INTERVIEW: Middle East Rolls-Royce chief Cesar Habib prepares for push into Saudi Arabia

Cesar Habib, Rolls-Royce’s regional director for the Middle East and Africa, is preparing for a push into Saudi Arabia. (Illustration: Luis Grañena)
Updated 08 April 2019
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INTERVIEW: Middle East Rolls-Royce chief Cesar Habib prepares for push into Saudi Arabia

  • Habib describes Middle East's love affair with ‘car for kings and presidents’
  • The Cullinan — named after the largest diamond ever found — is Rolls-Royce’s latest super-luxury marque

DUBAI: The Middle East’s love affair with Rolls-Royce Motor Cars dates back more than 100 years, to the famous motto of Lawrence of Arabia that “a Rolls in the desert was above jewels,” as the wartime hero helped to promote the cause of Arab independence by deploying several armored cars made by the legendary British manufacturer.
Cesar Habib, Rolls-Royce’s regional director for the Middle East and Africa, has a modern version of that saying — “effortless everywhere” — and he applies it especially to the current jewel in the Rolls crown, the Cullinan.
“I remember when we had the first customer events here in the region, I put the customers into the car, and I said one thing I want to know: Did you experience the ‘effortless everywhere?’ And they came back and told me, Cesar, you were spot on,” he said.
The Cullinan — named after the largest diamond ever found — is Rolls-Royce’s latest super-luxury marque, selling for about SR2 million ($533,000, depending on the amount of bespoke work that goes into the model).
It is aimed at the upmarket SUV sector everywhere in the world, but particularly in the Middle East, where it simply ticks all the boxes for the wealthy regional car-lover — a big, luxurious, all-terrain vehicle that tells the world you, the owner, are a person of substance, demanding attention and respect.
“I believe it’s not just here (in the Middle East) but all over the world,” Habib said. “Everyone says they have got the best product on earth, the most exclusive product on earth and the most bespoke product on earth. They know it in Europe, but I think here in the Middle East it’s even more so, because they are really proud to own a Rolls-Royce. Anybody here who can afford one tries to buy one.”
The Rolls-Royce was the car of choice for rulers, princes and sheikhs who suddenly found themselves with huge levels of disposable income after the oil boom took off, and there are stories in the motor trade of mythical fleets of the vehicles sitting gleaming in palaces throughout the Arabian Gulf.
“It’s a car for kings and presidents,” Habib added.

This is what amazes me about bespoke — the interaction with the customer, making  just his or her car.

Cesar Habib


Some countries, it is said, will not allow expats to buy Rolls-Royce cars because they are reserved as a mark of royalty; in other places, new Rolls models are held for rulers and royalty first, and only released to the public when the rulers have had their fill.
Habib would not comment on those rumors, but he is sure of the allure of the Rolls-Royce brand. “Everybody knows that when someone buys a Rolls-Royce they want to make a statement about themselves,” he said.
Arab customers make that statement increasingly frequently. The showroom in Abu Dhabi was for several years the best-selling Rolls dealership in the world, and even though it has now been overtaken by a Chinese dealership, the Middle East helped Rolls to the best-ever year in its history in 2018, in terms of vehicles sold.
Rolls-Royce does not provide a breakdown of the number of cars sold in individual markets, but Habib said: “Saudi is a very important market and I think there is room to grow the brand there. How? By investing in the brand further and by being more prominently present in the market.”
In a reference to the transformation underway in the Kingdom as part of the Vision 2030 strategy, he added: “I think all the changes that are going on will play into our hands because we can go and show the brand as it is. We can do more events and invite more people. Previously, we held back a bit. We had conversations with Mohammed Yousuf Naghi (the long-standing dealer in Saudi Arabia) and we both agreed that we would take it to the next level.”
Habib detects some subtle differences in the Saudi market. “There is an increased level of expression among those in Jeddah, for example. They really get creative when selecting a Rolls-Royce — and it is very much a reflection of their more expressive personalities in how they have the car designed.”
The “expression” can reach some extraordinary heights in the Middle East market for Rolls-Royce. After some time working in the “bespoke” part of the Rolls-Royce business — the division that aims to give customers the exact car they want — Habib has a pretty good eye for regional taste.
Unusual color combinations are common, as are the idiosyncratic features discerning customers demand, such as Arabic calligraphy on the bodywork and interior.
“One customer, a collector, said he wanted a car where he could incorporate birthday features for his kids. I want my children to come into the car and look for their birthdays. So, we put a star constellation in the starlight roofing headliner, and we embroidered astrological signs into the door pockets, and in the folding tables as binary codes,” he said.
“Another gentleman wanted to give his wife a Rolls-Royce ‘love story’ for their wedding anniversary, and he designed it with us — a car with flowers inside. Behind each car there is a story,” he said.
Colors of bodywork are just as flamboyant. Cherry pink fuchsia, bright yellow, turquoise outside matching the same shade on the interior upholstery, have all featured in cars Habib has helped customers design. “You can’t argue colors, you can’t argue taste. That’s what I had to learn very quickly,” he said.
“This is what amazes me about bespoke — the interaction with the customer, making just his or her car. I don’t think you find this level of attention or service with any other manufacturer,” he added.

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BIO

BORN 

•1967 Tripoli, Lebanon

EDUCATION

•German School Lebanon

•University of Passau, Germany, diploma in business administration

CAREER

•Parts consultant, BMW, Germany

•Executive in after-sales, dealer and business development, BMW Dubai

•Executive for BMW in Iran

•After-sales marketing, Dubai BMW

•Global ownership services, Rolls-Royce, Goodwood, UK

•Bespoke, Dubai

•Regional director for Middle East and Africa, Rolls-Royce

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There has also been a shift in car driving patterns in the Kingdom, which could accelerate as more women get behind the wheel. The bigger Rolls-Royce models, such as the Phantom and the Ghost, have traditionally been seen as chauffeur-driven cars, but this is no longer strictly the case.
“They could be chauffeur-driven, but it depends on the situation. We find many owners want to drive themselves, but if they go out for an evening, for a function, they have their drivers. People enjoy driving our cars because, despite the fact they are big cars, they are effortless to drive,” Habib said.
The Wraith and Dawn — a coupe and a convertible — do not really lend themselves to chauffeur driving, and Habib sees a big potential market among wealthy women for those models.
And, of course, there is the Cullinan, heading the marketing drive this year, although apparently not much intense marketing was required.
“It has had an extremely positive reception. We had an order bank of nine months before anybody had even seen the car. We gave some people sneak previews, but even from (the information that) came into the press, people said they wanted that car,” he added.
The other essential part of the brand appeal of Rolls-Royce is its Britishness, despite the fact that since 2003 it has been owned by the German manufacturer BMW. “Everyone who thinks Rolls-Royce thinks Britain, they don’t think Germany — the British heritage of that brand, which we really nurture and maintain, it’s very important to keep the heritage of the brand.”
Most of the car’s styling and design is carried out in Goodwood in the UK, the home of Rolls-Royce for many years, while some technology and engineering come from Germany. That would continue, Habib stressed, even if there was a damaging Brexit separation of Britain from the EU.
“I don’t want to be political, but with Brexit we were always very firm in saying that whatever happens we are staying in Goodwood because we are a British brand,” he said.
Habib takes it as a compliment that other sectors of the luxury goods market use the brand name to define the exclusivity of their products — the “Rolls-Royce of watches” or the “Rolls-Royce of boats” — but he is also aware that those sectors provide some of the main competition for the company’s upmarket products.
“The challenge that we have is that we operate in the segment of ultra-high net-worth individuals. We are in the ultra-luxury segment, like some of the watchmakers, jewelry brands, leather goods manufacturers, private jet manufacturers, yacht builders, and the rest. We are in a different environment, competing with non-car manufacturers,” he said.
Habib sees the key part of his job as being as “customer- centric” as possible, and given his background in the bespoke business and ownership services, that is the part of the business he gets most satisfaction from, even expressing some regret he had less time to do this since getting the top regional job for Middle East and Africa last year.
“What I love to do is to talk and configure the car with each and every customer. This I love to do. Each and every customer is special and has their own story. If I had the time, I would like to sit with each of our customers and talk them through it. It’s very rewarding, almost artistic,” he said.
With his German-Lebanese heritage, Habib thinks he is uniquely equipped to carry on guiding customers in the region. “People tell me you are the right mix of Levant and German thinking — accuracy, attention to detail, and disciplined — but also understanding the culture in this region,” he said.


Saudi Arabia, UAE invest $26.8m in Pakistan in Q1 of 2024

Updated 05 November 2024
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Saudi Arabia, UAE invest $26.8m in Pakistan in Q1 of 2024

 

ISLAMABAD: Pakistan’s foreign investment surged by 48 percent in the first quarter of the current fiscal year, according to state-run media reports on Tuesday.

Saudi Arabia and the UAE contributed a total of $26.8 million during this period. In 2023, Pakistan established the Special Investment Facilitation Council, a joint civil-military body aimed at expediting foreign investment decisions in key economic sectors, including agriculture, mining, minerals, and tourism.

This initiative came amid Pakistan’s ongoing economic crisis, which had pushed the country to the brink of a sovereign default. The crisis was mitigated by a crucial $3 billion bailout from the International Monetary Fund last year, preventing further economic collapse.

According to a breakdown shared by Radio Pakistan, China led foreign investments in the first quarter with $404 million, followed by the UAE’s $25 million and Saudi Arabia’s $1.8 million. Other notable contributors included Hong Kong, with $98 million; the UK, with $72 million; and the US, with $28 million.

Radio Pakistan reported: “A significant increase of 48 percent has been seen in foreign investment in Pakistan in the first quarter of the current fiscal year, reflecting the effective strategies of the Special Investment Facilitation Council.”

During a recent visit to Saudi Arabia and Qatar, Pakistan’s Prime Minister Shehbaz Sharif held talks with leaders from both nations to discuss boosting cooperation in trade, investment, and energy. Notably, in October, Pakistani and Saudi businesses signed 27 agreements and memorandums of understanding valued at $2.2 billion.

During Sharif’s visit to the Kingdom last week, the two countries agreed to increase this figure to $2.8 billion.

The UAE remains Pakistan’s third-largest trading partner, after China and the US, and serves as an important export market due to its proximity, which helps minimize transportation costs and facilitates trade exchanges.

In recent months, Sharif has been actively pursuing economic diplomacy in the region, focusing on securing investments, boosting trade, and improving regional connectivity.

Pakistan has sought to leverage its strategic position as a trade and transit hub, connecting landlocked Central Asian countries with the global market while promoting mutually beneficial economic partnerships with Gulf nations.


Saudi Arabia’s CMF Selects holds first-ever market event at LSE

Updated 05 November 2024
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Saudi Arabia’s CMF Selects holds first-ever market event at LSE

RIYADH: Saudi Arabia’s CMF Selects has successfully concluded its inaugural international market event, hosted at the London Stock Exchange.

The gathering, as announced in a press release, marked a key milestone for CMF Selects, an initiative under the Saudi Capital Market Authority. The event aimed to strengthen strategic partnerships between the Kingdom and global markets.

Organized by CMF Selects, the event attracted more than 245 influential participants, including industry experts and investors from the UK, Saudi Arabia, and other international markets.

CMF Selects is a targeted series of events under the CMF umbrella, focusing on specialized topics that are relevant to Saudi Arabia and its global partners.

Sarah Al-Suhaimi, chairperson of the Saudi Tadawul Group, stated: “The forum has contributed to strengthening the relationships between Saudi Arabia and the United Kingdom, enabling both sides to leverage promising growth opportunities and foster investments between the two markets.”

She added: “We are pleased to continue the journey of success and expand the Financial Markets Forum, aspiring to establish its position as a leading platform for innovation in financial markets. We aim to organize the first Financial Markets Forum in London by 2026.”

Michael Mainelli, the Lord Mayor of the City of London, commented: “The first edition of the event has highlighted the strength of the Saudi-British partnership and their fundamental role in achieving joint Saudi-British visions of growth, as well as strengthening links between the financial markets.”

Discussions throughout the event focused on exploring economic and investment opportunities across a range of sectors, including finance, technology, and sustainable development.

One of the key themes of the event was sustainability and technological innovation—both central to Saudi Arabia’s Vision 2030. Conversations explored how these areas could be advanced through international investment, with the goal of driving economic growth and resilience in both Saudi Arabia and the UK.

Looking ahead, CMF Selects plans to host a series of similar market hub events in other global financial centers, including New York, Tokyo, and Frankfurt.

The press release also revealed that this initiative is part of a broader strategy to position Saudi Arabia as a global financial powerhouse by 2026, supporting the Kingdom’s efforts to diversify and strengthen its economy.


Saudi cabinet approves framework to boost foreign direct investment

Updated 05 November 2024
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Saudi cabinet approves framework to boost foreign direct investment

RIYADH: The Saudi Cabinet has initially approved the national general framework and guiding principles for foreign direct investment, setting the stage for enhanced economic engagement with international organizations.

The session, chaired by Crown Prince Mohammed bin Salman, addressed significant developments on both domestic and international fronts, according to the Saudi Press Agency.

The Kingdom’s foreign direct investment inflows reached SR96 billion ($25.6 billion) in 2023, marking a 50 percent annual increase from the previous year.

The crown prince briefed the Cabinet on his recent discussions with leaders from several allied countries, focusing on bolstering ties across diverse sectors.

The Minister of Media, Salman Al-Dossary, highlighted that among these decisions the Cabinet authorized Saudi Arabia’s accession to the Cement and Concrete Breakthrough Initiative, launched on the sidelines of the UN Climate Change Conference.

This aligns with the Kingdom’s sustainability goals and commitment to the global climate agenda.

The Cabinet also approved an agreement with Qatar to avoid double taxation and prevent tax evasion.

This move underscores the Kingdom’s dedication to fostering economic cooperation within the Gulf region, facilitating smoother cross-border investments, and enhancing transparency in financial dealings.

In line with advancing Saudi Arabia’s capabilities in science and technology, the Cabinet also endorsed a framework agreement with the US to cooperate in civil aviation navigation and the peaceful exploration of outer space.

Additionally, the Cabinet also reviewed regional and international developments, with the crown prince briefing members on recent discussions with various heads of state focused on strengthening ties across multiple sectors.

The meeting highlighted the Kingdom’s efforts in regional peace initiatives, its commitment to global health challenges through the G20 platform, and recent advancements in the tourism sector.

During the session, the Cabinet commended the outcome of the second ministerial meeting of the Saudi-Indian Strategic Partnership Council economic and investment committee, highlighting the progress toward achieving the two countries’ shared goals.

This was mainly in the fields of industry, infrastructure, and technology, as well as agriculture, food security, climate sciences, and sustainable transportation.

Domestically, the Cabinet underlined the Kingdom’s significant advancement of 15 places in the 2023 international tourist revenue rankings compared to 2019, leading the top 50 rankings in an upward movement.

This achievement underscores the country’s global leadership and ongoing success in the tourism sector.


Closing Bell: Saudi main index closes in red at 12,014

Updated 05 November 2024
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Closing Bell: Saudi main index closes in red at 12,014

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Tuesday, losing 24.37 points, or 0.20 percent, to close at 12,014.94.

The total trading turnover of the benchmark index was SR5.73 billion ($1.52 billion), as 86 of the listed stocks advanced, while 140 retreated.   

The MSCI Tadawul Index decreased by 4.65 points, or 0.31 percent, to close at 1,507.83.

The Kingdom’s parallel market Nomu surged, gaining 768.81 points, or 2.74 percent, to close at 28,831.58. This comes as 42 of the listed stocks advanced while 32 retreated.

The best-performing stock of the day was Riyadh Cables Group Co., with its share price surging by 6.95 percent to SR117.  

Other top performers included Arabian Cement Co., which saw its share price rise by 4.51 percent to SR25.50, and Al Moammar Information Systems Co., which saw a 4.38 percent increase to SR185.80. 

The worst performer of the day was Wataniya Insurance Co., whose share price fell by 9.96 percent to SR24.04.

Al-Etihad Cooperative Insurance Co. and Shatirah House Restaurant Co. also saw declines, with their shares dropping by 9.34 percent and 5.77 percent to SR18.44 and SR21.22, respectively.  

On the announcements front, Saudi Public Transport Co. announced its interim consolidated financial results for the first nine months of the current year. SAPTCO’s shares dropped in today’s trading session, dipping by 1.01 percent to reach SR21.58.

According to a Tadawul statement, the firm recorded a net loss of SR20.8 million in this period of the year, reflecting a 53.3 percent dip compared to the same term in 2023.

The decline in net profit for the current period, compared to the same period last year, is due to lower operating revenue from reduced public transportation operations, along with higher general and administrative expenses, increased finance costs, and higher zakat and tax, combined with a decrease in finance income.

The Saudi Arabian Cooperative Insurance Co. also announced its interim financial results for the same period ending on Sept. 30. SAICO’s shares dropped in today’s trading session, decreasing by 2.89 percent to SR14.78.

Net profit before zakat attributable to the shareholders for the current period amounted to SR43.2 million compared to SR65 million during the same period of the previous year, which was mainly due to a decrease of 44.9 percent in the net insurance service, which was affected by a decrease in medical business.

​​For the first nine months of this year, Abdullah Al Othaim Markets Co. revealed its results for the first nine months of this year, with total comprehensive income amounting to SR220.6 million – a year-on-year decrease of 30.4 percent.

Abdullah Al Othaim Markets Co.’s shares decreased in today’s trading session by 1.92 percent to reach SR11.24.

Gulf Insurance Group’s income over the same period also dropped – with the SR78.2 million it registered representing an annual fall of 19.7 percent.

GIG’s shares also saw declines by 0.84 percent to reach SR29.50. 

The individual investor subscription for Tamkeen Human Resources’ initial public offering on the Saudi stock market started Nov. 5 and runs until Nov. 6. 

According to a statement from the company, a total of 1.59 million shares, representing 20 percent of the offering, are allocated to individual investors at SR50 per share. 

The deadline for subscription and payment is Nov. 6, with the final allocation announced on Nov. 11. The minimum subscription is 10 shares, and the maximum is 250,000. Saudi Fransi Capital managed the initial public offering, which saw an institutional demand of SR55 billion, with coverage 138.2 times.


China to issue $2bn bonds in Saudi Arabia amid deepening bilateral ties

Updated 05 November 2024
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China to issue $2bn bonds in Saudi Arabia amid deepening bilateral ties

RIYADH: China has announced plans to issue dollar-denominated bonds in Saudi Arabia starting the week of Nov. 11, marking its first debt issuance in US currency since 2021. 

The Asian country’s Ministry of Finance disclosed on Nov. 5 that it will sell up to $2 billion in bonds in Riyadh.

This issuance comes as China and the Kingdom are strengthening a multifaceted alliance that extends across multiple spheres.

In recent years, both nations have sought to broaden their economic cooperation, aligning strategic initiatives such as China’s Belt and Road Initiative with Saudi Arabia’s Vision 2030 plan.

“With the approval of the State Council, the Ministry of Finance will issue US dollar sovereign bonds of no more than $2 billion in Saudi Arabia in the week of November 11, 2024. The specific issuance arrangements will be announced separately before the release,” the ministry’s statement read.

This step will positively impact the Kingdom’s financial market, “especially when considering that the Financial Development Program is playing a crucial role in shaping the future of Saudi Arabia’s financial sector,” according to Talat Hafiz, a Saudi-based economist. 

Talking to Arab News, he said such issuance supports one of the main pillars of Vision 2030, to advance the Saudi economy through diversification and enhancing the local financial market.

Strengthening Saudi-Chinese relations

“The issuance is part of China’s efforts to strengthen the relationship between the two friendly countries, which is witnessing huge improvements in several fields,” Hafiz said.

In September,Saudi Crown Prince Mohammed bin Salman and Chinese Premier Li Qiang co-chaired a pivotal meeting of the High-Level Saudi-Chinese Committee, where they reviewed aspects of joint cooperation and addressed regional and international developments. 

The session in Riyadh emphasized opportunities in energy, trade, and investment, as well as well as technology and security, while laying the groundwork for enhanced coordination across these sectors.

Expanding tourism and education links

Tourism has emerged as a significant focus in Saudi-Chinese relations. In October, Saudi officials, including the Minister of Tourism Ahmed Al-Khateeb, engaged with Chinese counterparts to expand travel and investment ties.

The Kingdom received the designation of “Approved Destination Status” from Beijing earlier this year, following participation in key events in China. 

To attract 5 million visitors from the Asian country by 2030, Saudi Arabia has introduced Chinese payment processing options, launched tailored tourism campaigns, and increased direct flights between the two countries.

Growing trade and investment

China has been Saudi Arabia’s largest trade partner since 2014, with bilateral trade reaching $97 billion in 2023. This figure includes $54 billion in Saudi exports and $43 billion in imports from China. 

This issuance will benefit both the Kingdom’s financial market and businesses in Saudi Arabia and China, especially with their strong economic ties and alignment with Vision 2030 and the Belt and Road Initiative, according to Hafiz.

The economist said “the Saudi-Chinese Business Council has a major role to play in promoting business between Saudi Arabia and China.”

He highlighted the trade size amounting to “about $96.5 billion in 2023, representing 18 percent of the total volume of Saudi trade globally.”

Investments between the two nations have also surged, with Chinese investments in the Kingdom rising from $1.5 billion in 2022 to $16.8 billion in 2023. Saudi investments in China are also substantial, totaling $75 billion.

Saudi Arabia and China are exploring new avenues for collaboration, including joint investments in renewable energy, infrastructure, and technology, with a focus on sustainable development. 

The crown prince’s 2019 visit to Beijing set a foundation for this strategic partnership, resulting in 12 agreements and memoranda of understanding that continue to shape bilateral cooperation.