Frankly Speaking: Saudi Arabia can be number one market for Rolls-Royce, says carmaker’s CEO Torsten Muller-Otvos

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Updated 27 December 2021
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Frankly Speaking: Saudi Arabia can be number one market for Rolls-Royce, says carmaker’s CEO Torsten Muller-Otvos

  • With more women and young people drawn to the brand, Saudi Arabia is becoming a top Middle East market for Rolls-Royce
  • CEO Torsten Muller-Otvos says Rolls-Royce is a “frontrunner” in the electric car transition among ultra-luxury brands

DUBAI: Big changes under way in Saudi Arabia could turn the Kingdom into the top market in the Middle East for Rolls-Royce cars, Torsten Muller-Otvos, the elite motor company’s chief executive, told Arab News.

“Saudi obviously is a big market. I see even more potential to come from Saudi in the years to come because the market is currently also opening up and is growing,” said Muller-Otvos, citing the royal decree of 2017 that granted Saudi women the right to drive and obtain driving licences for the first time.

“We see now the first female drivers in our cars in Saudi and for that reason I foresee we might in a couple of years talk about this being a massive, great market. It might even one day be the number one market in the entire region. Who knows? Potential-wise, it’s possible, but it depends on some other aspects,” he added.

Muller-Otvos delivered his forecast on Frankly Speaking, the series of video interviews with thought leaders in the Middle East and the world.




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In the interview, the boss of the British-designed but German-owned luxury car manufacturer set out Rolls-Royce’s road map to go completely electric, the effects of the COVID-19 pandemic on global and regional sales, and the effect of rising oil prices on elite car sales.

He also talked about some of the more extravagant custom features regional customers want on their cars.

The Rolls-Royce mark, founded in Britain 115 years ago but owned by BMW of Germany since 2003, is the ultimate status symbol in motoring, from California to Shanghai, but with a particular appeal among Arab buyers.

The transition currently under way in the global transportation market, with the surge in electric vehicle sales, has impacted Rolls-Royce and other petrol-engine manufacturers. Nevertheless, Muller-Otvos says Rolls-Royce is leading the way in electrification among the ultra-luxury market.




A vintage Rolls-Royce is shown during the exhibition in the King Abdullah II car museum in Amman, Jordan  Feb. 18, 2016. (Shutterstock)

“I would even say we are front-runners,” he said. “I mean, we are not comparing ourselves with what I would call the ‘normal’ automotive business. We are high in luxury. And you might also know that we are the very, very first ones in the ‘ultra-high luxury’ segment worldwide.”

The first electric Rolls-Royce, the Specter, will be available in the Middle East from 2023. “I can tell you Spectre will be a stunning, remarkable Rolls-Royce,” Muller-Otvos said. “We also took our time because, first of all, it needs to be a Rolls-Royce, so that means no compromises around luxury experiences for our clients worldwide, and then second comes, obviously, electric.”

The Spectre — which motoring pundits expect will cost around $350,000 for a starter-level vehicle — will play to Rolls-Royce’s traditional strengths. “It is also silent. We are not defining ourselves with loud engine noises or exhaust noises and for that reason I think it’s a perfect fit for the brand,” he said.




Rolls-Royce has announced that its first electric car would be made available by 2023. (Supplied)

But there were also commercial and regulatory imperatives for Rolls to get into the electric market. “We also see, worldwide, certain regulations kicking in that might mean in a couple of years you can’t enter city centers any longer without driving electric. And that, of course, would not be great for the brand.”

Elon Musk’s Tesla has so far been the headline grabber in the move to electric vehicles. Now, many traditional car companies in all the big markets are jumping on the “EV” bandwagon. However, Muller-Otvos is confident Rolls-Royce has traditional strengths in the hotly competitive market.

“Rolls-Royce never defined itself purely by the engine. That is not us. That is for other brands. We defined ourselves as the ultimate in luxury. It is about the finest materials, the best craftsmanship. It takes 1,000 hours at least to build one of these beautiful masterpieces,” he said.

Muller-Otvos also believes the move toward electric vehicles fits the shifting demographic of the Rolls-Royce clientele. “I think we will see a trend, step-by-step. Particularly the younger ones are very much attracted to electric propulsion. What we have also learned is that once you’re in an electric car, you are probably not getting back into a combustion car,” he said.

In the past, Rolls-Royce customers were overwhelmingly male, successful business executives, celebrities, or even royalty. That profile is now changing.

“When I started — and I’ve been in the role now for nearly 12 years — the average age of a Rolls-Royce customer was around 56. We are now down to 43. We have massively refurbished the brand, reinvented the brand, rejuvenated the brand. We now have young clients all over the world,” he said.

In the Middle East in particular, more women want to drive a Rolls-Royce. “When I joined, (the client base) was 1 percent female worldwide. Now we are at around 15 percent worldwide, and I think there are more to come, particularly here in the Middle East. You see quite a lot of female drivers behind the wheel. I think in the Middle East, we are talking probably 20 percent or so, and that’s quite a good share,” he said.

A big earner for Rolls-Royce has long been the trend towards customization — what the manufacturer calls the “bespoke proces” — where wealthy customers pay extra for unique features in their cars.

Sometimes, this results in lurid color schemes and outlandish accessories that would horrify Rolls-Royce traditionalists. But Muller-Otvos does not see himself or Rolls-Royce as an arbiter of individual taste.

“Let’s imagine, for a moment, a bright orange exterior and a yellow interior. It might look a little bit odd in central London, but down here in bright sunshine it looks stunning. I think you always need to keep that in mind. The last thing I want to do is judge — with my European taste — international clients. We are not the taste police in Rolls-Royce,” he said.

There was one request for a luxury accessory, however, that went aa bit too far — a request from a wealthy client for a chilled cigar compartment on the dashboard.

“One that was too crazy and was declined was for a humidor on the top panel, and that, unfortunately, wasn’t possible, technically, because we would have lost homologation (regulatory approval),” he said.




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

Rolls-Royce has long held a special place in the Arab world, dating back to the time when Britain’s then-prime minister Sir Winston Churchill presented King Abdulaziz of Saudi Arabia with a custom Phantom model as a post-war gift.

The early stages of the COVID-19 pandemic saw a sharp drop in Rolls-Royce sales, as the Goodwood plant in the UK was forced to halt its production line for two months and deliveries were disrupted.

But that turned out to be the prelude to a rapid acceleration in sales in the Middle East and the wider world once the recovery got under way, matching a global phenomenon that saw all sales of luxury goods grow after the initial shock of lockdown. Muller-Otvos had an intriguing explanation for this.

“Many clients told me they have realized that it is possible that you could die suddenly, and many of them have even seen that up close. That made them think: You only live once, enjoy your life now, don’t postpone it to later days,” he said




The new Rolls Royce Ghost – re-engineered and relaunched in 2020 – is in high demand in the Middle East (Shutterstock)
 

The Cullinan, Rolls-Royce’s first foray into the luxury SUV market, has been in particularly high demand in the Gulf, as has the Black Badge Ghost.

As ever in the region, the fortunes of the oil market continue to determine the strength of the economy — and Rolls-Royce sales.

“The oil price is quite an indicator here for how healthy the economy is and we are very much dependent on how the economy goes,” Muller-Otvos said. “If the economy flies, we fly.”


Saudi Joint Forces commander meets Yemeni Presidential Leadership Council member for security cooperation talks

Updated 9 sec ago
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Saudi Joint Forces commander meets Yemeni Presidential Leadership Council member for security cooperation talks

  • Meeting focused on strengthening cooperation between Joint Forces Command and Yemeni Presidential Leadership Council

RIYADH: Lieut. Gen. Fahd bin Hamad Al-Salman, commander of the Joint Forces, met with Faraj Salmeen Al-Bahsani, member of the Yemeni Presidential Leadership Council, at the Joint Forces Command headquarters in Riyadh on Sunday.

The meeting focused on strengthening cooperation between the Joint Forces Command and the Yemeni Presidential Leadership Council, the Saudi Press Agency reported.

Discussions also centered on enhancing the ongoing support provided by Saudi Arabia through the Joint Forces to promote security and stability in Yemen.

During the reception, Al-Bahsani commended the Kingdom’s role in supporting Yemen’s efforts to achieve stability.

He emphasized the importance of continuing strategic cooperation between the two countries to address the challenges currently facing Yemen.

Al-Bahsani thanked the Saudi leadership for their unwavering support across various fields, noting that this collaboration plays a vital role in advancing stability in Yemen and the wider region, SPA reported.

The meeting underscored the Kingdom’s commitment to fostering peace and stability in Yemen as part of its broader efforts to address regional security challenges, SPA added.


Saudi justice minister announces comprehensive legal system development project

Saudi Justice Minister Walid Al-Samaani. (SPA)
Updated 30 min 58 sec ago
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Saudi justice minister announces comprehensive legal system development project

  • The minister highlighted a range of training programs offered by the Judicial Training Center and Saudi Bar Association, targeting law graduates and practicing lawyers

RIYADH: The Ministry of Justice, in collaboration with the Saudi Bar Association, has announced the launch of a comprehensive project to review and develop the lawyers’ system, according to Saudi Justice Minister Walid Al-Samaani.

The project aims to strengthen the legal profession by empowering practitioners, improving access to legal services, and keeping up with the Kingdom’s legal, social and developmental advances, Al-Samaani, also chairman of the association, said.

On Sunday, Al-Samaani inaugurated the first Saudi Lawyers Conference in Riyadh, themed “Developments in the Lawyers and Legal Consultations Sector.”

About 30 experts and specialists are participating, leading discussions on various aspects of the profession. (SPA)

With participation from government and private entities, the two-day conference focuses on the future of the legal profession within the Kingdom’s evolving legislative landscape.

It also highlights the significant impact of professional and educational developments on enhancing the local legal environment and fostering a vibrant business and investment climate.

About 30 experts and specialists are participating, leading discussions on various aspects of the profession. On Monday, 19 workshops will be held, led by specialists to enrich attendees’ knowledge and professional experience.

Al-Samaani said that the renewal of law licenses will be processed automatically and completed within 15 days of a complete application, aiming to empower and support lawyers.

He said that the demand for lawyers had grown significantly and would likely continue with the Kingdom’s expanding business landscape and ongoing developments.

“This growth is tied to strengthening institutional work, enhancing legal foundations, and developing model contracts, documentation systems and legislative tools,” he said.

The minister highlighted a range of training programs offered by the Judicial Training Center and Saudi Bar Association, targeting law graduates and practicing lawyers.

These programs combine practical and theoretical training, including the Lawyer Qualification Program, Lawyer Development Program, Saudi Professional Accreditation for Legal Practitioners, and Cooperative Training Program for university students, among others.

 


Diriyah Co. partners with Saudi cybersecurity federation to bolster digital infrastructure

Updated 22 December 2024
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Diriyah Co. partners with Saudi cybersecurity federation to bolster digital infrastructure

  • Under the agreement, Diriyah Co. will join BugBounty, the Middle East’s first cybersecurity research platform

RIYADH: The Diriyah Co. signed a memorandum of understanding with the Saudi Federation for Cybersecurity, Programming, and Drones, known as SAFCSP, on Sunday to strengthen the digital security of Diriyah city, the Saudi Press Agency reported.

The partnership will enhance cybersecurity measures and safeguard the city’s digital infrastructure as it continues to evolve into a modern hub of culture and heritage, SPA added.

Under the agreement, Diriyah Co. will join BugBounty, the Middle East’s first cybersecurity research platform.

BugBounty uses the expertise of cybersecurity specialists to identify and address software vulnerabilities, which will allow Diriyah Co. and SAFCSP to implement strategies to mitigate potential digital threats.

To further support this, SAFCSP will provide specialized training programs to Diriyah Co. employees, equipping them with cybersecurity skills and raising awareness about the importance of digital security.

The MoU will grant the company access to SAFCSP’s database of professionals, facilitating the recruitment of cybersecurity talent. The partnership also enables the design of tailored assessments to evaluate candidates’ suitability for cybersecurity roles. In addition, outstanding students with relevant certifications will be identified for potential training opportunities.

Speaking about the collaboration, Jerry Inzerillo, group CEO of Diriyah Co., said:
“This MoU aligns with Diriyah’s commitment to realizing Saudi Vision 2030, marking a crucial step toward creating a secure and sustainable digital future for Diriyah. Our collaboration with government and private sectors, especially the Saudi Federation for Cybersecurity, Programming, and Drones, is essential for empowering the next generation in advanced technology, driving cultural and economic growth.”

The partnership will also involve joint cybersecurity projects, including conferences, workshops, and public awareness initiatives aimed at fostering a culture of digital security.


Saudi Arabia hosts first Council of Arab Ministers of Cybersecurity in Riyadh

Updated 22 December 2024
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Saudi Arabia hosts first Council of Arab Ministers of Cybersecurity in Riyadh

  • Arab League established body following proposal from Saudi Arabia
  • Aim is to enhance collaboration among Arab nations

RIYADH: Saudi Arabia is hosting the first meeting of the Council of Arab Ministers of Cybersecurity in Riyadh on Monday, featuring officials and experts from a variety of Arab League countries.

The Secretary-General of the Arab League Ahmed Aboul Gheit will participate in the meeting to discuss cooperation in cybersecurity and joint cyber frameworks, the Saudi Press Agency reported.

The Arab League established the council in September 2023 following a proposal from Saudi Arabia to consolidate Arab efforts in the sector due to increasing cyber threats and computer-related attacks.

The Saudi National Cybersecurity Authority is hosting the event. Established in 2017, the body aims to protect Saudi national security and interests from cyber breaches and attacks.

The Riyadh meeting’s primary objective is to enhance collaboration among Arab nations on all cybersecurity-related matters.

It also aims to function as a platform for exchanging expertise and creating a reliable Arab cyberspace that enables growth and prosperity for all member states of the Arab League.


Riyadh festival strengthens Saudi-Iraqi cultural bonds

Updated 22 December 2024
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Riyadh festival strengthens Saudi-Iraqi cultural bonds

  • ‘Common Ground’ celebrates music, art and shared heritage

RIYADH: A Saudi-Iraqi dialogue on music has been held as part of the “Common Ground” festival at Riyadh Boulevard, which runs until Dec. 31.

The dialogue featured Saudi artist Abadi Al-Johar and Iraqi artist Naseer Shamma, who presented their musical creations.

It highlighted the points of convergence between the rich cultures of both nations, the Saudi Press Agency reported on Sunday.

Organized by the Ministry of Culture, the event aims to highlight the shared cultural elements between Saudi Arabia and Iraq through various cultural and artistic activities.

The goal is to strengthen cultural cooperation between the Kingdom and Iraq and provide an opportunity to explore Iraqi culture and its creative landmarks, the SPA reported.

Iraqi visitors expressed gratitude for the warm hospitality and the festival’s recognition of Iraqi artists, particularly the honoring of renowned singer Saadoun Jaber and the late poet Karim Al-Iraqi.

Many said that this reflected the festival’s respect for Iraq’s artistic legacy and its role in fostering cultural ties between the two nations.

An art exhibition at the festival showcases dozens of works by Saudi and Iraqi artists, which visitors praised for vividly portraying the historical and cultural diversity of the two countries while highlighting their shared heritage.

The event has also included discussions on the historical roots of economic ties and recent efforts to strengthen them.

Researchers and historians from both countries gathered to discuss their shared history and explored ways to cooperate in the future.

The festival includes a children’s area with heritage games, arts and crafts, and interactive storytelling.

It also offers a culinary experience blending Saudi and Iraqi flavors, while visitors can enjoy Saudi coffee and Iraqi tea, reflecting Arab hospitality.

The event is being held in collaboration between the King Abdulaziz Foundation for Research and Archives and the Iraqi National Library and Archive.