Saudi Arabia to develop 320k new hotel rooms by 2030: Knight Frank 

Saudi Arabia to develop 320k new hotel rooms by 2030: Knight Frank 
the development of cultural and entertainment offerings nationwide is driving up demand for hotels in places such as Jeddah. Shutterstock
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Updated 24 April 2024
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Saudi Arabia to develop 320k new hotel rooms by 2030: Knight Frank 

Saudi Arabia to develop 320k new hotel rooms by 2030: Knight Frank 

RIYADH: Saudi Arabia is gearing up to expand its hospitality sector by developing 320,000 new hotel rooms by 2030, according to an analysis by global property giant Knight Frank.  

The consultancy’s study disclosed that as much as 67 percent of the planned hotel room supply in the Kingdom would fall in the “upscale” or “luxury” categories, referring to 4-star and 5-star accommodations, respectively.   

This move aims to cater to the projected surge in tourism, with 150 million domestic and international tourists expected by 2030.  

“With a target of welcoming 150 million visitors by 2030 — a 50 percent increase from its previous goal — the government is actively exploring various strategies to attract to international travelers,” Partner and Head of Hospitality at Tourism and Leisure Advisory in Middle East and Africa Turab Saleem said.  

Saleem noted that this includes the development of cultural and entertainment offerings nationwide, which complement existing attractions like the Jeddah F1 Grand Prix and numerous entertainment seasons.  

“Noteworthy additions include theme parks such as Boulevard World in Riyadh, alongside the licensing of 24 additional theme parks by the Saudi General Entertainment Authority over the past year,” he added.

The consultancy’s analysis further revealed that Accor Hotel Group will slip from first to second largest hotel room operator in the country with an estimated 25,400 keys under management by 2030. 

Meanwhile, Marriott International will likely emerge as the most prominent hotel operator in the Kingdom, with around 26,200 hotel keys under management by 2030, Knight Frank disclosed. 

Furthermore, Riyadh’s winning bid to host the 2030 World Expo is projected to pump a significant economic boost of $94.6 billion into the nation’s capital, with an estimated 40 million visitors expected during the six-month-long exhibition.

Consequently, this underscores the need to provide adequate accommodation for hotel staff. According to the World Trade Organization, 4-5-star hotels, on average, require 1 to 2 staff per room. 

Accordingly, this suggests somewhere between 232,000 and 387,000 key workers could require accommodation in this segment of the Kingdom’s hospitality market.

“Notwithstanding that worker-to-room ratios in Saudi can sometimes be lower than global averages, the provision of key worker accommodation for the hospitality sector will be essential ensure its future success,” Partner and Head of Research in the Middle East and North Africa Faisal Durrani said. 

“Not only does accommodation of this type help to mitigate against staff attraction and retention issues, but it also creates investment grade assets,” Durrani added.

By the end of 2023, Saudi Arabia welcomed almost 100 million domestic and international tourists, with the tourism and hospitality sector contributing to nearly 6 percent of the country’s gross domestic product.  

This indicates that the sector is well on track to achieving the government’s 10 percent target by the decade’s end.


PIF’s SIRC, Germany’s Concord Blue to launch first phase of sewage to renewable hydrogen station

PIF’s SIRC, Germany’s Concord Blue to launch first phase of sewage to renewable hydrogen station
Updated 06 February 2025
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PIF’s SIRC, Germany’s Concord Blue to launch first phase of sewage to renewable hydrogen station

PIF’s SIRC, Germany’s Concord Blue to launch first phase of sewage to renewable hydrogen station
  • Both parties will offer innovative solutions that contribute to environmental sustainability and promote the circular carbon economy
  • Plan will see around 100 million tonnes of waste recycled annually

RIYADH: A new agreement between the Saudi Investment Recycling Co. and the German company Concord Blue will lead to the construction of a station in the Kingdom that converts sewage into renewable hydrogen.

The Public Investment Fund firm inked the memorandum of understanding with the engineering company for the first phase of the development, whereby the plant will use Concord Blue Reformer technology to develop sludge treatment projects resulting from sewage and other organic waste, according to a statement.

Concord Blue Reformer’s non-combustion reforming process uses the principles of staged reforming to efficiently and cleanly recycle waste into energy.

This falls in line with SIRC’s goal of actively leading the charge in implementing impactful waste reduction strategies, accelerating the widespread adoption of renewable energy solutions, and championing the principles of environmental justice.

It also aligns with the comprehensive plan announced by the Kingdom’s Ministry of Environment in January 2024, which targets recycling a significant portion — up to 95 percent — of the country’s waste.

“Under this memorandum, SIRC will provide sewage and agricultural waste as raw materials, while Concord Blue will convert this waste into renewable hydrogen, in addition to transferring knowledge in this field and training national cadres to build, operate and maintain facilities for converting waste into hydrogen,” said Faisal Al-Solami, executive vice president of finance and strategic planning at SIRC.

When fully implemented, the plan will see around 100 million tonnes of waste recycled annually, showcasing the nation’s commitment to sustainability.

Under the terms of the newly signed MoU, both parties will offer innovative solutions that contribute to environmental sustainability and promote the circular carbon economy by producing high-quality green hydrogen and manufacturing biochar and industrial-activated coal. 

Al-Solami said signing the agreement is a key step toward achieving Vision 2030’s recycling and sustainability goals, as it promotes environmentally friendly energy solutions from waste, reduces emissions, and supports an eco-conscious economy.

This comes as the first phase of the project will achieve several goals, including reducing the volume of waste sent to landfills, enhancing hydrogen production on a large scale, and developing innovative solutions to reduce carbon emissions.

It will also support local manufacturing projects and contribute to achieving a zero-carbon future by producing clean fuel that supports the transition to a hydrogen economy in the industrial and transportation sectors.


Closing Bell: Saudi main index edges up to close at 12,433

Closing Bell: Saudi main index edges up to close at 12,433
Updated 06 February 2025
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Closing Bell: Saudi main index edges up to close at 12,433

Closing Bell: Saudi main index edges up to close at 12,433

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Thursday, gaining 19.18 points, or 0.15 percent, to close at 12,433.58. 

The total trading turnover of the benchmark index was SR6.88 billion ($1.83 billion), as 123 of the listed stocks advanced, while 96 retreated.  

The MSCI Tadawul Index increased by 2.23 points, or 0.14 percent, to close at 1,545.99. 

The Kingdom’s parallel market Nomu also rose, gaining 135.68 points, or 0.43 percent, to close at 31,386.27. This comes as 40 of the listed stocks advanced, while 39 retreated. 

The best-performing stock was Almasane Alkobra Mining Co., with its share price surging by 7.49 percent to SR68.9. 

Other top performers included the Thimar Development Holding Co., which saw its share price rise by 5.76 percent to SR56.9, and Makkah Construction and Development Co., which saw a 4.42 percent increase to SR108.60. 

Mutakamela Insurance Co. saw the largest decline of the day, with its share price dropping 2.19 percent to SR18.72. 

The Tanmiah Food Co. saw a decline of 1.99 percent, with its share price dropping to SR127.80, while the Saudi Industrial Investment Group fell by 1.69 percent to SR17.40. 

On the announcements front, Saudi Industrial Investment Group reported its annual financial results for 2024, with net profits reaching SR11 million, matching the previous year’s figure. 

Saudi Arabian Mining Co., known as Ma’aden, also announced the official launch of its US dollar-denominated trust certificates offering.

The offering is available to eligible investors both in Saudi Arabia and internationally, as part of Ma’aden’s strategic initiative to strengthen its financial position and expand investment opportunities. 

To facilitate the issuance, Ma’aden has appointed 10 companies as joint lead managers for the transaction, including Citigroup Global Markets Limited, HSBC Bank, Al Rajhi Capital Co., BNP Paribas, and GIB Capital.

The other five include J.P. Morgan Securities plc, Natixis, Saudi Fransi Capital, SNB Capital Co., and Standard Chartered Bank. 

In a statement to Tadawul, the company stated that the sukuk will be issued in two tranches, with maturities of 5 and 10 years. The minimum subscription amount is set at $200,000, with the final value and terms of the offering to be determined based on market conditions. 

Following the announcement, Ma’aden’s shares closed at SR48.15, up 4.05 percent in today’s session. 


Saudi crown prince launches ‘King Salman Automotive Cluster’ at KAEC

Saudi crown prince launches ‘King Salman Automotive Cluster’ at KAEC
Updated 06 February 2025
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Saudi crown prince launches ‘King Salman Automotive Cluster’ at KAEC

Saudi crown prince launches ‘King Salman Automotive Cluster’ at KAEC

RIYADH: Saudi Crown Prince Mohammed bin Salman has named the automotive manufacturing hub within King Abdullah Economic City the “King Salman Automotive Cluster,” the Saudi Press Agency reported on Thursday.

The King Salman Automotive Cluster will serve as a pivotal center for the automotive industry, housing the headquarters and manufacturing facilities for both local and international companies.

Notable brands, such as Ceer—the first Saudi electric vehicle brand—and Lucid Motors, which opened its first international factory in KAEC in 2023, are set to be key players in the cluster.

The site will also host multiple Public Investment Fund joint ventures with global manufacturers, including a highly automated factory with Hyundai Motor for car production in Saudi Arabia and a partnership with Pirelli to establish a tire factory.

This new cluster marks a significant milestone in Saudi Arabia’s economic diversification efforts, supporting the development of the automotive sector and advancing sustainable transportation. It will contribute to boosting the non-oil gross domestic product and increasing exports.

The King Salman Automotive Cluster will accelerate local manufacturing capacity, promote research and development, and optimize supply chains, making them more efficient for both regional and international markets.

The project is expected to create numerous investment opportunities for the private sector, fostering the growth of promising industries within the Kingdom.

By 2035, the cumulative GDP contribution from companies within the cluster is projected to reach approximately SR92 billion.

The cluster will generate thousands of direct and indirect jobs, support local manufacturing, and boost Saudi exports, positively impacting the nation’s balance of payments.

Leveraging KAEC’s robust infrastructure and its strategic location near a well-developed port, the cluster offers significant advantages for both local private sector entities and international companies. These factors will provide ample opportunities for collaboration between partners, suppliers, and investors within the automotive industry and related sectors.

The King Salman Automotive Cluster will play a key role in advancing the National Industrial Development and Logistics Program, which aims to position Saudi Arabia as a leading industrial hub and global logistics center by fostering high-growth sectors and attracting foreign investment.


Saudi Arabia takes steps to strengthen personal data protection

Saudi Arabia takes steps to strengthen personal data protection
Updated 06 February 2025
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Saudi Arabia takes steps to strengthen personal data protection

Saudi Arabia takes steps to strengthen personal data protection

RIYADH: Saudi Arabia’s financial sector is set to benefit from enhanced data protection measures following the signing of two agreements between the Saudi Data and Artificial Intelligence Authority and the Saudi Central Bank. 

The agreements, signed on Feb. 5 and 6, aim to bolster the implementation of personal data protection laws across financial institutions, enhancing regulatory oversight and ensuring compliance with national data governance standards. 

The first memorandum of understanding focuses on enforcing personal data protection laws and their executive regulations within the financial sector.  

It seeks to strengthen supervision of financial institutions’ adherence to data protection requirements, thereby supporting the Kingdom’s broader digital economy goals.   

The move comes as Saudi Arabia accelerates its financial technology transformation, with a goal to raise non-cash transactions to 80 percent of total payments by 2030, up from 62 percent today.   

The first agreement was signed by Abdulaziz Al-Anazi, director of the General Department of Risk and Compliance at SDAIA, and Marwan Al-Lahedan, executive director of Operational Sustainability Oversight at SAMA.  

According to the agreement, the initiative will also promote collaboration in monitoring mechanisms, fostering an environment of secure and efficient data management.   

The second MoU, finalized on Feb. 6, will enhance the governance framework for data within the financial sector. This agreement will help advance Saudi Arabia’s digital infrastructure, creating a regulatory environment that supports data protection across the financial landscape.  

Both agreements were signed in the presence of high-level representatives, including Khaled Al-Dhaher, deputy governor for supervision and technology at SAMA, and Rayed Al-Rayedi, head of the National Data Management Office at SDAIA.    

The effort underscores the Kingdom’s commitment to strengthening its regulatory ecosystem to protect personal data and foster innovation in the financial industry.   

The surge in technological upgrades within financial institutions and the entry of new fintech startups underscore the need for rigorous data protection protocols to secure consumer information and prevent fraud.  

According to the World Bank, fraud in the financial sector leads to substantial global losses. In 2023, online fraud resulted in approximately $485.6 billion in losses worldwide.   

The increasing sophistication of fraudulent schemes poses substantial challenges to financial institutions and their clients.    

Fraudsters use advanced techniques, including phishing, identity theft, and cyberattacks, to exploit vulnerabilities within financial systems. This not only leads to direct financial losses but also erodes consumer trust in financial services.  


Hungarian firms plan major tech investment in Saudi Arabia under Vision 2030

Hungarian firms plan major tech investment in Saudi Arabia under Vision 2030
Updated 06 February 2025
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Hungarian firms plan major tech investment in Saudi Arabia under Vision 2030

Hungarian firms plan major tech investment in Saudi Arabia under Vision 2030
  • Trade between Saudi Arabia and Hungary reached $480 million in 2023
  • Hungary has maintained diplomatic ties with Saudi Arabia for over 28 years

RIYADH: An alliance of 25 Hungarian companies is preparing to invest in Saudi Arabia’s technology and digital transformation sectors, seizing the opportunities offered by Vision 2030. 

The announcement, made at the Saudi-Hungarian Business Forum in Riyadh organized by the Federation of Saudi Chambers, underscored the growing economic ties between the two nations, the Saudi Press Agency reported. 

The forum was attended by Hungarian Parliament Deputy Speaker Istvan Jakab, Saudi-Hungarian Business Council Chairman Marwan Al-Mutlaq, Shoura Council Chairman Ibrahim bin Mohammad Al-Qannas, and Hungarian Ambassador to Saudi Arabia Balazs Selmeci.

The initiative builds on the creation of the Hungarian-Saudi Holding Co. last year, a consortium focused on digital transformation and investment partnerships across Saudi Arabia’s digital, financial, and food sectors.

Trade between Saudi Arabia and Hungary reached SR1.8 billion ($480 million) in 2023, reflecting a 27 percent increase, with the Kingdom’s exports surging 216 percent to SR584 million and imports at SR1.2 billion.

Jakab highlighted the strength of Hungary’s relationship with Saudi Arabia, saying: “The relationship with the Shoura Council and the Federation of Saudi Chambers is strong,” and emphasized the potential of the holding company to foster investment and collaboration in key sectors.

Al-Mutlaq noted Saudi Arabia’s growing influence in the tech sector, ranking fourth globally in e-government and tenth in e-commerce. 

He added that the Saudi-Hungarian Business Council, in its new term, will focus on strengthening investment partnerships and boosting bilateral trade.

Hungary has maintained diplomatic ties with Saudi Arabia for over 28 years, contributing to ongoing bilateral cooperation. The country’s advanced IT sector presents opportunities to share expertise with Saudi Arabia’s growing technology landscape.

As part of Saudi Arabia’s Vision 2030 plan, the country is making substantial investments in digital transformation, focusing on emerging technologies such as artificial intelligence, cloud computing, and the Internet of things to build a significant digital economy by 2030. 

Government spending on technology is expected to reach $24.7 billion by 2025, according to a report published by the International Trade Administration. 

Key initiatives include the Public Investment Fund backing advanced tech firms like Alat, which focuses on AI, semiconductors, and robotics, with projected investments of around $100 billion by 2030.