Red Sea Global’s giga-projects looking to involve Japanese companies

Red Sea Global’s giga-projects looking to involve Japanese companies
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The Red Sea Project aims to be completed by 2030 and to be powered 100 percent by renewable energy. (ANJ)
Red Sea Global’s giga-projects looking to involve Japanese companies
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The Red Sea Project aims to be completed by 2030 and to be powered 100 percent by renewable energy. (ANJ)
Red Sea Global’s giga-projects looking to involve Japanese companies
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The Red Sea Project aims to be completed by 2030 and to be powered 100 percent by renewable energy. (ANJ)
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Updated 18 September 2023
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Red Sea Global’s giga-projects looking to involve Japanese companies

Red Sea Global’s giga-projects looking to involve Japanese companies

TOKYO: Red Sea Global outlined its giga-projects and opportunities in Saudi Arabia for Japanese companies interested in being part of the development of tourist destinations along the Red Sea.

The event was hosted by developer Red Sea Global with participants including the MEED information group and construction company BEC Arabia.

RSG is facilitating an ambitious sustainable tourism industry in Saudi Arabia, which is keen to diversify its economy under its Vision 2030 plan, particularly in the field of tourism. So far, RSG has been involved in the awarding of more than $7.2 billion worth of contracts on the Red Sea project and $3.5 billion on the Amaala project. In 2023, it plans to procure more than $8 billion in contracts.

Ed James of MEED/GlobalData outlined the many opportunities that Saudi Arabia offers as its economy moves away from oil and into other fields, pointing out that nearly half of the contracts awarded in the last two decades have gone to international companies from South Korea, Japan, China and Italy.

RSG’s Ben Edwards gave an insight into the scale of existing and future projects, which also cover other developments in places such as Qatar and Egypt. He also explained potential costs, material and supply requirements and how companies can be part of the new projects.

“We are the developers behind regenerative tourist destinations on the Red Sea coast in Saudi Arabia, and Phase 1 involves the construction of 16 very luxurious hotels, which are a mixture of inland hotels, some individual island hotels and one large island that has 11 hotels,” he explained. “Add to that Red Sea International Airport and all of the associated backup housing infrastructure of a big tourism resort. A little further up the coast, we have the Amaala project and Phase 1 there consists of eight hotels and a Marina Yacht Club area.

“The opportunities for the Japanese market are very broad as we are not only the designers and constructors of these hotels, we are the operators of them. So, we are procuring the full range of goods and services not only for the design and construction of the resorts and assets but also the operational work streams such as security, catering, air services, ground transportation, even landscaping. So, there are many wide and varied opportunities for Japanese companies, and we are excited to develop the relationships.”

The presentation in Japan aimed to attract the involvement of Japanese companies to the projects, as RSG’S Procurement Executive Director Mohammed Al-Fardan explained: “We are here today in Japan to show the opportunities we have in Red Sea Global and also the projects we have in the pipeline — nine or 10 projects that we have in the master planning phase. Here at Red Sea Global, and also as Saudis, we believe in the Japanese contractors’ and suppliers’ quality and capabilities. We have had a good experience with them at Red Sea Global. We invite all Japanese contractors and suppliers to participate and to join us in our journey.”

Shigeru Nakajima, a senior general manager for Mitsubishi Heavy Industries, told Arab News Japan that his company has had good experiences working in the Kingdom.

“We have long been involved in the Kingdom’s projects in the 1990s and at the beginning of the 2000s. So far, we could not join this project, but we heard that contract conditions had eased, and payment conditions had been worked out, so we really wanted to get involved in Saudi projects again,” he said.

The Red Sea project was launched in 2017 and this year will see the opening of three resorts and Red Sea International Airport, currently for domestic flights only but with international flights to be added next year. The Red Sea project aims to be completed by 2030 and to be entirely powered by renewable energy.

This article originally appeared on Arab News Japan


Saudi Arabia to host 12th session of the OIC’s statistical committee

Saudi Arabia to host 12th session of the OIC’s statistical committee
Updated 7 sec ago
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Saudi Arabia to host 12th session of the OIC’s statistical committee

Saudi Arabia to host 12th session of the OIC’s statistical committee

RIYADH: Amid efforts to enhance communication and collaboration between countries, Saudi Arabia is set to host the 12th session of the Organization of Islamic Cooperation statistical committee.

According to a statement by the General Authority for Statistics, the two-day meeting will take place from Oct. 3-4 in Jeddah.

The engagement cements the Kingdom’s standing globally and in the Arab world, given that this is the first time the gatherings have been held outside its headquarters in Turkey.


KSA expands coffee production to further diversify economy

KSA expands coffee production to further diversify economy
Updated 16 min 50 sec ago
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KSA expands coffee production to further diversify economy

KSA expands coffee production to further diversify economy

RIYADH: In an effort to further diversify its oil-dependent economy, Saudi Arabia is increasing its coffee production to achieve a relative balance with crops that yield high economic returns. The country aims to plant 1.2 million coffee trees by 2026, reported the Saudi Press Agency.

As the Kingdom ascends to the ranks of the world’s top 10 coffee-consuming nations, the government is prioritizing this commodity through various initiatives, aiming to stimulate sector growth and increase production. 

In a country where nearly 400,000 Arabica coffee trees yield over 800 tons of coffee annually, primarily in Jazan, Asir and Al-Baha regions, this shift underscores coffee’s burgeoning cultural and economic significance.

In commemoration of World Coffee Day, observed annually on Oct. 1, the Ministry of Environment, Water, and Agriculture has released substantial statistics about coffee farming in the southern region.

Currently, there are over 2,535 coffee farms in this area, including more than 500 model coffee farms. 

The emphasis on expanding Arabica coffee production in 15 additional governorates in the southwestern region aligns with the objectives of Vision 2030, demonstrating the government’s commitment to supporting the national economy through the coffee industry.

This development underscores the dual role of coffee as a cultural tradition and an economic force in the country.


First regional sukuk meet calls for scientific approach to deal with risks

First regional sukuk meet calls for scientific approach to deal with risks
Updated 28 min 27 sec ago
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First regional sukuk meet calls for scientific approach to deal with risks

First regional sukuk meet calls for scientific approach to deal with risks

RIYADH: Global financial experts called for a scientifically guided approach to managing the risks associated with sukuk transactions during a meeting in Cairo on Sunday.

This event, held under the theme “The Importance of Strengthening the Role of Sukuks in Sustainable Development: Presentation and Analysis of International Experiences,” was organized by the Arab Administrative Development Organization in partnership with the Albaraka Forum for Islamic Economy and the Egyptian Islamic Finance Association. 

The Saudi Press agency reported that the discussions convened industry leaders to explore how a bond adhering to Islamic finance principles can power investments in sectors aligned with sustainability objectives.

As the global economy undergoes rapid transformation, conference discussions focused on the dynamic role of sukuk in adapting to this evolving landscape.


Abu Dhabi’s non-oil economy surges 12.3% in Q2 to $42bn: SCAD

Abu Dhabi’s non-oil economy surges 12.3% in Q2 to $42bn: SCAD
Updated 43 min 39 sec ago
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Abu Dhabi’s non-oil economy surges 12.3% in Q2 to $42bn: SCAD

Abu Dhabi’s non-oil economy surges 12.3% in Q2 to $42bn: SCAD

RIYADH: Abu Dhabi’s non-oil economy grew by 12.3 percent in the second quarter of 2023, accompanied by a 3.5 percent increase in its overall gross domestic product, reported the Statistics Centre — Abu Dhabi.

The emirate’s real non-oil GDP soared to 154 billion dirhams ($42 billion), marking its highest since 2014. This increase represents a record for the first quarter of the current year, surpassing 146 billion dirhams.

SCAD’s statistical estimates revealed growth in the construction sector, with a year-on-year increase of 19.1 percent, reaching 25.3 billion dirhams.

The financial sector also grew 29.7 percent in the second quarter compared to the same period last year, reaching 18.3 billion dirhams.

The manufacturing sector also advanced 7 percent in the second quarter to 25 billion dirhams compared to the year-ago period.

The real estate sector climbed to 9.8 billion dirhams in the second quarter from 9.3 billion dirhams in this year’s first quarter.

Furthermore, wholesale and retail trade activities reached their highest quarterly value since 2014, amounting to 16.7 billion dirhams.

These activities contributed 5.8 percent to the GDP in the second quarter of 2023.

Ahmed Jasim Al-Zaabi, chairman of the Abu Dhabi Department of Economic Development, emphasized: “The continued strong performance of Abu Dhabi’s economy despite mounting challenges in the global economic landscape reaffirms the success of the emirate’s diversification strategy and adaptability to market shifts.”

Last month, S&P Global Ratings anticipated that the UAE would achieve 3 percent economic growth in 2023, primarily driven by the non-oil sector.

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

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.

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

The rating agency also reported that the employment growth in the UAE last month was at its highest since October 2016, even as the Purchasing Managers’ Index hit 56.6, up from 56.1 in September.


OPEC optimistic on demand, calls for more oil and gas investment

OPEC optimistic on demand, calls for more oil and gas investment
Updated 02 October 2023
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OPEC optimistic on demand, calls for more oil and gas investment

OPEC optimistic on demand, calls for more oil and gas investment

ABU DHABI: The Organization of the Petroleum Exporting Countries is optimistic on demand and sees under-investment as a risk to energy security, Secretary-General Haitham Al-Ghais said on Monday at an energy industry event in Abu Dhabi.

He stressed the importance of continued investment in the oil and gas industry and said he sees calls to stop investing in oil as counterproductive.

“We still see oil demand as quite resilient this year, as it was last year,” Al-Ghais said, noting the group’s forecast was for year-on-year demand growth of more than 2.3 million barrels per day (bpd).

He added that investment in the oil and gas sector was important for energy security.

“We are...running quite low on spare capacity; we have said this repeatedly and this requires a concerted effort by all of the stakeholders to see the importance of investing in this industry,” he said.

The UAE’s Energy Minister Suhail Al-Mazrouei echoed the call and said investment by both international and national oil companies was needed.

“And these investments need the financial world to be willing to finance oil and gas,” Al-Mazrouei said.

He later told reporters that his country is on track to expand its oil production capacity to 5 million bpd by 2027 from 4.2 million bpd currently.