Davos Diary: As the WEF party rolls out of town, a tale of two Davoses

A Swiss national flag waves in the wind on the last day of this year’s World Economic Forum annual meeting, in Davos, Switzerland. (AP Photo)
Updated 26 January 2019
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Davos Diary: As the WEF party rolls out of town, a tale of two Davoses

  • There is something sad about the Congress Hall on the last day of the World Economic Forum Annual Meeting
  • The corridors and staircases that throbbed to the chatter of the ‘masters of the universe’ are poignantly silent

DAVOS: The Central Lounge is thinning out, the Global Situation Space is deserted. The Public Figures Lounge — the abode of the global elite these past few days — is spookily vacant, though the specter of Tony Blair still hangs in the air.

The Davos party is over, and it is time to call it a day.

There is something sad about the Congress Hall on the last day of the World Economic Forum Annual Meeting. The corridors and staircases that throbbed to the chatter of the “masters of the universe” are poignantly silent. Even the Swiss cloakroom attendants — the most efficient and welcoming WEF staff — are bored and looking at their watches for the last shuttle back to base camp.

To hear some cynics talk, that’s more or less how it was for the duration of the annual meeting. “There’s nobody here this year” was a common refrain. “Everyone has stayed away” was another.

Well, if by everyone you mean the presidents of the US and China, I suppose they have a point.

While there was plenty going on at Davos 2019, it did lack the big beasts that attended the past couple of years. There was no real focal point, no plenary session you simply had to attend.

Actually, this made the main drag of the Congress Hall a rather more pleasant place to be. It was easier to get around, and it was possible to find some space to work or have a quiet conversation.

But in many ways, it was a tale of two Davoses. Outside the Congress, in the snowy streets and promenades of the Alpine resort, it was if anything more hectic than ever.

The Belvedere, as ever, was the hub of this activity. How much longer the Steigenberger hotel can fulfil this role must be open to question. On Wednesday night, the place was absolutely packed, its narrow corridors and comparatively small salons and cafes bursting at the seams.

One British wag compared it to the intergalactic bar in the movie “Star Wars,” where furry monster aliens got involved in fist-fights. An exaggeration, but not by much.

Outside the Belvedere, the WEF-izaton of Davos was almost complete. Virtually every shop, cafe and restaurant on the Promenade, the town’s main thoroughfare, was taken over by a bank, or a management consultancy, or sometimes a whole country — Ukraine, Poland and Russia rubbing shoulders uneasily in converted stores — for the duration of WEF. I wonder what the Promenade looks like for the rest of the year?

One notable exception is the souvenir shop across the promenade from the Morosani Schweizerhof hotel. The local lore is that the proprietors have no need of the inducements of the WEF because they already make a fortune during the week. Even the global elite have to buy their fake Swiss gold bars, Davos mugs and tacky Swiss branded fondue sets somewhere.

The nighttime hustle along the Promenade seems to get more hectic every year. My big regret at Davos 2019 is that I did not make it inside the legendary Piano Bar in the Hotel Europe, a must-visit every previous year.

I got to the hotel, but security staff refused to admit any more would-be crooners to the bar. A quick peek around the door showed why — it was jammed to the rafters with furry aliens and green creatures with two heads.

  • Frank Kane is an award-winning business journalist based in Dubai. Twitter: @frankkanedubai

Key tourism roles to be localized in Saudi Arabia as part of national employment push 

Updated 15 sec ago
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Key tourism roles to be localized in Saudi Arabia as part of national employment push 

JEDDAH: Hotel managers, travel agency directors and tour guides are among 41 tourism roles set to be reserved for Saudi nationals under plans to boost local employment and reduce reliance on foreign labor. 

In coordination with the Ministry of Tourism, the Ministry of Human Resources and Social Development announced the decision, highlighting that the move targets leadership and specialist jobs in the private sector. 

Other roles earmarked for this localization designation include planning and development supervisors, tourism development specialists, procurement and sales professionals, and hotel receptionists.

The initiative is part of a broader labor market strategy to boost Saudization, a program launched in 2011 to increase domestic employment in the private sector through industry-specific quotas. 

It has helped reduce Saudi unemployment from 12.8 percent in 2018 to 7.1 percent by mid-2024, surpassing the Vision 2030 goal of 8 percent. The Kingdom has set a new target of 5 percent unemployment by 2030.

In a post on his X account, Tourism Minister Ahmed Al-Khateeb reaffirmed his ministry’s commitment to job localization in partnership with the private sector. He also emphasized ongoing efforts to train and equip national talent through top local and international institutions to ensure a world-class tourism experience.

He said: “We are proud that our young men and women have become the frontlines of the tourism sector, conveying our culture and embodying the values of warmth, generosity, and authentic Saudi hospitality in their interactions with the Kingdom’s guests.”

This program will launch in three phases, starting on April 22, 2026 with the full Saudization of four tourism roles, 70 percent localization for 12 positions, and 50 percent for another 12. 

The second stage, set to begin on Jan. 3, 2027, will implement a 30 percent localization rate for one specific role.

Starting Jan. 2, 2028, the final step will focus on localizing 50 percent of leadership positions within the sector. 

In a post on his X account, Human Resources and Social Development Minister Ahmed Al-Rajhi said: “This move comes as part of the continued efforts by the Ministry of Human Resources and Social Development to support national talent and enhance their participation in the labor market, in line with the objectives of Saudi Vision 2030.”

The most recent localization push came in January, when the Ministry of Human Resources and Social Development, in coordination with the Ministry of Health, announced new Saudization targets for the pharmaceutical sector. 

Starting July 27, community pharmacies and medical complexes must reach a 35 percent Saudization rate, hospitals 65 percent, and other pharmacy-related businesses 55 percent. The regulations will apply to companies with five or more pharmacy professionals.


Oil Updates — prices rise on short-covering, but tariff worries linger 

Updated 22 April 2025
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Oil Updates — prices rise on short-covering, but tariff worries linger 

SINGAPORE: Oil prices climbed on Tuesday as investors took advantage of the previous day’s losses to cover short positions, although concerns persisted over economic headwinds from tariffs and US monetary policy that could dampen fuel demand, according to Reuters. 

Brent crude futures rose 42 cents, or 0.6 percent, to $66.68 a barrel at 09:20 a.m. Saudi time. The US West Texas Intermediate crude contract for May, which expires on Tuesday, was at $63.53 a barrel, up 45 cents, or 0.7 percent. 

The more actively traded WTI June contract was up 0.7 percent, or 45 cents, at $62.86 a barrel. 

Both benchmarks dropped more than 2 percent on Monday, as signs of progress in nuclear deal talks between the US and Iran helped ease supply concerns. 

“Some short-covering emerged after Monday’s sharp sell-off,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities. 

“However, concerns about a potential recession driven by the tariff war persist,” he said, predicting that WTI will likely trade in the $55–$65 range for the time being given ongoing uncertainty related to tariffs. 

On Monday, US President Donald Trump repeated his criticism of Federal Reserve Chair Jerome Powell and said the US economy could slow unless interest rates were lowered immediately. 

His comments about Powell fuelled worries about the Fed’s independence in setting monetary policy and the outlook for US assets. Major US stock indexes dropped and the dollar index slid to a three-year low on Monday. 

“The growing uncertainty surrounding US monetary policy is expected to negatively impact financial markets and the broader economy, raising fears that it could lead to a decline in crude oil demand,” Kikukawa said. 

A Reuters poll on April 17 showed investors believe the tariff policy will trigger a significant slowdown in the US economy this year and next, with the median probability of recession in the next 12 months approaching 50 percent. 

The US is the world’s biggest oil consumer. 

Progress in talks between the US and Iran, which on Saturday agreed to begin drawing up a framework for a potential nuclear deal, could also weigh on oil prices and reduce supply concerns as the Middle Eastern country is a major producer. 

“Our view that Iran’s oil exports face imminent downside risks due to the enforcement of US sanctions has eased given ongoing talks between US and Iran,” Vivek Dhar, an analyst at Commonwealth Bank of Australia, said in a note, adding that US sanctions relief was potentially on the table. 

Meanwhile, Russia’s economy ministry has cut its forecast for the average price of Brent crude in 2025 by nearly 17 percent from what it saw in its September calculations, according to documents obtained by Reuters. 

US crude oil and gasoline stockpiles were expected to have fallen last week, while distillate inventories likely rose, a preliminary Reuters poll showed on Monday, ahead of weekly reports from the American Petroleum Institute and the Energy Information Administration. 


Pakistan reassures IMF it will stay reform course on sidelines of IMF-World Bank meetings

Updated 22 April 2025
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Pakistan reassures IMF it will stay reform course on sidelines of IMF-World Bank meetings

  • IMF Managing Director Kristalina Georgieva acknowledges Pakistan has made ‘great progress’ in restoring macroeconomic stability despite global challenges
  • The statement came after Finance Minister Muhammad Aurangzeb’s meeting with Georgieva in Washington on the sidelines of IMF-World Bank spring meetings

ISLAMABAD: Finance Minister Muhammad Aurangzeb has reassured the International Monetary Fund (IMF) that his country would stay the reform course under its $7 billion bailout program, the Pakistani finance ministry said on Tuesday, on the opening day of the IMF-World Bank spring meetings.

Aurangzeb is currently on a visit to Washington, United States to attend the 2025 spring meetings of the IMF and the World Bank Group, where he has held a series of high-level engagements on the sidelines.

In his meeting with IMF Managing Director Kristalina Georgieva, Aurangzeb thanked the IMF team for a staff-level agreement on the first review of Pakistan’s $7 billion program and a new arrangement under the Resilience and Sustainability Facility (RSF).

Pakistan secured the $7 billion program in Sept. last year as it moved to consolidate its economy since averting a default in 2023. Islamabad has since undertaken several reforms to reduce public debt, maintain low inflation, improve energy sector viability, and to accelerate growth.

“He reiterated the Government of Pakistan’s commitment to maintaining the reform momentum and extended an invitation from the Prime Minister of Pakistan for Ms. Georgieva to visit the country,” the Pakistani finance ministry said.
Georgieva said Pakistan had made “great progress” in restoring macroeconomic stability despite global challenges.

“We continue to work with the authorities on their reform agenda for the benefit of Pakistan’s people,” she said on X, following her meeting with the Pakistani finance minister and central bank governor.

IMF Managing Director Kristalina Georgieva (left) Governor of the State Bank of Pakistan, Jameel Ahmad, during the 2025 Spring Meetings of the World Bank Group and the International Monetary Fund in Washington DC, US, on April 21, 2025. (@KGeorgieva/X)

The finance minister held a meeting with World Bank Group President Ajay Banga and commended its leadership in developing a transformative Country Partnership Framework (CPF) — a decade-long strategic roadmap centered around measurable impacts and outcomes.

“He appreciated the World Bank’s ongoing assistance in crafting a comprehensive implementation strategy and action plan to operationalize the CPF while simultaneously enhancing overall efficiency,” Aurangzeb’s ministry said.

“The Minister also provided a detailed overview of Pakistan’s macroeconomic turnaround and reaffirmed the government’s unwavering commitment to ensuring sustainable economic stability.”

Pakistan's Finance Minister Muhammad Aurangzeb (fourth right) holds meeting with officials of The World Bank Group in Washington DC, US, on April 21, 2025. (Finance Ministry)

In his meetings with Deloitte and the International Finance Corporation (IFC) officials, Aurangzeb discussed cooperation in multiple areas like energy and private sector reforms and critical minerals.

“The Finance Minister met with the Deloitte delegation and apprised them of Pakistan’s macroeconomic outlook, the government’s sectoral development agenda, and its export-led growth priorities. Both sides explored potential collaboration in energy sector reforms, critical minerals extraction and marketing, privatization, technology, crypto policy, and the operationalization of the Country Partnership Framework (CPF),” the Pakistani finance ministry said.

“He reviewed progress on Diversified Payment Rights (DPR) and commended the IFC’s pivotal role in securing USD 2.5 billion in debt financing for the Reko Diq Copper and Gold Mine Project in Balochistan. The Minister emphasized the importance of ensuring that local communities benefit from the project’s economic gains.”

Earlier in the day, the finance minister attended a luncheon hosted by the US-Pakistan Business Council at the US Chamber of Commerce, where he engaged with corporate leaders and detailed Pakistan’s economic progress and reform measures in taxation, energy, and privatization. He emphasized the importance of regional trade, market diversification, and sectoral expansion, and expressed Pakistan’s commitment to continued collaboration in the mining and minerals sector.

During his visit to Washington, Aurangzeb would also meet with finance ministers and counterpart leaders of China, the United States, United Kingdom, Saudi Arabia and Turkiye and officials of global credit rating agencies, commercial and investment banks.


PepsiCo opens regional headquarters in Riyadh, unveils $8m R&D center

Updated 21 April 2025
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PepsiCo opens regional headquarters in Riyadh, unveils $8m R&D center

RIYADH: Global beverage giant PepsiCo has opened its new Middle East regional headquarters in Riyadh’s King Abdullah Financial District, reinforcing the company’s long-term commitment to the region.

Spanning 2,800 sq. m, the state-of-the-art facility will accommodate more than 150 employees and serve as a central hub for PepsiCo’s operations across the Middle East.

“Our new RHQ in Riyadh signals our firm and long-term commitment to this region’s future and its people – through job creation, agricultural partnerships, social impact and environmental stewardship,” said Ahmed El-Sheikh, president and general manager for Middle East, North Africa, and Pakistan Foods.

The inauguration ceremony drew attendance from top PepsiCo executives, including Chairman and CEO Ramon Laguarta, alongside senior Saudi officials and business leaders.

As part of its regional growth strategy, PepsiCo also announced plans to launch a new research and development center in the Kingdom, with an investment of SR30 million ($7.99 million). The R&D hub will focus on innovation in product development and packaging tailored to regional preferences.

The facility will feature a culinary lab and an immersive sensory studio designed to refine products in alignment with local consumer tastes.

In addition to serving as a business and innovation center, the Riyadh headquarters will also house PepsiCo’s flagship social impact programs, including Tamakani and MENA Innovates, both aimed at empowering youth and fostering sustainable innovation.

PepsiCo has invested over SR9 billion in Saudi Arabia over the past eight years. In 2023 alone, the company allocated SR199 million to expand its Dammam manufacturing facility.

Today, PepsiCo operates across 86 locations in the Kingdom and employs nearly 9,000 people through direct operations and its franchise network.


Closing Bell: Saudi indices end day in the red

Updated 21 April 2025
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Closing Bell: Saudi indices end day in the red

RIYADH: Saudi Arabia’s stock market closed lower on Monday, with the Tadawul All Share Index falling 77.94 points, or 0.67 percent, to end the session at 11,548.66.

Total trading turnover stood at SR3.5 billion ($953.3 million), as 45 stocks advanced while 195 declined.

The Kingdom’s parallel market, Nomu, also closed in the red, shedding 340.41 points, or 1.17 percent, to finish at 28,637.78.

Of the listed stocks, 29 rose while 44 declined. The MSCI Tadawul Index dipped by 8.02 points, or 0.54 percent, closing at 1,466.51.

Alistithmar Capital REIT was the session’s top performer on the main index, jumping 9.92 percent to close at SR7.98.

Saudi Printing and Packaging Co. followed closely, gaining 9.86 percent to reach SR12.70. Nice One Beauty Digital Marketing Co. also saw notable gains, rising 4.78 percent to SR38.35, while Zamil Industrial Investment Co. climbed 3.92 percent to SR38.40.

On the other end of the spectrum, Dar Alarkan Real Estate Development Co. posted the steepest decline, falling 5.51 percent to SR22.30. Eastern Province Cement Co. dropped 4.48 percent to SR34.10, and Riyadh Cables Group Co. slid 4.26 percent to SR126.

National Gypsum Co. announced a 22.03 percent year-on-year increase in revenue for the fiscal year ending December 31, 2024, reporting SR63.32 million compared to SR51.89 million the previous year. Despite the rise in sales, the company posted a net loss of SR14.72 million, reversing a profit of SR5.13 million a year earlier.

The loss was attributed to higher sales costs and a decline in other income, including a SR10.7 million fine paid to the General Authority for Competition and the absence of land compensation income that had been recorded the prior year. Shares of National Gypsum Co. dropped 1.59 percent to settle at SR19.80.

Banque Saudi Fransi reported a 16.38 percent increase in net profit for the first quarter ending March 31, 2025, reaching SR1.34 billion compared to SR1.15 billion in the same quarter of the previous year.

The bank’s total operating income rose 13.17 percent year on year to SR2.64 billion, driven by increases in special commission income and trading income.

Net income growth was supported by an 8.1 percent rise in net special commission income, while operating expenses grew by 12.16 percent. Total comprehensive income more than doubled to SR1.92 billion, up 120.85 percent from the same period last year. The bank’s share price rose 0.92 percent to SR17.50.

Riyad Bank posted a 19.39 percent year-on-year increase in net profit for the first quarter of 2025, reaching SR2.49 billion compared to SR2.07 billion in the same period last year.

Total operating income grew 10.18 percent year on year to SR4.5 billion, while total comprehensive income increased by 23.62 percent to SR2.68 billion.

The bank attributed the rise in profitability to growth in net special commission income, trading income, exchange income, and net fee and commission income.

Operating expenses fell due to lower impairment charges for credit losses and other financial assets, though this was partially offset by higher employee and premises-related costs. Despite the strong earnings, Riyad Bank’s share price slipped 0.82 percent to SR30.15.