INTERVIEW: Rolls-Royce and the Middle East: A love story

Illustration by Luis Grañena
Updated 08 December 2019
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INTERVIEW: Rolls-Royce and the Middle East: A love story

  • ‘In the Middle East these cars are handed down through generations and will never be sold,’ Rolls-Royce CEO Torsten Muller-Otvos tells Arab News in an exclusive interview

At a recent “swing through” the Middle East, Torsten Muller-Otvos, the chief executive of luxury car maker Rolls-Royce, was asked what he regarded as his “perfect drive.”

The 59-year-old German listed the coast of Cornwall in the UK, the south of France, as well as an urban tour in the shape of a night auto-clubbing in London in the new Black Badge Cullinan — the “King of the Night” in the Rolls branding jargon.

But his aides revealed another drive high up their list of priorities, and under negotiation at the moment. Rolls would like to drive the Black Badge through the spectacular scenery around AlUla in northwest Saudi Arabia.

That would be a dream photo-shoot. Setting the jet black car amid the red canyons and architecture of the ancient Nabatean kingdom would be visually spectacular, and would send a subliminal message about the long association, even the long love-affair, Rolls has enjoyed in the Middle East.

Muller-Otvos explained: “This region is very important for us. It is our third-largest region by sales, after the USA and China, which is quite a statement on its own, and now we have the Cullinan, which is a big attraction here.”

The Cullinan is the company’s first foray into the SUV market, and has been a long time in the planning. It also owes something to the Middle East, because, as Muller-Otvos revealed, one of the inspirations behind the concept was the fleet of Rolls-Royce armored cars deployed by Captain T.E. Lawrence — “Lawrence of Arabia” — during the war against the Ottoman Empire in the First World War.

Not that Lawrence’s deadly killing machines have much in common with the extravagant cars the Middle East loves to buy and drive. The region is the biggest consumer of “bespoke” vehicles in the Rolls-Royce range, and cars are customized to a fine degree. “Everything we ship to the Middle East is highly bespoke. They are colorful, they are embroidered, they are localized, and it is wonderful to see them in the bright sun here,” he said.


BIO

Born: Germany, 1960

Education:

  • Ludwig-Maximilians Universitat Munich
  • University of Augsburg.

Career

  • Director of “Mini” branding for BMW.
  • Senior vice president, central marketing and brand management BMW.
  • Senior vice president, product management automobiles and after sales.
  • Chief Executive Officer, Rolls-Royce Motor Cars

Muller-Otvos has been with Rolls-Royce for ten years, after a previous executive term at brand management and marketing at BMW, which has owned Rolls-Royce since 1998. He has been credited with rejuvenating Rolls with the introduction of new models and designs, while maintaining its reputation as the number one luxury car maker in the world. In that decade, sales have increased fourfold to about 4,000 per year, with a considerable chunk of that increase heading to the Arabian Gulf.

“I always want to have two windows open — heritage and innovation,” Muller-Otvos said.

The Cullinan was received quite critically in some parts of the media worldwide because of this perceived departure from Rolls-Royce’s illustrious heritage. “We would never neglect our heritage,” he insisted.

The expansion in the Middle East was very much a part of this strategy of extending the brand. A decade ago the product range consisted essentially of variations on the august Phantom, the chauffeur-driven car of choice of royalty and presidents.

Since then, he has introduced newer younger models such as the Dawn, the Wraith and the Ghost, and now the Cullinan aimed at a younger aspirational market of high-net-worth individuals, and — increasingly — at women who like to drive themselves and who want to customize their vehicle to a high degree.

Of the Cullinan, which became available in the region last year with a basic price tag in the region of half a million dollars, depending on the degree of bespoke customization, he said: “It was quite an experiment when it landed, but the reality has been far higher than the expectation.”

The car has done very well in Saudi Arabia, combining luxury with top-of-the-range off-road capabilities that would handle the gorges and wadis of AlUla with ease. But one question that he is frequently asked in the Kingdom is whether Rolls-Royce would ever design a car especially for women.

 

“I would never do that. The last thing any woman would want to see is a car just for them. The Black Badge, probably the most masculine vehicle Rolls has ever produced, is selling well among the Kingdom’s females without the need for any special features, for example to cater for pregnant women.

 

“We are always looking at both genders when we design our cars. Features like multi-position steering wheels and auto-adjustable seats are standard. But I would never design one with a hanger for a handbag — that would be highly ridiculous,” he said.

“But our female customers are super-powerful people, they are business leaders, they run their own companies, they are powerful people. In bespoke, our motto is ‘your wish is my command’, so everything is possible,” he added, holding out hope for all those who long for a Rolls-Royce handbag hook.

“I have never said no to any customer’s request — as long as the legal rules allowed it.”

Muller-Otvos points to the time he had to disappoint a Rolls-Royce owner who wanted a cigar humidor installed in the dashboard. “That would have conflicted with the airbags and other safety requirements,” he explained.

One innovation which captures his enthusiasm is the move toward electric vehicles. “I think customers will embrace it. We have lots of clients who already own an electric car, so there will be little resistance, as long as it is an authentic Rolls-Royce. The electric concept already fits well with the brand because it is powerful but quiet. There will soon be a point where we can do it,” he said.




The Cullinan has been tested in the world’s toughest terrain, including Arabian deserts. (Photo courtesy of rolls-roycemotorcars.com)

The Middle East is unique within the Rolls-Royce global market in another way too. Economic activity is still, despite the various strategies toward diversification away from oil dependency, highly variable according to the price of crude oil on global markets. Is there a direct relationship between the oil price and Rolls-Royce sales?

“We are not immune to recessionary tendencies anywhere in the world. Around 80 percent of our ownership is dependent on industry or (people) running their own business, so when you’re business is under constraint, maybe you can’t afford a new Rolls-Royce. I would say there is an indirect relationship between the oil price, the economy and our sales. There was a blip a couple of years ago that we have recovered from now,” he added.

On the Saudi stop of his Middle East tour, one of the questions that arose with their local partner, Mohamed Yousuf Naghy Motors, was whether the initial public offering (IPO) of Saudi Aramco would drain financial resources from the luxury car market. “Nobody expects it to affect our business. To say it (the IPO) would drain money out of our business is just too black-and-white,” he said.

King Abdulaziz bin Saudi, the founder of Saudi Arabia, famously had a special Rolls-Royce given to him by British prime minister Sir Winston Churchill, and ever since the vehicle has been synonymous with royalty in the region. Some countries even discouraged wealthy non-royals from buying the vehicles, but this has changed now, and Rolls-Royce is ready to sell its product to anybody who can afford it.

But it would never go on a mass-marketing campaign, said Muller-Otvos. “I would never want to compromise the pricing segment. To lower the prices of a Rolls-Royce is not a thing we would do,” he said, in contrast to some other luxury car makers in the region who have aggressively gone for market share at the expense of exclusivity.

As the boss of arguably the ultimate luxury car, Muller-Otvos is acutely conscious of the demands of the global luxury brand market, and of the unique requirements of the Middle East, as well as the Rolls-Royce heritage.

“The ultra-high-net-worth people in this region own many cars. They have garages the way that we have wardrobes, with Lamborghinis and Ferraris there too. That is what the luxury business is all about,” he said.

But whatever vehicle is parked alongside it, the Rolls-Royce will always be special, he believes. It has been estimated that about 75 percent of the cars produced under the famous “spirit of ecstasy” mark since it was founded 115 years ago are still on the road, and the tradition of holding onto them is especially strong in the Arab world.

“In the Middle East these cars are handed down through generations. They carry the family crest and will never be sold,” he said.

 

 


Air France eyes daily Paris-Riyadh flights amid soaring demand

Updated 6 sec ago
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Air France eyes daily Paris-Riyadh flights amid soaring demand

RIYADH: Air France is planning to operate daily flights between Paris and Riyadh, a senior airline official told Arab News in an exclusive interview.

The announcement follows the launch of the carrier’s first direct route between Paris-Charles de Gaulle and King Khalid International Airport.

Stefan Gumuseli, the airline’s general manager for India and the Middle East, outlined the importance of the new route for the Air France-KLM Group and said it reflects the airline’s ambition to reestablish its presence in the Saudi market.

The decision comes in response to growing demand from travelers and investors eager to access the Kingdom’s expanding economic opportunities.

The new route marks a strategic step for Air France as it expands operations in the region and aligns with the growing connectivity between Europe and Saudi Arabia.

Talking to Arab News, Gumuseli said: “We’re starting with three weekly flights in mid-June, then gradually increasing to five. Our first major goal is to move to a daily service.”

He added that the market is not only outward-looking; the airline is also responding to rising inbound demand for Saudi Arabia, noting that it is experiencing almost exponential year-on-year growth.

Gumuseli also pointed to the Kingdom’s Vision 2030, which reflects a strong commitment to developing tourism, hospitality, and culture, supported by substantial ongoing investments. He said: “All these megaprojects are a clear sign that tourism is booming. We have a strong relationship with Saudi Arabia and are expanding our cooperation.”

His comments were echoed by Air France’s Senior Vice President for Benelux, Asia, India, the Middle East, and East Africa Bas Gerressen, who told Arab News: “Tourism is a very important factor, but we also need traffic, which has grown significantly over the past two years.

“The more connectivity there is between the two countries, the more economic exchange will flourish in both directions,” Gerressen added. 

Air France-KLM has entered into codeshare agreements to strengthen its network connectivity.

“We also place our code on these flights. So, when you consider all that connectivity from both sides, demand can only grow,” Gerressen said.

He added: “I believe Saudi Arabia has many premium travelers, and we need to reach them in specific markets. We already have strong demand across our business, premium and economy classes.”

At the same time, the airline is leveraging its distinctive French identity.

‘We position ourselves as a truly French brand — luxury, elegance, sophistication ... The French Touch. You can feel it the moment you board,” said Gerressen.

High-end products, gourmet in-flight dining, La Premiere lounges, and exclusive cabin experiences all reinforce this premium positioning. “We offer one of the best cabins in the region with our new first class, featuring a seat with five windows and just four seats in the entire cabin. It’s a revolution in the industry,” Gerressen added.

He emphasized the cabin crew’s vital role in shaping the passenger experience, highlighting their attentiveness and approachable demeanor.

As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations.

“Each new generation of aircraft reduces CO₂ emissions by up to 25 percent. Today, 28 percent of our fleet consists of these new aircraft, and our goal is to increase this figure to 80 percent by 2030,” Gerressen said. 

The airline is also the world’s leading buyer of sustainable aviation fuel. 

Gumuseli said: “We account for nearly 16 percent of global SAF usage, despite representing only 3 percent of total global kerosene consumption.”

Air France is investing in technology to enhance the passenger experience.

“We’ve decided to install high-speed Wi-Fi on board. In the event of a delay, passengers will receive updates about their connecting flights directly on their screens. With data and technology, we can truly personalize the service,” Gumuseli said.

“Our target customers include expatriates living in Saudi Arabia and tourists wishing to travel to Europe, North America, South America or Africa. Businesses are also a key audience, given the strong commercial ties between France and Saudi Arabia. We aim to serve all these segments,” said Gumuseli.

“Religious tourism should not be overlooked. Pilgrims can now combine Umrah with a more tourist-oriented experience,” he added.

Gerressen stressed the importance of the eVisa: “It is crucial. Simplifying the visa process will be essential in convincing more people to visit Saudi Arabia.”


Credit Oman insures $159m in non-oil exports Q1 amid sectoral gains

Updated 18 min 10 sec ago
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Credit Oman insures $159m in non-oil exports Q1 amid sectoral gains

RIYADH: Oman’s insured non-oil exports reached 61.2 million Omani rials ($159 million) in the first quarter of 2025, marking a 6 percent increase from the same period last year, according to Credit Oman. 

The Sultanate’s export credit agency, which provides trade insurance and guarantees to support domestic and international exchange, cited growth in construction materials, petrochemicals, mining, and agriculture as key drivers, the Oman News Agency reported.  

This comes as Oman’s broader non-oil exports grew 8.6 percent year on year to 1.61 billion rials, now making up 28.6 percent of total exports. The growth reflects ongoing efforts to boost non-oil trade, support domestic industries, attract foreign investment, localize development initiatives, and offer incentives to the private sector. 

The ONA report stated: “Khalil bin Ahmed Al Harthy, CEO of Credit Oman, explained that the volume of insured export sales in the building and construction materials sector witnessed a growth of 24 percent, with a total value of 27.16 million rials.” 

Exports in the petrochemicals and plastics sector climbed 45 percent to 9.2 million riyals. 

The mining sector experienced the largest percentage growth, jumping 150 percent to 570,000 rials. Meanwhile, agricultural exports surged 96 percent to nearly 5 million rials, driven by increased demand and favorable market conditions. 

Despite the overall growth, Al-Harthy noted setbacks in some sectors, including packaging, fisheries, and apparel, adding that the results still reflect the broader progress of the national economy and the government’s continued push for economic development. 

“He pointed out that Credit Oman is making significant efforts to support Omani manufacturers and exporters, contributing to boosting their sales both locally and internationally by offering a range of insurance services and overcoming the challenges associated with Omani products entering global and new markets,” the OMA report added. 

In its earlier outlook, Credit Oman projected strong growth potential for the country’s non-oil exports in 2025. The agency cited an estimated untapped export capacity of 5 billion rials, according to the International Trade Centre.  

However, it emphasized that realizing this potential would depend on evolving global trade conditions, particularly the impact of emerging tariff and non-tariff barriers, geopolitical uncertainty, and shifts in global economic trends. 

This growth comes after a challenging 2024, when Oman’s non-oil exports declined 16 percent due in part to a reclassification of high-value fuel-related goods into the oil and gas category.  

The 2025 rebound suggests improved export diversification, aided by Credit Oman’s efforts and favorable conditions in sectors like agriculture and plastics. 


Most Gulf markets trade up, unfazed by rising regional tensions as US strikes Iran

Updated 15 min 47 sec ago
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Most Gulf markets trade up, unfazed by rising regional tensions as US strikes Iran

  • US forces struck Iran’s three main nuclear sites late on Saturday

LONDON: Most stock markets in the Gulf were trading higher on Sunday, relatively unscathed by escalating tension in the region following US strikes on Iranian nuclear sites, as investors assessed the potential economic impact of the conflict.

US forces struck Iran’s three main nuclear sites late on Saturday, and President Donald Trump warned Tehran it would face more devastating attacks if it does not agree to peace.

By around 0915 GMT, Saudi Arabia’s benchmark index TASI had edged 0.4 percent higher, helped by a 0.7 percent rise in the country’s biggest lender, Saudi National Bank. Qatar’s benchmark index QSI had gained 0.2 percent, reversing slight early losses.

“It is admittedly a bit surprising to see regional equities shrugging off the US strikes on Iran with relative ease, with opening losses having pared relatively rapidly,” said Michael Brown, Senior Research Strategist at Pepperstone.

Brown said that the markets had already discounted the probability of a US attack, and investors anticipated a swifter resolution to the conflict following the attacks.

The market is focused on whether the conflict spreads to other nations in the region, with there being no sign of that happening right now, he added.

Bahrain and Kuwait, home to US bases, made preparations on Sunday for the possibility of the conflict spreading to their territory, with Bahrain urging drivers to avoid main roads and Kuwait establishing shelters in a ministries complex.

Kuwait’s premier index reversed early losses to trade 0.3 percent higher by around the same time, while Bahrain’s main index was flat. The Omani share index MSX30 was up 0.5 percent.

Elsewhere in the Middle East, Egypt’s benchmark index EGX30 was trading 1.7 percent higher, while the main index in Tel Aviv was up around 1 percent to reach its all-time high.


Giga-projects power 6.4% jump in Saudi Arabia’s Q1 cement sales to 13.4m tonnes

Updated 22 June 2025
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Giga-projects power 6.4% jump in Saudi Arabia’s Q1 cement sales to 13.4m tonnes

  • Local sales accounted for nearly 13 million tonnes, while exports edged up to 408,000 tonnes

RIYADH: Cement sales in Saudi Arabia climbed 6.4 percent year on year in the first quarter of 2025 to 13.4 million tonnes, driven by a construction surge tied to Vision 2030 megaprojects.

According to data from Al Yamama Cement covering the Kingdom’s 17 producers, local sales accounted for nearly 13 million tonnes, while exports edged up to 408,000 tonnes.

Al Yamama Cement led the domestic market with 1.68 million tonnes, followed by Saudi Cement at 1.33 million tonnes and Qassim Cement with 1.25 million tonnes.

Saudi Arabia is powering through the largest construction surge in its history, a pillar of the Vision 2030 diversification plan. A Bloomberg report this month valued the live roster of real estate and infrastructure schemes at roughly $1.3 trillion, ranging from Riyadh’s driverless metro grid and entertainment hubs like Qiddiya to the brand-new cities of NEOM on the Red Sea coast and New Murabba in the capital’s northwest.

Those giga-projects, along with heritage revamps such as Diriyah Gate and the Red Sea’s string of luxury resorts, have now moved well beyond site grading and piling.

Gulf Construction, a trade journal for the building and construction industries, noted in May that major project packages are entering the concrete-intensive vertical-build phase, where tower cores, bridge piers, and precast facades consume significantly more cement and clinker than earlier earthworks.

In short, the Kingdom’s transition from drawing board to steel-and-concrete reality is fueling an insatiable appetite for building materials — and cement producers are gearing up their kilns to meet it.

Momentum kept building after March. Domestic sales jumped 42.9 percent year on year to 4.18 million tonnes in April, while exports rose 26.9 percent to 703,000 tonnes, according to Al Jazira Capital’s latest dispatch survey. Contractors are pouring concrete early, keen to stay ahead of the summer heat and tighten project timelines.

Profits do not rise equally

Higher volumes did not translate into across-the-board gains. International Cement Review’s CemNet bulletin said in June that sector-wide net profit fell 16 percent in the first quarter to about SR648 million ($173 million) despite stronger turnover.

Yamama Cement posted about SR142 million in earnings — up 23 percent — while Saudi Cement slipped nearly 5 percent to SR108 million. Qassim Cement improved 27 percent to roughly SR94 million, but Al Jouf Cement stayed in the red at around SR15 million.

Producers faced an added challenge from Saudi Aramco’s fuel price revision, effective Jan. 1, which several companies warned would raise kiln fuel costs by around 10 percent.

Inventory cushions remain thick. Al Yamama figures show Yanbu holding 18.9 million tonnes of clinker at end-March, with Southern Province close behind on 18.1 million tonnes. Across the sector, stockpiles cover roughly nine months of normal domestic demand, allowing firms to throttle kilns if margins tighten.

Modern kilns slash fuel use 

According to Global Cement’s April report, engineering firm Sinoma has finished erecting a new preheater tower as part of Yamama Cement’s relocation and upgrade project south of Riyadh.

The upgrade increases the former 10,000-tonne-per-day line to 12,500 tonnes, with Sinoma noting it had to dismantle, relocate, and integrate large equipment while installing the latest kiln technology.

Completion of the tower clears the way for commissioning and final handover of the higher-capacity, fuel-efficient plant.

The efficiency drive extends to the Red Sea coast, where Yanbu Cement’s 34 megawatts waste-heat-recovery system already supplies about a quarter of the plant’s electricity.

The upgrades are crucial because older kiln designs waste a great deal of fuel. According to the European Cement Association, long-dry kilns consume about one-third more energy than the latest preheater–pre-calciner models, while old wet kilns can burn up to 85 percent more.

By contrast, modern PH-PC lines require only about 3.3 gigajoules of heat to produce one tonne of clinker — roughly the energy contained in 30 litres of petrol. Transitioning from long-dry or wet kilns to PH-PC technology significantly reduces fuel consumption, lowers production costs, and cuts carbon emissions — all critical advantages as energy prices continue to rise.

With Saudi Aramco’s January fuel-tariff hike expected to raise kiln-energy bills by around 10 percent, plants that already sip less fuel will feel the pinch far less — and that cost edge is flowing straight into sharper export offers, reinforcing the Kingdom’s competitive position in nearby markets.


Gulf visitor spending to hit $224bn by 2034, GCC-Stat says 

Updated 13 min 16 sec ago
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Gulf visitor spending to hit $224bn by 2034, GCC-Stat says 

  • Inbound visitor spending expected to contribute 13.4% to region’s total exports
  • Total international visitor spending amounted to $135.5 billion in 2023

RIYADH: Visitor spending in Gulf Cooperation Council nations is projected to reach $223.7 billion by 2034, driven by economic diversification, mega-projects, infrastructure upgrades, and relaxed visa policies, new data showed. 

According to the GCC Statistical Center, as reported by Emirates News Agency – WAM, inbound visitor spending is expected to contribute 13.4 percent to the region’s total exports — underscoring tourism’s growing role in Gulf economies seeking to reduce dependence on oil.  

This comes as GCC countries, led by Saudi Arabia, ramp up efforts to diversify their economies by investing in tourism. Central to Saudi Vision 2030 is a goal to raise tourism’s share of gross domestic product from 3 to 10 percent and attract 150 million annual visits, with mega-projects like NEOM spearheading the shift.

The WAM report stated: “The centre also indicated that GCC countries are achieving steady progress in many tourism-related indicators.” 

It added: “The data demonstrate that total international visitor spending in GCC countries amounted to $135.5 billion in 2023, with a 28.9 percent increase compared to the figures recorded in 2019.” 

GCC countries also lead the Middle East and North Africa region in safety and security, outperforming the regional average of 5.86 points on a scale of 1 to 7. 

Additionally, all six Gulf states rank among the top Arab nations in terms of passport power, reinforcing their global travel competitiveness. The findings underscored the GCC’s growing appeal as a premier tourism and business destination. 

This tourism boom aligns with broader economic diversification plans as oil-reliant nations shift their focus toward hospitality, entertainment, and business travel. Additionally, more flexible visa policies and improved infrastructure — such as modern airports and strong safety standards — are helping the region gradually become more attractive to international tourists, offering an alternative to traditional destinations like Europe and Asia. 

The GCC’s geographic advantage as a bridge between East and West, coupled with investments in aviation, has turned the region into a global transit and tourism hotspot. 

All GCC nations are collectively transforming into a global tourism powerhouse, each leveraging unique strengths under ambitious national strategies. 

According to a report by consultancy firm Roland Berger, Saudi Arabia leads with Vision 2030, combining religious pilgrimage with giga-projects like NEOM. 

The UAE counters with its Tourism Strategy 2031, doubling down on its established formula of luxury experiences and cultural fusion, aiming for 40 million hotel guests.  

Qatar, building on its World Cup, is refining its urban tourism appeal, while Oman bets on natural beauty to attract 11 million annual visitors.  

Even smaller players like Bahrain and Kuwait are making strategic moves — Bahrain by leveraging Formula 1 to boost leisure tourism and Kuwait through investments in entertainment infrastructure.