INTERVIEW: Virgin Hyperloop’s vision for a connected Gulf

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Updated 22 November 2020
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INTERVIEW: Virgin Hyperloop’s vision for a connected Gulf

  • High-tech project’s Middle East chief explains why Saudi Arabia is central to its global ‘moonshot’ plans

Living in Abu Dhabi and commuting to work in Riyadh? Embarking at Jeddah for a two-hour journey to Dubai? A day trip from Riyadh to Makkah?

These futuristic notions could become reality in the age of the hyperloop, the fast-transit technology that is set to change everyday life in the Middle East, and the rest of the world, over the next decade.

Harj Dhaliwal, managing director for the Middle East and India at the Virgin Hyperloop Group, is more convinced than ever that hyperloop technology is the transport system of the future after the successful first passenger-carrying tests at a desert track in Nevada a couple of weeks ago.

“The US secretary for transport (Elaine Chao) said hyperloop is the most exciting thing happening to transportation today, and you have to agree with her. As this technology becomes proven, high-speed rail will become a thing of the past,” he told Arab News.

Coming from Dhaliwal, that is quite a claim. His career, originally focusing on transport projects in the UK, has evolved into developing advance rail systems in the Middle East, including the Etihad Rail project in the UAE and the Riyadh Metro in Saudi Arabia, for the US group Parsons. But hyperloop will change the fundamentals of travel for ever, he believes.

“Why would anybody want to invest billions in technology that is basically steel wheel on steel rail, effectively going back 150 years, when they have the potential of hyperloop?” he asked.

Dhaliwal concedes that rail will still have a role in the region — in the movement of heavy bulk goods and petrochemicals, for example — but hyperloop is the technology of the future, and nowhere more so than in Saudi Arabia.

Earlier this year, the company signed a deal with the Kingdom’s transport ministry for a study of hyperloop’s potential, involving the building of a test-track facility and other technology infrastructure.

That agreement could herald a closer financial relationship between Saudi Arabia and Virgin Hyperloop, which so far has raised $400 million from investors including DP World, the UAE ports and logistics company, but which needs more resources to fund the next stages of its evolution.

Saudi Arabia will be one of three strategic centers for Hyperloop, with another in India as well as the US. The company recently announced plans to build a $500 million testing and certification center in West Virginia. 

“We envisage a similar facility in Saudi Arabia to connect the Kingdom and the wider Middle East, but also to act as a hub for manufacturing, technology and materials. Europe is not that far away (from Saudi Arabia) and you could export the technology and materials there,” he said.

The strategy is in line with the aims of the Vision 2030 diversification plan, he said, which seeks to build a technology-driven economy less dependent on oil revenues, and create high-value jobs for the Kingdom’s citizens.


BIO

Born: UK 1964

Education: Bachelor of engineering, Nottingham Trent University

Career

  • Various roles in UK transport projects
  • Project director, Qatari Diar
  • Senior vice president, Parsons Corp.
  • Managing director, Middle East and India, Virgin Hyperloop

Dhaliwal sees hyperloop playing a crucial role in linking some of the mega-projects planned under the reform plan, such as the technology metropolis under construction at NEOM in the Kingdom’s northwest, the vast theme park planned at Qiddiya south of Riyadh, and the maritime hub at the King Abdullah Economic City on the Red Sea.

He has also been working closely with the King Abdullah University of Science and Technology, near Jeddah, on detailed aspects of the hyperloop technology.

“We are working to understand the transport requirements of the Kingdom. As it diversifies, it increases the opportunities for companies like ours to work in partnership with it as it looks to become a leader in technology sectors.

“There are lots of spin-offs in other technology areas, such as batteries, electric vehicles, solar and artificial intelligence. It is not just about transport from A to B, there are boundless opportunities for growth in manufacturing and knowledge,” he added.

The Nevada test was a milestone in the technology’s development.

Jay Walder, the Virgin Hyperloop CEO, said: “This is a step of historical significance. I don’t think you can overstate it. This is a moonshot moment. I have no doubt this will change the world.”

Dhaliwal took a more understated view. “It was the culmination of two years’ work. Since we began, lots of people were asking me when would people actually ride in it. Well, we have proved that levitation in a vacuum environment works, and we can safely transport passengers in a pod in a vacuum that levitates,” he said.

Other competing groups are also developing vacuum-tube travel similar to hyperloop, and running tests in various parts of the world, but the Nevada trial was the first that carried humans in the pods inside the sealed tube. The original idea for the technology came from Elon Musk, the Tesla billionaire.

Two Virgin Hyperloop employees traveled the length of a 500-meter test track in 15 seconds, reaching a speed of 172 kph.

“It felt not that much different than accelerating in a sports car,” one said. The speed was limited by the length of the test track, but Virgin Hyperloop has ambitions to eventually move people and goods at more than 1,000 kph.

That is about the same speed as a commercial jet cruises at 30,000 feet, and it is no surprise that Dhaliwal uses the terminology of aircraft flight — banking, rolls and pitch — to describe the performance of the vehicle in motion.

Safety at such speeds is a prime concern, and Dhaliwal and other Virgin Hyperloop executives spend a lot of time in talks with regulators and certification officials as they work toward proving the technology is passenger-worthy.

There is no global standard for hyperloop travel, so the technology and its associated infrastructure is developing its own rules it progresses, mixing mainly US and European regulations, along with local requirements in the Middle East.

“As a company, we’ve done what we had to do to get the regulators and authorities talking to the industry,” he said.

While all the attention was on the landmark first passenger ride, Dhaliwal also highlighted the cargo-carrying capability of hyperloop, especial when speed and efficiency are invaluable for the transport of high-value and perishable goods.

“The pods can join up to create a convoy, which is by far the most efficient way to transport goods at high speed, and then decouple electronically, then come together again to continue the next part of the journey,” he said.

The ability to move high-value goods was one of the things that attracted DP World, the majority shareholder in Virgin Hyperloop. The UAE company has plans for advanced logistics systems in its Jebel Ali hub, and between other centers in the Middle East and elsewhere via its CargoSpeed operation. Sultan Ahmed bin Sulayem, the chairman of DP World, is also chairman of Virgin Hyperloop.

Virgin, the business run by entrepreneur Richard Branson, is a minority investor and also represented on the board. “Virgin is an intrinsic part of the business and we still get a lot of support from them,” Dhaliwal said.

At some stage, Virgin Hyperloop will be looking to top up the $400 million investment it has raised so far for the expensive business of building and operating more test facilities and, ultimately, for its first functioning service, though this is still some way off, possibly by the end of the decade.

“The amount we’ve raised is exceptional for a startup that is only six years old, but, yes, we will need more investors and partners. We can always use more,” he said.

With its emphasis on advanced technology and job creation, Virgin Hyperloop looks a natural for Saudi Arabian investors. The Public Investment Fund, the Kingdom’s growing sovereign wealth fund that is behind the mega-projects, has prioritized high-tech and automation in its plans to aid the economic diversification strategy.

“We’re engaged with the government in Saudi Arabia and with the people who run the big projects. If there was an opportunity for investment, we would be very keen to develop that and that’s where we’re heading,” Dhaliwal said.

Assuming the hyperloop technology lives up to its promise — and the Nevada passenger tests were a big step toward that — it could be a game-changer in Saudi Arabian logistics and transportation, as well as a significant element in the Vision 2030 diversification plan.

“When I came to Virgin Hyperloop, I had this vision for a connected Gulf, for creating a ‘virtual region’ where time and distance was no longer a barrier to employment and development. That vision has not waned,” Dhaliwal said.


ROSHN launches first residential community in Makkah

Updated 26 December 2024
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ROSHN launches first residential community in Makkah

JEDDAH: Saudi Arabia’s leading property developer, ROSHN, has officially launched its first residential community in Makkah, marking a significant milestone in the company’s efforts to improve the city’s living standards while supporting the national development goals outlined in Vision 2030.

The launch event for the Al-Manar Community project, which is ROSHN’s inaugural residential development in Makkah, took place under the patronage of Makkah Gov. Prince Khaled Al-Faisal. The groundbreaking ceremony was attended by a host of prominent figures, including Makkah Mayor Musaed bin Abdulaziz Al-Dawood, Royal Commission for Makkah and Holy Sites CEO Saleh bin Ibrahim Al-Rasheed, Real Estate General Authority CEO Abdullah Al-Hammad, and ROSHN’s acting CEO Khaled Jawhar. The event also saw participation from officials across both the public and private sectors.

Strategically positioned, the Al-Manar community is just a 20-minute drive from the Grand Mosque, less than an hour from King Abdulaziz International Airport in Jeddah, and only two minutes from Makkah’s western gateway. The development’s design thoughtfully integrates the region’s rich cultural and architectural heritage, blending modernity with tradition.

The Saudi government, under Vision 2030, has set ambitious targets to boost homeownership among citizens, aiming for 70 percent by the end of the decade.

ROSHN is playing a pivotal role in achieving this goal by developing large-scale residential projects that offer high-quality and affordable housing options for Saudi citizens. These initiatives are in line with the government’s strategy to expand the housing sector, elevate living standards, and provide homes for the country’s growing population.

At the ceremony, attendees were given a tour of model villas and previewed the diverse residential designs available within the community. The Al-Manar development will feature a variety of villas alongside essential amenities such as schools, mosques, shopping centers, healthcare facilities, open spaces, and recreational areas.

Khaled Jawhar, acting CEO of ROSHN, explained that the project spans over 21 million sq. meters and will provide more than 33,000 housing units. Additionally, it will offer more than 150 facilities designed to meet the needs of residents and support community well-being.

Saleh bin Ibrahim Al-Rasheed, CEO of the Royal Commission for Makkah and Holy Sites, emphasized the significance of the Al-Manar community as the first fully integrated ROSHN development in Makkah.

“Located at the city’s western gateway, within the Haram boundaries, this project reflects our commitment to facilitating impactful developments that drive long-term growth and sustainability,” Al-Rasheed said.


Saudi Venture Capital Invests $24bn in Jadwa GCC Private Equity Fund 1

Updated 26 December 2024
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Saudi Venture Capital Invests $24bn in Jadwa GCC Private Equity Fund 1

RIYADH: Saudi Venture Capital has invested over SR90 billion ($24 billion) in the Jadwa GCC Private Equity Fund 1.

The fund aims to raise SR1.5 billion, with a hard cap of SR2 billion, and marks Jadwa’s first regional blind-pool private equity fund, a press release issued on Thursday said.

It said the fund will focus on investing in a diversified portfolio of high-potential private equity opportunities across Saudi Arabia and the wider Gulf Cooperation Council region.

Commenting on the development, Nabeel Koshak, CEO and board member of SVC, said:

“Our investment in the private equity fund by Jadwa is aligned with SVC’s strategy of supporting the evolving private equity ecosystem in Saudi Arabia. This investment will stimulate and sustain funding for high-potential companies in Saudi Arabia, contributing to the economic diversification objectives of Saudi Vision 2030.”

Founded in 2018, SVC is a subsidiary of the SME Bank, part of the National Development Fund. Its mission is to stimulate and sustain financing for startups and small and medium enterprises at various stages—from pre-seed to pre-IPO—through investments in funds as well as direct investments into emerging companies.

Tariq Al-Sudairy, managing director and CEO of Jadwa Investment, added: “We are excited to have SVC on board as an investor in Jadwa GCC Private Equity Fund 1. This partnership reflects our shared commitment to identifying and nurturing high-potential companies across the GCC, with the goal of creating long-term value for our clients.”

Jadwa Investment is a leading investment management and advisory firm in the MENA region.


Closing Bell: Saudi main index slips to close at 11,859

Updated 26 December 2024
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Closing Bell: Saudi main index slips to close at 11,859

  • Parallel market Nomu declined by 120.35 points, or 0.39%, to close at 30,886.71
  • MSCI Tadawul Index also dropped 3.44 points, or 0.23%, to end at 1,490.30

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 32.85 points, or 0.28 percent, to close at 11,859.47.

The total trading turnover of the benchmark index reached SR2.80 billion ($747 million), as 78 stocks advanced and 143 retreated.

The Kingdom’s parallel market Nomu declined by 120.35 points, or 0.39 percent, to close at 30,886.71, with 37 stocks advancing and 38 retreating.

The MSCI Tadawul Index also dropped 3.44 points, or 0.23 percent, to end at 1,490.30.

The best-performing stock of the day was Rasan Information Technology Co., whose share price surged 7.58 percent to SR79.50. Other top performers included The Mediterranean and Gulf Insurance and Reinsurance Co., which rose by 7.17 percent to SR24.80, and The National Co. for Glass Industries, up 4.15 percent to SR55.20.

On the downside, Saudi Research and Media Group recorded the steepest drop, falling 3.86 percent to SR269.00. Al-Baha Investment and Development Co. saw its share price decline by 3.85 percent to SR0.50, while Red Sea International Co. dropped 3.63 percent to SR58.40.

On the announcement front, Mutakamela Insurance Co. launched its new identity and brand name, Mutakamela, following regulatory approvals and shareholder consent at its extraordinary general assembly meeting. 

Mutakamela ended the session unchanged at SR14.78.

Al-Yamamah Steel Industries Co. reported a net profit of SR70.8 million for the year ending Sept. 30, a significant turnaround from the SR130.14 million loss recorded in the previous year. The profit increase was attributed to reduced costs in the construction sector by 20.82 percent, electricity by 7.56 percent, and solar energy by 10.35 percent.

Additionally, the company’s board recommended distributing SR25.4 million in cash dividends to shareholders for the fiscal year ending Sept. 30. Eligible shareholders will receive a dividend of SR0.50 per share, representing 5 percent of the share’s par value, with 50.8 million shares eligible for the payout. 

Al-Yamamah Steel closed the session at SR35.00, down 1.75 percent.

Arabian Contracting Services Co. secured a project worth SR563 million with the Royal Commission for Riyadh City to invest in and lease internal advertising spaces within the King Abdulaziz Public Transport Project in Riyadh. 

The 10-year agreement aligns with the company’s strategy to expand its advertising activities. 

Its stock rose 0.68 percent to close at SR149.00.

Bank Al-Jazira announced the start of issuing its Additional Tier 1 Sukuk under a SR5 billion program through private placement. The issuance amount and terms will be determined based on market conditions, with a minimum subscription of SR1 million. 

The sukuk offer price, par value, and return will also be market-dependent. The bank has appointed Al-Jazira Capital, Al-Rajhi Capital, and HSBC Saudi Arabia as joint lead managers and dealers.

Bank Al-Jazira’s stock rose 0.96 percent to close at SR18.68.


Turkiye lowers interest rate to 47.5%

Updated 26 December 2024
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Turkiye lowers interest rate to 47.5%

  • Central bank now expects inflation to reach 44% at the end of 2024
  • Decision signals the start of an easing cycle after eight months of steady policy

ISTANBUL: Turkiye’s central bank lowered its key interest rate on Thursday, the first cut in nearly two years as it battles with double-digit inflation.
The bank’s monetary policy committee decided to reduce the policy rate from 50 percent to 47.5 percent, with a statement citing improvement in “inflation expectations and pricing behavior.”
The last cut was in February 2023.
The central bank began to raise interest rates last year to battle soaring prices, after President Recep Tayyip Erdogan dropped his opposition to orthodox monetary policy.
It has kept the main rate stable at 50 percent since March.
Thursday’s decision signals the start of an easing cycle after eight months of steady policy.
The bank said the decisiveness over its tight monetary stance “is bringing down the underlying trend of monthly inflation and strengthening the disinflation process.”
In November, Turkiye’s annual inflation rate slowed for the sixth month in a row, at 47.1 percent.
The central bank now expects inflation to reach 44 percent at the end of 2024, up from a previous estimate in August of 38 percent.
The bank said the level of the policy rate would be determined in a way to ensure the tightness required by the projected disinflation path, taking into account both realized and expected inflation.
This week, the central bank announced that it would hold fewer policy meetings next year.
“The Committee will make its decisions prudently on a meeting-by-meeting basis with a focus on the inflation outlook,” the bank said, adding it would “decisively use all the tools at its disposal in line with its main objective of price stability.”
The bank “will make its decisions in a predictable, data-driven and transparent framework,” it added.
Hakan Kara, former chief economist at the central bank, welcomed the cut as “very reasonable and balanced start” that came with a “cautious/optimistic communication.”
“In my opinion, the central bank is doing its best. From now on, the ball is in other policies,” Kara commented on social media platform X, including in the pace of spending and regulations on critical institutions.
The rate slash comes amid a moderate increase in Turkiye’s minimum wage after several rounds of negotiations.
The net monthly minimum wage has been raised by 30 percent to 22,104 lira ($600), beginning from Jan. 1 — far below the demands of the workers union.
The union had demanded a 70 percent increase.
Erdogan welcomed the rise this week and said: “We once again remained true to our promise not to let our workers be crushed by inflation.”


Saudi Arabia’s JEDCO, Tarshid partner to boost energy efficiency at King Abdulaziz Int’l Airport

Updated 26 December 2024
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Saudi Arabia’s JEDCO, Tarshid partner to boost energy efficiency at King Abdulaziz Int’l Airport

  • Tarshid will conduct on-site surveys and technical studies of KAIA’s targeted buildings and facilities
  • Project aims to encourage the aviation industry to adopt sustainable practices

JEDDAH: Saudi Arabia’s King Abdulaziz International Airport is set to enhance energy efficiency and reduce emissions through a strategic partnership with the country’s National Energy Services Co., or Tarshid.

The pact between Jeddah Airports Co., or JEDCO, the airport’s operating company, and Tarshid, a Public Investment Fund company, aims to deliver sustainable energy efficiency solutions for the airport’s facilities. The partnership is facilitated through a Tarshid subsidiary and aligns with the Kingdom’s Vision 2030 and the Saudi Green Initiative.

The agreement was signed in the presence of Prince Abdulaziz bin Salman, minister of energy and chairman of Tarshid’s board of directors, according to the Saudi Press Agency.

The deal, which aims to launch innovative energy-saving initiatives and promote environmental responsibility, supports Saudi Arabia’s Civil Aviation Environmental Sustainability Program and contributes to achieving the goals of the Saudi Green Initiative and Vision 2030, which seek to improve energy efficiency and implement sustainable solutions across public and private sector facilities in the Kingdom.

The Kingdom has been developing the Civil Aviation Environmental Sustainability Plan, which seeks to mitigate the environmental impact associated with the expected growth of the country’s civil aviation sector.

The plan is crafted to align with global commitments outlined in the Paris Climate Agreement and the emission reduction targets set by the International Civil Aviation Organization.

The country has made several national-level achievements over the past years in the pursuit of its net-zero emissions goal, set for 2060. It is also pursuing new technologies to improve fuel efficiency and decarbonize the aviation sector.

Ranked among the top 100 airports globally, KAIA holds the distinction of being the third-best airport in the Middle East, according to rankings by UK-based consulting firm Skytrax.

Under the agreement, Tarshid will conduct on-site surveys and technical studies of KAIA’s targeted buildings and facilities, recommending optimal solutions to enhance energy efficiency and reduce consumption within the project’s scope.

Waled Abdullah Al-Ghreri, CEO of Tarshid and board member, said that they are dedicated to realizing Vision 2030’s objectives of enhancing energy efficiency and sustainability in Saudi Arabia.

“Tarshid continues to strengthen its partnerships with both public and private sectors, and our collaboration with Jeddah Airports Co. is a pivotal step toward establishing new energy efficiency benchmarks in the aviation sector, reflecting a future that merges operational excellence with environmental responsibility.”

Mazen bin Mohammed Johar, CEO of JEDCO, expressed his enthusiasm for the collaboration, saying that the agreement is a significant step in advancing the company’s efforts to enhance the operational efficiency of airport facilities.

Johar added that the agreement aligns with the National Aviation Strategy’s goal of operating a world-class, sustainable airport with high energy efficiency standards, consistent with Vision 2030.

He highlighted KAIA’s achievements in environmental preservation, including sustainability projects such as a recycling initiative that reduces carbon emissions and achieves net-zero targets, electricity and water conservation projects utilizing solar panels and smart technologies, and air quality monitoring in collaboration with the National Center for Environmental Compliance.

He said that the airport has increased green spaces to mitigate carbon emissions.

Established in 2017, Tarshid specializes in retrofitting buildings and facilities to improve energy efficiency and sustainability across government and private sectors. The KAIA project is among its key initiatives with the private sector, aiming to encourage the aviation industry to adopt sustainable practices.

By the end of the third quarter of this year, the company had achieved annual energy savings of 7.3 terawatt-hours across various projects, equivalent to conserving over 11.7 million barrels of oil equivalent and avoiding approximately 4.2 million metric tonnes of harmful emissions. These efforts equate to the environmental impact of planting more than 69.4 million seedlings annually, SPA reported.

Tarshid has recently signed a similar agreement with SAL Logistics Services, underscoring its role in advancing energy efficiency and sustainability across both governmental and private sectors.