ISLAMABAD: A Pakistani market research organization on Wednesday estimated a further decline in inflation in the ongoing month, projecting it to fall below 1%, marking the lowest monthly year-on-year (YoY) reading in over three decades.
Topline Pakistan Research, a division of Topline Securities, a prominent brokerage house in Pakistan, gathers and analyzes market data along with consumer behavior and socio-economic indicators.
In recent years, Pakistan has grappled with high inflation, with consumer prices reaching a record 38% in May 2023. However, subsequent monetary policy measures and a series of economic reforms led to a substantial decline, bringing the annual inflation rate down to 1.5% in February 2025.
“Pakistan’s Consumer Price Index (CPI) for Mar 2025 is expected to bottom out and clock in at 0.5-1.0% YoY (+0.9 percent MoM), lowest monthly YoY reading in over 3 decades, taking 9MFY25 average to 5.38% compared to 27.06% in 9MFY24,” Topline Pakistan Research stated in its estimate.
It noted the anticipated decline in March 2025’s CPI was likely to follow a 2.3% reduction in electricity prices, resulting from a higher fuel cost adjustment of Rs2 per kilowatt hour (kWh) compared to Rs1/kWh in the previous month.
The transport segment index is also expected to decrease by 0.7% month-on-month, owing to a decline in diesel and petrol prices by an average of 2%.
Given these developments, Topline Pakistan Research said it was also revising its inflation forecast for fiscal year 2025 downward from 6-7% to 5-6%.
With the expected inflation rate of less than 1 percent for March 2025, the research organization said the real interest rates will be significantly higher than Pakistan’s historic average of 200-300 basis points, standing at 1,100-1,150 basis points. However, based on fiscal year 2026 inflation estimates of 8-9%, real rates are projected to be 300-400 basis points positive.
Topline Pakistan Research also cautioned any major deviation in commodity rates from current levels, especially fuel prices, could result in change in inflation estimates.
Pakistan March inflation to drop below 1% — market analysis
https://arab.news/2duzt
Pakistan March inflation to drop below 1% — market analysis
- Topline Pakistan Research says the decline may mark the lowest level in over three decades
- The research firm cautions any major deviation in commodity prices will impact the inflation rate
Nvidia to send 18,000 AI chips to Saudi Arabia
- US chip maker will partner with Saudi Arabia’s AI startup Humain
US chip maker Nvidia will partner with Saudi Arabia’s sovereign wealth fund-owned AI startup Humain and will ship 18,000 chips to the Middle Eastern nation to help power a new data center project.
The partnership was revealed Tuesday as part of a White House trip to Saudi Arabia, Qatar and the United Arab Emirates. Saudi Arabia has been working to develop its artificial intelligence capacity and strengthen its cloud computing infrastructure with the help of foreign investment.
“AI, like electricity and Internet, is essential infrastructure for every nation,” said Jensen Huang, founder of Nvidia. “Together with Humain, we are building AI infrastructure for the people and companies of Saudi Arabia to realize the bold vision of the Kingdom.”
The cutting-edge Blackwell chips will be used in a 500 megawatt data center in Saudi Arabia, according to remarks at the Saudi-US Investment Forum in Riyadh on Tuesday. The California company said its first deployment will use its GB300 Blackwell chips, which are among Nvidia’s most advanced AI chips at the moment, and which were only officially announced earlier this year.
Radisson doubles down on Saudi Arabia with aggressive hotel expansion
RIYADH: Saudi Arabia now accounts for half of Radisson Hotel Group’s Middle East portfolio, as the Kingdom cements its role as a global priority for the hospitality giant.
The company currently has 100 hotels either open or under development across the region, with 50 of them located in Saudi Arabia, revealed Radisson’s top executive in an interview with Arab News on the sidelines of the Future Hospitality Summit in Riyadh.
The expansion aligns with Saudi Arabia’s fast-growing hotel sector, as the Kingdom plans to add more than 362,000 new hotel rooms by 2030, backed by a $110 billion investment.
Elie Younes, executive vice president and global chief development officer at Radisson, said: “Saudi Arabia sits in one of the top five countries for us globally.”
He said that of the 50 hotels in Saudi Arabia, 30 are open and 20 are under construction.
Providing details and a timeframe for their planned 20 hotels in Saudi Arabia, Younes said the projects will be rolled out over the next three to four years, with an additional 30 hotels expected to open in the following three to four years.
The new wave of properties will translate into approximately 4,000 to 5,000 rooms. “If you multiply 20 by 200 to 250, you will get 4,000 to 5,000 rooms currently planned under construction in Saudi Arabia, which will eventually also make an economic impact because that will create job opportunities for approximately 5,000 people,” said Younes.
Radisson is also ramping up its presence in the capital. The company recently opened Radisson Blu Minhal in Riyadh and plans to launch its third Radisson Collection hotel in the city soon.
The Mansard Hotel, part of its urban portfolio, was noted as the brand’s first resort in Riyadh. Service apartments under the Radisson Collection brand are expected to open in the next four months.
The group sees strong potential across multiple segments. “There is room for another 10 to 15 Radisson Blu hotels. As for Radisson Collection, which is our entry-level luxury brand, there will be fewer opportunities to grow it because of its luxury nature — maybe four or five more hotels. We already have three in Riyadh alone,” he said.
Younes highlighted the scalability of the core four-star Radisson brand, particularly in smaller Saudi cities.
“We recently opened three of them here in Riyadh alone, and I think we could open at least or sign another 20 or 30 of them in the Kingdom across the next four to five years, focusing on places like Riyadh, Jeddah, Makkah, and Madinah… to some extent, and specifically, after that, in some of the secondary regional cities, where we also see opportunities for business development,” he explained.
Commenting on global tariffs, Younes said it is difficult to assess the impact of what he described as a “semi-political, semi-non-political” decision.
“We don’t see that to have a direct impact in Saudi Arabia because — you have to remember that — over 50 percent of the travel industry in Saudi Arabia is domesticated in terms of traveling, and over 90 percent of investments in Saudi Arabia comes from Saudi Arabia,” he added.
Younes also spoke about broader trends in the hospitality industry, including growing traveler volumes and a heightened focus on sustainability. “I think we are very lucky and should be grateful to work in this industry because it is one of those ever-growing industries,” he said.
He noted shifts in travel behavior as business and leisure increasingly merge: “People going for a long business trip but integrating into that trip a little bit of fun, bringing the wife, bringing the kids, spending the extra day. Wanting to have fun.”
The executive noted that operational challenges are mounting, driven by rising costs and technological disruption. “The cost of labor going up. Inflation going up. The influence of artificial intelligence. All of these elements will push us and will result in us becoming more efficient,” he said.
While artificial intelligence will likely shape back-end operations, Younes emphasized the enduring value of human service: “The human touch will never go away. We all know that.”
Looking ahead, he sees the convergence of hospitality and residential real estate as a key evolution in the sector.
“I see more integration and fusion between the conventional hospitality and residential real estate as we move forward to try and achieve all of these efficiencies and economies,” he concluded.
Saudi Arabia’s Tourism Development Fund eyes global bank partnerships to boost financing
RIYADH: Saudi Arabia’s Tourism Development Fund is pursuing partnerships with global banks to secure additional financing for large-scale hospitality and infrastructure projects, as interest in the Kingdom’s fast-growing travel market intensifies.
Speaking to Arab News on the sidelines of the Future Hospitality Summit in Riyadh, Khalid Al-Shareef, director of large institutions coverage at TDF, stated that the fund is looking beyond its own capital base and local banking partnerships to support major developments.
This comes as the fund has supported more than 2,400 direct and indirect tourism projects, representing a total investment of over SR35 billion ($9.33 billion). These initiatives are contributing to the development of more than 9,200 hotel rooms and villas across the country.
The drive aligns with Saudi Arabia’s broader Vision 2030 objective of increasing tourism’s contribution to gross domestic product from 3 percent to 10 percent and creating 1 million new jobs within the industry.
Al-Shareef told Arab News: “We are also bringing inbound international banks to help us support, whether it’s equity investments or in terms of financing.”
He added: “We look forward to expanding, and it all depends on where we are headed. We have a roadmap, which is the national tourism strategy, and wherever we find the gap, you will find us there participating.”
The spokesperson revealed that TDF met with a couple of banks and received strong interest across the board. “The Saudi market is growing at a fast pace; the numbers are talking for themselves. So, everyone is interested to join and be part of this growth,” he added.
According to Al-Shareef, TDF participates in projects through three key financing mechanisms: debt, equity, and guarantees in partnership with banks. He emphasized the importance of de-risking projects, particularly for small and medium enterprises.
“Some projects have high risk, especially for SMEs. We have partnered with a couple of local banks to provide guarantees for them to mainly cater to the mass market all across the Kingdom,” he said.
The fund also supports entrepreneurship through its TDF Grow platform, aimed at empowering startups and tour guides through education and training.
“We have supported more than 8,800 participants, all world-class education classes from international and well-known entities to offer their courses here in Saudi Arabia,” the TDF spokesperson said.
Beyond financing, TDF is positioning itself as a facilitator within the tourism ecosystem, simplifying processes and enhancing access to support services.
“As we have mentioned, financial support is there, but non-financial support is also important, especially for SMEs. You have to give the right education and guidance for them to thrive and hopefully become bigger companies over time,” he said.
Al-Shareef emphasized that the guidance component is crucial and noted that non-financial support also involves connecting SMEs with various entities.
“Today, rather than going to 10 or 15 entities to operate a hotel or what have you, we are basically trying to be a one-stop shop that will guide you on where to go to get your licenses and permits,” the spokesperson added.
Al-Shareef noted the diversity of Saudi Arabia’s tourism landscape, ranging from beaches in the Eastern Province and Jeddah to mountainous regions in the south and desert terrain in the north. TDF is focusing efforts on underdeveloped areas that require more government incentives.
“Currently, we are focusing more on tier two and tier three cities. Big cities like Riyadh and Makkah are carrying themselves, especially with the banks supporting them heavily,” the spokesperson said.
He cited Abha, Al Baha, and AlUla as examples of regions receiving increased attention to ensure more balanced tourism development across the Kingdom.
IHG to introduce 15,000 additional keys in Saudi Arabia by 2030: top official
RIYADH: UK multinational hospitality giant IHG Hotels and Resorts is planning to add an additional 15,000 rooms in Saudi Arabia, as it eyes opening another 50 hotels in the Kingdom by 2030, according to an official.
Speaking to Arab News on the sidelines of the Future Hospitality Summit in Riyadh on May 12, Maher Abou Nasr, vice president of operations for IHG in Saudi Arabia, said that the company will add seven new hotel brands in the Kingdom, in addition to the existing six already operating in the country.
Strengthening the hospitality sector is one of the crucial goals outlined in Saudi Arabia’s Vision 2030, as the Kingdom is steadily diversifying its economy by reducing its decades-long reliance on crude revenues.
Ahead of the summit, FHS data revealed that Saudi Arabia is set to add 362,000 new hotel rooms by 2030 as part of its $110 billion hospitality expansion plans.
“We have 45 hotels in the market now, and it includes Makkah, Madinah, Riyadh and all the tourism cities in the Kingdom. And that is close to 24,000 keys currently operating in the market. But our pipeline has 50 hotels. So, more hotels are coming to the market, with 15,000 keys that we are going to be introducing soon,” said Abou Nasr.
He added: “We have six brands that are operating currently in the Kingdom, but we have seven brands in the pipeline. So we’re going to have 13 brands, in close to five years, that are going to be operating in the Kingdom.”
Abou Nasr further said that IHG is gearing up to meet the rising demand in Saudi Arabia’s hospitality sector, with the Kingdom gearing up to host major international events including Expo 2030 and the FIFA World Cup in 2034.
Abou Nasr said that 49 percent of the company’s workforce are Saudi nationals, and the new hotel brands will help workers from the Kingdom explore more opportunities in the hospitality sector.
“Those Saudi youth who are going to be working in the Expo and the World Cup are people who are graduating today from high school. They are making their decisions on their career paths today, this year, last year, and in the coming year. So, in this period, we need to reach this pool of talent and attract them to the hospitality industry,” said Abou Nasr.
“Today we have 49 percent Saudization. Close to 2,000 Saudi nationals work in our hotels, but we want to reach 6,000 by 2030 to be working for us,” he added.
Abou Nasr added that IHG is getting sufficient support from the Kingdom’s Ministry of Tourism to attract Saudi talents to the company’s workforce.
Meeting diversification of demand
According to Abou Nasr, IHG is trying to cater to the needs of demand in different segments, such as midscale and upper midscale, in addition to the traditional luxury offerings provided by the hospitality group.
“With all the changes that are happening in the Kingdom, we see a big diversification of demand. Not everybody wants to stay in luxury hotels all the time. Having said that, luxury remains our biggest part of the portfolio that’s coming — 60 percent of our pipeline hotels are in the luxury and lifestyle segments,” said Abou Nasr.
He added: “However, we still see demand now that is coming into different segments, like the midscale and upper midscale. So, Holiday Inn Express is coming to the market, and we’re introducing Garner as well, sometime in the near future, to the Kingdom.”
On the first day of the FHS, IHG and Ashaad Co. signed an agreement to develop three new hotels in Saudi Arabia: Intercontinental and Voco in Alkhobar and Hotel Indigo in Jeddah.
Citing a presentation made by real estate consultancy JLL at the summit, Abou Nasr said that Saudi Arabia had committed to adding 185,000 keys as part of its offering for FIFA World Cup 2034, and not all of these keys will be in luxury segments.
Abou Nasr highlighted the growth of the hospitality industry in Saudi Arabia, and said that hotels in Riyadh and Jeddah have started to make profits within one or two months of starting operations.
“In the past, that used to be a few months before we break even and then start ramping up toward more profits. Today, we are seeing a lot of hotels making profits from the first or second months,” said Abou Nasr.
He added: “There’s a lot of demand that is happening in those cities. It depends on the location, the brand and the size of the hotel. But hotel investments are proving to be very profitable in this market.”
Maintaining competitiveness
During the interview, Abou Nasr said that IHG is committed to maintaining competitiveness in the market, as the company plans to add 50 new hotels in addition to the 45 already operating in the Kingdom.
“We are actively working toward renovating many of those hotels that need renovation and bringing them up to speed to cater for the new travelers that are coming to Saudi Arabia,” he said.
Abou Nasr added that IHG, during the recently concluded Arabian Travel Market, signed a memorandum of understanding with the Ministry of Tourism to collaborate around enhancing the guest experience when travelers come to Saudi Arabia.
Abou Nasr further said that IHG is committed to maintaining sustainability as the world is trying to materialize the climate goals.
“We’re working on introducing three energy conservation measures into our hotels that will take care of water conservation within our properties and energy conservation as well. In the future, there are a lot more initiatives to come. This is all guided by our journey to tomorrow, which are our sustainability initiatives at a corporate level,” he added.
Combating challenges
Abou Nasr said cooperation with the government has helped IHG to change challenges into opportunities.
He added that completing the projects within the stipulated timeframes and renovating existing facilities are some of the challenges which are being faced by IHG.
“We firmly believe that Saudi hospitality is delivered by Saudis. And we’re able now to go and talk to those Saudis at that young age to attract them to the industry with help from the government,” said Abou Nasr.
Eric Trump confirms commencement of pre-construction works on Jeddah Tower
RIYADH: The much-anticipated Trump Tower Jeddah has entered the pre-construction phase, confirmed Eric Trump, son of the US president, marking a major step forward for one of Saudi Arabia’s most high-profile luxury developments.
Set to rise 47 floors along the Red Sea coast, the building is being developed by London-listed Dar Global in partnership with the Trump Organization.
The project will include high-end residences and is intended to enhance the luxury housing landscape in the Kingdom’s western port city. According to Trump, the development will involve an investment of “many, many, many hundreds of millions of dollars.”
“The building (Trump Tower) in Jeddah is absolutely amazing. It’s one of the most beautiful buildings anywhere in the world, and we just started,” Trump, who is also the executive vice president of the Trump Organization, said in a video interview with Al-Eqtisadiah.
He added: “We’ve got all the plans and we just started the pre-construction works. This is going to be by far the nicest building in Jeddah and really a building that we’re incredibly proud of as a family.”
The Jeddah tower is the second major project between Dar Global and the Trump Organization, following the Trump International Oman at the $4 billion AIDA development.
Speaking during the launch of Trump Tower Jeddah in December, Dar Global CEO Ziad El-Chaar said: “Jeddah is undergoing a remarkable evolution, moving from traditional housing to dynamic high-rises, mixed-use developments that reflect modern living preferences.”
Trump Tower Jeddah marks the latest regional expansion for the real estate brand, coming on the heels of the recently launched Trump International Hotel and Tower Dubai — the first branded residential tower on the city’s iconic Sheikh Zayed Road.
The Dubai property is part of Dar Global’s growing premium portfolio and underscores the Trump Organization’s deepening ties in the Gulf.
Speaking about the Dubai project during his regional tour, Trump said: “The opportunities are endless. You can build the greatest buildings anywhere in the world, and that’s what we’re going to do.”
He added: “Trump International Hotel and Tower Dubai (is) the best building anywhere you buy, the best hotel. We’re going to redefine the standard, and I love doing it here.”
