Saudi tourism sector to create 1 m jobs by 2030, says official

Mayada Badr, CEO of the Culinary Arts Commission, told participants of the hospitality summit that young Saudi nationals were entering the culinary art sector in large numbers. (AN photo)
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Updated 25 May 2022
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Saudi tourism sector to create 1 m jobs by 2030, says official

  • American hospitality giant Hilton plans to grow olive oil locally in the Kingdom

RIYADH: Saudi Arabia’s tourism sector will create 1 million jobs by 2030 and the Kingdom will welcome 100 million visitors, said Qusai Al-Fakhri, CEO of the Saudi Tourism Development Fund.

The sector will create one of every three new jobs in Saudi Arabia in the next decade, as the nation focuses more on the growth of non-oil sectors, said Al-Fakhri.
Talking about the progress of the Saudi tourism sector at the Future Hospitality Summit in Riyadh, he said: “Last year, with the support of the tourism ecosystem, and the larger government ecosystem and enablers, Saudi Arabia achieved record levels of domestic tourism that is remarkable globally.”
Al-Fakhri also noted that the tourism sector is expected to contribute 10 percent to the Kingdom’s gross domestic product by the end of this decade.
The two-day event held under the theme “Reimagined Horizons” seeks to discuss the future of hotel development, destination impact, aviation, sustainability, restaurant investment and human capital.




Last year, with the support of the tourism
ecosystem, and the larger government
ecosystem and enablers, KSA achieved
record levels of domestic tourism, says Qusai Al-Fakhri, Saudi Tourism Development Fund, CEO

It is featuring a series of sessions covering topics such as the future of hotel asset management, the future of loyalty schemes, transparency and brand loyalty.

Unique food heritage

Mayada Badr, CEO of the Culinary Arts Commission, said Saudi Arabia has its own unique food heritage and there is no necessity to copy from other regions.
“We want to do a lot more in Saudi cuisine. We have our own heritage and we don’t want to copy it. We are using what we have,” she said at the summit.
She said young Saudi nationals are entering the culinary art sector in large numbers.
According to Badr, international brands have made their presence felt in the Saudi market along with local brands, which is ultimately resulting in healthy competition in the food and beverage industry.
Talking about the impact of Vision 2030 on the food and beverage sector, she added: “With Vision 2030, we Saudis decided to share more than ever. You go to those tiny towns and you feel welcomed. They share food and you get exposed to all sorts of traditional food.”

Government efforts

The efforts of the Saudi Tourism Ministry are a catalyst for the massive transformation of the hospitality sector in the Kingdom, said Sultan Bader Al-Otaibi.
the CEO of Dur Hospitality said Saudi Arabia’s tourism and hospitality sector is witnessing a massive transformation and lauded the Tourism Ministry’s efforts in this regard.

HIGHLIGHTS

• The sector will create one of every three new jobs in Saudi Arabia in the next decade, says CEO of the Saudi Tourism Development Fund.

• The tourism sector is expected to contribute 10 percent to the Kingdom’s gross domestic product by the end of this decade.

He also said events like Future Hospitality Summit are very productive gatherings that help in learning and growing together. 

More investment

American hospitality giant Hilton plans to grow olive oil locally in Saudi Arabia, as the hotel chain is encouraged by Saudi Arabia’s efforts to push for local sourcing as part of its strategy to develop non-oil sectors including tourism, a senior executive at the company revealed at the summit.
Emma Banks, vice president, F&B Strategy and Development EMEA, at Hilton also disclosed that the company has signed a deal with Nadec, one of the largest agricultural and food-processing companies in the Middle East, to purchase 200 tons of tomatoes.
She also affirmed Hilton’s commitment to protecting the community in which it operates.
Banks revealed that Hilton has been working hard to reduce carbon emissions by implementing strategic measures in its operations.


Oil Updates – crude steadies, but on track for biggest weekly loss in over a month

Updated 18 October 2024
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Oil Updates – crude steadies, but on track for biggest weekly loss in over a month

SINGAPORE: Crude oil futures steadied on Friday after strong US retail sales data, but Chinese economic indicators remained mixed and prices were headed for their biggest weekly loss in more than a month on concerns about demand.

Brent crude futures gained 8 cents, or 0.1 percent, to $74.53 a barrel by 6:38 a.m. Saudi time, while US West Texas Intermediate crude was at $70.82 a barrel, up 15 cents, or 0.2 percent.

Both contracts settled higher on Thursday for the first time in five sessions after data from the Energy Information Administration showed that US crude oil, gasoline and distillate inventories fell last week.

Brent and WTI are set to fall about 6 percent this week, their biggest weekly decline since Sept. 2, after OPEC and the International Energy Agency cut their forecasts for global oil demand in 2024 and 2025 and concerns eased about a potential retaliatory attack by Israel on Iran that could disrupt Tehran’s oil exports.

IG market strategist Yeap Jun Rong said while oil prices remained subdued on Friday, there were signs of near-term stabilization after the market factored in fading geopolitical risks over the past week.

“The recent run in stronger-than-expected US economic data does offer further relief around growth risks, but market participants are also side-eyeing any recovery in demand from China, given recent stimulus unleash,” he said in an email.

US retail sales increased slightly more than expected in September, with investors still pricing in a 92 percent chance for a Federal Reserve rate cut in November.

Meanwhile, third-quarter economic growth in the world’s top oil importer China was at its slowest pace since early 2023, though consumption and industrial output figures for September beat forecasts.

China’s latest data dump offered somewhat of a mixed bag, with the country now officially falling short of its 5 percent growth target for the year and the absence of a sizeable fiscal push seems to leave some reservations on overall oil demand, said IG’s Yeap.

China’s refinery output also declined for the third straight month as weak fuel consumption and thin refining margins curbed processing.

Markets, however, remained concerned about possible price spikes given simmering Middle East tensions, with Lebanon’s Hezbollah militant group saying on Friday it was moving to a new and escalating phase in its war against Israel after the killing of Hamas leader Yahya Sinwar.

Geopolitical risks, such as developments in the Middle East, will continue to drive fears of supply disruptions and in turn short-term spikes in oil prices, said Priyanka Sachdeva, senior market analyst at Phillip Nova. 


Inter Milan secures investment license to establish academies in Saudi Arabia

Updated 17 October 2024
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Inter Milan secures investment license to establish academies in Saudi Arabia

RIYADH: The Saudi sports sector is set for further development with Inter Milan securing an investment license from the Kingdom’s Ministry of Investment, to establish academies across the country.  

This initiative aims to enhance the local sports landscape and promote talent development, according to an official statement. 

The license, awarded in collaboration with the Ministry of Sports, reflects a commitment to advancing sports culture in Saudi Arabia while facilitating the transfer of global expertise to the region.  

This move aligns with the Ministry of Investment’s objectives to regulate, develop, and attract both domestic and foreign investments.

The Saudi sports market is projected to grow at an annual rate of 3.25 percent from 2024 to 2029, reaching $318.30 million by 2029, according to Statista, an online data platform.  

In a post on its official X handle, the Ministry of Sports stated: “Granting the investment license to the Inter Milan club represents a pioneering step toward transferring global expertise through opening sports academies in the Kingdom. Together toward creating a promising sports generation and a bright sports future.” 

The Italian club will receive support from the Saudi Ministry of Investment to enhance its brand presence in the Middle East and expand its fanbase.     

“We’re extremely proud to be the first international football club to obtain the MISA license, which will allow us to collaborate with local businesses to bring our experience and expertise in sports development to the country, contributing to achieving the targets set out in Vision 2030,” said Alessandro Antonello, CEO Corporate FC Internazionale Milano.   

“Through this license, the club is committed to creating value for Saudi Arabia by supporting the development of its sporting sector and promoting the involvement of local businesses as part of our global network,” he added.  

The club stated that the establishment of Inter Academies across the country, support for youth and women’s football, and participation of the club’s legends in local events will strengthen ties with the Saudi community and promote football values.   

“Since we first played here in Riyadh, we’ve been struck by the passion that young Saudis have for our club, and we look forward to engaging them even more in the Nerazzurri world,” said Javier Zanetti, vice president of FC Internazionale.   

The term “Nerazzurri” commonly refers to the supporters and players of the club.   

“At the heart of what we do at Inter is developing young players, both in footballing terms and, above all, as people. We’re ready to work hard to export our expertise to Saudi Arabia beyond the playing field by impacting social and cultural areas too,” Zanetti added. 

Inter Milan’s enhanced presence builds on its participation in the Italian Super Cup, held in Saudi Arabia over the past two years, significantly boosting the club’s visibility and fan engagement in the region. 


Closing Bell: Saudi main index closes in red at 11,907

Updated 17 October 2024
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Closing Bell: Saudi main index closes in red at 11,907

  • MSCI Tadawul Index decreased by 16.87 points, or 1.12%, to close at 1,490.22
  • Parallel market Nomu surged, gaining 227.15 points, or 0.87%, to close at 26,205.65

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 131.24 points, or 1.09 percent, to close at 11,907.43. 

The total trading turnover of the benchmark index was SR7.01 billion ($1.86 billion), as 28 of the listed stocks advanced, while 201 retreated. 

The MSCI Tadawul Index decreased by 16.87 points, or 1.12 percent, to close at 1,490.22. 

The Kingdom’s parallel market Nomu surged, gaining 227.15 points, or 0.87 percent, to close at 26,205.65. This comes as 46 of the listed stocks advanced, while 27 retreated. 

The best-performing stock of the day was Red Sea International Co., with its share price surging by 4.30 percent to SR63. 

Other top performers included Saudi Industrial Development Co., which saw its share price rise by 2.91 percent to SR30.10, and The Co. for Cooperative Insurance, which saw a 2.80 percent increase to SR147. 

United Wire Factories Co. and Alkhorayef Water and Power Technologies Co. also saw a positive change at 2.64 percent and 2.34 percent to SR31.15 and SR166.40, respectively. 

The worst performer of the day was Al-Baha Investment and Development Co., whose share price fell 6.90 percent to SR0.27. 

ARTEX Industrial Investment Co. and Anaam International Holding Group also saw declines, with their shares dropping by 4.92 percent and 4.48 percent to SR17 and SR1.28, respectively. 

Ataa Educational Co. and Abdullah Al Othaim Markets Co. also saw negative changes at 4.46 percent and 4.32 percent to SR79.30 and SR11.96, respectively. 

On the announcements front, Value Capital, acting as the financial adviser and offering manager for the potential initial public offering of Shalfa Facilities Management Co., has announced the offering price of the company’s shares at SR61 per share. 

According to a Tadawul statement, the offering consists of 630,000 ordinary shares, representing 15 percent of the company’s issued capital, which will be sold by existing shareholders. 

All ordinary shares, representing 100 percent of the offering, will be allocated to qualified investors, the statement said. 

The minimum number of shares each qualified investor can subscribe to is 10, while the maximum is 209,990. 

The subscription period for qualified investors will begin on Oct. 20 and conclude on Oct. 28. 


Serbia secures $205m loan from Saudi Fund for Development

Updated 17 October 2024
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Serbia secures $205m loan from Saudi Fund for Development

JEDDAH: Serbia has signed a $205 million loan agreement with the Saudi Fund for Development to enhance its agriculture, education, and energy sectors.

Three deals were signed in Belgrade by Sultan Al-Marshad, CEO of SFD, and Sinisa Mali, the European country’s deputy prime minister and minister of finance, in the presence of Ali Al-Dossary, Saudi Arabia’s deputy ambassador to neighbouring Bosnia and Herzegovina, according to a statement by the fund.

Mali expressed his pleasure to sign the agreements with SFD, which, he said is the first concrete step after last year’s signing of a memorandum of understanding to develop and invest in capital projects.

“We are grateful for the support. The projects for which this money is intended will contribute to the creation of new jobs, strengthening of our economy, and better positioning Serbia in the world scientific community,” he said.

Mali added that the agreements will strengthen the long-term partnership between Serbia and Saudi Arabia and aid in implementing and developing significant projects in his country.

The three projects include $75 million funding for the Strengthen Irrigation Infrastructure in Different Areas Project, $65 million for the Construction of the Bio4 Campus in Belgrade Project, and $65 million for the Development of Transmission System Operator (Phase 1) Project, according to the release. 

The first project aims to enhance irrigation systems and improve water management in key agricultural areas by constructing new water pumping stations, rehabilitating existing canals, and developing a modern irrigation network over 230 km. It will target villages like Novi Slankamen in the north and Jasenica Kapi in the northeast and seek to increase agricultural productivity and ensure efficient water distribution during drought conditions.

The second project will finance the construction of the Bio4 Campus in the Serbian capital and will serve as an innovative scientific research center dedicated to biotechnologies. The campus will feature six faculties, nine scientific institutes, and advanced laboratories, including a biosafety level 3 lab at the University of Belgrade.

Designed to foster interdisciplinary innovation and collaboration, the center aims to unite researchers, scientists, and professionals in fields such as biology, medicine, and wastewater research.

The third will expand Serbia’s energy infrastructure by building a new 400 kV transmission line and upgrading existing substations that will help enhance the reliability of Serbia’s power supply and integrate the country into the European electricity market through the Trans-Balkan Electricity Corridor.

Al-Marshad said that supporting sustainable development through strategic funding in infrastructure and education is central to his organization’s mission.

“This partnership with Serbia underscores our commitment to fostering innovation, enhancing agricultural productivity, and improving energy security in line with the UN Sustainable Development Goals. The projects we are funding will help create lasting benefits for the Serbian people and contribute to their socioeconomic development,” he said.

In November 2022, Al-Marshad received Mali in Saudi Arabia, where the Serbian official was briefed on SFD’s development initiatives in emerging nations, according to the Saudi Press Agency. They discussed key opportunities in Serbia’s development sector.

Mali expressed appreciation for the Kingdom’s efforts, through SFD, to provide development support via various projects and programs in developing countries, which contribute to achieving sustainable development goals. He also highlighted Serbia’s interest in fostering development opportunities to strengthen bilateral relations in the sector.

The fund has recently celebrated 50 years of advancing global development, with recent expansions into 11 new countries, including Serbia.

Saudi Arabia’s official development arm has financed more than 800 projects in over 100 countries, totaling $20 billion.


Saudi Arabia’s crude production climbs 0.83% to 8.99m bpd: JODI 

Updated 17 October 2024
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Saudi Arabia’s crude production climbs 0.83% to 8.99m bpd: JODI 

RIYADH: Saudi Arabia’s crude oil production increased to 8.99 million barrels per day in August, marking a 0.83 percent rise compared to the same month last year, according to the latest data from the Joint Organizations Data Initiative.

The report also indicated that crude exports climbed to 5.67 million bpd, a 1.56 percent annual increase. Domestic petroleum demand saw a year-on-year rise of 117,000 bpd, reaching 2.89 million bpd.

During a virtual OPEC+ meeting on Sept. 5, member countries reiterated their commitment to previously announced voluntary production cuts from April and November 2023, underscoring the importance of adhering to these agreements.

OPEC+ has implemented a series of output reductions since late 2022 to stabilize the market, with most cuts set to remain until the end of 2025.

Initially, OPEC+ planned to ease the latest round of cuts—totaling 2.2 million bpd—starting in October, but this decision was postponed by two months due to falling oil prices.

OPEC’s recent report noted a decline in production for September, attributed to unrest in Libya and cuts in Iraq, resulting in an overall OPEC+ output of 40.1 million bpd, down by 557,000 bpd from August.

JODI data also highlighted a 5 percent drop in refinery crude exports to 1.25 million bpd during the period; however, this represented an 11 percent increase, or 126,000 bpd, compared to July.

The primary products included processed crude used for diesel, motor gasoline, aviation gasoline, and fuel oil. Diesel exports constituted 43 percent of refined product shipments, while motor and aviation gasoline accounted for 25 percent, and fuel oil made up 7 percent. Notably, gas diesel shipments grew by 10 percent, reaching 537,000 bpd in August.

In July, Saudi Arabia’s refinery output reached 2.77 million bpd, up 8 percent year on year, with diesel making up 44 percent of total refined products, followed by motor and aviation gasoline at 25 percent, and fuel oil at 16 percent.

OPEC revised its global oil consumption forecast for 2024 in October, reducing expected growth from 2.03 million bpd to 1.93 million bpd. The 2025 forecast was also lowered to 1.64 million bpd, marking the third consecutive downward adjustment due to new data and tempered regional expectations.

Despite these revisions, OPEC anticipates strong demand, largely driven by air travel, road mobility, and industrial activity. Their projections exceed those of the International Energy Agency, which expects slower demand growth due to China’s economic slowdown and the rise of electric vehicles.

OPEC forecasts global oil demand will reach 104.1 million bpd in 2024 and 105.8 million bpd in 2025, with long-term crude demand expected to hit 112.3 million bpd by 2029.

Despite the growth in electric vehicles, traditional combustion-engine vehicles are anticipated to dominate the global fleet until 2050, supporting long-term oil demand.

Direct crude usage

Saudi Arabia’s direct crude oil burn increased by 88,000 bpd annually to 814,000 bpd, representing a 12 percent rise year on year and a 5.9 percent increase from July.

This surge is likely driven by rising energy demands linked to population growth and the influx of newcomers, underscoring increased domestic consumption and development in residential and commercial sectors.

By 2030, the Saudi government aims to phase out the use of crude oil, fuel oil, and diesel in power generation, replacing them with natural gas and renewable energy sources.

This shift is part of the Kingdom’s Vision 2030 plan to diversify its energy mix and reduce oil dependence, both domestically and in international markets.

As Saudi Arabia progresses toward this goal, natural gas demand is expected to rise significantly, leading to increased investments in the natural gas supply chain, including exploration and infrastructure development.

This transition aims to reduce carbon emissions and free up more crude oil for export, enhancing Saudi Arabia's position in global energy markets.

Furthermore, the push for renewable energy projects, such as solar and wind, is expected to attract investment, creating new opportunities in the energy sector and contributing to the Kingdom’s long-term sustainability goals.

This transition aligns with global trends toward cleaner energy, positioning Saudi Arabia as a key player in the evolving energy landscape while ensuring energy security and economic diversification.