‘Saudi Arabia could double hotel rooms in the next 10 years’

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Updated 17 March 2024
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‘Saudi Arabia could double hotel rooms in the next 10 years’

  • IHG to build two new hotels in the Kingdom’s King Abdullah Financial District: CEO

RIYADH: Saudi Arabia could double the number of hotel rooms in the next 10 years to meet the rising number of religious tourists, a top official has said.

In an interview with Arab News, Elie Maalouf, CEO of IHG Hotels and Resorts, said the available capacity is not sufficient enough to meet the rising demand in Saudi Arabia, as the Kingdom is evolving as a global tourism destination.  

“You have the religious travel, which is a unique segment of the Kingdom alone, which continues to grow. In fact, we understand that today we cannot accommodate all the potential of religious travel. So we probably need over the next ten years, no less than double the hotel rooms that we have today in the Kingdom,” said Maalouf. 

He said that IHG’s two new hotels, which will come under the brand names Regent and Intercontinental and will be built in the Kingdom’s King Abdullah Financial District, are expected to commence operations in 2027. 

Maalouf said: “The development of these hotels, iconic properties, they are going to be the most luxurious and greatest hotels in Riyadh, and we are proud to be doing it with KAFD.” 

In a separate press statement, IHG said that Regent Riyadh KAFD will mark IHG’s inaugural Regent property in the Kingdom’s capital city.  Regent Riyadh is expected to be a 250-key hotel and will offer a signature restaurant, two specialty restaurants, a tea lounge, and two cafes, along with a fitness facility and spa. 

InterContinental Riyadh KAFD will have 400 keys and will feature five food and beverage outlets, including a signature offering, two specialty restaurants, and a lobby lounge. The hotel will also have conferencing facilities, a fitness center spa, a swimming pool, and an indoor recreation area. 

Maalouf said that IHG is trying to build hotels for both upper-luxury and middle-class people in the Kingdom, as well as opening facilities in Saudi Arabia’s giga-projects and megacities across the Kingdom. 

“We are opening up new hotels in all the giga-cities that are being developed, there’s NEOM or Diriyah or Red Sea or AlUla. And we are also opening up in the megacities, not just the giga-cities,” said Maalouf. 

He said: “It’s not just luxury and lifestyle. It’s also our hotels, like Holiday Inn Express. We announced a partnership with a local investor for 13 new Holiday Inn Express across the Kingdom. So we have a stay for everybody. The affordable everyday, middle-class people traveling for business or for leisure, all the way to the high experiential, upper luxury.” 

Maalouf said that IHG has a proven track record in Saudi Arabia, and the group is now trying to ramp up its operations in the Kingdom. 

“We’ve been in the Kingdom 50 years. I think this year is our 50th year. We started in 1975, Riyadh with the Intercontinental. Now we have over 40 hotels in the Kingdom, nearly 40 under development,” said the official. 

He said IHG is also trying to increase the rate of Saudization in their hotels. 

“In our many years of experience here, we’ve learned a lot. First, we’ve built relationships, incredible relationships, with the government, with investment partners, with corporations. And we’ve built a team. We have a team that’s very local. I’m proud that we are 46 percent locals right now toward a 50 percent Saudization target,” Maalouf said. 

He continued: “We think we’re aligned with Saudi Arabia’s economic contribution and the job growth. But we also think we can contribute and we are contributing to the Saudization to employ more local nationals. Our plans feature adding another 6,000 Saudi nationals between now and 2030.” 

According to Maalouf, Saudi Arabia has all the ingredients and potential to emerge as one of the most sought-after tourist destinations globally. 

He said several factors, including the Kingdom’s economic diversification journey, growth of the gross domestic product and a significantly young population, will contribute to the growth of Saudi Arabia in the tourism sector.

“The Kingdom is marketing itself or marketing its destination. Do people know that there are destinations in the Kingdom where even in the summer it’s 25 degrees versus 45 in London? Most people don’t know that. Do they know there are wonderful beaches that actually stay cool in the summer? They don’t know that. Do they know how lovely the weather is this time of year when I’m here now?” he said. 

HIGHLIGHTS

• IHG says that Regent Riyadh KAFD will mark IHG’s inaugural Regent property in the Kingdom’s capital city.

• Regent Riyadh is expected to be a 250-key hotel and will offer a signature restaurant, two specialty restaurants, a tea lounge, and two cafes, along with a fitness facility and spa.

• Several factors, including the Kingdom’s economic diversification journey, growth of the gross domestic product and a significantly young population, will contribute to the growth of Saudi Arabia in the tourism sector, says CEO of IHG Hotels and Resorts.

Maalouf said the number of tourists visiting Saudi Arabia will increase steadily if the Kingdom successfully pursues its Vision 2030 plans. 

“I’m sure that after Vision 2030, which is approaching us, where in 2024 there will be Vision 2035 and 2040 to continue that. I’m confident that will be. And if we persist with this vision and build upon it, the demand will grow, tourism will grow, domestic and international,” Maalouf said. 

Maalouf also talked about the dynamic shift in the minds of visitors while visiting a hospitality destination. 

He believes visitors tend to spend less time in rooms, and instead, they wish to spend quality moments in public spaces, restaurants, cafes, wellness centers and spas. 

“They want healthier food, they want better quality fitness, they want wellness programs. Our brands are perfectly tailored to that. We cover and we’re designing wellness into all of our hotels, all of our brands,” said Maalouf.


Saudi Cabinet approves land transport system to enhance efficiency, sustainability 

Updated 19 February 2025
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Saudi Cabinet approves land transport system to enhance efficiency, sustainability 

JEDDAH: Saudi Arabia’s Cabinet has approved a comprehensive land transport system aimed at modernizing road networks and integrating advanced technologies to enhance efficiency and sustainability. 

The system, approved at a Cabinet session in Riyadh and chaired by Crown Prince Mohammed bin Salman, is designed to streamline regulations and drive environmentally friendly growth in the industry, the Saudi Press Agency reported. 

It also aligns with global trends toward sustainable and connected transport infrastructure, reinforcing Saudi Arabia’s ambition to lead in logistics and mobility innovation.

With more than 73,000 km of roads, Saudi Arabia ranks among global leaders in terms of connectivity, according to the Transport General Authority. 

Saleh bin Nasser Al-Jasser, minister of transport and logistics services and chairman of the TGA board, said the decision supports the regulation and development of land transport across various sectors, aligning it with the Kingdom’s rapid economic expansion. 

“This includes the adoption of modern technologies in transportation and sustainable mobility, the regulation of transport facilities, the activation of professional and technical qualifications, and the establishment of clear obligations for licensees, along with defining the rights and responsibilities of beneficiaries,” Al-Jasser said. 

The new system, he noted, reflects the leadership’s ongoing support for the transport and logistics sector, reinforcing its role in driving economic growth and investment. 

It is also expected to contribute to the objectives of the National Transport and Logistics Strategy, which seeks to improve mobility, enhance quality of life, and facilitate economic activities with high standards of safety, efficiency, and service delivery. 

Al-Jasser emphasized that the system would create investment opportunities, ensure fair competition, and strengthen the private sector’s role as a key partner in development. 

“This will increase the sector’s contribution to the national economy and further establish the Kingdom as a global leader in integrated transport services, in line with Saudi Arabia’s Vision 2030, helping to build a sustainable and prosperous future,” he said. 

Under the new framework, the TGA will classify key road transport activities, including passenger and cargo transport, and car rentals. Service providers will be required to comply with operational and technical conditions set by regulators, while violations will be subject to penalties. 

The system also introduces stricter rules on foreign cargo truck operations, aiming to regulate entry and enforce compliance with local transport laws. 

Additionally, passenger transport operators will be prohibited from soliciting customers directly, such as calling out to passengers or following them to offer services. 


Brazil adheres to OPEC+ cooperation letter; no output caps

Updated 19 February 2025
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Brazil adheres to OPEC+ cooperation letter; no output caps

SAO PAULO: Brazil has decided to adhere to the declaration of cooperation of the OPEC+ group of oil-producing countries, the local energy ministry said on Tuesday, formalizing a move it had initially announced in 2023.

Brazil is the largest oil producer in South America. Its output hit 4.32 million barrels of oil equivalent per day in 2024, according to the country’s oil regulator.

It will join nations such as Saudi Arabia and Russia in the group’s declaration, but is not expected to take part in its coordinated output caps.

The move shows Brazil’s “growing relevance in the oil and gas market,” the mines and energy ministry said in a statement, adding, however, that the country would “continue to develop its energy policy in line with its own interests.”

“It is important to highlight that the declaration does not include the participation of countries in decisions aimed at cutting oil production,” the ministry said.

Brazil first said it was going to join the OPEC+ cooperation in late 2023, but President Luiz Inacio Lula da Silva reiterated at the time the country had no intention to be a full member, instead acting as an “observer.”

The country on Tuesday has also decided to become a member of the International Renewable Energy Agency (IRENA) and the International Energy Agency (IEA), the government said.


Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

Updated 19 February 2025
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Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

RIYADH: Saudi utility giant ACWA Power has strengthened its portfolio by acquiring a $693 million stake in power generation and water desalination companies in Bahrain and Kuwait.

The company has secured holdings in four companies after buying the shares held by the regional subsidiary of French utility developer Engie.

The deal includes a 45 percent interest in both the Al-Ezzel and Al-Dur projects as well as a 30 percent holding in the Al-Hidd facility, all situated in Bahrain. 

It also sees ACWA Power acquire an 18 percent stake in Az Zour North in Kuwait.

The move falls in line with ACWA Power’s strategy to be at the forefront of the energy transition by delivering reliable and responsible power, desalinated water, and green hydrogen at low cost in Saudi Arabia and the wider Gulf Cooperation Council and attractive high-growth markets based on a de-risked and contracted business model.

“This acquisition represents a pivotal milestone for ACWA Power, reinforcing our position as global leader in water desalination. We consolidate our presence in Bahrain where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a large power and desalination plant,” CEO of ACWA Power Marco Arcelli said. 

“Reinforcing our presence in each country will allow us to further develop our people there and localize our operations more, providing safe and reliable supplies to the local communities and industries,” he added.

ACWA Power will also acquire a portfolio of companies responsible for the operation and maintenance of the four assets, specifically Az Zour North O&M Co., with a 50 percent stake and complete ownership of Al-Ezzel O&M Co.

The deals cover operating capacities of 4.61 gigawatts of gas-fired power generation and 1.11 million cubic meters per day of water desalination facilities, as well as the related operations and maintenance companies in the two countries, according to a statement.

Chief Investment and Development Officer of ACWA Power Thomas Brostrom said: “By making its inaugural entry into the Kuwaiti market through the acquisition of a stake in the Az-Zour North Facility, ACWA Power has achieved a significant milestone in its strategic efforts to expand its presence within the regional energy and water desalination sector.”

The secured contracted revenue streams from the acquired assets align well with the firm’s broader strategy of tripling its assets under management to $250 billion by 2030.


Qatar commits to investing $10bn in India

Updated 19 February 2025
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Qatar commits to investing $10bn in India

NEW DELHI: Qatar has committed to investing $10 billion in India across various sectors, the two nations said in a joint statement on Tuesday, after Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani visited New Delhi.

Indian Prime Minister Narendra Modi said he had a “very productive meeting” with Qatar’s Emir, who was on a two-day visit to New Delhi.

“Trade featured prominently in our talks. We want to increase and diversify India-Qatar trade linkages,” Modi said in a post on X. It was the first such visit by a Qatari Emir to the South Asian nation in 10 years.

According to the statement, Qatar will invest $10 billion in India in infrastructure, technology, manufacturing, food security, logistics, hospitality and other sectors.

The two countries will aim to double their annual trade to $28 billion in the next five years and are exploring the signing of a free trade agreement, the Indian foreign ministry said earlier in the day.

Bilateral trade between the two nations stood at $18.77 billion in the fiscal year that ended in March 2023, mainly comprising liquefied natural gas imports from Qatar.

Qatar accounted for more than 48 percent of India’s LNG imports that year.

The two sides said they would work to enhance bilateral energy cooperation, including mutual investments in energy infrastructure, as well as look at settlement of bilateral trade in their respective currencies. 


Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

Updated 19 February 2025
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Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

HOUSTON/SINGAPORE: Oil prices edged up on Wednesday amid worries of oil supply disruptions in the US and Russia, and as markets awaited clarity on the Ukraine peace talks.

Brent crude futures were up 14 cents, or 0.2 percent, at $75.98 a barrel at 7:50 a.m. Saudi time, and possibly set for a third day of gains.

US West Texas Intermediate crude futures for March rose 16 cents, or 0.2 percent, to $72.01, up 1.8 percent from the close on Friday after not settling on Monday because of the Presidents’ Day public holiday. The March contract expires on Thursday and the more active April contract gained 14 cents, or 0.2 percent, to $71.97.

“The psychologically important $70 level appears to have held firm, aided by the Ukrainian drone attack on the Russian oil pumping station and fears that cold weather in the US may curtail supply,” said IG market analyst Tony Sycamore.

“On top of that there is some speculation that OPEC+ may decide to delay its planned supply increase in April,” he said, referring to the Organization of the Petroleum Exporting Countries and allies.

Russia said oil flows through the Caspian Pipeline Consortium, a major route for crude exports from Kazakhstan, were reduced by 30 percent to 40 percent on Tuesday after a Ukrainian drone attack on a pumping station. A 30 percent cut would equate to the loss of 380,000 barrels per day of supply to the market, according to Reuters calculations.

Meanwhile, cold weather threatened US oil supply, with the North Dakota Pipeline Authority estimating that production in the country’s No. 3 producing state would be down by as much as 150,000 bpd.

US President Donald Trump’s administration said on Tuesday it had agreed to hold more talks with Russia on ending the war in Ukraine. A deal could ease or help remove sanctions that have disrupted the flows of Russian oil shipments.

Analysts at Goldman Sachs said a potential Ukraine-Russia peace deal and associated easing in sanctions on Russia is unlikely to significantly raise Russia oil flows.

“We believe that Russia crude oil production is constrained by its OPEC+ 9 million barrels per day production target rather than current sanctions, which are affecting the destination but not the volume of oil exports,” they said in a report.

Israel and Hamas will also begin indirect negotiations on a second stage of the Gaza ceasefire deal, officials said on Tuesday.

However, Trump said on Tuesday he intends to impose auto tariffs “in the neighborhood of 25 percent” and similar duties on semiconductors and pharmaceutical imports.

Tariffs could raise prices for consumer products, weaken the economy and reduce demand for fuel.