Planning council reviews economic progress, Saudi Vision achievements

Planning council reviews economic progress, Saudi Vision achievements
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Updated 12 September 2024
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Planning council reviews economic progress, Saudi Vision achievements

Planning council reviews economic progress, Saudi Vision achievements

RIYADH: Saudi Arabia’s top council on economic affairs reviewed a number of reports during a virtual meeting held on Wednesday, the Saudi Press Agency reported.

The Council of Economic and Development Affairs studied a financial report for the second quarter of 2024 in a presentation by the Ministry of Economy and Planning.

The report included an analysis of the global economy, financial markets, and updates on the nation’s fiscal situation and its key indicators.

There was a 4.9% year-on-year growth in the non-oil sector during Q2 and a stabilization of general inflation rates at 1.5% in July.

The report indicated the strength of Saudi Arabia’s economy and the effectiveness of the measure taken to deal with global economic changes.

The ministry’s presentation also touched on future projects for the national economy and important reports from international and local bodies related to it.

The members also reviewed a presentation by the council’s own Strategic Management Office on the Saudi Vision report for Q1 of 2024. The report highlighted the key achievements of the Vision’s programs, strategic goals, and evaluation of their performance.

The Vision report noted that 2024 had begun with significant progress across all three pillars of the program, namely, a vibrant society, a thriving economy, and an ambitious nation.

The council also reviewed the Saudi Public Investment Fund’s annual report for 2023, traffic safety report for 2023, and a report on the social support subsidy system.


Millennium Hotels and Resorts eyes expansion across Saudi Arabia

Millennium Hotels and Resorts eyes expansion across Saudi Arabia
Updated 45 sec ago
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Millennium Hotels and Resorts eyes expansion across Saudi Arabia

Millennium Hotels and Resorts eyes expansion across Saudi Arabia

DUBAI: Millennium Hotels and Resorts is actively negotiating with multiple owners to expand its presence in Saudi Arabia, with plans to enter Riyadh soon and explore opportunities in other key cities beyond the major ones.

In an interview with Arab News at the Future Hospitality Summit in Dubai, COO William Harley-Fleming expressed the company’s intent to diversify its portfolio by tapping into the resort market, targeting key destinations and landmark projects across the Kingdom and the broader Middle East.

“We’re in discussions with several owners to explore how we can add value in regions of the Saudi market. As you know, Saudi Arabia is not just about Riyadh and Jeddah,” Harley-Fleming stated. “We’d like to get something in Riyadh, and we hopefully will have something there very soon, but we are also looking at other key cities within the Kingdom, which are just as important as the capitals.” 

Currently, Millennium operates a Grand Millennium hotel in Saudi Arabia but plans to introduce more of its 11 other brands, particularly its lifestyle-oriented social brand. “I think the Kingdom itself has been flooded with opportunities, but for us, it’s about having the right brand, with the right owners in the right locations. That’s why we believe the social brand is due for more than just midscale brands. We see opportunities now to develop that in some of the key locations,” he noted.

Harley-Fleming also announced plans for a new Copthorne hotel in Jeddah, set to open next year, which will be their second property in the city following the Millennium Hotel launched this year. The company is also in talks to introduce additional brands in Jeddah and expand to other areas.

“The development plan and growth plans are important to us, and we want to be part of that. I think the F&B scene is something that has really improved a lot within the Saudi market, and I think this is really a close collaboration with the tourism authorities and the government of Saudi (Arabia),” he said.

He revealed ongoing discussions with the government to expand into key locations that are considered secondary but are still attractive, such as Tabuk, Jazan, and Hail — regions outside of major cities that are seeing substantial development and interest.

“We’ve seen a big influx of not only consultants to the area but also people who want to experience Saudi Arabia itself. That’s why we want to see more of these remote locations, as we believe there’s so much more to offer in the Kingdom,” Harley-Fleming emphasized.

He added: “It’s not just about beaches and deserts; there’s so much more to offer. That's what we want to do — the cultural and heritage side. That’s where I think definitely a brand like ours ties in well because we work closely with the owners to make sure that anybody visiting their hotels also gets that element of localization.”

Millennium Hotels also supports the Saudization program, which promotes employing local talent, reinforcing its commitment to the country’s social and economic goals. Harley-Fleming noted plans to hire more Saudis to enhance the authentic Saudi experience for visitors.

As the Kingdom opens up to international tourism, the company aims to immerse guests in Saudi culture through language, local traditions, and cuisine. For instance, they plan to offer local honey and dates from nearby farmers in hotel lobbies.

Harley-Fleming underscored that localization is part of a broader sustainability initiative, which includes supporting local businesses and integrating cultural elements into the guest experience.


Rotana expands into Saudi Arabia’s secondary and tertiary cities

Rotana expands into Saudi Arabia’s secondary and tertiary cities
Updated 40 min 28 sec ago
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Rotana expands into Saudi Arabia’s secondary and tertiary cities

Rotana expands into Saudi Arabia’s secondary and tertiary cities

DUBAI: Rotana Hotels is set to expand its footprint in Saudi Arabia by establishing hotels in secondary and tertiary cities over the next two years.

CEO Philip Barnes outlined plans for nine additional hotels, reflecting a strategic shift toward less explored locations in the Kingdom.

“We’re looking to grow by probably another nine hotels over the course of the next two years,” Barnes shared with Arab News at the Future Hospitality Summit in Dubai, emphasizing the brand’s commitment to smaller, developing cities.

Barnes highlighted recent openings, including an Edge hotel in Riyadh and a new property in Madinah, but noted the focus is now on expanding into areas often overlooked by international chains. “We’re moving into what I would consider to be more tertiary and secondary cities within Saudi, which for us is tremendous because that’s what we want to be — a strong regional brand,” he explained.

While the specific locations of the new hotels are not yet disclosed, discussions with various developers and owners are in progress. This local-centric expansion aligns with Rotana’s deep regional roots. “We were born in the region. We’ve grown up in the region. We are the region,” Barnes stated, emphasizing the brand’s understanding of local culture as a key advantage.

“There’s a familiarity with owners and developers. We come in with a perspective unique to the region, not influenced by American, British, or French models,” he added. This cultural awareness is crucial for developers, as Rotana’s insights into local markets enhance their comfort level. “We know how things work in the region, and that’s become more important for a lot of developers,” Barnes noted.

As Saudi Arabia positions itself on the global tourism map, Barnes sees the country rapidly emerging as a key player in the hospitality sector. He reflected on the improvements in accessibility and infrastructure since his earlier experiences in the Kingdom. “Back in 2019, I had to go to the embassy to get a visa. Now, the visa is automatically online. The whole transition is becoming easier,” he remarked.

Saudi Arabia is making strides to establish itself as a world-class destination, boasting a rich cultural heritage, which is vital for attracting international visitors. Barnes shared his impressions of Riyadh’s transformation: “Driving down the street at 10 at night in Riyadh, I could have been anywhere in the world. The streets were packed, the restaurants were busy. There was life, energy, and passion.”

This vibrancy, combined with a strategic push to showcase cultural heritage, is driving investment and tourism. “People are getting a lot more comfortable with Saudi. It has the history, it has the culture. As Saudi (Arabia) puts itself more on the world stage, you’re going to see more of that,” he explained.

Barnes compared Saudi Arabia’s growth to that of successful tourism destinations in the past, noting a similar pattern emerging in the Middle East. “People are looking for new and interesting places that have culture and history, and Saudi has all of that to offer,” he remarked, predicting that Saudi (Arabia) will make a significant impact on the global tourism landscape in the next few years.

Looking forward, Barnes acknowledged the increasing role of technology and artificial intelligence in hospitality, while underscoring the importance of human interaction.

“AI is becoming more prominent. We’ve appointed a CIO who is well-versed in AI and is looking at how we can enhance the guest experience,” he noted, highlighting the use of AI for streamlining processes like booking and customer service. However, he stressed that technology cannot replace the personal touch.

“The hospitality industry is about people. AI can’t replace the doorman who gives you a warm smile and greets you by name. It’s the human touch that makes you feel special, and AI won’t do that,” Barnes concluded.

As Rotana advances its expansion plans in Saudi Arabia, the company’s deep understanding of local markets and commitment to guest experience positions it well to benefit from the country’s tourism boom, playing a central role in the rapidly growing hospitality sector.


Saudi stock market rises to 7th globally in size, says CMA chief

Saudi stock market rises to 7th globally in size, says CMA chief
Updated 30 September 2024
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Saudi stock market rises to 7th globally in size, says CMA chief

Saudi stock market rises to 7th globally in size, says CMA chief

JEDDAH: The Saudi stock market has experienced significant growth, now ranking seventh globally and showcasing the resilience of the real economy, according to Mohammed bin Abdullah Elkuwaiz, chairman of the Capital Market Authority.

Elkuwaiz made these remarks at the 7th CEOs Forum, organized by the Small and Medium Enterprises General Authority, known as Monsha’at, on Sept. 30 in Riyadh. The event, themed “Opportunities to Enhance Business Growth,” was attended by over 1,200 executives across various sectors and sponsored by Saudi Commerce Minister Majid Al-Qasabi, who is also chairman of Monsha’at.

The forum featured local and international speakers, experts, and entrepreneurs, all aimed at empowering high-growth enterprises with insights into the latest developments and innovative practices in the SME landscape.

In a panel discussion, Elkuwaiz highlighted the remarkable growth of the Saudi stock market, which ranked 25th or 26th globally at the outset of Vision 2030. “Today, it stands as the seventh largest market in the world. Over the years, it has increasingly mirrored the real economy,” he stated.

He emphasized the market’s role as a key destination for entrepreneurs, attracting both local and global investors.

“We must facilitate the transition of companies into the Kingdom, enabling them to list and issue shares,” he said, noting that resolving challenges related to zakat and taxation remains a critical hurdle.

Elkuwaiz pointed out that the primary function of the stock market for entrepreneurs is to secure financing for expansion or exit strategies, allowing investors to engage in new ventures. He identified two primary funding avenues: equity financing and debt market financing.

While acknowledging the current maturity of the stock market, he indicated that several priorities remain, particularly the introduction of a technological system for managing subscriptions. This system, recently launched by the Saudi Stock Exchange, aims to streamline subscriptions, reduce costs, and shorten processing times, enhancing the market’s attractiveness.

Discussing the debt market, Elkuwaiz noted significant growth potential. “Recently, the authority proposed major amendments to the regulations governing the issuance and listing of securities, simplifying processes to enable more companies to participate,” he explained.

He also addressed the challenges faced by the Saudi parallel market, Nomu. “Efforts are underway in collaboration with Tadawul to enhance liquidity, increase listings, and broaden the investor base,” he said.

Elkuwaiz acknowledged the traditional reliance of Saudi Arabia's economy on oil exports, highlighting the recent presence of Aramco and various tech companies in the stock market, creating one of the most profitable sectors. He noted that SMEs account for 55 percent of listings on the Saudi stock market, leading to the launch of Nomu in 2017, which now features over 70 companies, primarily SMEs.

The forum included an investor area where more than 60 investment meetings were held, fostering collaboration and enhancing financing and investment opportunities for enterprises.


Closing Bell: Saudi indices close lower at 12,226 

Closing Bell: Saudi indices close lower at 12,226 
Updated 30 September 2024
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Closing Bell: Saudi indices close lower at 12,226 

Closing Bell: Saudi indices close lower at 12,226 

RIYADH: Saudi Arabia’s Tadawul All Share Index closed at 12,226.10 points on Monday, losing 45.67 points, or 0.37 percent.      

The parallel market Nomu also shed 167.72 points, or 0.65 percent, to conclude at 25,442.94.       

The MSCI Tadawul 30 Index also fell 4.15 points to finish at 1,528.05.     

The main index posted a trading value of SR8.7 billion ($2.33 billion), with 81 stocks advancing and 149 declining. Nomu reported a trade volume of SR52.4 million.    

Despite TASI’s slowdown, Al-Baha Investment and Development Co. saw a growth in its stock as its share price surged 10 percent to SR0.22. CHUBB Arabia Cooperative Insurance Co. followed next with its share price jumping 5.39 percent to close at SR42.05.    

Tourism Enterprise Co. was also among the top performers, climbing 5.21 percent to SR1.01. Salama Cooperative Insurance Co. and Saudi Arabian Mining Co. increased 4.26 and 3.83 percent to SR28.15 and SR48.80, respectively.    

Conversely, Bupa Arabia for Cooperative Insurance Co. recorded the most significant dip, declining 5.82 percent to SR207.20.    

Saudi Fisheries Co. and Savola Group also experienced setbacks, with their shares dropping to SR29.15 and SR27, reflecting declines of 4.43 and 3.74 percent, respectively. Maharah Human Resources Co. and Saudi Kingdom Holding Co. also reported losses.   

Nomu’s top performer was Natural Gas Distribution Co., which saw a 9.71 percent jump to SR48. 

Edarat Communication and Information Technology Co. and Nofoth Food Products Co. also recorded notable gains, with their shares closing at SR515 and SR18.54, marking an increase of 7.29 and 5.94 percent, respectively. Future Care Trading Co. and Banan Real Estate Co. also fared well.    

On Nomu, Alqemam for Computer Systems Co. was the worst performer, declining by 9.52 percent to SR95. Other underperformers included Meyar Co. and National Building and Marketing Co., whose share prices dropped 7.46 percent and 5.83 percent to SR62 and SR210, respectively.    

Taqat Mineral Trading Co. and MOBI Industry Co. declined during the day to settle at SR11.20 and SR11.28, respectively.  


Germany’s EVUM Motors predicts environmental break-even for EVs in 3 years

Germany’s EVUM Motors predicts environmental break-even for EVs in 3 years
Updated 53 min 52 sec ago
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Germany’s EVUM Motors predicts environmental break-even for EVs in 3 years

Germany’s EVUM Motors predicts environmental break-even for EVs in 3 years

DUBAI: EVUM Motors, a German electric vehicle manufacturer, forecasts that its EVs will reach an environmental break-even point after three years of usage, as stated by CEO Martin Soltes.

During a presentation at the Future Hospitality Summit in Madinat Jumeirah, Soltes explained that this break-even is achieved when the environmental costs of manufacturing the vehicle are offset by its operational benefits over time.

This achievement is part of EVUM Motors’ broader commitment to sustainability, a key strategic focus for the company as well as its suppliers and subcontractors.

Furthermore, this initiative aligns with the global goal of reducing human-caused carbon dioxide emissions by approximately 45 percent from 2010 levels by 2030, with the aim of reaching net zero by 2050, as emphasized by international scientific consensus.

“We are planning for the vehicle to be used at least 10 years. So, you know, three years at the very beginning and it’s a kind of for the break-even point and then the next seven years we have a positive impact on the environment using it,” he explained.

During his talk, Soltes discussed the vital role of governments in promoting innovation in the electric vehicle sector.

He outlined two key approaches: providing subsidies to encourage new technologies and creating supportive environments for EV infrastructure development.

“The one way would be providing a kind of subsidies, which is always a short-term, you know, point to push a new technology in. And the second thing is creating environments where innovations and, especially EVs, can be in there. So, helping build up the infrastructure,” Soltes said.

He also mentioned that implementing stricter regulations on firms can propel the industry forward, emphasizing a user-centered design approach. “So, go to the customer, talk to him about how he’s driving around, how he’s using the vehicle, understanding what his needs are, what needs to be optimized, what needs to be done,” he stated.

In a separate discussion, Issam AbdulRahim Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, addressed the increasing number of companies relocating to Dubai.

“We have a lot of new companies that relocate to Dubai, family offices that are set up in Dubai. More communities moving to Dubai to find the right opportunities for themselves and set up their life in Dubai as well,” Kazim said.

He added that these developments should contribute to the goal of doubling the gross domestic product over the next decade. “All of that should aid the doubling of the GDP in the next decade. So that’s the vision from one side.”

Kazim also noted an increase in hotel numbers since the launch of the tourism strategy, highlighting Dubai’s ongoing growth.

In a discussion titled “Master Planning for Transformative Hospitality and Destination Investments in Shifting Sands,” Wyatt Roy, head of innovation at NEOM, highlighted the project's extensive protection efforts.

“Ninety-five percent of NEOM is protected, never to be touched, which is an amazing commitment. We are rewilding and regreening the natural environment, bringing back unique Arabian wildlife,” Roy stated.

He emphasized NEOM’s dedication to sustainability, noting, “We’re planting over 100 million native plants and using innovative technology to restore our natural environment, allowing us to reintroduce Arabian wildlife. Our commitment to 100 percent renewable energy is significant, and we're leading the world in making this a reality.”

Roy also discussed the potential for personalized experiences through technology, saying, “We can design a deeply personalized experience from the moment you book to when you arrive, stay, leave, and return. Collaborating with global partners allows us to implement and test cutting-edge technology, creating a major opportunity for innovation.”

This year’s Future Hospitality Summit 2024 marks the largest edition to date, bringing together 1,500 industry leaders and featuring more than 110 distinguished speakers, facilitating engaging discussions and networking opportunities.

The three-day event continues to serve as a platform for industry leaders to connect, share ideas, and shape the future of hospitality and tourism.