Dubai hotels cross 90% occupancy for first time since 2017 driven by Expo 2020
Updated 12 April 2022
DANA ALOMAR
DUBAI: The Dubai hotel industry recorded 90 percent occupancy in March, for the first time since 2007, driven by new demands due to Dubai Expo 2020, STR data revealed.
The city’s occupancy levels crossed 90 percent during the final days of the mega event, reaching its peak of 96 percent on March 24, while staying higher than 90 percent for 25 days during the month.
This also helped hotels improve their average daily rates and revenue per available room, with ADR reaching the second-highest level of the pandemic era to 891.46 dirhams ($242.71) and RevPAR climbing to 817.90 dirhams, which is the highest since December 2015.
Biban 24 sees deals worth over $4.79bn on opening day
Updated 7 sec ago
Reem Walid
RIYADH: On the first day of Biban 24, a total of 17 agreements and memoranda of understanding were signed, alongside the launch of financial initiatives valued at more than SR18 billion ($4.79 billion).
These deals and financing portfolios were finalized during the Riyadh event, organized by the General Authority for Small and Medium Enterprises under the theme “A Global Destination for Opportunities.”
The forum aims to empower small and medium enterprises and entrepreneurs by enhancing their access to financial support, ultimately fostering growth in this vital sector of the national economy, as reported by the Saudi Press Agency.
Monsha’at secured cooperation agreements with several leading local financial institutions, including Riyad Bank, which committed to a financing portfolio worth SR3 billion; Al-Rajhi Bank, with SR2.9 billion; and Bank Albilad, offering SR2.85 billion. Additional agreements were signed with Bank AlJazira (SR1 billion), Alinma Bank (SR800 million), Banque Saudi Fransi (SR700 million), and Abdul Latif Jameel Co. (SR25 million).
These efforts align with Monsha’at’s ongoing mission to strengthen the growth and competitiveness of SMEs by partnering with key players from various sectors, both locally and internationally.
The overarching goal is to create a conducive environment for growth and build a leading society.
As of 2023, SMEs in Saudi Arabia accounted for 28.7 percent of the country’s total gross domestic product, reflecting an 8.7 percent increase from previous figures, though still falling short of the Vision 2030 target of 35 percent, according to data from Statista.
In the realm of financing and expanding support for projects, several other announcements were made on the first day. The Saudi National Bank unveiled a financing portfolio of SR3 billion, while Saudi Awwal Bank reported SR1 billion. The Arab National Bank also announced a SR1.1 billion financing portfolio, along with the launch of an e-commerce financing product worth SR500 million.
Additionally, the Small and Medium Enterprises Bank revealed that it would allocate SR1 billion to finance SMEs in the fourth quarter of 2024. This funding will be distributed through approved financing models in collaboration with various partner institutions. The bank also introduced a dedicated financing program for SMEs in the education sector, developed in partnership with the Ministry of Education and commercial banks.
Up to 77% of Swedish firms in Saudi plan to boost investment over the next year, official says
Updated 34 min 17 sec ago
Reina Takla Reem Walid
RIYADH: Up to 77 percent of Swedish companies operating in Saudi Arabia plan to increase their investment over the next year, according to a top official from the European country.
In an interview with Arab News, Director General of Trade Policy at the Swedish Ministry of Foreign Affairs Camilla Mellander cited a recent study by Business Sweden as she explained the confidence companies from her country have in the Saudi market.
Saudi Arabia is Sweden’s largest trading partner in the Middle East and North Africa region, with a 72 percent rise in commerce since 2018.
Mellander was present in the Kingdom to attend the third meeting of the Saudi-Swedish Joint Committee in her role as a co-chair – an event that came just days after her country’s Minister for Foreign Trade, Benjamin Dousa, met with his Saudi counterpart Minister of Commerce Majid Al-Qasabi at the Future Investment Initiative in Riyadh.
Mellander told Arab News that there are around 60 Swedish companies currently active in Saudi Arabia, and it is 77 percent of these that plan to up their investments in the Kingdom.
“Interestingly, 100 percent of the small or medium sized companies surveyed reported wanting to increase their investment. This really speaks to the confidence of Swedish companies in the Saudi market and the potential they see,” she added.
The director general went on to say that Swedish companies seek to establish long-term partnerships and investments in a demonstration they are reliable partners.
“Some Swedish companies have been active in Saudi Arabia since as early as the 1950s. Around 40 percent of Swedish companies currently working in Saudi Arabia have established or are looking to establish their regional office in the country,” Mellander said.
“The reforms that Saudi Arabia has undertaken as part of Vision 2030 have great potential not only to attract companies but also more foreign direct investments. Today, the EU is the largest source of foreign direct investment in Saudi Arabia – 66 percent in 2022. This also shows the strong confidence of European investors in the Saudi Arabian market and business climate,” she added.
Talking about how the two countries can facilitate SMEs participation in bilateral trade and investment, the director general said: “I am very excited to participate in the BIBAN Forum ... and to personally take stock of the possibilities for cooperation within the field of SMEs.”
She added: “One area with great potential is the collaboration between Swedish incubators and their counterparts here in the Kingdom. Both Sweden and Saudi Arabia share the priority to support our young entrepreneurs. We need to coach them so that they can shepherd their innovations from ideas to commercial success.”
Mellander with the Deputy Governor for International Relations at the Saudi General Authority of Foreign Trade Abdulaziz bin Omar Al-Sakran. SPA
Closer working
Reflecting on areas of growth between the two countries, the director general cited transportation, industrial equipment, health, and technology as key sectors.
Mellander said the meeting of the Saudi-Swedish Joint Committee was an opportunity for the two countries to identify new areas of mutual interest to deepen relations in areas where there are already existing ties.
When it comes to cultural exchange programs and initiatives that contribute to strengthening economic ties between Sweden and Saudi Arabia, Mellander said that scholarships for Swedish students that wish to study in the Kingdom were one of the discussion items during the Joint Committee.
“We are also looking into the possibility for internships at Swedish companies for Saudi students. This adds to the already existing programs, such as for specialist training of doctors provided at some of our university hospitals. I hope that the new initiatives will help to strengthen the economic and people-to-people ties between Sweden and Saudi Arabia,” Mellander said.
With regards to promising investment opportunities for Swedish companies in Saudi Arabia and vice versa, the director general said that firms from her country are well positioned to contribute to sectors of importance to the realization of Vision 2030 and the giga-projects.
“Nearly half of Swedish businesses in Saudi Arabia are currently engaged in at least one giga-project or other core parts of Vision implementation,” Mellander said, flagging up the involvement of firms such as Ericsson, Sandvik and Volvo Trucks.
Swedish ‘optimism’
Mellander stressed that according to the latest global business climate report made by Business Sweden, the Kingdom stands out as one of the markets with the most favorable business climate for firms from her country.
“Swedish companies report a very high optimism when it comes to the Saudi market. The regulatory changes under Vision 2030 have been very positive. As part of our Swedish-Saudi partnership this must also be communicated to Swedish companies which have a lot to offer to Saudi Arabia. Here, formats like the Joint Committee can be very valuable,” she said.
“At the same time, Swedish companies report that one regulatory hurdle for them in Saudi Arabia is the rapid pace of regulatory changes – it is simply difficult to keep up with new legislation. Another challenge is the access to skilled labor,” the director general added.
When it comes to the areas of digital cooperation between the two sides, Mellander noted that Saudi Arabia is well known among Swedish companies for its high speed and connectivity rate.
“One obvious key area for digital cooperation is the continued development of the infrastructure, the backbone of digital communication. Swedish companies are not only at the forefront of 5G technology and the development of 6G, they can also offer new and innovative applications to increase productivity and efficiency. In addition, they invest in R&D here – for instance, Ericsson is cooperating with KAUST (King Abdullah University of Science and Technology) on 6G development,” she said.
During her time in Saudi Arabia, Mellander visited renal care provider Diaverum to learn more about the Kingdom’s healthcare system and possible avenues for collaboration with Swedish firms.
“A large group among them recently took part in the Global Health Exhibition (in Riyadh), including the newly formed healthcare consortium, and I know they had many productive meetings that are now being followed up,” she added.
With regards to financial cooperation, the director general underlined that Sweden has a very strong export credit system with internationally competitive interest rates and flexible conditions.
“They are already working with banks, Saudi and Swedish actors, to support major investments in the Kingdom, and the interest for their solutions is growing rapidly. Therefore, the Swedish Export Credit Agency, EKN, signed a memorandum of understanding for collaboration with Saudi EXIM this year. Next week, the board of the Swedish Export Credit Corporation, SEK, will be visiting Riyadh to learn more,” Mellander said.
Saudi-Swedish Joint Committee
The Saudi-Swedish Joint Committee held its third session in Riyadh from Nov. 4-5. SPA
During the two-day long Saudi-Swedish Joint Committee meeting, delegates agreed to implement 45 initiatives to address challenges and obstacles to bilateral trade in areas including investment, energy and technology, as well as industry, education and health.
Tourism and sports were also discussed, accord to the Saudi Press Agency.
Deputy Governor for International Relations at the Saudi General Authority of Foreign Trade Abdulaziz bin Omar Al-Sakran noted the importance of overcoming obstacles that may hinder the flow of investment and trade between the Kingdom and Sweden.
In 2023, the trade volume between Saudi Arabia and Sweden reached approximately $1.7 billion.
The main exports from the Kingdom included plastics and their products, machinery, and mechanical appliances and parts, while key Swedish imports consisted of iron and steel products as well as pharmaceuticals.
UAE debt capital markets grow 13% in Q3 to reach $294.4bn
Updated 44 min 16 sec ago
Nour El-Shaeri
RIYADH: The UAE’s debt capital markets experienced a 13.1 percent year-on-year growth in the third quarter of 2024, reaching a total of $294.4 billion, according to the managing director at Fitch Ratings.
Bashar Al-Natoor, the firm’s global head of Islamic finance, emphasized the UAE’s growing financial landscape and its significant role in the international sukuk market. By the end of third quarter, sukuk accounted for 20 percent of the UAE’s debt capital market, with the remaining portion in bonds.
“The UAE is a pivotal player in the global sukuk market, holding a 6.6 percent share of the global outstanding sukuk,” Al-Natoor noted in an interview with the Emirates News Agency.
This positions the UAE as the fourth-largest sukuk issuer worldwide, behind Malaysia, Saudi Arabia, and Indonesia. Additionally, the UAE has become a major US dollar debt issuer in emerging markets, excluding China, with an 8.9 percent share in the first half of 2024, trailing only Saudi Arabia and Brazil.
The UAE also ranked as the second-largest issuer of environmental, social, and governance bonds and sukuk in emerging markets outside China during the first nine months of the year, second only to Brazil.
Despite the overall market growth, Al-Natoor acknowledged a decline in issuance levels. Sukuk issuance in the UAE totaled $9.9 billion in the first nine months of 2024, reflecting a 13 percent year-on-year decrease. However, this drop was relatively modest compared to the 25 percent decline in bond issuance during the same period.
Qiddiya launches executive office to strengthen engagement with business partners
Updated 51 min 29 sec ago
Nirmal Narayanan
RIYADH: Qiddiya Investment Co., fully backed by Saudi Arabia’s Public Investment Fund, has launched an executive office dedicated to overseeing destination marketing and management.
The new office, called “Spirit of Play,” represents the company’s first initiative to build strategic partnerships with businesses, investors, and professionals, according to the Saudi Press Agency.
The development of cities like Qiddiya, designed to elevate entertainment experiences, is a key element of Saudi Arabia’s strategy to diversify its economy and foster growth in sectors such as tourism. Located just 40 minutes from Riyadh, Qiddiya City will offer family-friendly entertainment complexes, sports venues, and cultural facilities.
“This launch underscores our commitment to developing a unique global destination. As one of the Kingdom’s flagship projects, Qiddiya City is central to the goals of Saudi Vision 2030, which aims to build a vibrant society, a thriving economy, and an ambitious nation,” said Abdullah Nasser Al-Dawood, managing director of Qiddiya Investment Co.
He added: “We expect Qiddiya City to welcome millions of visitors annually, accommodate more than half a million residents, and create hundreds of thousands of jobs and opportunities across a range of new industries.”
According to the Saudi Press Agency, the primary goal of the executive office is to promote and manage Qiddiya, positioning the city as a leading global tourism destination.
The office will also focus on establishing strong relationships with travel industry leaders, keeping partners informed and encouraging their active involvement in developing the entertainment hub.
“We are positioning Qiddiya as a destination that offers tourists the opportunity to explore, interact, and grow through immersive, interactive, and adventurous experiences,” said Ross McCauley, general manager of the Spirit of Play executive office.
He continued: “We’ve witnessed how rapidly the travel industry has evolved globally, with travelers booking tickets to concerts, sports events, and festivals. We’re working to create a destination that sets new standards for visitor experiences in ways that haven’t been done before.”
Earlier this month, Qiddiya Investment Co. entered into a partnership with the tech firm Globant to transform Qiddiya City into an immersive hub for entertainment, sports, and culture. Under the agreement, the two companies will collaborate on the Qiddiya PLAY LIFE Connected Experience, a digital ecosystem aimed at revolutionizing how visitors and residents interact with the city’s attractions.
Saudi POS spending hits $4bn as education sector surges with 2nd-semester start
Updated 33 min 21 sec ago
Miguel Hadchity
RIYADH: Saudi Arabia’s point-of-sale transactions registered a weekly increase of 36.6 percent between Oct. 27 and Nov. 2, with the education sector leading the growth.
The Saudi Central Bank, also known as SAMA, recorded SR15.1 billion ($4.03 billion) in transactions over the seven-day period, with the education industry posting the highest sectoral increase at 79.3 percent to reach SR177.6 million.
This surge coincides with the start of the second semester on Nov. 17, similar to what was seen before the school year began in August.
SAMA figures showed that the clothing and footwear sector saw the second-largest rise, with a 63.7 percent jump to SR1.07 billion, reflecting a consistent trend in consumer spending during key academic periods.
This growth mirrored a similar pattern observed earlier in August this year, indicating a recurring trend in consumer spending within these two sectors.
Spending on telecommunication recorded the third largest surge, with a 51.9 percent positive change, reaching SR157.1 million.
Expenditure on food and beverages followed with an uptick of 48.1 percent, reaching SR2.5 billion, claiming the biggest share of this week’s POS transaction value.
Recreation and culture followed with a 40.9 percent surge, reaching SR296 million.
Restaurants and cafes accounted for the second-largest POS transaction value, with SR2.1 billion. Miscellaneous goods and services followed at SR1.8 billion.
Spending in the leading three categories accounted for 42.8 percent or SR6.4 billion of the week’s total value.
At 11.8 percent, the smallest increase occurred in hotel spending, boosting total payments to SR328.4 million. Expenditures on construction and building materials came second, surging 19.1 percent to SR386 million.
Geographically, Riyadh dominated POS transactions, representing 33.7 percent of the total, with expenses in the capital reaching SR5.11 billion — a 28.1 percent increase from the previous week.
Jeddah followed with a 27.7 percent surge to SR1.93 billion, and Dammam came in third at SR745.7 million, up 28.8 percent.
Hail experienced the most significant rise in spending, increasing 65.1 percent to SR280.1 million. Tabouk and Abha followed, with expenditure surging 55.9 percent and 43 percent to SR324.8 million and SR187.4 million, respectively.
Regarding the number of transactions, Hail recorded the highest increase at 34 percent, reaching 4,427, followed by Tabouk with a 28.7 percent increase, achieving 5,312 transactions.
