WASHINGTON/LOS ANGELES: Hurricane Maria destroyed Puerto Rico’s antiquated and bankrupt electrical system, leaving millions in the dark and utility crews scrambling to help.
Now some politicians and renewable energy investors see a golden opportunity in the crisis to use federal funds to reinvent the US territory’s grid as a storm-resistant network that relies less on costly coal and oil imports and more on local wind, solar, and batteries.
If it happens, it could ease power bills on an island that struggles with the second-costliest electricity in the US, behind Hawaii, as well as infrastructure prone to failing in the region’s frequent hurricanes.
“We cannot waste the opportunity of this crisis and federal aid package,” said Ramon Luis Nieves, a Puerto Rican politician in the Popular Democratic Party, who headed the island’s senate energy committee until his term expired in January.
“We need to focus on not only getting the grid back up, but improving it so it can tolerate more renewable energy.”
A set of bills introduced this week by US Democratic Senator Ron Wyden of Oregon would call on the Department of Energy to make the US electric grid hardier against natural disasters, and would offer grants for small scale, grid connected solar and other projects.
A Wyden aide said Puerto Rico’s utility, the Puerto Rico Electric Power Authority (PREPA), could apply for such grants to modernize the grid, or get funds from the Federal Emergency Management Agency to rebuild and then apply for the grants to help pay for upgrades.
Efforts to reach a PREPA official were not successful.
That government support would be crucial. PREPA was $9 billion in debt before declaring bankruptcy in July. Its equipment was already “degraded and unsafe,” according to a draft fiscal report the company filed in April.
Around half of Puerto Rico’s electricity is generated from imported fuel oil, with another third coming from natural gas, and much of the rest from coal, according to the Department of Energy.
Renewables supply about 2.4 percent, though the island has set a goal to obtain 20 percent of its electricity from renewables by 2035.
The prospect of a new grid in Puerto Rico has some renewable energy companies and investors interested. Jeff Ciachurski, CEO of Greenbriar Capital, a renewable energy investor in Puerto Rico, California and Arizona, said government support could open up new opportunities for the sector to take over market share.
“The federal government is in the driver’s seat,” he said.
Sunnova, a residential solar installer with 10,000 customers in Puerto Rico, said it was working with the governor to try to restore power off-grid in the short-term, but said the destruction also creates an opportunity to create a new, renewable-friendly grid.
“Everybody can agree that what the future and the new power industry and system look like is not what was there before,” John Berger, Sunnova CEO, told Reuters.
Tesla, meanwhile, is sending hundreds of batteries that can store power generated by solar panels to Puerto Rico to provide emergency help in the wake of Maria. A company spokesperson did not say what Tesla’s future plans were.
On Friday, Puerto Rico Governor Ricardo Rossello said his team is looking at alternative ways to bring power back on the island, including by using microgrids, small power networks that can work independently of the main grid.
Judith Enck, a former Environmental Protection Agency regional administrator for Puerto Rico, said solar-powered microgrids, as well as buried power lines, could allow for a more rapid recovery after storms.
Hurricane Maria left the entire island and its 3.4 million residents without power and destroyed 80 percent of its transmission and distribution infrastructure, according to the Department of Energy.
The Army Corps of Engineers has been placed in charge of restoring power as quickly as possible, a key step to restoring other basic services like water, fuel, and food.
Renewable energy investors see opportunity in Puerto Rico’s demolished grid
Renewable energy investors see opportunity in Puerto Rico’s demolished grid
Saudi Arabia projects 8% tourism growth in 2025 as sector overhaul gains pace
RIYADH: Saudi Arabia’s tourism sector is projected to grow by 8 percent in 2025, building on a year of record-breaking performance and continued progress under Vision 2030, according to a top official.
Speaking at the Future Hospitality Summit in Riyadh, Mahmoud Abdulhadi, deputy minister for destination enablement at the Ministry of Tourism, said direct tourism spending rose 14 percent in 2024, compared to the SR256 billion ($68.26 billion) recorded in 2023.
“2023 was our first year that we hit 100 million. While I can’t tell you the exact numbers, hopefully, some of you can do the math. We are going to see growth this year. We’re talking 8 percent growth in the number of visitors,” he said. “We delivered SR256 billion worth of direct spend in 2023, and from 2023 to 2024, we’re looking at roughly 14 percent growth in spend.”
He added, “There was some healthy skepticism around some of the objectives and what we wanted to do. But I think, as Saudis, we have proven time and time again that when we make promises, we deliver, and Vision 2030 is no exception to this.”
Abdulhadi noted the Kingdom’s broader economic shift, stating that 50-51 percent of Saudi Arabia’s gross domestic product now comes from the non-oil sector, with 47 percent contributed by the private sector.
“Hospitality is in our DNA — something we’ve been doing for thousands of years,” he said.
He further emphasized the growing role of leisure tourism in driving sectoral change, stating: “Leisure today accounts for, if we’re looking at our domestic visitors, over 35 percent of visitors and over 30 percent of spend.”
For international visitors, he noted that leisure contributes over 20 percent of both arrivals and spending. “We’ve had a major shift in how we do things, what we do, and it’s delivering in terms of the numbers,” Abdulhadi said.
Structural reforms have played a key role, he said, including a 70 percent reduction in hotel operation fees since 2019 and streamlined licensing procedures, which led to a 168 percent increase in licensed tour guides.
A new hospitality incentive program targeting emerging destinations has attracted nearly SR3 billion in private sector investment.
“It is our ambition that tourism investment happens without somebody talking to the ministry or a government entity saying how, where, and help,” Abdulhadi said. “So, once we reach that position of maturity, our role moves from facilitator to pure regulator.”
Opening the second day of the summit, Jonathan Worsley, chairman and CEO of The Bench, a hospitality investment and aviation development business events organizer, underscored the sector’s momentum, citing the launch of Riyadh Air, which aims to serve 100 international destinations by 2030.
“They’re playing a crucial role in developing the tourism strategy for Vision 2030,” he said.
Prince Bandar bin Saud bin Khalid, secretary general of the King Faisal Foundation and chairman of Al Khozama Investment Co., emphasized the cultural transformation driving the sector.
“Saudi Arabia is no longer just about infrastructure and service,” he said. “It’s about identity, culture, talent, and future leadership.”
He added: “In the coming days, we will explore many of the challenges and opportunities ahead — and most importantly, how to develop the human capital needed to sustain this extraordinary momentum.”
From the private sector, Sultan Bader Al-Otaibi, CEO of Taiba Investments, announced plans to open over 2,000 rooms across Saudi cities in 2025. “We believe hospitality is more than business — it’s a way to connect with people and create a memory,” he said.
The company’s first opening will be the soft launch of Saudi Arabia’s first Rixos hotel in Jeddah, followed by Makarem Burj Al Madinah and Novotel Al Madinah, two flagship properties expanding the group’s domestic and international brand partnerships.
Coinciding with the summit, Knight Frank released its Saudi Arabia Hospitality Market Review 2025, offering fresh insight into the industry’s trajectory. According to the report, the Kingdom’s hospitality market is expected to reach 362,000 hotel keys by 2030. Currently, 167,500 keys are in operation, with an additional 99,500 under construction or in the final planning stages.
Of the pipeline, 78 percent is expected to fall into the luxury, upper-upscale, or upscale categories, while 61 percent of existing inventory already fits within those segments.
Saudi Arabia recorded its highest-ever travel surplus in 2024 at SR49.8 billion, up from SR46.2 billion in 2023, driven by a 13.8 percent increase in inbound visitor spending. Average hotel occupancy in March stood at 70 percent, with Madinah leading at 81 percent.
Religious tourism also surged, with 35.8 million pilgrims performing Umrah in 2024 — a 33 percent year-on-year increase — including 16.9 million international pilgrims. The Hajj quota for 2025 has been raised to 2 million, up 11 percent from 2024.
Giga-projects such as NEOM, Rua Al Madinah, Jabal Omar, and the Red Sea Project are projected to deliver 252,000 hotel keys in the Holy Cities by 2030, with 64 percent of them in the four- and five-star categories.
With a national target of 150 million annual visits by 2030, Saudi Arabia is integrating its tourism, religious, and hospitality strategies to cement its status as a leading global destination.
Saudi Arabia aiming to drive up food exports, non-oil trade with China
JEDDAH: Saudi Arabia is pushing to expand food exports to China and attract agricultural investment with a ministerial visit that aims to deepen bilateral trade and boost non-oil economic cooperation.
Minister of Environment, Water and Agriculture Abdulrahman bin Abdulmohsen Al-Fadley has begun an official visit to China, heading a high-level delegation to enhance bilateral cooperation in the fields of environment, water, and food production.
The trip also focuses on boosting exports — particularly of over 20 new local food products— facilitating knowledge exchange, and promoting sustainable development and trade growth between the two countries, according to the Saudi Press Agency.
Saudi Arabia’s non-oil exports to China soared to SR3.68 billion ($980 million) in December, representing a 69.6 percent increase from the previous month, according to recent data from the General Authority for Statistics.
The SPA report said the minister’s visit “forms part of broader efforts to deepen Saudi-Chinese relations, attract strategic investments to the Kingdom, and explore mutual opportunities in the environment, water, agriculture, and livestock production sectors.”
Al-Fadley is scheduled to meet with Chinese ministers, senior officials, and leaders of major companies operating in key sectors.
The discussions will focus on exploring future partnership opportunities, transferring advanced technologies, and opening new opportunities in the Saudi market.
Al-Fadley will also participate in the Saudi-Chinese Forum on exporting Saudi products and sustaining the agricultural sector. The forum will bring together senior government and private sector representatives from both countries, including more than 80 Saudi businesspeople and investors.
GASTAT figures showed that in December, plastic and rubber products led Saudi exports to China with a value of SR1.12 billion, followed by chemical goods at SR1.11 billion and transport equipment at SR1.02 billion.
The Kingdom’s non-oil shipments to China stood at SR2.17 billion in November, SR2.35 billion in October, and SR1.73 billion in September, reflecting a steady upward trend.
This sustained growth highlights the deepening economic ties between Riyadh and Beijing, with Saudi Arabia maintaining its role as China’s top trading partner in the Middle East since 2001.
The increase in non-oil exports also signals tangible progress in the Kingdom’s economic diversification efforts, as it works to reduce its longstanding dependence on oil revenues.
FHS25: Investors attracted by Vision 2030 wins as international interest rises, hotel signings surge
FHS25: Investors attracted by Vision 2030 wins as international interest rises, hotel signings surge
RIYADH: Investor confidence in Saudi Arabia’s hospitality sector is being reinforced by tangible progress on Vision 2030 goals, including accelerating international interest and a surge in hotel signings, a major gathering has heard.
On the second day of the Future Hospitality Summit in Riyadh, global and local executives cited a powerful combination of leadership, domestic demand, and delivery momentum as key factors driving investment decisions.
Vision 2030 is an initiative designed to diversify the Saudi economy away from oil, with ambitious reforms aimed at boosting tourism, entertainment, and non-oil industries.
In a panel discussion, Christophe Beauvilain, managing partner at Pygmalion Capital, said Saudi Arabia presents a compelling opportunity for investors, describing Vision 2030 as “extremely ambitious and exciting.”
He highlighted the rapid achievement of tourism milestones as a key performance signal, saying: “When the Vision was first launched, the goal was to attract 100 million tourists by 2030. That target was reached by 2023, so it was revised upward to 150 million by 2030 — and I wouldn’t be surprised if that figure is raised again.”
Hotel signings, Beauvilain added, are a critical metric for institutional investors.
“There has certainly been a flurry of activity, particularly among international brands signing new projects,” he said.
While macroeconomic and geopolitical risks remain a consideration, Beauvilain noted the decreasing reliance on oil revenues as a positive structural shift.
“The oil sector’s contribution to gross domestic product is declining rapidly, which is a very positive and encouraging sign,” he said.
Amin Ismail, managing director of travel and tourism-focused private equity firm Certares, emphasized the changing global perception of Saudi Arabia.
“The leadership has done a pretty good job marketing the destination and raising global awareness,” he said.
“On a personal note, I was in Miami a couple of months ago, and someone I never expected mentioned they were interested in visiting Riyadh. They even referenced Diriyah by name,” Ismail said.
The managing director believes the country’s cultural depth is emerging as a differentiating factor.
“Saudi Arabia’s strength lies in its culture and heritage. The hospitality, the people, and the unique cultural experience are what really draw visitors,” he said.
Noting the rising interest among global travelers — including his own family — he added, “Today, it’s at the top of their (his family’s) travel bucket list — with Japan coming second.”
On the domestic front, Saudi Arabia’s hospitality development is being backed by robust local demand and substantial government support.
In a separate panel, Naif Al-Madi, chief business officer of the Tourism Development Fund, said: “Saudi Arabia has a unique advantage in that we have a large domestic market,” adding that it accounts for approximately 70 percent of the tourism sector, compared to 30 percent from international tourism.
He added that while global economic fluctuations may affect other markets, “we believe Saudi Arabia will feel only minimal shock.”
The fund has already supported over 2,400 tourism-related projects, and is expected to deliver more than 9,000 rooms.
Luc Delafosse, vice president of Hospitality Management at Al Khozama Investment Co., said the pace and consistency of project execution are setting Saudi Arabia apart.
“What I was very pleased to hear this morning is that 90 percent of the projects within the Kingdom are actually being delivered,” he said.
“Another key figure that stood out was that 50 percent of the development currently underway in Saudi Arabia is being produced and delivered by non-oil sectors.”
Delafosse, who has been in the Kingdom since 2019, noted the transformation firsthand.
“It’s not just about the number of projects, but also the overall evolution of the sector,” he said.
“The Kingdom has truly led the way in hospitality — not just in the region, but globally,” he added.
Egyptian remittances surge to record $32.6bn following reform push
RIYADH: Remittances from Egyptians working abroad surged to a record $32.6 billion in the 12 months through to the end of February, marking a 72.4 percent increase from the previous year, according to official data.
The Central Bank of Egypt attributed the sharp rise to a series of economic reforms launched in March 2024, which included currency stabilization efforts, improved access to foreign exchange, and incentives for expatriates to channel funds through formal banking systems.
The steady growth in remittances is a key factor in supporting country’s foreign currency reserves and stabilizing the economy amid ongoing fiscal and monetary adjustments.
In February, remittances hit $3 billion, more than double the $1.3 billion registered in the same month of 2024.
This marked the twelfth consecutive month of growth and sets a new record for February inflows, which have historically been lower than other months.
This surge builds on earlier trends that saw remittances from Egyptians abroad reach $2.6 billion in November 2024 — a 65.4 percent annual increase — driven by economic reforms, including the full flotation of the Egyptian pound under an International Monetary Fund−backed 8$ billion loan agreement.
Between July and November 2024, remittances rose 77 percent year on year to $13.8 billion, contributing to a 47.1 percent annual increase in total inflows to $26.3 billion by November.
Remittances play a crucial role in Egypt’s economy, supported by an estimated 12 million to 14 million expatriates, most of whom work in Gulf Cooperation Council countries.
The Egyptian pound’s sharp depreciation and soaring inflation have pushed even more citizens to seek jobs abroad. By earning in stronger foreign currencies, they aim to offset the effects of economic instability back home.
Furthermore, Egypt’s net international reserves have continued to grow steadily, supported by increasing remittances from Egyptians working overseas.
The country’s net foreign assets climbed by $1.48 billion in February, their second increase this year after having fallen in each of the last three months of last year, central bank data showed.
Net foreign assets rose to the equivalent of $10.18 billion from $8.70 billion at the end of January, according to Reuters calculations based on official central bank currency exchange rates.
Reuters said the increase “appeared related to an increase in Egyptian treasury bill purchases by foreign investors.”
US and China reach deal to slash tariffs, officials say
LONDON/SHANGHAI: Stocks and the dollar rallied on Monday after the US and China said they had agreed on a 90-day pause on tariffs and reciprocal duties would drop sharply, giving investors some confidence that a full-scale trade war may have been averted.
US Treasury Secretary Scott Bessent, speaking after talks with Chinese officials in Geneva, told reporters the two sides had reached the deal that was outlined in a joint statement and that reciprocal rates would drop by 115 percentage points.
This weekend’s Geneva meetings were the first face-to-face interactions between senior US and Chinese economic officials since US President Donald Trump returned to power and launched a global tariff blitz, imposing particularly hefty duties on China.
Market reaction
- Futures on the S&P 500 ESc1 and Nasdaq NQc1 jumped to trade up 2.8 percent and 3.6 percent, respectively, from gains of 1.5 percent to 2 percent previously, while in Europe, the STOXX 600 .STOXX rose 1 percent in early trading.
- The dollar extended gains, with the euro down 0.8 percent at $1.1164, having traded down 0.2 percent on the day earlier, while the yen weakened, leaving the US currency up 1.1 percent at 146.945, from a 0.5 percent gain earlier.
- Benchmark 10-year US Treasury yields edged up 6 basis points on the day to 4.435 percent, having traded up 5 bps before the joint statement.
Analyst comments
Kenneth Broux, senior strategist FX and rates, at Societe Generale in London, said: “There is a de-escalation between China and US resulting in a reduction of tariff on Chinese goods to 30 percent and Chinese tariffs on US goods to 10 percent. It’s a clear vote by the market in favor of riskier assets. It’s a step in the right direction and a positive of US assets and US economy.”
He added: “The dollar was lagging other markets in the recovery from the April lows. We had equities up back to April 2nd levels, we had bond yields up to those levels and the dollar was actually lagging that move. Now the conditions are falling into place for a deeper adjustment and a bigger recovery of the dollar to catch up with equities and bond yields.”
Zhiwei Zhang, chief economist at Pinpoint Assets Management in Hong Kong said: “This is better than I expected. I thought tariffs would be cut to somewhere around 50 percent and this is much lower.
“Obviously, this is very positive news for economies in both countries and for the global economy, and makes investors much less concerned about the damage to global supply chains in the short term.
“But we also need to keep in mind this is only a three-month temporary reduction of tariffs. So this is the beginning of a long process. The two sides will spend months probably, to come up with a resolution, or reach a final trade deal, but this is a very good starting point.”
Arne Petimezas, director research at AFS Group, in Amsterdam said: “Such a sharp U-turn by the US on tariffs on a Monday morning is quite the surprise. It seems that tariffs on China will fall to manageable levels, albeit temporary. Markets should rally on this. How can Trump credibly raise tariffs when the 90-day pause ends? He has toned down his tariffs faster than anyone thought he could, and April 2 will soon be forgotten. Granted, he told you to buy the dip.”
William Xin, chairman of hedge fund Spring Mountain Pu Jiang Investment Management, in Shanghai, said: “The result far exceeds market expectations. Previously, the hope was just that the two sides can sit down to talk, and the market had been very fragile. Now, there’s more certainty. Both China stocks and the yuan will be in an upswing for a while.”
