INTERVIEW: Ritz-Carlton Riyadh’s GM spells out two-fold challenge for Kingdom’s hotel industry

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Updated 15 March 2020
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INTERVIEW: Ritz-Carlton Riyadh’s GM spells out two-fold challenge for Kingdom’s hotel industry

  • Hotel manager’s career trajectory reflects an almost-military discipline instilled in him by his father, a major general
  • "To run a hotel properly you need discipline, smartness and attention to detail,” says GM Mohammed Marghalani

DUBAI: For a few weeks in late 2017, the Ritz-Carlton in Riyadh became probably the most famous hotel in the world when it was used to accommodate people involved in Saudi Arabia’s high-profile anti-corruption investigation.

But ever since, it has been “business as usual,” according to the general manager, Mohammed Marghalani  — taking care of the visiting presidents, heads of state and business leaders that make up most of the luxury hotel’s clientele, as well as the occasional honeymoon couple or affluent tourist family wanting a bit of up-market rest and relaxation in the Kingdom’s capital.

“I’ve worked at several big hotels in the Kingdom, but the Ritz-Carlton is different. It is the major hub for all government events in the capital. I was here when President Trump visited, and for events like GCC summits and the Future Investment Initiatives (FII), and have seen a lot of Hollywood celebrities here. There is nothing quite like it in Saudi Arabia,” he told Arab News.

Anybody who has spent any time at the monumental structure northeast of downtown Riyadh, or the equally imposing King Abdul Aziz Conference Center next door, would surely agree. In fact, it is arguable that there is nothing quite like the Ritz-Carlton Riyadh anywhere else in the world.

Whereas most luxury hotels will have a presidential suite for the use of elite guests, the Ritz has 49 “royal suites,” each designed to head-of-state specifications; it has 48 executive suites that would be classed as “presidential” in many five-star establishments; and it has 396 deluxe rooms.

If you get lucky on the “dynamic rate” system used by most hotels, like airlines, to match demand with supply, you might get a deluxe room at the weekend for a bargain SR1,000 ($270) per night; but a royal suite can cost anything between SR15,000 and SR45,000.

It has one of the biggest all-day dining restaurants in the world, the Al-Orjouan, which can seat 450 guests at a time, as well as other fine-dining establishments with European, Asian and Arabic cuisine; it has a luxury swimming pool and spa complex; and it has the Strike bowing alley, popular with families at weekends.


BIO

Born: Riyadh, 1982

Education: 

  • Prince Sultan College for Tourism and Management, Abha KSA
  • Glion Institute of Higher Education, Switzerland.
  • Ecole hoteliere de Lausanne in Switzerland, MBA

Career

  • Manager in training, Four Seasons KSA
  • Chief accountant, Fairmont-Raffles-Swissotel, Riyadh
  • General Manager, Ritz-Carlton Riyadh

Set in 52 acres of landscaped gardens, it was originally planned as a luxurious “guest palace” for official visits, but management of the hotel was soon handed over to Ritz-Carlton as a profitable commercial proposition.

Marghalani joined the Ritz-Carlton in its pre-opening period in 2011, after stints at Fairmont and Four Season properties in the Kingdom, focusing on the financial side of hotel management. He was appointed general manager at the beginning of this year.

His career trajectory reflects an almost-military discipline instilled in him by his father, a major general in the security forces. “All my friends at school were focused on engineering, management and medical careers, but my father told me to get into hospitality and tourism when I left high school in 2000. He told me I would be a pioneer, and now I value his vision,” Marghalani said.

“The hotel business has some similarities to the military, I’ve noticed. To run a hotel properly you need discipline, smartness and attention to detail,” he said.

After a spell in the Prince Sultan College for Tourism and Management in Abha in the Kingdom, he graduated in hospitality and tourism management in 2006 from the Glion Institute of Higher Education in Switzerland, followed by an MBA from the Ecole hoteliere de Lausanne in the same country. 

A few years later, the hotel and tourism sector in Saudi Arabia would take off under the Vision 2030 strategy to diversify away from oil dependency, which placed great emphasis on two big initiatives: Providing leisure facilities at home for Saudi citizens more used to spending leisure time abroad; and encouraging foreign tourists to come to the Kingdom.

By 2030, tourism is expected to grow to 10 percent of the Kingdom’s GDP, worth about $100 billion, and provide 1.5 million new jobs for the young workforce serving the needs of a projected 100 million visitors per year. It is an ambitious program for a country mainly accustomed in the past to catering for the needs of religious pilgrims to the Two Holy Mosques in Makkah and Madinah for Hajj and Umrah.

There is a big number of international brands looking at developments in some of the mega- projects, like Neom, the Red Sea, AlUla and Qiddiya.

The challenge for Saudi Arabia is two-fold, Marghalani believes: First, in providing the right number of hotels across the market range; and second, in equipping Saudis with the skills to run them to international standards.

“From all I’ve heard in the industry, I know the pipeline for new hotels in Saudi Arabia is there, even just over the next three years. There is a big number of international brands looking at developments in some of the mega-projects, like NEOM, the Red Sea, AlUla and Qiddiya,” he said.

But the immediate need is for accommodation to house the thousands of attendees to the G20 summit in November, when the leaders of the most important countries on the planet will be arriving in the Kingdom for their annual power gathering, along with their significant entourages and thousands of media representatives.

“All the studies I’ve seen show that we have enough capacity in the five-star space, with existing stock and planned openings. There is probably a need for more mid-range hotel accommodation, which I am sure the authorities and investors are looking at seriously,” he said.

On the question of Saudi manpower for all those new establishments, he pointed to the success of the Tahseen program developed in partnership between the Kingdom, the Marriott International hotel chain — which owns the Ritz-Carlton brand — and Cornell University of New York, which trains young Saudis in hospitality skills and is now entering its third year. Some of the big megaproject developments, such as Qiddiya and the Red Sea Development, have their own schemes to assist Saudis in training for the hospitality business.

The customer profile of the average Ritz-Carlton guest is rather different from most other hotels in the Kingdom, Marghalani said. About 45 percent of its business comes from what he calls “special corporate” — the consultants, executives and bankers who travel to the Kingdom for business during the week, when the hotel is usually full.

Roughly the same proportion of revenue comes from government groups and events, the most notable being the FII annual gathering when, again, the hotel is full.

The remaining 10 percent are made up of Saudis visiting Riyadh from other cities, or from “honeymooners, weekenders, transients and normal tourists” who want a bit of Ritz luxury during a holiday in the Kingdom.

“I think this last category will grow in 2020 with the opening up of online visas for foreign tourists. We saw a big increase in this sort of business at the end of last year for the Riyadh Season and the WWE wrestling event. When Qiddiya opens, it will be another boost for us — it’s only a short drive from the Ritz-Carlton,” he said.

But the big event this year will be the G20, although the main venue for the event has not been decided yet. The leaders’ summit are so big and well attended that few venues can expect to stage the whole event, while security also demands some segregation of the elite from rest of the delegates and media.

“I’m not sure where the main event will be, that is up to the G20 authorities. But the Ritz-Carlton is usually the main hub for similar events to the G20, like FII,” he said.

There has been some speculation that the FII event, usually staged in October, might be postponed because of the G20 event coming just a month later, but Marghalani saw no issue. “FII has been held here for the last three years and each time it has been better and more successful. I can see no reason why there might be a conflict with G20,” he said.

For an establishment that has become inextricably connected with the Saudi and global elite, the hotel has an active program of social and community engagement — giving uneaten food to the Riyadh needy, recycling water in the grounds, and charitable programs in the Holy Month of Ramadan.

“And we have all LED lightbulbs throughout the hotel,” Marghalani said. With so many grand chandeliers, that must run into the tens of thousands, and make for a considerable energy saving.


UAE shares end higher as outcome of US-China trade talks awaited

Updated 09 June 2025
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UAE shares end higher as outcome of US-China trade talks awaited

LONDON: Stock markets in the UAE ended higher on Monday, in step with Asian peers, as investors awaited the outcome of US-China trade talks in London in the hope that a deal could boost the global economic outlook.

Top US and Chinese officials will sit down in London on Monday for talks aimed at defusing the high-stakes trade dispute between the two super powers that has widened to export controls over goods and components critical to global supply chains.

Dubai’s benchmark index hit its highest levels since 2008 and settled up 1 percent, with almost all sectors in positive territory.

Tolls operator Salik Company gained 2.3 percent and Deyaar Development surged 14.6 percent.

In Abu Dhabi, the index was up for a third straight session and gained 0.1 percent, lifted by a 1.6 percent rise in blue-chip developer Aldar Properties and a 1.8 percent advance in Abu Dhabi’s flagship energy firm Abu Dhabi National Energy Company.

Most stock markets in the Gulf and Egypt including Saudi, Qatar, Kuwait are closed on Monday due to a public holiday.


Saudi commercial bank profits jump 16% in April, topping $2bn before zakat, tax

Updated 09 June 2025
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Saudi commercial bank profits jump 16% in April, topping $2bn before zakat, tax

  • Year-to-date earnings reached SR32.97 billion, an annual rise of 20%
  • Banks getting balance sheets ready for next investment wave

RIYADH: Saudi Arabia’s banking sector extended its winning streak in April, posting SR7.77 billion ($2.07 billion) in pre-zakat and tax profits, a 16 percent increase compared to the same month last year.

According to the Saudi Central Bank, also known as SAMA, this brought year-to-date earnings to SR32.97 billion, an annual rise of 20 percent, keeping the Kingdom firmly on course for another record-breaking period.

The sustained momentum is attributed to a robust mix of state spending on giga-projects, resilient consumer demand, and still-elevated interest rates.

Financing volumes continue to climb, driven primarily by corporate borrowers across a growing range of industries, including manufacturing, utilities, insurance, and private education. 

Speaking at the inaugural 24 Fintech conference in September, Finance Minister Mohammed Al-Jadaan said the Kingdom had licensed 224 fintech firms by the second quarter of 2024. File/SPA

Contractors are also racing to secure long-term credit for giga-projects such as NEOM, Diriyah, and the Jafurah gas field.

A wider Gulf picture

Strong as those local figures are, the broader region is also gaining momentum. A Kamco Invest report released in May showed that Gulf banks collectively earned a record $15.6 billion in the first quarter of 2025, an 8.6 percent increase from a year earlier.

Financial institutions in the UAE posted the largest absolute increase, adding $639.6 million, while Saudi lenders recorded the fastest annual growth at 17.2 percent.

Kamco added that fee income is rising, costs are under control, and loan-loss provisions fell sharply during the period, cushioning a small dip in net interest income.

Investor appetite is visible in market valuations. Forbes Middle East’s “30 Most Valuable Banks 2025” March list includes 10 Saudi lenders with a combined market cap of about $269 billion— roughly one-third of the entire ranking.

Al Rajhi Bank led the pack at $105.6 billion, with Saudi National Bank following at $54.7 billion.

Contractors are racing to secure long-term credit for giga-projects such as NEOM, Diriyah, and the Jafurah gas field. NEOM

Global Finance named Saudi Awwal Bank the Kingdom’s best lender in its May “World’s Best Banks in the Middle East 2025” release, highlighting its HSBC-backed mobile app upgrades, Visa Direct payments, and one-stop small and medium-sized enterprises lending platform.

Cleaning the books and raising cash

Banks are also getting balance sheets ready for the next investment wave.

Bloomberg reported in March that lenders are exploring sales of older non-performing loans to specialist investors to free up capital for upcoming mega project drawdowns.

They’re also tapping capital markets. By June, they had issued over $5.6 billion in Additional Tier-1 bonds, already a full-year record and the world’s second-largest AT1 issuance in 2025, according to Bloomberg.

The spree includes Al Rajhi Bank’s $1.25 billion deal in April, Banque Saudi Fransi’s $650 million perpetual at 6.375 percent in May, Saudi Awwal Bank’s $650 million inaugural issue, and Alinma Bank’s $500 million of sustainable sukuk, all heavily oversubscribed.

Saudi National Bank was ranked in the Forbes Middle East’s “30 Most Valuable Banks 2025” March list. Shutterstock

By tapping eager investors now, while margins remain healthy and global demand for Gulf paper is strong, lenders are bulking up capital buffers and keeping loan-to-deposit ratios in check. That leaves them better prepared to fund the fast-rising credit needs of projects like NEOM and Diriyah without tripping liquidity alarms later in the year.

Fintech role

Fintech is reshaping Saudi banking from the ground up. The Saudi Central Bank’s Open Banking Framework — most recently updated in September to cover payment-initiation services — sets common technical rules that let lenders and start-ups plug their systems together safely and at speed.

Speaking at the inaugural 24 Fintech conference in September, Finance Minister Mohammed Al-Jadaan revealed that the Kingdom had licensed 224 fintech firms by the second quarter of 2024, up from fewer than 100 just three years earlier.

One of the newest players is Riyadh-based Stitch, which closed a $10 million seed round on May 28. The company offers a single set of application-programming interfaces that lets banks, fintechs and even non-financial brands bolt on real-time payments and open-banking functions far faster than older systems.

Early adopters already include Lulu Exchange and point-of-sale platform Foodics. The founders say the fresh cash will go toward doubling the engineering team and expanding the product suite.

Saudi Arabia’s sustained momentum is attributed to a robust mix of state spending on giga-projects, resilient consumer demand, and still-elevated interest rates. File/AFP

Looking ahead

Riyad Capital’s first-quarter preview, released in April, expects another double-digit profit rise this year, about SR19 billion for the listed banks it tracks, as loan growth stays strong and rate cuts arrive slowly.

S&P Global, in its Saudi Arabia Banking Sector Outlook 2025 report, says a 10 percent increase in lending should outweigh a 20- to 30-basis-point dip in margins, keeping sector returns on assets near 2.1 percent to 2.2 percent.

Funding is the main watchpoint. Moody’s shifted its system outlook to stable on Feb. 25, saying strong credit growth is tightening liquidity, but capital buffers remain solid.

For now, asset-quality risks remain low. S&P expects non-performing loans to edge up to just 1.7 percent by the end of 2025, while loan-loss provisions are projected to stay around 50 to 60 basis points. Banks’ total capital ratios, hovering near 19 percent, provide a solid buffer to absorb potential shocks from falling oil prices or rising private-sector leverage.

Saudi lenders are still the region’s earnings workhorse. Profits are rising, market values are high, and fresh money — from bond buyers to venture capitalists — is flowing in. If they can keep gathering deposits quickly enough to fund a fast-growing loan book, the Kingdom’s banks look set to stay ahead of their Gulf neighbors in both profit and ambition well into next year.


Saudi carrier flynas to expand operations across 4 hubs, official says 

Updated 09 June 2025
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Saudi carrier flynas to expand operations across 4 hubs, official says 

  • Hubs include Riyadh, Jeddah, Madinah, and Dammam as part of growth plan
  • Carrier expanded its summer schedule, launching four new international destinations

RIYADH: Saudi Arabia’s low-cost carrier flynas is set to expand operations across its four main hubs — Riyadh, Jeddah, Madinah, and Dammam — as part of an ambitious growth plan, according to a top official. 

In an interview with Al-Eqtisadiah, Waleed Ahmed, the company’s official spokesperson, said that flynas holds the largest aircraft order in the Kingdom and one of the biggest in the Middle East, with a total of 280 aircraft set to be received. 

This follows a major deal signed in July with Airbus to acquire 160 new aircraft, including 30 wide-body A330neo and 130 single-aisle jets across A320neo, A321neo, and A321LR models. 

The airline has seen a sharp rise in passenger traffic, with volumes climbing from around 11 million in 2023 to more than 14.7 million in 2024, reflecting the low-cost carrier’s rapid expansion in line with Saudi Arabia’s push to position itself as a leading global hub for tourism and business. 

“These numbers reinforce the company’s role in supporting Vision 2030, which aims to increase the number of passengers to 330 million and attract more than 150 million international passengers by that year.” Ahmed said, as quoted by Al-Eqtisadiah. 

He also highlighted that, as part of its ambitious strategic plan, flynas has expanded its summer schedule by launching four new destinations for the first time: Krakow in Poland, Geneva in Switzerland, Milan in Italy, and Rize in Turkiye, in addition to its usual summer routes. 

Last week, flynas finalized its initial public offering at SR80 ($21) per share — the top of its indicated price range — following strong demand from both institutional and retail investors. 

The pricing values the airline at an estimated market capitalization of SR13.6 billion at listing. 

The offering followed the company’s announcement last month of its intention to float 30 percent of its share capital on the Saudi Exchange, making flynas the first airline in the Kingdom to go public and the first Gulf airline IPO in nearly two decades. 

In line with its ongoing fleet expansion, flynas recently took delivery of its fourth Airbus A320neo of 2025, bringing the total number of A320neo aircraft in its all-Airbus fleet to 57. The current fleet includes 63 aircraft — 57 A320neo, four A320ceo, and two A330neo wide-body jets.


Al-Habtoor Group chairman to lead high-level delegation to Syria, exploring investment opportunities

Updated 09 June 2025
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Al-Habtoor Group chairman to lead high-level delegation to Syria, exploring investment opportunities

  • Group said visit reflects its ongoing strategy to explore new cooperation with Syrian government
  • Khalaf Al-Habtoor to visit Syria in coming days

RIYADH: The head of Dubai conglomerate Al-Habtoor Group is set to visit Syria with a delegation of senior executives to discuss potential investments and partnerships with the new government.

According to a statement, the visit reflects the group’s ongoing strategy to explore new avenues of cooperation with the Syrian government and to assess potential investment opportunities across multiple sectors. 

It added that the trip stems from “a firm belief” in Syria’s ability to recover its strength and regional standing and the importance of public-private partnerships in the country’s rebuilding phase.

The move comes as Syria’s transitional government, led by President Ahmed Al-Sharaa, pushes economic reforms to attract foreign investment, including privatizations, relaxed trade policies, and major infrastructure deals. 

Speaking ahead of the trip, the group’s Chairman Khalaf Ahmad Al-Habtoor said: “Syria is a country rich in culture, history, and capable people. We believe in its future potential and are eager to play a role in its revival through meaningful projects that generate employment.”  

He added: “We look to Syria with great confidence. Its people possess the energy and resilience needed to shape a strong and prosperous future. As an Arab group with deep regional roots, we consider it both a moral and economic responsibility to stand as a partner in rebuilding stable and thriving societies.”

Al-Habtoor Group, a UAE-based multinational with a strong presence in the hospitality, real estate, and automotive industries, has a history of large-scale investments in the Middle East. The move follows the organization’s recent withdrawal from Lebanon, where it cited instability as a barrier to business.


Jordan’s foreign exchange reserves hold steady at $22.76bn in May

Updated 09 June 2025
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Jordan’s foreign exchange reserves hold steady at $22.76bn in May

  • Gold holdings at the end of May were valued at $7.76 billion
  • Qatar Central Bank recorded a 3.6% increase in its foreign currency reserves and liquidity

RIYADH: Jordan’s foreign exchange reserves remained largely unchanged in May, standing at $22.76 billion, as per new data released by the Central Bank of Jordan. 

The slight month-on-month dip — about 0.2 percent from April — reflects broad stability in the Kingdom’s external buffers. 

Jordan’s foreign exchange figures are broadly in line with trends observed across other Middle East and North African countries. 

The Qatar Central Bank recorded a 3.6 percent increase in its foreign currency reserves and liquidity, reaching 258.135 billion Qatari riyals ($70.9 billion) in May, up from 249.165 billion riyals in May 2024. 

Jordan’s long-term foreign-currency issuer default rating was affirmed at “BB-” with a stable outlook by Fitch Ratings. File/AFP

Egypt’s foreign exchange reserves rose to $48.525 billion by the end of May, compared to $48.144 billion in April, marking an increase of $381 million. 

“The Central Bank of Jordan stated in a statement today that its total foreign reserves are sufficient to cover the country’s imports of goods and services for approximately nine months,” the Qatar News Agency reported. 

The central bank also reported that gold holdings at the end of May were valued at $7.76 billion, totaling 2.345 million ounces, underscoring the role of bullion in Jordan’s reserve composition. 

“It added that the presence of comfortable levels of foreign reserves enhances the ability to influence exchange rates, provides a stable economic environment, and enhances the confidence of foreign creditors and investors,” the QNA report stated, citing the Jordan Central Bank. 

The Central Bank of Jordan said its total foreign reserves are sufficient to cover the country’s imports of goods and services for approximately nine months. File/AFP

In May, Jordan’s long-term foreign-currency issuer default rating was affirmed at “BB-” with a stable outlook by Fitch Ratings, citing the country’s macroeconomic stability and progress on fiscal and economic reforms. 

The US-based credit rating agency noted that the rating and stable outlook also reflect Jordan’s resilient financing sources — including a liquid banking sector, a robust public pension fund, and sustained international support. 

Despite the stable outlook, Jordan’s credit rating remains below that of several other countries in the region. In February, Fitch affirmed Saudi Arabia’s IDR at “A+” with a stable outlook, while the UAE was rated “AA-.” 

Fitch said the ratings are constrained by high government debt, moderate growth, risks from domestic and regional politics, as well as current account deficits and net external debt levels that exceed those of rating peers. 

Jordan’s foreign exchange figures are broadly in line with trends observed across other Middle East and North African countries. Central Bank of Jordan

A “BB” rating indicates elevated vulnerability to default risk, particularly in the event of adverse shifts in business or economic conditions. However, it also suggests some degree of financial or operational flexibility in meeting commitments. 

Fitch also noted that Jordan’s government remains committed to advancing its three-pillar reform agenda — spanning economic, public administration, and political sectors — despite external pressures. 

The agency added that the pace of reforms will continue to be shaped by the need to preserve social stability, resistance from vested interests, and institutional capacity limitations.