MANAMA: Bahrain’s tourism authorities expect a rise in visitors from Saudi Arabia amid the social reforms underway in KSA, an official told Arab News.
Khaled bin Humood Al-Khalifa, CEO of Bahrain Tourism and Exhibitions Authority (BTEA), said the social changes happening in Saudi Arabia are set to positively impact tourism to Bahrain. The raft of reforms underway in KSA includes allowing women to drive from June.
“Openness will facilitate traveling and commuting for women and families and will bring both cultures closer. It will be like moving from one city to another for women,” Al-Khalifa said.
“Saudi Arabia and Bahrain are one country … Saudi Arabia and the Gulf Cooperation Council (GCC) are our target (tourism base). We are trying to facilitate entry via the King Fahd Causeway.”
Al-Khalifa said the country is working toward boosting tourism’s contribution to the national gross domestic product (GDP).
“Our main goal is to enhance the contribution of the tourism sector (to) national GDP. In 2015, tourism contributed to 3.5 percent of GDP. (As of the end of 2017), it’s 7.1 percent,” Al-Khalifa said.
“We doubled it and outgrew our initial goal, which was to reach 7 percent by the end of 2018, thanks to the solid infrastructure (in Bahrain) and the investors’ trust in the country.”
Al-Khalifa was speaking on the sidelines of the “Shop Bahrain” festival, which runs until Feb. 10 and includes promotions, entertainment events and raffle draws.
The month-long festival aims to attract more families, particularly those from Saudi Arabia.
The Kingdom accounted for 7.5 million of Bahrain’s 8.7 million tourists during the first nine months of 2017. The average day spending of a Saudi visitor to Bahrain stands at 83 dinars ($220), mainly on shopping and entertainment. Bahrain is looking to increase the amount of spending and the number of people who stay the night rather than taking a day trip.
According to Al-Khalifa, 83 percent of visitors to Bahrain enter via the causeway from Saudi Arabia, with the airport handling just 17-18 percent of arrivals.
A second causeway linking Bahrain with Saudi Arabia is planned, while Bahrain has invested $1 billion in expanding its international airport to three times the capacity of the current one. “We are expecting to inaugurate the new airport in the year 2020,” Al-Khalifa said.
The BTEA has also set up six offices in countries where there are direct flights to Bahrain on national carrier Gulf Air, in addition to China where Bahrain is planning to start direct flights.
Al-Khalifa said Bahrain has also reduced the price of tourist visas to 5 dinars from 25 dinars, and says it is the first GCC country to give Russians and Chinese visitors visas upon arrival.
Bahrain expects tourism boost from Saudi social reforms
Bahrain expects tourism boost from Saudi social reforms
Related
SABIC sells European petrochemicals, engineering plastics units in $950m portfolio restructuring
RIYADH: Saudi Basic Industries Corp. is selling two overseas businesses for a combined $950 million as the world’s biggest petrochemicals maker continues to streamline its portfolio and redeploy capital toward higher-return segments.
The Riyadh-based company agreed to sell its European petrochemicals business to investment firm AEQUITA for $500 million and its engineering thermoplastics operations in the Americas and Europe to turnaround specialist Mutares for $450 million, SABIC said in a release.
The plastics deal includes an earn-out linked to future cash flow and a potential resale.
The transactions are part of SABIC’s portfolio optimization program launched in 2022, which has already seen divestments including Functional Forms, Hadeed and Alba. The company aims to sharpen its focus, improve returns, and free up capital for higher-growth opportunities.
Abdulrahman Al-Fageeh, CEO of SABIC, said: “This strategic approach allows us to actively reshape our portfolio and sharpen our focus on areas where SABIC has clear and sustainable competitive advantages in a rapidly changing landscape.”
He added: “I am pleased that both AEQUITA and Mutares will work with us in the future to ensure that we continue to serve our global customers in a seamless manner.”
The European petrochemicals business produces ethylene, propylene, various grades of polyethylene, polypropylene and polymer compounds. Its manufacturing footprint includes sites in the UK, the Netherlands, Germany and Belgium.
The engineering thermoplastics business in the Americas and Europe produces polycarbonate, polybutylene terephthalate and acrylonitrile butadiene styrene. Its facilities are located in the US, Mexico, Brazil, Spain and the Netherlands.
“The Board endeavored to achieve these transactions, which represent a significant milestone in the execution of our strategy to further optimize our portfolio and maximize shareholder value by enhancing the Company’s cash generation capacity and achieving the highest possible return on our global businesses,” said Khalid Al-Dabbagh, chairman of the board of directors of SABIC.
Chief Financial Officer Salah Al-Hareky said the transactions demonstrate a “disciplined approach” to capital allocation and active portfolio management, aimed at improving return on capital employed and free cash flow.
Despite the divestments, SABIC said it will maintain strategic market access through exports to Europe and the Americas, while preserving its focus on technology, innovation and customer service.
Both buyers have committed to ensuring business continuity, retaining workforce expertise and maintaining high safety and customer service standards during the transition.
Axel Geuer, president and co-CEO of AEQUITA, said: “This transaction represents a further step in the expansion of our European chemicals platform.”
He added: “The assets are highly synergistic with the olefins and polyolefins business we recently acquired from LYB; with complementary markets, infrastructure and operational capabilities, we see substantial potential to realize synergies and drive operational improvements across both businesses.”
Geuer, noted that under AEQUITA’s active ownership model, the focus will be on supporting the teams on the ground, ensuring a seamless integration, and building a scaled, competitive platform positioned for long-term, sustainable value creation.
Robin Laik, co-founder and CEO of MUTARES, said: “The Engineering Thermoplastics (ETP) business in the Americas and Europe has a highly skilled workforce and strong customer relationships.”
He added: “Under focused ownership, our priority is to ensure continuity, support employees through the transition, and unlock the full potential of our asset base as a standalone ETP platform.”
The deals are subject to customary closing conditions, regulatory approvals, and, where applicable, employee consultation processes.
