INTERVIEW: Ferrari accelerates in the Middle East — with a passion

(Illustration by Luis Grañena)
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Updated 09 February 2020
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INTERVIEW: Ferrari accelerates in the Middle East — with a passion

  • The regional head of the world-famous Italian car maker explains his plans for a big drive in the Saudi Arabian market

Giorgio Turri is a man of passion. He uses the word a lot to describe his role as general manager for the Middle East of the famous Italian car maker Ferrari, both for the head-turning vehicles he sells in the region and for the people who buy them in increasingly big numbers in Saudi Arabia.

“It’s interesting to see the evolution, from a cultural perspective, going on in Saudi Arabia, and we have a lot of passionate clients there. They love Ferrari, they love to ‘spec’ their cars according to their taste and expectations, and they really love the brand,” he told Arab News last week.

It has been a busy few days for Turri and for Ferrari in the Middle East. He launched the Club Challenge, a service to get Ferrari owners behind the wheels of some real racing cars on fast tracks across the region; the following day New York-listed Ferrari had announced financial figures for 2019, showing a big sales jump across the world, notably in the Arabian Gulf region; and then he had unveiled the new super car, the Roma, for the first time outside Europe.

“On a global and regional perspective, I have to say it has never been so good before. We are closing an amazing year,” said Turri, who was born up the road from the Ferrari global HQ in Maranello, Italy. You could say that passion is in his blood.

The luxury car business in the region has always been good, outselling most other regions in proportion to its population size. Arabs love fast, high-spec cars, and the historic abundance of cheap fuel has driven a search for the perfect mix of style with performance. Ferrari, whose famous Prancing Horse badge has been in the region for 26 years, has led the field against strong competition in the up-market speedster stakes.

“Ferrari is about performance, luxury, client engagement, technology. It is about all that,” said Turri. The “Passione Ferrari” Club Challenge he launched in the Middle East — the only venue so far outside Europe — encapsulates all those values, offering Ferrari owners, in return for around $100,000 per year, the chance to drive full-performance racing cars on some of the best-known tracks in the region — in Dubai, Abu Dhabi, Bahrain and Muscat.

“There is a world of owners who like very much to enjoy their own cars on the road, and there is another set of owners who want to be involved in racing events and competitions,” Turri explained.


BIO

BORN: Parma, Italy 1978

EDUCATION: University of Parma, Economics

CAREER

  • Product manager, Maserati
  • Marketing and communications manager, Olimpia Splendid 
  • Global trade marketing manager, Technogym
  • General manager, Ferrari Middle East

Saudi Arabia will join that list of high-speed venues when the track at the Al Qidiyya resort near Riyadh is completed, which is expected to be the biggest track in the world, some time in the next 18 months. Turri expects an eager challenge take-up by Saudi drivers, who were heavily involved in the Ferrari motorsport festival that coincided with Riyadh season last year.

“We have a really amazing Ferrari owners club there. They drive in the Kingdom a lot, and even come over to the UAE and Bahrain, and to Italy when we have an event there. They are quite passionate and it is good to see this kind of passion in Saudi Arabia,” he said.

The changes under way in the Kingdom with the relaxation of conservative rules on leisure and entertainment is also a positive factor for Ferrari.

“What we can see is that there is a different atmosphere and you can feel the good vibrations there. People are ready to have fun and to enjoy their own country, and what their own country can offer.

“These good vibrations and atmosphere are also reflected in consumer behavior and expectations. Buying a Ferrari is a moment of reward, a moment of pure enjoyment, and if the mood and the surrounding atmosphere is positive it can only be better for us,” he added.

The Middle East was a stand-out element in the one of the other big events for Ferrari last week — the announcement of financial results for the 2019 year. Ferrari sold more than 10,000 cars for the first time in its history, producing revenues of €3.76bn ($4bn), 10 per cent up on the year. Adjusted net income rose 8 per cent to €699m.

Ferrari launched five new models in 2019. “We can work on serving our clients with a strong portfolio of potential orders, and that way we can plan how the business will evolve. Today, we have a very good portfolio and every confidence our plans can be sustained,” he said.

Among the best-sellers was the eye-catching F8 Tributo, a classic two-seater sports car in the Ferrari tradition which some experts called the most powerful V8 road car ever made.

Ferrari shares were listed in New York in 2015, but initial public offerings (IPOs) in the luxury car world have not always been a recipe for success, as British car maker Aston Martin has found. How can an up-market car maker, with all the capital-intensive investment needed for research and development and technology in new models, overcome the swings of the sales cycle?

“You will appreciate the fact that we are still a relatively small volume manufacturer, and our volumes are kept under control. Our model is based on one simple statement — delivering to the market something less than what the market demands. We have the pleasure to launch a lot of new models and there is always a lot of demand, but we would like our clients to appreciate the fact that it takes time to receive a Ferrari,” Turri said.

“So I would say it’s a beautiful moment for Ferrari and the market is responding very well to us. In general the luxury market is doing well, but specifically our segment, which is luxury sports cars.” 

Customers seem happy to wait as long as a year or more to receive their new car, and to spend that time in consultation with Ferrari designers in the lucrative process of customizing their purchase. 

“Personalization is an important part of what we do, as our Middle East clients always demand the best and are genuinely interested in one-off creations that are tailored minutely to their individual desires and tastes,” Turri said.

Ferrari customers — who will spend a minimum of 800,000 dirhams in the Dubai showroom on, for example, the Portofino luxury tourer — will not scrimp when it comes to splashing out of luxury additions. “There’s no ceiling when it comes to the most expensive car, it all depends on the model and what the requirements of our discerning clientele are,” he explained.

He hopes the next big seller in the Middle East will be the Roma, unveiled with much Italian pizzazz at a ceremony for Ferrari enthusiasts. Launched under the banner “La Nuova Dolce Vita” — the new sweet life — the car is a classic mixture of Italian style and Ferrari power. The early order book was “impressive,” Turri said.

The big trend in the luxury car market in recent years has been the move by all manufacturers to develop and sell SUVs, which are especially in demand in the Middle East. Ferrari — not famous for family-oriented cars in the past — has bided its time, but is now planning the Purosangue (Italian for “thoroughbred”) to challenge in this segment. Turri is not prepared to share many secrets about the new marque, expected to hit the market in 2022.

“We don’t use the word SUV because it’s not what we have in mind. Ferrari is different and the concept we have in mind will be an expression of the essence of Ferrari, combining the performance and the fun to drive with a higher level of versatility,” he said.

The other thing very much on the minds of the strategic planers in Maranello is the need to make the fast car industry more acceptable in the era of increased environmental awareness. Last year Ferrari unveiled its first hybrid electric-petrol car, the SF90 Stradale, and there will be further refinements of this concept.

“We are exploring all the different technologies that can help us be compliant with the future constraints on the environment, but with a clear philosophy in our mind: we would like to use the tech in a way that can improve the performance and the fun-to-drive factor, not only help to be compliant with the constraints and regulations. 

“It is our duty to be compliant of course, but it is also our duty to the clients to keep improving the performance,” Turri said. And, of course, raising the passion level.


Oil Updates — crude inches up on supply concerns and weaker dollar

Updated 59 min 19 sec ago
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Oil Updates — crude inches up on supply concerns and weaker dollar

SINGAPORE: Oil prices ticked up on Tuesday on concerns about supply, with Iran set to reject a US nuclear deal proposal that would be key to easing sanctions on the major oil producer, while weakness in the dollar also supported prices.

Brent crude futures gained 12 cents, or 0.19 percent, to $64.75 a barrel by 9:27 a.m. Saudi time.

US West Texas Intermediate crude was up 20 cents, or 0.32 percent, to $62.72 a barrel, after rising about 1 percent earlier in the session.

The oil market surged higher on Monday as rising geopolitical risks and a supply hike from OPEC+ that fell short of expectations provided a boost, said ING analysts in a note.

“The strength continued into early morning trading today,” ING said on Tuesday.

Both contracts gained nearly 3 percent in the previous session after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, agreed to keep output increases in July at 411,000 barrels per day, which was less than some in the market had feared and the same hike as the previous two months.

“With the worst fears not panning out, investors unwound their bearish positions they had built prior to the weekend’s meeting,” ANZ analysts said in a note.

Meanwhile, the dollar index, which measures its performance against six other major currencies, held near six-week lows as markets weighed the outlook for President Donald Trump’s tariff policy and its potential to hurt growth and stoke inflation.

A weaker US currency makes dollar-priced commodities such as oil less expensive for holders of other currencies.

“Crude oil prices continue to rise, supported by the weakening dollar,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Geopolitical tensions also supported prices. Iran was poised to reject a US proposal to end a decades-old nuclear dispute, an Iranian diplomat said on Monday, saying it fails to address Tehran’s interests or soften Washington’s stance on uranium enrichment.

If nuclear talks between the US and Iran fail, it could mean continued sanctions on Iran, which would limit Iranian supply and be supportive of oil prices.

Adding to supply worries, a wildfire in the province of Alberta in Canada has prompted a temporary shutdown of some oil and gas production, which could reduce supply.

According to Reuters calculations, wildfires in Canada have affected more than 344,000 bpd of oil sands production, or about 7 percent of the country’s overall crude oil output. 


Closing Bell: Tadawul closes higher on Monday as TASI edges up; Nomu surges over 300 points 

Updated 02 June 2025
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Closing Bell: Tadawul closes higher on Monday as TASI edges up; Nomu surges over 300 points 

  • MSCI Tadawul 30 Index rose 2.47 points to settle at 1,384.58
  • Parallel market Nomu climbed 314.77 points to close at 26,984

RIYADH: Saudi Arabia’s Tadawul All Share Index closed slightly higher on Monday, gaining 24.82 points, or 0.23 percent, to reach 10,850.09.

Total trading turnover on the main market stood at SR4 billion ($1 billion). 

Market breadth remained mixed, with 116 gainers against 120 decliners. The MSCI Tadawul 30 Index rose 2.47 points, or 0.18 percent, to settle at 1,384.58. 

The parallel market Nomu recorded a more pronounced gain, climbing 314.77 points, or 1.18 percent, to 26,984, with 31 stocks advancing and 49 retreating. 

Savola Group led the main market gainers, advancing 4.48 percent to close at SR28. 

United Carton Industries Co., which recently debuted on Tadawul, added 4.40 percent to close at SR42.70 with over SR217 million in traded value. 

Other notable gainers included Aldawaa Medical Services Co., which rose 2.92 percent to SR77.60, Middle East Pharmaceutical Industries Co., up 2.82 percent to SR124, and Jabal Omar Development Co., which gained 2.76 percent to close at SR21.56. 

On the downside, Riyad Bank posted the sharpest drop of the day, falling 3.51 percent to close at SR27.50. 

Zamil Industrial Investment Co. dropped 2.76 percent to SR38.75, while Naseej International Trading Co. declined 2.86 percent to SR78.20. 

Emaar The Economic City slipped 2.71 percent to SR12.92, and Abdullah Saad Mohammed Abo Moati for Bookstores Co. fell 2.45 percent to close at SR35.80. 

On the announcement front, Al-Modawat Specialized Medical Co. disclosed that its board had passed a resolution to initiate the company’s transfer from the Parallel Market to the Main Market. 

The move is subject to regulatory approvals and fulfillment of the market’s listing conditions. Shares of Al-Modawat ended the day down 1.84 percent at SR17.06. 

Saudi Arabian Mining Co. announced that it has received approval from the Capital Market Authority to proceed with a capital increase in connection with its previously disclosed acquisition of full ownership in Maaden Bauxite and Alumina Co. and Maaden Aluminium Co. 

The move is part of a share purchase and subscription agreement signed with AWA Saudi and Alcoa Saudi in 2024. 

The capital increase will raise Ma’aden’s share capital from SR38.03 billion to SR38.89 billion through the issuance of 861.9 million new shares. 

The newly issued shares will be used to acquire 100 percent of the shares held by AWA Saudi in MBAC and Alcoa Saudi in MAC, corresponding to 25.1 percent of the issued capital of each entity. 

In total, Ma’aden will issue 89.98 million new shares to AWA Saudi and 165 million shares to Alcoa Saudi at a nominal value of SR10 per share.

The transaction is expected to be executed through a combination of share issuance and cash payment. 

The company stated that further updates, including shareholder meeting arrangements for capital increase approval, will be announced in due course. 

Shares of Ma’aden closed 0.92 percent higher on Monday at SR49.50. 


Oman’s electrical machinery exports surge 141% in Q1 as industrial policy drives growth 

Updated 02 June 2025
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Oman’s electrical machinery exports surge 141% in Q1 as industrial policy drives growth 

  • Non-oil exports rose by 8.6% year on year in the first quarter, reaching 1.618 billion rials
  • Growth in the electrical equipment sector is being supported by major infrastructure developments

RIYADH: Exports of electrical machinery and equipment from Oman surged by 141 percent in the first quarter of 2025, reaching 128 million Omani rials ($332.8 million) compared to 53 million rials in the same period of 2024, according to official data. 

The strong performance of the sector highlights its growing importance to the country’s industrial base and export competitiveness, the National Center for Statistics and Information revealed. 

Officials have linked the sharp rise to rising demand across domestic and regional markets, driven by ongoing infrastructure expansion and increased investment in renewable energy projects. 

In figures released in May, the Oman News Agency revealed that the country’s non-oil exports rose by 8.6 percent year on year in the first quarter of 2025, reaching 1.618 billion rials.

Commenting on the latest release, Khalid Al-Qassabi, director general of Industry at the Ministry of Commerce, Industry and Investment Promotion, stated that the positive results reflect the resilience and diversity of Oman’s industrial base, according to a report by the ONA.

“He noted that the ministry continues to implement integrated industrial policies aimed at enhancing the position of national products in regional and international markets and driving industrial exports to higher levels,” the news agency added. 

Al-Qassabi said that growth in the electrical equipment sector is being supported by major infrastructure developments, such as the expansion of electricity networks, utilities, and new cities. 

He also pointed to rising interest in renewable energy technologies, which is boosting demand for domestically manufactured components. 

The sector is considered a strategic priority under Oman’s Industrial Strategy 2040, with the potential to enhance supply chains, increase national value-added, foster entrepreneurship, and support the localization of advanced technologies. 

Jasim Al-Jadeedi, technical director in the Office of the Undersecretary for Commerce and Industry, reiterated the ministry’s focus on expanding the global presence of Omani industrial goods. 

He said this is a central objective of the country’s industrial strategy and a key component of its economic diversification agenda under Oman Vision 2040. 

Al-Jadheedi explained that several initiatives are underway to improve product quality and competitiveness, including support for manufacturers in meeting international technical standards. 

He added that the government is working with relevant stakeholders to unlock new export markets through trade agreements, international exhibitions, and trade missions, while offering targeted incentives to local exporters. 

The technical director also emphasized the importance of adopting advanced technologies, including artificial intelligence and Industry 4.0 tools, to enhance efficiency, reduce costs, and achieve sustainable industrial growth. 

This sectoral expansion comes amid broader momentum in the industrial economy. 

Total credit extended by Oman’s banking sector increased by 9 percent year-on-year to 33.6 billion rials by the end of April, indicating continued strength in financing for the private sector and industrial enterprises. 

Non-oil industrial exports overall rose by 8.6 percent during the first quarter to 1.618 billion rials, up from 1.49 billion rials a year earlier. 

Industrial goods accounted for 28 percent of total exports during the period, led by electrical machinery and mineral products, the latter of which recorded a 14.1 percent rise in exports to 462 million rials. 


Rising demand sends Riyadh mall rents up by 4% in a year

Updated 02 June 2025
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Rising demand sends Riyadh mall rents up by 4% in a year

  • Riyadh accounts for the largest share of the 4.9 million sq. meters of retail developments
  • Other areas include Jeddah, Dammam Metropolitan Area, Khobar, and Dhahraneas include Jeddah, Dammam Metropolitan Area, Khobar, and Dhahran

RIYADH: Saudi Arabia’s capital is spearheading the Kingdom’s retail transformation, with mall rents up by 4 percent in a year and 2.2 million sq. meters of shop space to be developed by 2030.

According to Knight Frank’s Spring 2025 Saudi Arabia Retail Market Overview, Riyadh accounts for the largest share of the 4.9 million sq. meters of retail developments planned across the Kingdom’s five largest cities by 2030.

These areas include Jeddah, Dammam Metropolitan Area, Khobar, and Dhahran.

The need for more retail space is evidenced by the average mall rent in the Saudi capital rising to SR2,848 ($765) per sq. meter by the end of March, according to the report, with occupancy rates up five percent to reach 92 percent in the first quarter of 2025.

The findings come as Saudi Arabia steps up efforts to become a global hub for tourism and business by the end of the decade, with the Real Estate General Authority projecting the property market to reach $101.62 billion by 2029, driven by an anticipated compound annual growth rate of 8 percent from 2024.

According to Knight Frank, Riyadh’s retail transformation is being accelerated by a combination of population growth, both domestic and expatriate, along with rising disposable incomes.

“Developers are prioritizing experiential formats, with over half of upcoming projects incorporating entertainment zones, dining experiences, and cinemas. These trends align with Vision 2030’s objective to create vibrant, leisure-centric urban spaces,” the report said.

In Jeddah, the retail market expanded with approximately 225,000 sq. meters of new space delivered in 2024, including Phase 1 of Souq 7 and Al Bahr Mall. The city’s total retail stock reached 2.9 million sq. meters. Rents in regional and super-regional malls rose two percent to SR2,513 per sq. meter, while occupancy declined slightly to 86 percent.

Jeddah is also set to see the launch of the Jawharat Mall by Cenomi Centers, a dedicated luxury retail district spanning 87,000 sq. meters, expected to be completed by the end of 2025. Another significant development, the Cove by Ezdihar, will deliver 70,000 sq. meters along Jeddah’s waterfront.

In the Dammam Metropolitan Area, retail performance remained stable. Rents in regional and super-regional malls rose slightly to SR2,285 per sq. meter, with community centers seeing a 1.25 percent increase. Occupancy rates held steady at around 90 percent.

New supply additions of 31,000 sq. meters in 2024 brought total retail stock to 1.4 million sq. meters.

Regional malls typically range from 30,000 sq. meters to 90,000 sq. meters and offer a broad mix of retail stores and services, often anchored by one or two department stores.

Super-regional malls exceed 90,000 sq. meters and include a wider variety of retail, dining, and entertainment options, serving a larger trade area and drawing visitors from across an entire metropolitan region.

Consumer spending in Saudi Arabia grew by 7 percent year-on-year to reach SR1.41 trillion in 2024, fueled by a surge in point-of-sale and e-commerce transactions, according to Knight Frank.

Of this, point-of-sale transactions reached SR668 billion, marking a 9 percent annual increase, while e-commerce grew by 26 percent to SR197.4 billion, reflecting the Kingdom’s accelerating shift toward digital consumption

Flagship destinations such as Riyadh Park and Al Nakheel Mall have continued to benefit from strong tenant demand and rising foot traffic, driven by integrated entertainment offerings, including cinemas and family attractions.

Riyadh’s total retail supply stood at 4 million sq. meters during the first quarter, bolstered by the launch of key projects like Solitaire Riyadh, a 65,000 sq. meter development blending upscale retail with leisure experiences.

An additional 540,000 sq. meters of retail space is expected to be added in 2025, bringing the total to 5.2 million sq. meters in 2026.

The report highlights that more than half of the upcoming projects are integrating entertainment zones, dining venues, and cinemas, aligning with Vision 2030’s goals of creating vibrant, leisure-centric urban environments.

Luxury retail is also gaining momentum, with international brands expanding their footprint to meet the growing demand for premium shopping.

Omnichannel strategies are becoming critical as digital payments and e-commerce continue to reshape consumer behavior.
The food and beverage sector emerged as a key contributor to retail activity, with restaurants and cafes accounting for 29.7 percent of all point-of-sale transactions in 2024.
This translates to SR198.6 billion, according to data from the Saudi Central Bank.

Projects such as Qiddiya, The Avenues Riyadh, and Jawharat Riyadh are expected to further redefine the urban retail landscape, offering lifestyle-oriented spaces that support the Kingdom’s broader economic diversification and quality-of-life goals.


Co-processing can help Middle East become sustainable aviation fuel hub: IATA official

Updated 02 June 2025
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Co-processing can help Middle East become sustainable aviation fuel hub: IATA official

  • Senior vice president of sustainability and chief economist at IATA said the world should act now to increase the production of SAF
  • Marie Owens Thomsen said governments in the Middle East region should create investment policies to attract more co-processing

NEW DELHI: The Middle East has all the potential to emerge as a global hub for sustainable aviation fuel production thanks to co-processing opportunities available in the region, according to a top official. 

Speaking to Arab News on the sidelines of the International Air Transport Association’s Annual General Meeting in New Delhi, Marie Owens Thomsen, senior vice president of sustainability and chief economist at IATA, said that the world should act now to increase the production of SAF to meet decarbonization targets. 

This comes as the region accelerates efforts to produce the fuel, with Saudi Arabia’s Nordic Electrofuel-backed project announcing in January a Jubail plant targeting 350 million liters annually by 2029, using renewable hydrogen and solar PV. 

The UAE, meanwhile, aims for 700 million liters by 2031, supported by Emirates, Etihad, and Air Arabia. Emirates has secured over 3 million gallons from Neste for 2024–25 flights, while Shell began supplying SAF at Dubai Airport in 2023. 

In her interview, Thomsen said: “The Middle East has huge opportunities for co-processing. What we are seeing across the world is insufficient production of SAF.” 

Co-processing is the use of renewable feedstock in conventional fossil fuel units. This method allows existing traditional fuel refineries to seamlessly integrate renewable feedstocks into their production processes without the need for extensive infrastructural changes. 

She added: “If this co-processing happens, then boom — we have a SAF plant. Clearly, the Middle East is uniquely positioned for this.” 

Thomsen further said that governments in the Middle East region should create investment policies in such a way that oil producers will be more attracted to co-processing. 

The use of SAF is widely considered a crucial development for the global aviation industry, as most countries have stipulated targets to achieve net zero as part of their energy transition efforts. 

According to Thomsen, the world, on its current trajectory, is expected to produce 400 million tonnes of SAF by 2050, up from an estimated 2 million tonnes in 2025 and 1 million tonnes in 2024. 

Amid this projected growth, Thomsen revealed that the world would require at least 500 million tonnes of SAF by 2050 to meet energy transition and sustainability goals. 

“On the current trajectory, we will be a 100 million tonnes short in 2050. That is a dramatic shortfall. If we do not address it today, this shortfall may be even greater by the time we reach 2050,” said Thomsen. 

She said this presents a challenge and dilemma because as long as jet engines power our flights, liquid fuels remain essential. 

“Again, I repeat, the Middle East is uniquely positioned to help the world take a big step forward if we could immediately co-process. There are also lower-carbon fuels which occur naturally in the Middle East, which the world should explore,” she added. 

Thomsen revealed that the aviation industry’s net profit margin is lower compared to other sectors, and expenses could rise as SAF gains. 

However, she made it clear that effective ways should be adopted to increase the production of the fuel, so that the energy transition targets could be achieved by 2050. 

On the opening day of the AGM, Willie Walsh, director general of IATA, also shared identical views, and said that sufficient government measures, including the implementation of effective policies, are needed to achieve decarbonization targets. 

He added that ensuring the success of the Carbon Offsetting and Reduction Scheme for International Aviation is crucial to offsetting carbon emissions in the aviation sector. 

Under CORSIA, an initiative launched by the International Civil Aviation Organization, airplane operators must purchase and cancel “emissions units” to offset the increase in CO2 emissions.