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 energy minister joins launch of consortium to promote sustainable concrete

Updated 26 January 2025
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Saudi energy minister joins launch of consortium to promote sustainable concrete

  • NovusCrete seeks to accelerate adoption of durable saltwater concrete
  • Initiative led by the Oil Sustainability Program and includes leading Saudi organizations

RIYADH: Saudi Energy Minister Prince Abdulaziz bin Salman on Sunday attended the signing of a memorandum of understanding to launch the NovusCrete consortium, a global collaboration to develop and accelerate the adoption of sustainable and durable saltwater concrete.

The consortium, led by the Kingdom's Oil Sustainability Program, also seeks to create standards for using seawater in concrete, promote sustainability in construction by recycling waste, extend infrastructure lifespan, and reduce environmental impact.

Leading Saudi organizations taking part in the consortium include the Public Investment Fund, Saudi Investment Recycling Company, NEOM through its Design and Construction Sector, Sika, and ClimateCrete.

The participating parties said they aim to develop sustainable technologies for concrete production, focusing on reducing the construction sector’s carbon footprint and enhancing material efficiency.

They will also improve Saudi Arabia’s construction sector by promoting seawater concrete solutions using local materials.

The signing ceremony in Riyadh was also attended by Yasir Al-Rumayyan, governor of PIF; Saad Al-Qasabi, governor of the Saudi Standards, Metrology, and Quality Organization; and Khalid Al-Salem, president of the Royal Commission for Jubail and Yanbu.

The new consortium includes international organizations, such as the American Concrete Institute.

It aligns with Saudi Vision 2030, which aims to balance economic growth and environmental sustainability.


India celebrates 76th Republic Day in Riyadh, highlighting cultural ties with Saudi Arabia

Updated 26 January 2025
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India celebrates 76th Republic Day in Riyadh, highlighting cultural ties with Saudi Arabia

  • ‘Let us continue to work together,’ says Ambassador Suhel Ajaz Khan

RIYADH: Ambassador of India to the Kingdom Suhel Ajaz Khan underlined that a mutual appreciation of culture was strengthening ties between Saudi Arabia and India during the latter’s 76th Republic Day celebration in Riyadh.

“A shared love for culture brings our countries together,” he said. “From Bollywood cinema to yoga, music, and food, we have continued to be inspired by each other.

“We were delighted to participate in the annual Riyadh Season 2024 under the Global Harmony Initiative of the Saudi government,” he added, referring to a series of events which began in October to celebrate the culture of the Kingdom’s different expatriate groups.

India’s Republic Day was celebrated on Sunday evening in the Cultural Palace in Riyadh and brought together both Saudis and Indians in a commemoration of culture and history.

Omar Khan, an Indian native who has called the Kingdom his home for nearly three decades, attended the event.

The product manager at STC Technologies told Arab News: “I’m a second-generation, third-culture kid. I’ve seen Republic Days for the past three decades in Saudi Arabia.

“I think one thing that’s very important is the representation of my country. It makes me proud that, although India is a distant land for me and Riyadh is home, I feel very connected, and I see that the partnership of Saudi Arabia and India has grown leaps and bounds.

“I’m very proud to say that I am somebody who grew up in Saudi Arabia and yet is Indian by his roots.”

Indian youngsters took to the stage following the ambassador’s speech to perform a dance routine showcasing their country’s music and culture.

The embassy event also featured multiple booths to highlight the many Indian-owned businesses and products in the Kingdom, in the food, tourism, and medical sectors.

India’s Ministry of Tribal Affairs also had a booth to showcase handmade products from the country, including coats, artifacts, and silk pashminas.

Staff from Aster Sanad Hospital were present to help visitors with medical issues.

The ambassador said: “India will work with our international partners, including Saudi Arabia, to contribute to a world of peace, prosperity, and inclusive growth.

“With these words I would like to express my sincere gratitude to the Kingdom of Saudi Arabia and its people for their long-standing friendship and support.

“Let us continue to work together to build a future based on mutual respect, understanding, and cooperation.”


World Monument Fund to protect historic sites with Bahraini, Saudi, and Gulf partners

Updated 26 January 2025
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World Monument Fund to protect historic sites with Bahraini, Saudi, and Gulf partners

  • There is a lot of interest in heritage of GCC countries, says fund president

MUHARRAQ: On a historical preservation tour around the Arabian Gulf region, the World Monument Fund recently visited the city of Muharraq in Bahrain before visiting Saudi Arabia.

A historically rich city with a story that dates to the late 19th century, Muharraq is the cultural heart of Bahrain.

Prior to gaining independence from British rule in 1971, Muharraq was Bahrain’s capital and center for public and governmental administrative, educational, and planning projects, before being replaced by Manama in 1923.

Bahrain's cultural heart, Muharraq, has a rich history dating back to the late 19th century. (AN photo by Abdulrahman Bin Shalhoub)

Though the city held many significant historical sites, its residents began to leave soon after and the area was left neglected.

Sheikha Mai bint Mohammed Al-Khalifa, president of the Bahrain Authority for Culture and Antiquities and chairperson of the Arab Regional Centre for World Heritage, founded the Sheikh Ebrahim bin Mohammed Al-Khalifa Center for Culture and Research in 2002, a non-profit organization, as a form of cultural renaissance.

Since its founding, the center’s purpose has been to form a space where thinkers could gather and share ideas in philosophy, literature, poetry, art, and culture.

FASTFACT

In discussion with the Royal Commission of AlUla and the Heritage Commission for future partnerships, the World Monument Fund is visiting AlUla as well as Historic Jeddah for the Islamic Arts Biennale.

The most significant aspect of its work, however, has been the house restoration projects in Muharraq and Manama, where 28 historical houses, many of which belonged to prominent Bahraini figures and families, have been brought back to life under the leadership of Al-Khalifa.

As the World Monuments Fund celebrates 60 years, the organization is committed to safeguarding heritage around the globe. (AN photo by Abdulrahman bin Shalhoub)

Over the weekend, a delegation from the World Monument Fund visited the Sheikh Ebrahim Center to see the restored houses firsthand.

Celebrating its 60th anniversary, the mission of the World Monuments Fund is to safeguard heritage all around the world, Benedicte de Montlaur, president of the fund, told Arab News.

Al-Khalifa was awarded the Watch Award by the World Monument Fund in 2015 and after a few visits to their offices in New York, she was asked to join them as a member of the board of trustees, making her the only Arab on the board.

Bahrain's cultural heart, Muharraq, has a rich history dating back to the late 19th century. (AN photo by Abdulrahman Bin Shalhoub)

In an interview with Arab News, Al-Khalifa said she felt it was her responsibility to keep them informed about the Arab world and all that it has to offer.

“The picture that travels to the world is not always true or complete, and in our Gulf countries there are many landmarks, monuments, and national identities that we would like to showcase,” she said.

The delegation first visited the Abdullah Al-Zayed House for Bahrain Press Heritage, the house of the first journalist to start a daily newspaper in the kingdom and which now hosts local and international speakers from the media sector.

Sheikha Mai bint Mohammed Al Khalifa poses for a group picture with visiting guests in Bahrain. (AN photo by Abdulrahman Bin Shalhoub)

Next up was the Kurar House, where Al-Kurar Ladies spend their time embroidering traditional Bahraini thobes and other garments by hand. Like the strings of an instrument, three women work on the thread separately, and one stitches them together simultaneously on the fabric, creating a harmonious rhythm.

The delegation also got to see the only room left of Sheikh Ebrahim’s original house, a room that dates back around 200 years.

Following the tour of the Sheikh Ebrahim restored houses projects, they also visited the houses of the Pearling Path and the UNESCO World Heritage Site, the Dilmun Burial Grounds.

A delegation from the World Monument Fund recently visited various sites in Bahrain including the Sheikh Ebrahim Center to see historical restored houses. (AN photo by Abdulrahman Bin Shalhoub)

With over 70 projects in the Arab world including the Louvre, the Smithsonian, and Babylon in Iraq, restoring the Imam Palace in the city of Taizz in Yemen, and Abydos in Egypt, the fund’s next mission is to become more active in the Gulf region.

“We see that there is a lot of interest in heritage in countries from the GCC,” de Montlaur said.

The first stop was Kuwait, where plans are underway to have Failaka Island added to the UNESCO World Heritage List.

Opera concert at visit of World Monument Fund delegation to Bahrain. (AN photo by Abdulrahman bin Shalhoub)

After visiting their partners from the UNESCO Regional Center and the Sheikh Ebrahim Center in Bahrain, the delegation’s next destination is Saudi Arabia, “a country that is devoting a lot of time and energy at the moment to heritage,” de Montlaur said.

In discussion with the Royal Commission of AlUla and the Heritage Commission for future partnerships, the World Monument Fund is visiting AlUla as well as Historic Jeddah for the Islamic Arts Biennale.

“If you do not know your past, it is very difficult to build a future because you lose your identity,” de Montlaur said. “Especially in countries like here, that are developing really fast … it is extremely important also to pay attention to heritage places because it is very easy to destroy them, but when they are gone, they’re gone. They cannot be rebuilt.

As the World Monuments Fund celebrates 60 years, the organization is committed to safeguarding heritage around the globe. (AN photo by Abdulrahman bin Shalhoub)

“Once you have lost the spirit of a place and built modern buildings everywhere, then you have lost touch with your past.”

Preserving the land’s past also draws in crowds of tourists who get to experience each country’s distinct identity and history for the first time to learn about the place and its people, de Montlaur added.

“Heritage places represent the pinnacle of human achievements of history.”

A delegation from the World Monument Fund recently visited various sites in Bahrain including the Sheikh Ebrahim Center to see historical restored houses. (AN photo by Abdulrahman Bin Shalhoub)

On how the Arab world can work together to create a stronger stance for historical preservation, de Montlaur said: “I think it is already happening,” citing the various projects in Iraq, the UAE, Saudi Arabia, and Bahrain, etc.

She also added: “There is a big need for heritage preservation in other countries outside of the GCC, so they could align their forces.

“There is so much need in Egypt, in Gaza … in Syria … and I think what is very much part of the Arab countries is this solidarity, they can all unite around this heritage because this is the heritage of all the Arabs.”

Al-Khalifa added: “In Gaza, many landmarks have been destroyed, part of the upcoming plan is restoring some of those sites.

“It’s really a heritage of humanity as a whole and that is why every one of us, whether we are from the region or not, should care about it. But before anything else, it is the history and identity of the Arabs,” de Montlaur noted.

Speaking on the shared language and culture that unite Saudi Arabia and Bahrain, Al-Khalifa, who is also a part of the Royal Commission of AlUla, said that emotions and love between peoples are what bond them forever.

“This visit is not only to Bahrain but to our Gulf,” she said. “We always repeat: our Gulf is one, our goals are one, and our history is shared; so everything that distinguishes us — from identity to monuments — is an extension of civilizations thousands of years old.”

 


Saudi permanent representative presents credentials to UNESCO chief

Updated 26 January 2025
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Saudi permanent representative presents credentials to UNESCO chief

  • Abdulelah Altokhais is seeking to strengthen Kingdom’s cooperation with UN agency
  • Paris talks focus on collaboration to promote coexistence among peoples and cultures

RIYADH: Abdulelah Altokhais, Saudi Arabia’s permanent representative to UNESCO, presented his credentials to Audrey Azoulay, the organization’s director-general, at its headquarters in Paris on Sunday.

The Kingdom’s mission to the UN-affiliated agency wrote on the X platform that Altokhias is “continuing Saudi Arabia’s efforts to strengthen joint cooperation with UNESCO and member states toward a better-shared future.”

During his meeting with Azoulay, Altokhais reviewed Saudi Arabia’s contributions to numerous UNESCO projects through its role in the organization’s Executive Council and membership of the World Heritage Committee.

He emphasized the need to enhance collaboration with UNESCO to promote peace and coexistence among peoples and cultures.

Altokhais studied philosophy at the University of Florida, and has worked in the cultural heritage, planning, and tourism fields, the Saudi Press Agency reported.


Jeddah governor receives Portuguese ambassador to Saudi Arabia

Updated 26 January 2025
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Jeddah governor receives Portuguese ambassador to Saudi Arabia

  • The two men discussed issues of mutual interest

JEDDAH: Prince Saud bin Abdullah bin Jalawi, the governor of Jeddah, received Nuno Mathias, Portugal’s ambassador Saudi Arabia, in Jeddah on Sunday.

During the meeting, the two men discussed issues of mutual interest, the Saudi Press Agency reported.

Meanwhile, Abdulelah bin Ali Al-Tokhais, the permanent delegate of the Kingdom to the UN Educational, Scientific and Cultural Organization, presented his credentials to Audrey Azoulay, the organization’s director-general, continuing Saudi Arabia’s efforts to strengthen cooperation between UNESCO and member states, the official account @KSAForUNESCO wrote on X.