive network, global outlook and innovation-led approach, the firm has built its success by exploring and capitalizing on  investment opportunities in a diverse array of sectors, launching and overseeing hospitality, residential, entertainment, tourism, logistics and infrastructure projects.

 


Peet’s Coffee makes grand entrance into Saudi market

Peet’s Coffee makes grand entrance into Saudi market
Updated 20 February 2024
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Peet’s Coffee makes grand entrance into Saudi market

Peet’s Coffee makes grand entrance into Saudi market

Peet’s Coffee, the iconic original craft coffee brand, has officially marked its entry into the Kingdom of Saudi Arabia with the inauguration of six new stores. This significant move underscores Peet’s steadfast commitment to embedding its esteemed legacy and footprint within the vibrant Saudi market.

The expansion into Saudi Arabia is a pivotal component of Peet’s Coffee’s overarching strategy to bolster its presence in the Middle East. Following its successful debut in the UAE last year, Peet’s Coffee recognizes the enormous potential within Saudi Arabia, a country renowned for its deep-rooted coffee culture and discerning coffee aficionados.

Peet’s Coffee is renowned for its bold and rich flavors, a reputation built upon its meticulous selection of the highest quality beans sourced from around the world. Each cup is expertly crafted by skilled baristas, ensuring a superior coffee experience for customers. Additionally, Peet’s remains committed to sustainability, with all coffee sourced in a manner that respects farmers, the environment, and communities.

The expansion into Saudi Arabia comes at a time of significant growth in the nation’s coffee industry. As coffee continues to hold a special place in the Saudi society, Peet’s Coffee looks forward to becoming an integral part of the country’s rich coffee tradition, fostering connections and creating memorable experiences for coffee lovers across the Kingdom. 

Peet’s Coffee has positioned itself to leave a notable mark on the Saudi coffee landscape with its flagship store situated in the vibrant area of The Zone in Riyadh. Complemented by strategic outlets in key locations across Riyadh, including Sheik Jaber, Al Munsiyah, Euromarche, Al Takhassousi, and Granada Mall, the brand is primed to make a significant impact. This expansion underscores Peet’s dedication to upholding quality and excellence while also embracing and enhancing local coffee culture in Saudi Arabia.

Peet’s Coffee flagship stores feature a Discovery Bar where guests can take a personalized coffee journey and experience Peet’s single origins and signature coffee blends, through tasting and full sensory experience led by baristas. The coffee is served in an array of signature beverages that include Peet’s Signature Havana Cappuccino, The Black Tie and the Classic V60. In addition to its exceptional coffee selection, Peet’s Coffee also delights guests with a delectable selection of freshly made food options from grilled halloumi and spicy tuna sandwiches to a range of irresistible desserts like the Peet’s Tiramisu and the chocolate cake — there’s something to satisfy every palate. 

Known for its inviting ambiance, Peet’s welcomes guests into a bright and spacious environment, characterized by a blend of cozy yet modern design elements. With wooden panels complementing cream interiors, the space exudes warmth and sophistication. 

Founded by Alfred Peet in California in 1966, Peet’s Coffee has since become synonymous with exceptional flavor and unwavering quality. With a growing number of coffee bars across the world, Peet’s Coffee continues to lead the way in the specialty coffee movement.


Gulf Air Group Holding honors ‘Tahleeq 3’ graduates at Bahrain Airport Company

Gulf Air Group Holding honors ‘Tahleeq 3’ graduates at Bahrain Airport Company
Updated 20 February 2024
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Gulf Air Group Holding honors ‘Tahleeq 3’ graduates at Bahrain Airport Company

Gulf Air Group Holding honors ‘Tahleeq 3’ graduates at Bahrain Airport Company

Zayed R. Alzayani, chairman of Gulf Air Group Holding, honored the graduates of the third batch from the “Tahleeq” program, an ambitious capacity building initiative aimed at creating future leaders in the Bahraini aviation sector.

The graduation ceremony was attended by Dr. Jeffrey Goh, Chief Executive Officer of Gulf Air Group Holding; Mohammed Yousif Al Binfalah, Chief Executive Officer of Bahrain Airport Company; and other executives.

The “Tahleeq” program, launched in 2014 by BAC, in cooperation with Tamkeen, seeks to develop the capabilities of young Bahrainis, equip them with the technical and specialized skills required to continue developing the aviation industry in Bahrain, and reinforce its competitiveness and contribution to the development process in the kingdom, in line with the Bahrain Economic Vision 2030.

Alzayani congratulated the graduates and praised their efforts and dedication during the program. He said: “We wish the graduates success in their careers, and look forward to seeing them make progress and to effectively contribute to the aviation sector in the Kingdom of Bahrain. Investing in Bahraini talent has always been the right choice and has proven its outcome in various sectors.”

“The launch of ‘Tahleeq’ in parallel with new passenger terminal project, which succeeded in claiming international recognition and awards, has given the program a significant boost and created a strong foundation for its success. Today’s graduates will be tomorrow’s aviation sector leaders who will shape its success with the experience they have gained and their ambition,” he added.

 The “Tahleeq” program has been meticulously curated, with the first two years dedicated to theoretical and experiential training, including five modules on soft skills at Gulf Aviation Academy in partnership with the Bahrain Institute for Banking and Finance. 

The technical courses were provided by Airport Council International, and all candidates were awarded the GSN Initial (Silver) Diploma. The last two years of the program are designated for practical training and gaining experience through working on various projects in BAC.

BAC, a subsidiary of GFG, is responsible for enhancing the capabilities of Bahrain International Airport and increasing its contribution to the national economy, in line with the strategic goals set by GFG, through formulating plans and measures to continuously upgrade airport services, operations and infrastructure to accommodate the growing aviation industry and the increasing number of travelers.