Red Sea Global launches national academy to train and upskill Saudis, CEO reveals

Special Red Sea Global launches national academy to train and upskill Saudis, CEO reveals
John Pagano speaking to Arab News.
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Updated 01 March 2024
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Red Sea Global launches national academy to train and upskill Saudis, CEO reveals

Red Sea Global launches national academy to train and upskill Saudis, CEO reveals

RIYADH: Young Saudis will soon receive further qualifications in terms of technical specializations as the Red Sea National Academy launches, according to the group CEO. 

In an interview with Arab News on the sidelines of the Human Capability Initiative in Riyadh, John Pagano explained that as the entity advances tourism destinations in the Red Sea and Amaala, there will be a requirement for additional participants within the industry to meet the demands of the labor market. 

This aligns with the Saudi Vision 2030 goal of ensuring that the Kingdom’s citizens have the capabilities to compete globally by instilling values, developing basic and future skills, and enhancing knowledge. 

“The industry needs 1.2 million new participants to help deliver this new industry, this new, exciting and important industry from an economic point of view, from a diversification point of view,” Pagano said. 

“We’ve decided that we need to provide the opportunities to train and upskill these young Saudis in an environment that is relevant to where they’re going to ultimately work,” the CEO added. 

He went on to say that the initiative will work on training a couple of thousand students per year, all of whom will ultimately graduate and get jobs within the Red Sea and Amaala projects.

In terms of location, Pagano disclosed that the newly inaugurated academy will reside in Al-Wajh, which sits between the Red Sea and Amaala. 

“It’ll become a hub for not only our training but also as a community center, where we’re going to continue to provide English language courses for the local population to, again, give them opportunities to find new jobs within this new burgeoning industry,” the CEO said. 

He clarified that the group will often bring in specialist providers to conduct the training. In some cases, the group will be doing the training directly themselves. 

“Our preference and our priority would be to give local community residents, you know, a priority if they’re interested in are willing to take on, you know, that burden of going through the training. But ultimately, it’s open for all nationalities that will ultimately work within the destination,” Pagano noted. 

Speaking during a session titled “Developing Human Capabilities – The Power of Tourism,” the CEO explained how the entity plans to propel the local community further. 

“Our first class of vocational students, 430 of them, graduated last July. Almost 40 percent of them came from our local communities on the West Coast and that’s because we aim to benefit those communities where opportunities for advancement have historically been scarce,” he clarified. 

“Our program in airport services is the first of its kind in the nation. We’re also the first in the country to provide vocational training and tourism security. We already have 400 students enrolled and they’re on track to graduate next year, again in time for opening up our resorts,” he also underlined.

“In total, more than 1,300 talents are either studying in our programs or have already graduated from them. And these numbers will add up quickly. By 2030, we expect to have graduated 10,000 vocational students,” Pagano said in his speech.

With regards to the performance of the group in general, the CEO highlighted during the interview with Arab News that: “Last year and into the beginning of this year has been a pivotal, momentous period for us, a milestone.”

This comes as Red Sea has recently opened its first two resorts, including The Six Senses Southern Dunes and the Saint Regis Red Sea Resort. By the end of this year, the group intends to launch four additional resorts, he disclosed. 

“Meanwhile, we’re busy working on 19 other resorts, 11 at Red Sea and eight at Amaala, all of which are going to open next year,” Pagano revealed. 

In terms of operations, the CEO said: “We’re open for business today. The airport is running. So, we have eight flights a week in and out of the Red Sea direct.” 

That said, the destination is currently receiving guests regularly from the local and regional market, including Europeans as well, he added.

“So, we’re in that capacity-building mode where people are now starting to learn about the destination,” Pagano concluded. 

HCI is the first-ever global cooperative platform designed to unify international efforts and enrich the global dialogue on the challenges and opportunities for developing human capabilities. 

According to the HCI website, the two-day event will explore opportunities in various areas, including skill development, the future of work, education, talent, and technology.   

It will bring together policymakers, thought leaders, investors, and entrepreneurs to catalyze international collaboration. It also caters to participants who want to maximize resilience, explore opportunities, and promote innovative policy design and solutions.


Saudis spent more money on electronic devices during the 4th week of May: SAMA data

Saudis spent more money on electronic devices during the 4th week of May: SAMA data
Updated 28 May 2024
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Saudis spent more money on electronic devices during the 4th week of May: SAMA data

Saudis spent more money on electronic devices during the 4th week of May: SAMA data

RIYADH: Saudi Arabia’s point-of-sale spending reached SR11.2 billion ($2.98 billion) in the fourth week of May, official figures showed.

The latest data from the Saudi Central Bank, also known as SAMA, revealed that spending on electronic and electric devices surged by 9.5 percent to reach SR240.4 million.

Beverages and food, which accounts for the largest share at 14.9 percent, saw a 5.9 percent decline, reaching SR1.66 billion, during the week from May 19 to 25.

Meanwhile, transactions at restaurants and cafes, holding a 14.6 percent share, recorded a slower decline of 4.8 percent, amounting to SR1.64 billion. 

Saudi spending on miscellaneous goods and services, including personal care items, supplies, maintenance, and cleaning, constituted the third-highest share and witnessed a 5.1 percent decline that week, reaching SR1.36 billion. 

Despite composing only 1 percent of the week’s overall POS value, spending on education recorded a minimal increase of 0.1 percent to SR152.48 million.

In the past few years, this sector has been allocated the largest share of government expenditure in comparison to other divisions of the economy. 

Efforts are underway to revamp the education system, aiming to equip the national workforce with the necessary skills to thrive in a technological and information-centric global economy.

The hotel sector experienced the largest decline in POS transaction value, dropping 10.9 percent to SR227.13 million.

According to data from SAMA, 35.44 percent of POS spending occurred in Riyadh, with the total transaction value reaching SR3.97 billion. However, this represents a 1.6 percent decrease from the previous week.  

Riyadh has undergone considerable expansion, evolving into a pivotal center for growth and progress. The city is witnessing a surge in new businesses setting up operations, drawn by its vibrant economic landscape and strategic prospects for investment and innovation.

Spending in Jeddah followed closely, accounting for 14.3 percent of the total and reaching SR1.60 billion; however, it marked a 3.1 percent weekly drop. 

The two cities that registered the highest declines in POS spending were Makkah and Madinah, with decreases of 11 percent and 6.8 percent, respectively. The value of transactions in Makkah reached SR380.98 million, while in Madinah, it was SR393.26 million.


Saudi healthcare to advance with major digital tech partnership

Saudi healthcare to advance with major digital tech partnership
Updated 28 May 2024
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Saudi healthcare to advance with major digital tech partnership

Saudi healthcare to advance with major digital tech partnership

RIYADH: The Saudi healthcare system is set to advance as two of the country’s major companies partner to leverage digital technologies to enhance the Kingdom’s capabilities.

SAMI Advanced Electronics Co., a wholly owned subsidiary of SAMI, the nation’s defense and digital solutions provider, has signed a cooperation agreement with the National Unified Procurement Co., a Public Investment Fund company.

The agreement, signed on May 27, will provide solutions for medication tracking and IT infrastructure and increase local content through medical devices manufacturing and maintenance.

This partnership demonstrates SAMI-AEC’s unremitting efforts to build a harmonious and applicable healthcare system in Saudi Arabia based on digital technologies.

Ziad Al-Musallam, CEO of SAMI-AEC, commented on the agreement, saying that they are honored to collaborate with NUPCO, as this deal underscores the unwavering commitment of both entities to bolstering efforts aimed at enhancing the healthcare ecosystem in Saudi Arabia.

“At SAMI-AEC, we firmly believe in the significance of augmenting public health services through digital solutions and delivering e-health services. This involves integrating effective, fast technologies to empower the healthcare sector, aligning with the objectives of Saudi Vision 2030,” he said.

Fahad Al-Shebel, CEO of NUPCO, highlighted the agreement’s importance and its role in fortifying the healthcare infrastructure and facilitating access to the integrated technology offered by SAMI-Advanced Electronics Co.

Aiming to upgrade the healthcare sector by improving its facilities in all public hospitals and medical centers in the Kingdom, NUPCO is the country’s largest central company providing medical purchasing, storage, and distribution services for medicines, devices, and supplies.

With a workforce of over 3,320 individuals, 85 percent of whom are Saudi nationals, SAMI-AEC has positioned itself as a leader in electronics, technology, engineering, and manufacturing. Its services span sectors such as defense and aerospace, digital, energy, and security.

Over 800 of the company’s employees are engineers and certified experts, reaffirming the dedication of SAMI-AEC, which was established in 1988, to excellence and innovation.

On the other hand, NUPCO was established in 2009 with SR1.5 billion in capital. It is the leading company in Saudi Arabia in procurement, logistics, and supply chain management for pharmaceuticals, medical devices, and supplies for governmental hospitals.


Closing Bell: Saudi main index continues downward trend to close at 11,660

Closing Bell: Saudi main index continues downward trend to close at 11,660
Updated 28 May 2024
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Closing Bell: Saudi main index continues downward trend to close at 11,660

Closing Bell: Saudi main index continues downward trend to close at 11,660

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward movement for the third consecutive session this week, as it shed 171.28 points to close at 11,659.94 on Tuesday. 

The total trading turnover of the benchmark index was SR5.34 billion ($1.42 billion), with 23 stocks advancing and 202 declining. 

The Kingdom’s parallel market, Nomu, also slipped by 0.81 percent to 26,234.79, while the MSCI Tadawul Index shed 20.97 points to close at 1,449.44.

The best-performing stock on the main index was Sustained Infrastructure Holding Co. The firm’s share price soared by 6.2 percent to SR34.25.

Other top performers were the Mediterranean and Gulf Insurance and Reinsurance Co. and AYYAN Investment Co., whose share prices edged up by 3.98 percent and 3.63 percent respectively. 

The worst-performing stock on the benchmark index was Saudi utility giant ACWA Power, as its share price slid by 4.68 percent to SR456.60. 

On the announcements front, Etihad Atheeb Telecommunication Co. said that it was awarded two projects worth SR45.51 million by Technical and Vocational Training Corp. to provide dedicated Internet services in 77 locations. 

In a Tadawul statement, the telecommunication provider said that the first project has a value of SR23.64 million, while the second one amounts to SR21.87 million. 

Meanwhile, Mouwasat Medical Services Co. announced that its shareholders have approved the board’s recommendation to distribute a 17.5 percent cash dividend, or SR 1.75 per share for 2023. 

In March, Mouwasat Medical Services Co. had revealed that its net profit witnessed a growth of 10 percent in 2023 to SR657.7 million, compared to the previous year. 

Al Moammar Information Systems Co., on Tuesday, revealed that it received new orders to increase the capacity of data centers at a total value of SR 75.2 million. 

In a statement to Tadawul, the company added that further developments of the order will be unveiled in due course. 


PIF’s Halal Products Development Co. invests in Singapore-based cosmetics firm

PIF’s Halal Products Development Co. invests in Singapore-based cosmetics firm
Updated 28 May 2024
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PIF’s Halal Products Development Co. invests in Singapore-based cosmetics firm

PIF’s Halal Products Development Co. invests in Singapore-based cosmetics firm

RIYADH: In a bid to localize the Kingdom’s cosmetics and personal care industry, the Halal Products Development Co. announced an investment in a Singapore-based fast-moving consumer goods conglomerate.

The Public Investment Fund-owned company signed a binding agreement with Believe — a company specializing in the halal cosmetics and personal care field.

As per the agreement, the company will relocate its headquarters from Singapore to Saudi Arabia and establish a factory to manufacture its products, the Saudi Press Agency reported.

The new headquarters will also serve as a major center for exporting the company’s products to various countries of the world.

This move is in line with the PIF-owned firm’s goal to strengthen the halal industries in Saudi Arabia and provide high-quality products compatible with Islamic standards.

Halal Products Development Co. CEO Fahad Al-Nuhait said that investing in this sector is a very important first step that serves as a major catalyst for developing and localizing the manufacturing of halal cosmetics and personal care.

In return, this is expected to raise the efficiency of the sector and support research as well as development efforts to improve the services provided locally and globally, Al-Nuhait added.

The CEO said it will also facilitate the transfer of the expertise and resources to the Kingdom.

Moreover, it will also contribute to achieving the goals of the Kingdom’s Vision 2030 by creating direct and indirect job opportunities.

Believe CEO Ankit Mahajan said this partnership represents a strategic opportunity to expand the scope of investment and boost manufacturing capabilities.  

The agreement will also provide contract manufacturing services for local brands in the initial stage and will expand to international brands in the future.

In August, Halal Products Development Co. signed a strategic cooperation agreement with the Saudi Exports Development Authority to launch the Halal Products Manufacturing Accelerator Program.

According to a statement, the new program came amid the Kingdom’s efforts to become a global hub for halal food products and accelerate the growth of the sector.


TVM Capital Healthcare launches $250m fund for Saudi medical firms

TVM Capital Healthcare launches $250m fund for Saudi medical firms
Updated 28 May 2024
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TVM Capital Healthcare launches $250m fund for Saudi medical firms

TVM Capital Healthcare launches $250m fund for Saudi medical firms

RIYADH: Saudi medical companies stand to benefit as private equity firm TVM Capital Healthcare unveils its second pool of funding valued at $250 million for the Middle East. 

Since 2009, the international growth capital investment fund has operated in the Middle East, expanding to Southeast Asia in 2021. 

The launch of the new fund builds on the firm’s past successes in the region, delivering compelling returns and showcasing its expertise in sourcing deals and nurturing the growth of sustainable enterprises, according to a press release. 

Bandr Al-Homaly, managing director and CEO of Jada Fund of Funds, said that the closing of the deal marks an important milestone in mobilizing private capital into Saudi Arabia’s healthcare sector. 

“We are pleased to lead the investment, providing capital to support the development of the sector in line with Vision 2030,” he said. 

TVM Capital focuses on addressing medical needs through strategic investments in entrepreneurial ventures. 

These efforts bring about lasting positive impacts in local communities and offer significant returns for investors, it said. 

The firm said it has built a reputation as an international fund manager involved in financing and overseeing major medical companies within the Kingdom. 

The company also invests in healthcare growth deals in Europe and the US to support these firms’ expansion plans for Saudi Arabia and the wider Gulf Cooperation Council. 

With this two-pronged strategy, TVM Capital aims to bolster the Saudi economy and enhance the region’s access to cutting-edge products, technologies, and services.

Chairman and CEO Helmut M. Schuehsler expressed pride in attracting a notable consortium of institutional and family investment groups from Saudi Arabia, other GCC countries, and Europe. They are investing in a specialized capital pool dedicated to domestic companies in the Kingdom and international firms entering the market.

 “We are uniquely positioned for success because our leadership team comprises executives with long-standing expertise in Europe and the US, who have built excellent international networks throughout their careers, alongside local Saudi healthcare experts,” he said. 

The chairman noted that their investment journey in the GCC and Egypt spans over 13 years, with a specific focus on Saudi Arabia since 2015 through their previous portfolio companies, ProVita International Medical Center and Cambridge International Medical Center. 

“Today, we are truly excited about our ability to enhance the local and regional healthcare ecosystem at a much larger scale, helping to improve access to high-quality patient care, medical products, and treatment regimens across the Kingdom,” Schuehsler said. 

Among the initial investments of the fund are Baraya Extended Care, a chain of long-term, post-acute care and rehabilitation clinics based in Riyadh; and DEBx Medical, a developer and manufacturer of innovative products for chronic wound treatment based in Amsterdam, which is set to enter the Saudi market. Additionally, neurocare group, a provider of personalized mental health services and products headquartered in Munich, with clinics in the US, the Netherlands, and Australia, is gearing up to enter Saudi Arabia and the GCC. 

According to the statement, additional deals encompass longevity and genomics, oncology and pharmaceuticals, as well as manufacturing and diagnostics. 

TVM Capital operates offices in Riyadh, Dubai, Singapore, and Ho Chi Minh City, with supporting offices in Munich and Boston. 

The multinational law firm Morgan Lewis represented the firm in the fundraiser.