MOSCOW: A meeting between the two men who run Russia and Saudi Arabia’s oil empires spoke volumes about the new relationship between the energy superpowers.
It was the first time that Rosneft Chief Executive Igor Sechin and Saudi Aramco Chief Executive Amin Nasser had held a formal, scheduled meeting — going beyond the numerous times they had simply encountered each other at oil events around the world.
Their conversation also broke new ground, according to two sources familiar with recent talks in Dhahran who said the CEOs discussed possible ways of cooperating in Asia, such as Indonesia and India, as well as in other markets.
Saudi Aramco confirmed the meeting took place but declined to give details of the closed-door talks, which took place on the same day as Saudi Arabia and Russia led a global pact to extend a crude output cut to prop up prices. Kremlin oil major Rosneft declined to comment.
The meeting — which also saw Nasser give Sechin a tour of Saudi Aramco’s headquarters, according to the sources — gives an insight into the newfound, unexpected and fast-deepening partnership between the two countries. It is one that will be closely watched by big oil consumers around the world which have long relied on the hot rivalry between their top suppliers to secure better deals.
Such a detente between Moscow and Riyadh would have been almost unthinkable in the past.
Up until a year ago, the two sides had virtually no dialogue at all, even in the face of a spike in US shale oil production that had led to a collapse in global prices from mid-2014. Sechin was strongly opposed to Russia cutting output in tandem with the Organization of Oil Exporting Countries (OPEC).
In a sign of their white-hot Asian rivalry, Rosneft outbid Saudi Aramco to buy India’s refiner Essar last year and boost its share in the world’s fastest growing fuel market.
Fast forward a matter of months, and Moscow and Riyadh have become the main protagonists of the pact to cut output — agreed in December and extended last week — and are even discussing possible cooperation in their core Asian markets.
“It is a new ‘axis of love’,” one senior Gulf official said of the relationship.
On Tuesday, Putin welcomed Saudi Deputy Crown Prince Mohammed bin Salman in the Kremlin and both men said they would deepen cooperation in oil and work on narrowing their differences over Syria, where Moscow and Riyadh are backing opposing sides in a civil war.
“The most important thing is that we are succeeding in building a solid foundation to stabilize oil markets and energy prices,” said Prince Mohammed.
Putin said the countries would work together to resolve a “difficult situation.”
The first attempt at cooperation between the two countries failed with both sides unable to agree joint actions at an OPEC meeting in December 2014, six months after oil prices began tumbling from above $100 a barrel.
Much has changed since then, however, economically and politically — and the unlikely partnership between Moscow and Riyadh has been born out of necessity.
When oil prices collapsed, both economies were driven into deficit after years of high spending and are only now slowly recovering. With Russia heading for a presidential election in early 2018, and Prince Mohammed having pledged to reform the Saudi economy and publicly list Saudi Aramco, neither country can afford another oil price shock.
Last year’s apointment of Khalid Al-Falih as the energy minister also appeared to have helped, with their dialogue facilitated by OPEC’s new Secretary-General Mohammad Barkindo.
“If Minister Al-Falih says something, I know it will be done,” Russian Energy Minister Alexander Novak said last week in Vienna after Russia and OPEC agreed to extend output cuts.
Novak is looking to organize a trip for Al-Falih to a Russian Arctic field, having visited Saudi Aramco’s facilities in the Empty Quarter desert himself last October.
“Last year, minister Falih took us to a desert — we want to show him an ice desert,” Novak joked last week.
Barkindo told Reuters: “They (Saudi Arabia and Russia) are the leading lights of the Declaration of Cooperation between OPEC and non-OPEC which has opened a new chapter in the history of oil.”
On Tuesday, Novak and Al-Falih reiterated in Moscow they would do “whatever it takes” to stabilize oil markets, borrowing a famous phrase used by European Central Bank President Mario Draghi five years ago to defend the euro.
They also discussed the outlook for non-OPEC production including US shale output, which has resumed growing over the past year as private American producers have cut costs and adapted to lower prices.
US crude is now being exported all over the world and the chances of private producers agreeing to cooperate with OPEC are minimal because of tough US anti-monopoly legislation.
“Both Russia and the Gulf countries are interested in some type of oil price stabilization and they hope that they can achieve this without undertaking a sort of massive cuts which they had to do back in the 1980s,” said Paul Simons, a former US diplomat now serving as deputy executive director of the International Energy Agency.
Saudi Arabia and Russia say they will remain in partnership long after the current output reduction deal expires.
“It is necessary to work out new framework principles for continued cooperation between OPEC and non-OPEC even after the expiration of the Vienna agreements,” Novak said on Wednesday.
Al-Falih, for his part, ended his speech by thanking Novak in Russian: “Spasibo.”
Saudi-Russia detente heralds new oil order
Saudi-Russia detente heralds new oil order
Hospitality boom spurs 45% Saudization, workforce growth: Diriyah executive
RIYADH: The Kingdom’s hotel industry has achieved 45 percent Saudization in its workforce, marking a significant step toward the Kingdom’s Vision 2030 goals, according to a senior executive.
Speaking at the Future Hospitality Summit in Riyadh, Imran Changezi, executive director of Hospitality Development at Diriyah, emphasized the sector’s accelerating efforts to localize talent and create opportunities for Saudi nationals.
Changezi recalled starting his hospitality career in Riyadh, noting that when he began, it was common to find only one Saudi employee among 300 hotel staff. He said that the situation has since improved significantly, with Saudi nationals now making up 45 to 50 percent of hotel workforces.
He added that Saudi Arabia is undergoing a hospitality transformation that is unprecedented both in scale and execution.
“I have never seen a transformation of this scale in my life, in my career. The speed at which this is being executed is just phenomenal,” Changezi said.
He noted that since the launch of Vision 2030, the sector has witnessed a surge in talent, energy, and a strong commitment to development.
Reflecting on the cultural foundation that supports the hospitality industry, Changezi emphasized the innate sense of hospitality embedded within Saudi society. He noted that the “DNA of hospitality” is deeply rooted in the way of life for citizens, residents, and all who call the Kingdom home, describing it as an integral part of their identity and daily interactions.
As Diriyah’s development progresses, Changezi stated that the organization is working closely with key government stakeholders to ensure alignment and support.
He said that once the planned hotels open, they expect to employ between 14,000 and 15,000 people, adding that strong collaboration is already underway with the Saudi Tourism Authority and the Ministry of Tourism.
Mohammed Marghalani, chief franchised assets officer at Dan Co. —a subsidiary of the Public Investment Fund—stressed the importance of aligning with market expectations.
He noted that there is currently a gap between the offerings of the Ministry of Tourism and the actual needs of the market, particularly in relation to what international hotel operators require.
According to Changezi, the Diriyah project is expected to add approximately 5,500 to 6,000 new hotel keys, with a strong focus on the luxury and upper-upscale segments.
He noted that 37 international hotel brands have already been officially announced, and that the team has been working with more than 60 brands in total since as early as 2019 and 2020.
Yasser Faisal Al-Sharif, founder of Al Sadu Advisory, called for stronger educational infrastructure to support the sector. “It’s a fantastic business opportunity. It’s a gold mine — hospitality education,” he said. “What we need is to have an internationally accredited institution.”
Al-Sharif stressed the need for campuses with reduced dependency on government incentives.
Saudi Arabia adds over 1,000 hotel keys as summit opens with major deals
RIYADH: Saudi Arabia’s hospitality sector saw a boost on the opening day of the Future Hospitality Summit, with more than 1,000 new hotel keys announced across several high-profile agreements.
Key signings on Sunday included new hotel developments in Jeddah, Madinah, and Qassim, underscoring sustained investor confidence in the Kingdom’s ambitious tourism expansion plans.
Among the notable announcements was BWH Hotels’ partnership with Optimal Real Estate and Rsoukh Trading Co. to develop five new properties across Jeddah and Madinah. The move signals a major step forward in the group’s regional expansion strategy.
“We signed five hotels between Jeddah and Madinah,” said Mujahid Pasha, director of development Middle East at BWH Hotels, in an interview with Arab News on the sidelines of the event.
“The partnership only brings five hotels, but these five hotels represent about 1,000 keys in total,” Pasha added.
The centerpiece of BWH’s announcement is a 540-room Best Western Premier property in Madinah, located just 600 meters from the Prophet’s Mosque.
“This is one of the big hotels we just signed today,” said Pasha. “We talk about an upper, upscale offering, which is our Best Western Premier brand.”
Another highlight is a luxury WorldHotels Elite property on King Road in Jeddah — often referred to as the “Golden Mile” due to its prime location. The development will include 215 guest rooms and approximately 300 office units as part of a broader mixed-use complex.
“WorldHotels is our luxury and high-end offering,” said Pasha. “The King Road doesn’t have any luxury offerings, so we wanted to use that brand.”
Three additional hotels will be introduced under BWH’s SureStay brand—its economy and midscale portfolio—including two SureStay Studios and one SureStay Hotel.
“These brands are not in the region as well. The first in the region will be in Saudi Arabia,” Pasha noted, confirming that two of the SureStay properties will be in Jeddah and one in Madinah.
BWH Hotels, which operates 18 brands globally, is leveraging its diverse portfolio to target a broad range of travelers and budgets.
In another development, Amsa Hospitality announced a new four-star hotel project in Qassim in collaboration with Alkayan Alarabi. The property will be located within the Al-Kayan Avenue mall on Al-Imam Al-Bukhari Road.
“This is a new hotel, newly developed, with 174 keys including suites, meeting rooms, gym, two restaurants, and a spa,” said Amsa CEO Muin Serhan.
Designed to serve both business and leisure travelers, “the hotel is currently under development and is expected to complete development by the end of this year with official operations expected later in the first quarter of next year,” Serhan added.
Rounding out the day’s announcements, IHG Hotels & Resorts and Ashaad Co. signed an agreement to develop three new hotels in Jeddah and Alkhobar, further adding to the Kingdom’s growing hospitality portfolio.
Beyond real estate deals, the summit spotlighted the industry’s growing focus on talent development. Organizers launched the inaugural NextGen Investment Forum, aimed at addressing workforce challenges in the tourism and hospitality sectors.
“For the first time at FHS Saudi, we proudly introduce the NextGen Investment Forum, a new platform dedicated to addressing one of the most critical issues and urgent challenges in our history—investing in our people,” said Jonathan Worsley, chairman and CEO of The Bench, which organizes the hospitality event.
Worsley emphasized the hospitality sector’s global economic impact.
“Hospitality and tourism is a massive industry, a massive force in today’s contribution to global gross domestic product,” he said.
“It’s the world’s third largest economic sector,” Worsley added, citing 357 million jobs worldwide and a $1.1 trillion contribution to global GDP.
According to summit figures, the industry will require 100 million additional jobs over the next five years to meet rising demand. In Saudi Arabia alone, a $110 billion investment in the sector is set to deliver 362,000 hotel rooms by 2030.
“We need an additional 1 million jobs in the Kingdom by 2030,” Worsley stated. “The foundations of sustainable growth must begin with education and training.”
The NextGen forum aims to bridge the gap between education and industry by fostering dialogue on training, investment, and talent retention.
“We’re bridging the gap between academia and what the industry needs—exploring funding and investment opportunities in hospitality education and enhancing the industry’s appeal to retain talent and reduce turnover,” Worsley said.
During a panel discussion on global tourism trends, Harry Theoharis, member of the Hellenic Parliament and candidate for secretary-general of the UN World Tourism Organization, praised Saudi Arabia’s transformation.
“Saudi Arabia’s tourist plans, if anything, are one of the biggest success stories,” he said.
“We’ve seen Saudi Arabia transform itself from a very specific and niche market of religious tourism, which was the staple of Saudi Arabia, to a very vibrant, very energetic, very young-oriented destination attuned to the wills of the young population,” Theoharis added.
More than 1,000 global tourism leaders, investors, and operators have convened in Riyadh for the Future Hospitality Summit, held from May 11–13 at the Mandarin Oriental Al Faisaliah. Centered on the theme “Where Vision Shapes Opportunity,” the event features panels, investment showcases, and strategic signings shaping the future of hospitality in Saudi Arabia and beyond.
Closing Bell: Saudi main index slips to close at 11,346
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 17.52 points, or 0.15 percent, to close at 11,346.59.
The total trading turnover of the benchmark index was SR3.32 billion ($896 million), as 108 of the stocks advanced and 128 retreated.
The Kingdom’s parallel market, Nomu, also lost 508.04 points, or 1.82 percent, to close at 27,423.45. This comes as 30 stocks advanced while 45 retreated.
The MSCI Tadawul Index followed suit and lost 0.22 points, or 0.02 percent, to close at 1,451.79.
The best-performing stock of the day was SHL Finance Co., whose share price surged 8.74 percent to SR19.90.
Other top performers included SICO Saudi REIT Fund, which saw its share price rise 6.54 percent to SR4.40, as well as National Medical Care Co., whose shares surged 4.93 percent to SR149.
Middle East Specialized Cables Co. recorded the steepest decline, falling 8.33 percent to SR33. Fawaz Abdulaziz Alhokair Co. followed with a 6.62 percent drop to SR14.94, while Saudi Chemical Co. slipped 6.47 percent to SR8.39.
On the announcements front, MBC Group Co. reported its interim financial results for the period ending March 31. According to a statement on Tadawul, the company posted a net profit of SR263.5 million in the first quarter of 2025, marking a 117.2 percent increase compared to the same period in 2024. The surge in profit was primarily driven by a SR190 million rise in gross profit, attributed to higher revenues during the month of Ramadan.
MBC Group Co. ended the session at SR43.90, up 0.47 percent.
Al-Rajhi Co. for Cooperative Insurance also announced its interim financial results for the first quarter. A bourse filing showed that the company posted a net profit of SR90.7 million for the period ending March 31, representing an 18.4 percent decline compared to the same quarter last year. The drop in net profit was primarily attributed to a decrease in the insurance service result before re-takaful, total comprehensive income, and total investment income, as well as an increase in other operating expenses and gross written premiums.
Al-Rajhi Co. for Cooperative Insurance ended the session at SR123.40, down 2.76 percent.
Saudi Ground Services Co. has announced its interim financial results for the period ending March 31. According to a Tadawul statement, the company reported a net profit of SR97.6 million in the first quarter of 2025, marking a 37 percent increase compared to the same period in 2024. The growth was primarily driven by an SR18.3 million rise in revenue year on year.
Saudi Ground Services Co. ended the session at SR49.00, down 1.53 percent.
Saudi Chemical Co. has announced its consolidated financial results for the first quarter of 2025. A bourse filing showed the company reported a net profit of SR82.33 million for the period ending March 31, reflecting a 9.9 percent decline compared to the same quarter last year. The decrease was attributed to higher finance costs, the revaluation of derivative financial instruments related to interest rate exposure, and an increase in zakat and tax provisions.
Saudi Chemical Co. ended the session at SR8.95, down 6.47 percent.
Dallah Healthcare Co. has announced its interim financial results for the period ending March 31. According to a Tadawul statement, the company reported a net profit of SR155.56 million in the first quarter of 2025, marking a 30.3 percent increase compared to the same period a year earlier. The rise in profit was driven by higher revenues, along with non-recurring gains of SR51 million resulting from the company’s 33.33 percent stake in a real estate fund through an in-kind contribution of land.
Dallah Healthcare Co. ended the session at SR120, up 0.17 percent.
Tamkeen Human Resource Co. has announced its consolidated financial results for the first quarter of 2025. A bourse filing revealed the company recorded a net profit of SR26 million for the period ending March 31, representing a 40.54 percent increase compared to the same quarter last year. The surge in earnings was attributed to growth in the group’s revenues, gross profit, and operating profit.
Tamkeen Human Resource Co. ended the session at SR55.30, up 3.61 percent.
Umm Al Qura for Development and Construction Co. has announced its consolidated financial results for the first quarter of 2025. A bourse filing showed the company posted a net profit of SR159.6 million for the period ending March 31, reflecting a staggering 3,219.3 percent increase compared to the same quarter a year earlier. The sharp rise in profit was primarily driven by a significant surge in revenues.
Umm Al Qura for Development and Construction Co. ended the session at SR24.26, up 0.34 percent.
Taiba Investments Co. has announced its interim financial results for the period ending March 31. According to a statement on Tadawul, the company reported a net profit of SR131.3 million in the first quarter of 2025, marking a 36.6 percent increase compared to the same quarter last year. This growth is mainly attributed to the rise in operating revenues during the first quarter of 2025.
Taiba Investments Co. ended the session at SR43.25, up 1.5 percent.
First Saudi-made THAAD system parts completed in Jeddah
JEDDAH: Saudi Arabia has completed the first domestically manufactured components for the Terminal High Altitude Area Defense system launcher in Jeddah, marking a significant step forward in the Kingdom’s ongoing efforts to localize its defense industry.
The milestone was highlighted during a recent meeting at Arabian International Co. for Steel Structures in Jeddah, attended by senior defense officials and industry leaders.
Among those present were Tim Cahill, president of missiles and fire control at Lockheed Martin; Nawaf Al-Bawardi, assistant deputy of the General Authority for Military Industries; and Wasim Attieh, president of AIC.
The meeting focused on reviewing progress in the local production of THAAD system components, following a partnership between Saudi Arabia and Lockheed Martin aimed at strengthening local manufacturing capabilities.
The achievement follows two contracts signed during the 2024 World Defense Show in Riyadh, as part of a broader strategy to localize key THAAD components. It builds on previous efforts announced at the 2022 edition of the show, including initiatives to domestically produce missile containers and launch platforms.
In a statement, Lockheed Martin emphasized the significance of the development, noting AIC’s advanced manufacturing capabilities and precision welding expertise.
“It is particularly significant as it demonstrates how the two companies successfully worked to bolster manufacturing expertise, strengthening the country’s defense industrial base while establishing a second source and building resilience for the US supply chain,” the statement said.
Cahill lauded the achievement as a major milestone for both countries. It is a tremendous milestone for the US and Saudi Arabia as both nations work to fulfill the Kingdom’s THAAD procurement, he said.
“Through this program, we’re not only supporting Saudi Vision 2030 and enhancing regional defense capacity, but we’re also generating high-quality manufacturing jobs in the US and strengthening the American defense industrial base, a testament to the value of our partnership with AIC Steel and the Kingdom of Saudi Arabia.”
Attieh praised Lockheed Martin for its cooperation and commitment to the project.
Lockheed Martin has been “an excellent partner,” providing the necessary tools and training to support and advance the localized production of a key component of the THAAD weapon system, he said.
“I look forward to working together to ensure a more secure future for the Kingdom of Saudi Arabia.” He also expressed gratitude to GAMI for its support throughout the project.
Saudi Arabia has steadily increased its defense manufacturing capabilities, with military spending localization reaching 19.35 percent in recent years — up from just 4 percent in 2018. The Kingdom aims to surpass 50 percent by 2030, in line with its Vision 2030 goal to establish a self-sufficient defense sector.
The THAAD system, developed by Lockheed Martin, is a state-of-the-art missile defense platform capable of intercepting and destroying ballistic missiles at both endo- and exo-atmospheric altitudes. It is designed to provide protection against short-, medium-, and intermediate-range threats and is widely regarded for its high success rate in flight tests and operational use.
The continued collaboration between Saudi Arabia and Lockheed Martin underscores the Kingdom’s commitment to building a robust and independent military industrial base while reinforcing its strategic defense alliances.
Egypt’s annual inflation rises to 13.5% in April: CAPMAS
JEDDAH: Egypt’s annual inflation rose to 13.5 percent in April from 13.1 percent the previous month, driven by higher prices across key sectors including healthcare, transport, and housing, official data showed.
According to data released by the Central Agency for Public Mobilization and Statistics, or CAPMAS, the monthly consumer price index rose 1.3 percent to 253.8 points, up from 250.6 in March.
The data indicates continued inflationary pressures across essential sectors, affecting households nationwide, as Egypt grapples with the compounded impact of currency devaluations, ongoing subsidy reforms, and external shocks to global food and fuel prices.
The healthcare sector recorded the sharpest monthly gains, rising 7.7 percent, with prices of medical products and equipment surging 11.4 percent. Outpatient services rose 2.1 percent, while hospital services increased 1.6 percent, according to CAMPAS data.
Transport costs climbed 7.5 percent on the month, led by an 8.6 percent jump in private transport spending and an 8.2 percent increase in transport services. The cost of purchasing vehicles rose 1.3 percent.
Housing, water, electricity, gas, and fuel prices increased 2.8 percent. Electricity, gas, and fuel prices alone climbed 6.7 percent, while actual rent increased by 1.1 percent and home maintenance and related services rose by 1.0 percent.
Food and beverage prices declined 1.2 percent on a monthly basis, providing some relief to consumers. The decline was led by a 3.5 percent drop in meat and poultry, a 0.6 percent fall in dairy, cheese, and eggs, a 0.1 percent decrease in oils and fats, and a steep 5.1 percent drop in fruit prices.
However, prices in several other categories within the food segment increased. Cereal and bread prices rose 0.5 percent, fish and seafood increased by 1.7 percent, vegetables gained 1.2 percent, sugar and sugary foods edged up 0.4 percent, and other food products rose 1.2 percent.
Coffee, tea, and cocoa prices rose 0.4 percent, while mineral water, carbonated beverages, and natural juices were up 1.5 percent.
The restaurants and hotels category posted a 4.1 percent increase in April, as ready meal prices climbed 4.2 percent and hotel services rose 1.5 percent. Cultural and entertainment services prices rose 0.7 percent, including a 15.6 percent increase in costs tied to leisure and recreational services. The clothing and footwear division saw a 1.7 percent increase, with prices of garments, accessories, and cleaning services all moving higher.
Furniture and household equipment prices increased by 1.1 percent, while miscellaneous goods and services climbed 2.2 percent, driven largely by a 2.4 percent rise in personal care expenses and a 4.3 percent increase in prices of personal luggage items.
