Ancient city of AlUla welcomes modernity to encourage future tourism

1 / 3
The Royal Commission of AlUla has positioned the city as a viable destination for businesses by reducing their operating cost and improving business opportunities in the region. (Supplied)
2 / 3
The Royal Commission of AlUla has positioned the city as a viable destination for businesses by reducing their operating cost and improving business opportunities in the region. (Supplied)
3 / 3
The Royal Commission of AlUla has positioned the city as a viable destination for businesses by reducing their operating cost and improving business opportunities in the region. (Supplied)
Short Url
Updated 05 June 2022
Follow

Ancient city of AlUla welcomes modernity to encourage future tourism

  • 24% of visitors who are now coming to the region are international visitors, says top official

RIYADH: The ancient city of the Nabataeans in historic AlUla valley is emerging from the mists of time to put Saudi Arabia on the global tourism map.

The Royal Commission of AlUla, or RCU, is keen on achieving this milestone by pressing ahead with an audacious master plan to develop its hospitality, tourism and sustainability infrastructure.

“The historic city of AlUla received more than 250,000 visitors in the past 12 months, far exceeding its forecast,” John Northen, executive director at RCU, told Arab News while adding that the city hopes to attract 1 million visitors by 2025.

We will need many services, engineering firms, consultants, design firms, and artists to partner with us.

Amr Al-Madani, CEO of RCU

One of the most notable developments on this front is the expansion of Prince Abdul Majeed bin Abdulaziz Domestic Airport in AlUla. Last year, the airport received approval from the aviation authority to allow international flights to land.




Amr Al-Madani, CEO of RCU (Left) and John Northen, Executive director at RCU

The airport was not only expanded to receive 400,000 visitors annually but also widened to 2.4 million square meters to facilitate the growing inbound traffic.

“The airport now can very well serve our needs for the next 10 years,” said Amr Al-Madani, CEO of RCU.

Culture and heritage

Designated as a UNESCO World Heritage site in 2008, AlUla is an exquisite sight, stretching from the deep green of the oasis and the ochre of the sand to the red of the sandstone canyons and the black tones of the volcanic rocks.

AlUla received more than 250,000 visitors in the past 12 months, far exceeding its forecast.

John Northen, Executive director at RCU

This enchanting setting is home to one of the most fertile valleys in the Arabian Peninsula.

The city is also home to Hegra, created by the Nabataeans, a mysterious clan of traders whose enterprising legacy shone briefly but brightly more than 2,000 years ago.

The unveiling of the spectacular rock-cut tombs of the ancient city is part of an initiative to transform the dramatic landscape and heritage of the wider AlUla region into one of the world’s greatest cultural tourism destinations.

FASTFACTS

• One of the most notable developments on this front is the expansion of Prince Abdul Majeed bin Abdulaziz Domestic Airport in AlUla.

• Last year, the airport received approval from the aviation authority to allow international flights to land.

• The airport was not only expanded to receive 400,000 visitors annually but also widened to 2.4 million square meters to facilitate the growing inbound traffic.

• Designated as a UNESCO World Heritage site in 2008, AlUla is an exquisite sight, stretching from the deep green of the oasis and the ochre of the sand to the red of the sandstone canyons.

“It will be completely different; you will feel like you traveled back in time and experienced something very unusual,” said RCU’s Northen.

Global tourism destination

The city has also been developing its infrastructure to accommodate the needs of the country’s growing tourism industry, especially international tourists.

By hosting some of the world’s biggest names in music and entertainment, including Alicia Keys, Lionel Richie, and Andrea Bocelli, the city has made a name for itself on the global tourism scene.

“Twenty-four percent of visitors who are now coming to AlUla are international visitors. So, we have a significant number of tourists coming from around the world,” the commission’s chief destination marketing officer, Philip Jones, told Arab News.  

RCU, in the recent past, also hosted international events such as AlUla Arts, AlUla Skies, Winter at Tantora, and the AlUla Wellness Festival to attract international and regional tourists.

 

Growing hospitality spread

The city is also seeing an increasing number of hotels slated to open this year.

One such labor of love is the Banyan Tree Hotel, a sprawling destination with 79 villas slated to open in October this year.

The hotel is also a worthy neighbor of Maraya Hall, the largest mirrored building in the world and a centerpiece of the city’s growing cultural landscape.

The RCU is also developing AlUla’s old town, where they will inaugurate the 30-room Boutique Hotel in October.

AlUla has also regenerated its 2,000 square kilometers of vast Sharaan Nature Reserve, a sanctuary to the Arabian leopards.

“Here, we are developing two exciting hotels, one designed by the French architect Jean Nouvel, which will be built inside the mountain,” Northen added.

Business destination, really?

Even more interesting is the icing of modernity on the ancient city. RCU has also positioned the city as a viable destination for businesses by reducing their operating cost and improving business opportunities in the region.

In February, professional services behemoth PwC opened a new office in AlUla, its sixth in the Kingdom. Located in the city’s urban zone, PwC Middle East aims to service the growing projects in Saudi’s northwest region.

“The presence of globally renowned companies, such as PwC, in AlUla is central to our goal of transforming the area into a dynamic and thriving business hub,” said Al-Madani in a statement.

The company is conducting training sessions for local entrepreneurs to help them match pace with the region’s ongoing transformation.

“With the size of growth we are anticipating, we will need many services, engineering firms, consultants, design firms, and artists to partner with us,” said Al-Madani.

Employment opportunities

According to RCU, over 3,000 jobs have already been created in the tourism sector by entrepreneurs who offer new mobility choices and new experiences.

“Micro enterprises are one way to accelerate economic growth because instead of looking for a job, each creates one plus one and one plus two jobs,” Al-Madani said.

He said entrepreneurship would be the bedrock for sustainable economic growth as AlUla becomes a tourist destination.

Inspired by Saudi Arabia’s Vision 2030 and economic diversification plans, AlUla wants 70 percent of its economy to rely on tourism by 2035.

However, Al-Madani added that for the city to become a sustainable economy, there must be multiple economic drivers like the film industry, specialized education, agriculture and craft.

Sustainable by heart

RCU sees sustainability as a significant element in the development of AlUla, driven by the Saudi green initiatives launched in October 2021.

The RCU chief said the commission hoped to draw 50 percent of the energy required for AlUla from sustainable sources by 2035.

To achieve the target, RCU is developing two sustainable power stations; it will invite bids about 18 months from now.

One station will be located north of AlUla and the other in the south.

“When we think of sustainability, we look to the past civilizations for inspiration,” added Al-Madani. “We seek to apply innovative approaches to ancient wisdom to develop new ways to protect AlUla’s natural landscape and its people and secure its legacy in the years to come. This is the core inspiration of crossroads, using the past to chart the best path into the future,” he summed up.


Saudi Arabia, UAE poised to become trade ‘super-connector hubs,’ WEF panel hears

Updated 24 January 2025
Follow

Saudi Arabia, UAE poised to become trade ‘super-connector hubs,’ WEF panel hears

  • Agility’s Henadi Al-Saleh highlights that innovation, investment help countries to capitalize on disruption in global trade

LONDON: Saudi Arabia is on track to emerge as a “super-connector hub,” leveraging ongoing global trade disruption to its advantage, according to experts speaking at the World Economic Forum in Davos on Thursday.

Henadi Al-Saleh, chair of the board of directors at Agility, a global leader in supply chain services, highlighted the Gulf Cooperation Council’s significant investments in infrastructure as a driving force behind this transformation.

She said: “(In) the past few years, the level of activity, especially around cargo, has increased several fold.

“If I look at the GCC, where we have invested in warehouses, and at the Emirates in Saudi Arabia, one of our key platforms, (they are) set to become super-connector hubs.

“These countries are investing in infrastructure, doubling down, and the level of activity is increasing.”

Al-Saleh identified digitalization as a key value in this development, saying that “in a time with so much uncertainty, having that clarity and understanding, even when changes take place, it gives me visibility. (With the digital tools) I know what the rules (are) and (how) I need to adjust.”

She added: “That’s one critical aspect in which you see these super hubs benefiting.”

While the level of trade has continued to grow since the end of the pandemic, socioeconomic and political factors have continued to disrupt industry.

Experts have said that US President Donald Trump’s second term is expected to exacerbate the disruption, with the president supporting potential trade tariffs on multiple exporting nations.

Chile’s Minister of Foreign Affairs Alberto van Klaveren acknowledged the challenges but also pointed to opportunities arising from these shifts.

He said: “There are possibilities. Some economies are opening up. We signed the CEPA Agreement (Comprehensive Economic Partnership Agreement) with the Emirates. We are interested in Saudi Arabia.”

He explained that the importance of diversification was not only in export markets but also in the types of goods and services traded.

However, experts cautioned that ongoing trade disruption could significantly impact the global energy transition, particularly in the green energy sector.

Al-Saleh said: “There are certain segments of people, businesses and technologies (in the green energy market) that are paying a price.

“But this is where, I think, from the private sector, it’s incumbent upon them to continue. This is irrespective of what happens today in terms of tariffs. There is a long view, and we need to all manage towards that long view.”

According to World Trade Organization data, every nation relies on imports and exports for at least 25 percent of its goods. Given this interdependence, Al-Saleh argued, trade will remain indispensable despite ongoing disruption.

She said: “You need to focus on being agile and resilient. Those are critical elements, and the way to become agile and resilient is really to diversify and invest in technology.”
 


Saudi Arabia taking bold steps to test smart technologies as it embraces AI, says industry minister

Updated 24 January 2025
Follow

Saudi Arabia taking bold steps to test smart technologies as it embraces AI, says industry minister

  • Kingdom has embarked on a transformation of traditionally industrial cities into modern smart cities, Bandar Alkhorayef tells World Economic Forum
  • Nation’s businesses are increasingly adopting new technologies to help enhance productivity, he adds

DAVOS: Saudi Arabia is becoming a regional hub for testing the use of new technologies as efforts to diversify the national economy continue, the minister of industry and mineral resources, Bandar Alkhorayef, told the World Economic Forum in Davos on Thursday.

The Kingdom has established national organizations such as the Saudi Data and AI Authority and the Future Factories Program to regulate and help businesses adopt new technologies that utilize artificial intelligence, machine learning, 3D printing and robotics, he added.

This smart infrastructure market is projected to be worth $2 trillion within the next 10 years, up from an estimated $900 billion in 2024, driven by growth in the integration of physical and digital industrial operations.

Alkhorayef said Saudi Arabia places a priority on manufacturing and has embraced the use of the latest technologies in sectors such as renewable energy and electric vehicles, as the Kingdom embarks on ambitious plans to transform traditionally industrial cities into modern smart cities.

“The investors coming to these cities (will find) a ‘plug-and-play’ kind of support,” he said, as authorities take steps to attract businesses and global talent to work and invest, and to establish the country as a regional hub for technological research, development and innovation.

The Kingdom’s Future Factories Program, for example, aims to provide training initiatives and loans to help 4,000 factories adopt new technologies, embrace automation and improve manufacturing efficiency.

“We’re very bold when it comes to testing new ideas and technologies,” Alkhorayef added, which makes it “interesting for new players to see (Saudi Arabia) as a place where they can not only seek financing or investment but also a place to test and pilot certain ideas.”

Such endeavors are endorsed by some of the country’s biggest corporations, including the chemical manufacturing company SABIC, the petroleum company Aramco, and the mining giant Maaden. Aramco, for example, has already adopted new technologies, including AI, to enhance productivity and reduce carbon dioxide emissions.

Alkhorayef was speaking during a WEF discussion titled “Next-Gen Industrial Infrastructure.” The other panelists included representatives of the African Union Commission, businesses and consulting firms.

Currently, up to 50 percent of Saudi Arabia’s deep-tech startups are focused on the development of AI or the Internet of Things, Alkhorayef said, as the country increasingly adopts digitalization in the public and private sectors.

The Saudi Data and AI Authority, established in 2019 to regulate and promote the national agenda for a data-driven economy, has said that AI is making significant contributions to operational efficiency. In 2023, global spending on AI exceeded $120 billion, with more than 72 percent of organizations incorporating the technology into at least one business area.

“We believe that adopting technology in the mining sector will lead to safer, more productive and energy-efficient mines,” Alkhorayef said by way of an example, adding that it is essential that authorities consider environmental protection as they seek to strike the right balance between the interests of investors and the local community.

“Making digitalization accessible is an important part of what we do (in the Kingdom),” he said. “It involves regulation, cybersecurity, human capital training, and investing in incubators to work and learn.

“In every sector, such as food, energy or mining, (we always ask) the question of how technology could be helpful.”


Saudi economic success driven by ‘key North Star, not egos,’ says finance minister at WEF

Updated 24 January 2025
Follow

Saudi economic success driven by ‘key North Star, not egos,’ says finance minister at WEF

  • Mohammed Al-Jadaan highlights Kingdom’s shift from short-term budgets to longer-term fiscal planning, ensuring clear priorities and disciplined spending
  • Transformation driven by clear decisions and significant investments led to strong economic performance, adds economic planning chief Faisal Al-Ibrahim

DAVOS: Saudi Finance Minister Mohammed Al-Jadaan on Thursday said that the Kingdom’s economic planners were being driven by their “North Star” and not egos as they look to maintain growth in the economy.

Speaking on a panel about the Saudi economy at the annual meeting of the World Economic Forum, Al-Jadaan highlighted Saudi Arabia’s shift from short-term budgets to longer-term fiscal planning, ensuring clear priorities and disciplined spending.

He said that there was flexibility and a readiness within the government to adapt plans based on global circumstances. “I’ve said this repeatedly, we don’t have egos. We are willing to change depending on circumstances and we will continue to do that. We will prioritize what matters,” he said.

“Our key North Star is what is driving us, and the tools can change, the means can change. It’s really that North Star that we are looking forward to,” he said.

He emphasized the progress and resilience of Saudi Arabia’s economy under Vision 2030, noting that the plan had mobilized the entire nation — government, businesses, right down to citizens — toward clear, long-term goals.

He attributed this success to visionary leadership, tough decision-making and consistent execution, adding that this approach could be a universal “recipe” for unlocking global potential.

On the Saudi-US relationship, Al-Jadaan highlighted its strategic importance over the past eight decades, emphasizing that Saudi Arabia had maintained strong economic, diplomatic and security ties with Washington, regardless of the administration in power, whether Republican or Democrat.

He described the partnership as a “win-win situation” that remained vital and was likely to endure into the foreseeable future.

Al-Jadaan was joined on the panel by Saudi Minister of Economy and Planning Faisal Al-Ibrahim, who attributed the Kingdom’s strong economic performance to a first wave of transformation driven by clear, courageous decisions and significant investments, not only financially but also in terms of effort and planning.

Looking ahead, Al-Ibrahim stressed that the next phase of Vision 2030 would focus on addressing more complex challenges, particularly in enabling the private sector.

He emphasized the goal of increasing the private sector’s contribution to 65 percent of GDP by fostering collaboration, co-developing opportunities and creating an environment where private enterprises could take the lead in driving economic growth.

Key priorities include enhancing institutional capabilities, ensuring policy clarity and predictability, and addressing barriers to innovation-driven entrepreneurship, he said.

Al-Ibrahim also underlined the government’s commitment to working closely with the private sector, noting that ministers and their teams often worked long hours to respond to and engage with private enterprises. This collaborative approach, he said, was deeply embedded in the country’s Vision 2030 blueprint for economic transformation.

IMF Chief Kristalina Georgieva, who was also on the panel, praised Saudi Arabia’s transformation efforts, highlighting the country’s ability to create an appealing environment for business and tourism.

She commended its forward-thinking approach in engaging the private sector to diversify experiences and attract repeat visitors. Referring to her visit to AlUla, she said: “I didn’t know what to expect, but I came out thinking it was great we decided to open our regional office in Riyadh.”

Georgieva also noted Saudi Arabia’s strategic planning to host global events and foster economic growth. She described the country as a “good example of transformation” that others could look to for inspiration in creating dynamic, sustainable growth through proactive planning and investment.
 

 


Lebanon’s inflation rate drops to 45% in 2024, marking a return to double-digit figures

Updated 23 January 2025
Follow

Lebanon’s inflation rate drops to 45% in 2024, marking a return to double-digit figures

  • Monthly inflation also increased by 2.38% in December, marking the third consecutive monthly rise
  • Key contributors included miscellaneous goods and services, which rose 39.69% annually

RIYADH: Lebanon’s economic landscape showed signs of stabilization in 2024, with inflation rates returning to double-digit levels after three years of hyperinflation that had exceeded 200 percent.

The annual inflation rate stood at 45.24 percent last year, a substantial drop from the staggering 221.3 percent recorded in 2023, according to data from the Central Administration of Statistics.

Lebanon has endured prolonged economic instability, with the Lebanese lira losing 90 percent of its value since the crisis began in 2019. The drop in inflation aligns with the International Monetary Fund’s October forecast, which projected inflation in the Middle East and North Africa region to ease to 3.3 percent in 2024.

Last year represented a period of relative calm in terms of price volatility. Monthly inflation indices revealed a deceleration in price growth. The index for December reached 30,936.02, compared to 30,147.41 in November, showing a modest increase compared to the unpredictable fluctuations of prior years.

The slowdown in inflation is largely due to the stabilization of the Lebanese lira, driven by Banque du Liban’s monetary policies since 2023. By the spring of last year, the exchange rate had settled at around 89,500 Lebanese liras per dollar, following a sharp rise from 40,000 to 140,000 earlier in 2023.

This stability helped bring annual inflation below 100 percent in April, reaching 18.1 percent by December, though the same month’s inflation rose slightly from November’s 15.38 percent.

Monthly inflation also increased by 2.38 percent in December, marking the third consecutive monthly rise, following 2.02 percent in October and 2.30 percent in November. 

Key contributors to inflation in December included miscellaneous goods and services, which rose 39.69 percent annually, education fees at 31.27 percent, and health care at 22.93 percent. Only communications and furniture saw price declines at 2.99 percent and 1.99 percent, respectively.

Lebanon’s state-owned telecom firm, Ogero, said it is working to restore and expand its connectivity. The firm’s Chairman and Director General Imad Kreidieh announced in a live broadcast on Jan. 21 that the company’s expansion plans will resume, supported by funding from multiple donors.

North Lebanon recorded the highest monthly increase in December at 3.79 percent, followed by Beirut and Nabatieh at 3.59 percent, and South Lebanon at 2.97 percent.

The drop in inflation offers some relief to the Lebanese people, but with the election of former army commander Joseph Aoun as president on Jan. 9 and the appointment of the Chief Judge of the International Court of Justice, Nawaf Salam, as prime minister on Jan. 13, the need for comprehensive reform remains urgent.

The political breakthrough has also sparked a rally in Lebanon’s government bonds, which have nearly tripled in value since September. The election of Aoun, following 12 failed attempts to choose a president, has raised hopes that Lebanon might finally address its economic challenges. 

Most of the country’s international bonds, in default since 2020, rallied further after Aoun’s election, rising by nearly 0.9 cents on the dollar to around 16 cents — a modest recovery that underscores investor optimism despite Lebanon’s ongoing struggles.


Saudi Arabia’s Kingdom Holding terminates $1.8bn fund deal with Sumou, JEC

Updated 23 January 2025
Follow

Saudi Arabia’s Kingdom Holding terminates $1.8bn fund deal with Sumou, JEC

JEDDAH: Saudi-based conglomerate Kingdom Holding Co. has confirmed the termination of its SR6.8 billion ($1.8 billion) fund agreement with Sumou Holding Co. and Jeddah Economic Co., following a mutual decision by all parties.

In a filing with the Tadawul stock exchange, KHC said the move, effective Jan. 23, imposes no obligations on any party, adding that this decision was reached as the primary purpose of the fund is no longer applicable.

Progress continues on the fund’s main asset, Jeddah Tower, with the Saudi Binladin Group reinstated and work resuming at an accelerated pace. Technical and consulting teams are now in place and have commenced on-site operations.

The release added that the Alinma Jeddah Economic City Fund, fully owned by JEC – an associate firm – remains operational, saying that KHC continues to support the project’s development.

In July, the three firms signed an agreement to establish a new fund to acquire the Alinma Jeddah Economic Fund, whose investors would include the three companies, with KHC owning 40 percent of the new fund.

In a Tadawul announcement, KHC said last year that the financial impact of the agreement would be disclosed once JEC completed updating its accounting records.

The latest announcement said the concrete was poured for the 64th floor of the tower in the presence of the partners, headed by Prince Alwaleed bin Talal, KHC’s chairman of the board of directors.

It added that the partners were giving their utmost attention and oversight to this global symbol, which aligns with Saudi Vision 2030.

Jeddah Economic City aims to showcase its pioneering ambitions through the Jeddah Tower, envisioned as a new wonder of the world and a symbol of Jeddah’s renaissance. The tower also reflects the city’s rich commercial heritage spanning thousands of years, according to the company’s website.

Set to stand over 1 km. tall, the tower will be the centerpiece of the Jeddah Tower Waterfront District.