Marriott International reveals that majority of its leisure guests in Saudi Arabia are local 

Special Marriott International reveals that majority of its leisure guests in Saudi Arabia are local 
Chadi Hauch, regional vice president of development for Marriott International. AN
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Updated 12 May 2024
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Marriott International reveals that majority of its leisure guests in Saudi Arabia are local 

Marriott International reveals that majority of its leisure guests in Saudi Arabia are local 

RIYADH: Marriott International has revealed that the majority of the hotel’s leisure guests in Saudi Arabia are local, indicating the importance of internal tourism in the Kingdom.

Speaking in an interview with Arab News on the sidelines of the Future Hospitality Summit, taking place in Riyadh from April 29 to May 1, Chadi Hauch, the hotel’s regional vice president of development, explained that the local market has driven leisure tourism in Saudi Arabia.

“At this stage right now, obviously the majority of the guests are local, but you have to take into consideration as well that, in Saudi, tourism has been majorly local,” Hauch said. 

He underscored that COVID-19 was a significant experience that opened the eyes of the Ministry of Tourism and the local Saudi market. 

“During COVID-19, when the whole country closed down, the Saudis were super excited to visit their own countries. They were pushed within their own country because they needed to get out of the cities such as Riyadh and Jeddah and they started visiting secondary cities like Abha,” the VP said. 

Consequently, Hauch added that this was when they noticed the nation had much more to offer. 

“But obviously as the destination grows and obviously this is this is what the government is pushing for, we will definitely start seeing international travelers trying to visit these destinations that is trying to position itself kind of like a Maldives destination,” he said. 

Hauch also explained that Marriott International currently has 38 open properties operating in the Kingdom and is planning for 40 more.

During the interview, the VP tackled how Marriott International Inc. and Al Qimmah Hospitality, a subsidiary of BinDawood Trading, signed an agreement to bring the JW Marriott brand to Jeddah.  

Located on the Jeddah Corniche, the hotel is expected to become a prime destination for luxury-seeking travelers who desire a waterfront escape, he underlined. 

“The beauty about this project is that it’s a mixed-use project that will have office space and will have retail. So, it’s quite a sizable project that will take a little bit of time. We expect hopefully to open in the next five to six years, depending on how fast the construction goes,” Hauch disclosed. 

The VP also highlighted the announcement a few days earlier that the company had signed an agreement with NEOM to open its second Ritz-Carlton Reserve in Saudi Arabia.     

The hotel will be located in Trojena, a year-round mountain destination situated in the country’s northwest region.   

The resort is expected to feature 60 expansive one- to four-bedroom villas. Plans also include a spa, swimming pools, and multiple culinary venues.  

Additionally, Hauch discussed how Marriott has two different main operating models. 

“We either do management agreements or we do franchisee agreements. Usually when we do operate these hotels in these models, we don’t get involved in the investment of the hotel. Usually, it is the owner who develops the hotel, and it depends on the location and, positioning of the hotel. These construction costs vary; they vary quite a lot between a five-star, a three-star, four-star or the luxury positioning,” the VP emphasized.  

More than 1,200 global investors are expected to have attended the FHS. The event, held at Al Faisaliah Hotel, focused on sustainable tourism and technology-driven hospitality under the theme, “Invest in Tomorrow: Today, Together.”   


Oman’s broad money supply surges 13.3%

Oman’s broad money supply surges 13.3%
Updated 24 sec ago
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Oman’s broad money supply surges 13.3%

Oman’s broad money supply surges 13.3%
  • Climb mainly attributed to 16.5% increase in narrow funds and 12.1% in quasi-money
  • Sultanate’s public revenue saw an annual decline of 2% year on year in the second quarter of the year, reaching $16.1 billion

RIYADH: An increase in Oman’s narrow money led the country’s broad capital supply to grow 13.3 percent year-on-year to reach 24.2 billion Omani rials ($62.6 billion) by the end of July.

Statistics issued by the Central Bank of Oman showed this climb was mainly attributed to a 16.5 percent increase in narrow funds and 12.1 percent in quasi-money. 

This consists of total savings deposits and time deposits in Omani rials, certificates issued by financial institutes, margin accounts, and all foreign currency reserves in the banking sector.

The growth in figures suggests vibrant and expanding economic activity, with more funds circulating within the economy. 

It comes as Oman’s public revenue saw an annual decline of 2 percent year on year in the second quarter of the year, reaching $16.1 billion, the country’s news agency reported in August. 

The sultanate’s economic landscape is heavily influenced by its reliance on oil and gas revenues, making it vulnerable to global price fluctuations. 

The government has been actively working to diversify the economy and reduce dependence on hydrocarbons as part of its Vision 2040 plan. 

The figures further revealed that cash in the hands of the public decreased by 5.2 percent by the end of last July, while demand deposits increased by 22.8 percent, the Oman News Agency reported.


Saudi Arabia offers October ‘Sah’ sukuk savings products with over 4.9% return 

Saudi Arabia offers October ‘Sah’ sukuk savings products with over 4.9% return 
Updated 17 min 8 sec ago
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Saudi Arabia offers October ‘Sah’ sukuk savings products with over 4.9% return 

Saudi Arabia offers October ‘Sah’ sukuk savings products with over 4.9% return 
  • Investors will receive bond allocations on Oct. 15, with the redemption period spanning four days starting Oct. 20
  • Subscriptions start at a minimum of SR1,000 per bond, with a maximum limit of SR200,000

JEDDAH: Saudi Arabia has launched its October subscription for the subscription-based savings product, Sah, offering a 4.92 percent return to promote financial stability and growth among citizens. 

The Shariah-compliant, government-backed sukuk issuance began at 10:00 a.m. Saudi time on Oct. 6 and will close at 3:00 p.m. on Oct. 8, as announced by the National Debt Management Center. 

Investors will receive bond allocations on Oct. 15, with the redemption period spanning four days starting Oct. 20. Redemption amounts will be disbursed seven days later. 

Subscriptions start at a minimum of SR1,000 ($266.66) per bond, with a maximum limit of SR200,000, allowing for the purchase of up to 200 bonds. 

Issued by the Ministry of Finance and organized by the NDMC, the fee-free savings products offer low-risk returns and are distributed through the digital channels of approved financial institutions. 

Sah is Saudi Arabia’s first government sukuk designed to foster saving habits by encouraging citizens to set aside a portion of their income regularly. The initiative supports the Financial Sector Development Program, part of Vision 2030, which aims to raise the national savings rate from 6 percent to 10 percent by 2030. 

Saudi nationals aged 18 and above can invest in Sah through SNB Capital, Aljazira Capital, and Alinma Investment, as well as SAB Invest, or Al Rajhi Bank. The bonds are issued monthly, with a one-year savings period and fixed returns, paid out upon maturity. 

In September, the NDMC successfully allocated SR2.603 billion in sukuk. In a detailed statement, the authority outlined the distribution of the sukuk into six tranches. 

The first tranche comprised SR255 million, set to mature in 2027, while the second tranche secured SR375 million for bonds maturing in 2029. 

The third tranche reached SR638 million for Islamic bonds maturing in 2031, followed by the fourth tranche totaling SR1.021 billion, with maturity set for 2034. 

Moreover, the fifth tranche encompassed SR202 million for sukuk maturing in 2036, and the final tranche accounted for SR112 million, set to mature in 2039. 

As demand for such low-risk investment options continues to rise, it demonstrates the evolving preferences of individuals seeking stable, Shariah-compliant savings opportunities, further enhancing financial inclusion in the Kingdom.


Qatar’s non-energy sector growth stable despite PMI dip

Qatar’s non-energy sector growth stable despite PMI dip
Updated 40 min 48 sec ago
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Qatar’s non-energy sector growth stable despite PMI dip

Qatar’s non-energy sector growth stable despite PMI dip
  • The 12-month outlook for activity strengthened in September to the highest since March 2023
  • Non-energy private sector workforce expanded at the fastest rate on record

RIYADH: Non-oil business activities in Qatar were steady in September, even as the country’s Purchasing Managers’ Index dropped to 51.7 from 53.1 in August, an economy tracker showed. 

The latest report released by Qatar Financial Center compiled by S&P Global said that the PMI readings for September indicate the country’s sustained growth in the non-energy private sector. 

According to the credit rating agency, any PMI readings above the 50 mark indicate expansion of business activities, while below signifies contraction. 

Strengthening the non-hydrocarbon sector is crucial for Qatar, as the country is on a path of economic diversification by reducing its reliance on oil. 

Under the National Vision 2030, Qatar aims to gradually lessen its dependence on hydrocarbon industries and enhance the role of the private sector to drive the country’s growth further. 

“Although the headline PMI eased in September, on the whole, the latest survey results show a number of positive developments for the Qatari non-energy economy,” said Yousuf Mohamed Al-Jaida, CEO of QFC Authority. 

“The pause in overall growth of output wholly reflected the construction sector, with growth sustained in manufacturing, services, finance, wholesale, and retail,” he added. 

“There was a series-record increase in employment during the month as firms sought to expand capacity to address rising backlogs,” Al-Jaida also said. 

According to the S&P Global analysis, the 12-month outlook for activity strengthened in September to the highest since March 2023 as demand for goods and services continued to increase, leading to a build-up in outstanding business. 

The rating agency attributed this positive outlook among Qatari firms to economic development, a rising population, and investment in key sectors, including construction, real estate, and tourism. 

“The 12-month outlook continued to brighten, as firms mentioned investment in key sectors such as construction, real estate and tourism. September data also showed a record increase in wages, which should boost consumer demand,” said Al-Jaida. 

The survey revealed that the non-energy private sector workforce expanded at the fastest rate on record, surpassing the previous peak set in January 2019. 

Although new business rose and the outlook improved, purchasing activity softened slightly as firms reported broadly stable inventory holdings. 

The report added that September witnessed a further acceleration in demand growth for Qatari financial services. 

“The seasonally adjusted Financial Services New Business Index rose to 64.1, from 62.8 in August, signaling a rapid improvement in demand conditions with the fastest growth since August 2022,” said S&P Global. 


Saudi Arabia’s e-commerce sector sees 9.4% growth in Q3

Saudi Arabia’s e-commerce sector sees 9.4% growth in Q3
Updated 06 October 2024
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Saudi Arabia’s e-commerce sector sees 9.4% growth in Q3

Saudi Arabia’s e-commerce sector sees 9.4% growth in Q3

RIYADH: Saudi Arabia’s e-commerce sector continues its upward momentum, with 39,769 businesses registered in the third quarter, a 9.4 percent increase year on year. 

The latest data from the Ministry of Commerce revealed that Riyadh led with 16,274 registrations, followed by Makkah with 10,023, and the Eastern Province with 6,328. 

In the Madinah and Qasim regions, e-commerce registrations reached 1,897 and 1,302, respectively. 

This growth highlights the Kingdom’s ongoing transition toward a diversified, digitally-driven economy, with e-commerce playing a crucial role. Saudi Arabia now ranks among the top 10 countries globally in e-commerce expansion. 


Aramco hikes Arab Light crude November prices for Asian buyers

Aramco hikes Arab Light crude November prices for Asian buyers
Updated 06 October 2024
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Aramco hikes Arab Light crude November prices for Asian buyers

Aramco hikes Arab Light crude November prices for Asian buyers

RIYADH: Saudi Aramco has raised its November pricing for Arab Light crude oil for Asian buyers, according to a recent price list.

The state-owned oil giant increased the official selling price of its Arab Light crude by 90 cents, bringing it to $2.20 per barrel above the regional benchmark.

Global oil prices are on the rise amid the growing tensions in the Middle East. Crude prices rocketed around 5 percent on Thursday. Analysts warned that slowing demand in many countries and plentiful supply within and outside OPEC is likely to eventually cap prices.

The oil giant slashed the prices of all grades to Europe and the US .

The Arab Light price differential for buyers in West Europe has been set at $0.45 above the ICE Brent, according to an emailed statement from Aramco.

The price hike aligns with market forecasts of around 45 cents and has driven the medium sour crude price to its highest point this year. On Wednesday, Saudi Arabia confirmed it would maintain its voluntary output reduction of 1 million barrels per day through November and until the end of December 2023.

Saudi Aramco also increased the price of Extra Light crude for Asia by 50 cents in November, bringing it to $3.35 a barrel above Oman/Dubai quotes. This adjustment reflects the rising prices for light sour grades in the spot market, while the OSPs for Arab Medium and Arab Heavy remain unchanged.