LONDON: When Metrojet Flight 9268 crashed over Northern Sinai on Oct. 31, 2015, the Egyptian tourism industry collapsed. The suspected bomb effectively ended the Russian Red Sea holiday trade overnight and winter sun-seekers from elsewhere also stayed away.
Three years on, the country is looking forward to a busy winter season — even after a storm of negative publicity surrounding the deaths of British tourists John and Susan Cooper, supposedly from E. coli poisoning, while on holiday in Hurghada.
Room rates are on the rise, bookings are up and tourists are spending more in an industry that is an important foreign exchange earner for the government.
The Ministry of Tourism reported a 77 percent increase in income and 41 percent increase in hotel occupancy in the first quarter of 2018.
Tourism industry analysts STR also reported a healthy rise in room occupancy rates this year, beginning in January with 58.1 percent of hotel rooms filled compared to 47.1 percent in January 2017 — an increase of 23.3 percent, the highest for the year so far.
Occupancy has gradually grown through 2018. In the Red Sea resorts, occupancy in 2017 was languishing at between 30.8 percent in January to 44.2 percent in August. This year there was 45.5 percent occupancy in January, rising steadily to 56.2 percent in August.
“Since the end of 2017, tourism has improved significantly,” said Alaa Atwan, owner of Travel Solution travel agency based in Cairo. “Tourism trips to Luxor and Aswan have recovered greatly and boat owners have started getting their boats ready — something we haven’t seen in years.”
However he said that the recovery in Sharm El-Sheikh, Egypt’s most popular destination, was less noticeable — even if STR data for the resort tells a more optimistic story. That shows a steady rise in hotel occupancy throughout the year, peaking at just over 50 percent this August, compared to only 41 percent last year.
The deadly bombing attacks on the Coptic churches in Alexandria and Tanta in the spring of 2017 also dealt a hammer blow to an industry that is vital to the Egyptian economy and was still suffering repercussions from the violence of the Arab Spring uprisings six years earlier.
The luxury hotels that line the banks of the Nile in Cairo echoed with emptiness and tour guides were forced to look for other jobs. The pyramids of Giza were eerily deserted, prompting concern from UNESCO, the UN’s cultural watchdog.
Sustainable tourism coordinator Peter DeBrine said, “We look at tourism as a way to support conservation, so if tourism drops, then that could have a negative impact on the conservation of the sites. If they don’t have the resources to protect the site, that’s a huge concern.”
According to the United Nations World Tourism Organization (UNWTO), the number of tourists visiting Egypt more than halved in six years, plunging from 14.7 million pre-uprising in 2010 to 5.4 million in 2016.
The government took steps to improve security, particularly in the Sinai region, but not even the discovery of a new pyramid or celebrity visits by footballer Lionel Messi and film star Will Smith could deliver a much-needed boost to tourist numbers.
More than 2.5 million of those visitors came from Russia but flights were suspended in 2015 after a suspected bombing of a charter flight taking Russian tourists home from Sharm El-Sheikh to St. Petersburg. The flights resumed in April this year, following President Vladimir Putin’s official visit to Egypt.
But while the return of the Russians as well as holidaymakers from other countries has undoubtedly helped the industry to recover, the saviors of Egyptian tourism have proved to be Egyptians themselves.
In Sharm El-Sheikh, “domestic tourism is good,” said Alaa Atwan.
In Dahab, Khaled Yousry, CEO of Club Red Dahab hotel and diving center, said affordable hotel prices were luring young Egyptians to the Red Sea resort, a magnet for water sports enthusiasts. A double room can be had for as little as 500 Egyptian pounds, or $23 per person.
“Some 95 percent of business here is from Egyptians, and most prefer the north coast at this time of year anyway,” he said.
Hurghada hotel employee Mahmoud El Sayed said despite the lack of great numbers of Russians and the deaths of the Coopers, business was the best it has been for years in the resort, which is especially popular with divers.
“But this does not mean that it has reached 100 percent of the level it was at before 2011, or even 80 percent,” he added.
Three years after Flight 9268, Egypt’s tourism is bouncing back
Three years after Flight 9268, Egypt’s tourism is bouncing back
Saudi Arabia to host 28th World Investment Conference in Riyadh
RIYADH: Saudi Arabia is on track to host the 28th World Association of Investment Promotion Agencies’ World Investment Conference from Nov. 25 to 27 in Riyadh.
The forum themed “Future-ready IPAs: Navigating digital disruption and sustainable growth,” will bring together leaders from investment promotion agencies, corporates, multilateral institutions, and other stakeholders to discuss global financial trends and opportunities, according to a statement.
The Kingdom’s selection as a host underscores its position as an international funding hub, according to Saudi Investment Minister Khalid Al-Falih.
“We are honored to be welcoming the global investment community to Saudi Arabia. Our strategic location at the crossroads of three continents, coupled with our world-class investment ecosystem and long-term political and economic stability, has seen the Kingdom develop into a global investment hub,” Al-Falih said.
“The World Investment Conference will serve as a platform to showcase our nation’s potential and forge partnerships that will shape the global investment landscape for years to come,” the minister added.
On WAIPA’s behalf, Executive Director and CEO Ismail Ersahin said: “WAIPA is honored that the 28th WAIPA World Investment Conference will be held in Riyadh, a city with a rich history and culture.”
Ersahin added: “With each edition, the WIC reaffirms its status as a guiding force for sustainable and inclusive development.”
He went on to stress how the conference is poised to be an impactful gathering aimed at the future readiness of IPAs.
Since 1995, the annual gathering has provided a forum for stakeholders to exchange insights and best practices and forge partnerships that drive economic development globally.
Saudi Green Building Forum set to obtain UNCCD’s permanent observer status
RIYADH: The Saudi Green Building Forum is set to obtain permanent observer status following the submission of a formal request to the UN Convention to Combat Desertification.
Pending a final decision during the 16th session of the Conference of the Parties to be held from Dec. 2-13 in Riyadh, this move underscores the forum’s efforts to enhance its role in sustainable development and combat desertification.
The forum, which has already been temporarily accredited, is involved in the proceedings based on the provisions of paragraph seven of article 22 of the convention and articles six and seven of the internal regulations of the COP, according to a press release.
This initiative is part of a broader strategy to integrate scientific and community-based approaches to environmental management.
Commenting on the development, Faisal Al-Fadl, secretary-general of the Saudi Green Building Forum, said: “We are pleased with the official notification from the UN Secretariat of the receipt of the required documents after a thorough review of the documents submitted for the accreditation of the forum as the first Saudi institution specialized in preparation for obtaining observer status for the Conference of the Parties to the UN Convention to Combat Desertification,” he stated.
“The efforts of local communities play a significant role in enhancing the sustainable development goals for people, plants, and prosperity through advocating for human experiences based on scientific rules and community health and well-being for healthy, fair, and resilient communities and cities, sufficient consumption and production, climate action in removing harmful carbon, and reducing the temperature to 1.5 degrees Celsius, addressing desertification, and managing natural resources and water,” he added.
The UN Secretariat confirmed the receipt of all necessary documents for the forum’s accreditation as an observer, encouraging further participation in the convention’s activities.
“After a thorough review of the documents submitted by your institution, we encourage you to continue participating in the implementation of the UN Convention to Combat Desertification and keep the secretariat informed of the activities,” the letter stated.
The Saudi Green Building Forum’s potential new status as a permanent observer at the UN Convention will enable it to contribute more effectively to global efforts against desertification, leveraging cooperation between developed and developing nations, particularly in sustainable land management and environmental restoration.
‘Two-state solution,’ investing in crisis resilience hold key to Mideast future, says Saudi minister
‘Two-state solution,’ investing in crisis resilience hold key to Mideast future, says Saudi minister
- Vision of regional development, prosperity ‘complicated by tensions,’ Adel Al-Jubeir tells WEF special meeting
RIYADH: The key to getting the Middle East region back on track toward development and prosperity is ending the Gaza conflict, the Saudi minister of state for foreign affairs said on Sunday.
Adel Al-Jubeir, who was speaking at the World Economic Forum Special Meeting being held in Riyadh, said the Israel-Hamas conflict raging in the enclave only served to “undercut” any attempts to integrate the region and “unleash its potential.”
He added that, considering its young population, abundant natural resources and strategic geographical location, the Middle East had all the ingredients to be a successful region.
The goal of policymakers in Saudi Arabia and beyond was to ensure these elements benefitted everyone and better linked the Middle East region with the rest of the world, Al-Jubeir said.
However, he said that this vision was “complicated by tensions” affecting the Middle East, and it was important to put an end to these in order to “focus on the things that matter” to developing its prosperity.
“(With the situation in Gaza), our number one priority is to stop the fighting,” he said. “Our second priority is to ensure enough humanitarian assistance goes into the Gaza Strip so that we avoid starvation, disease, and we take care of the people there,” he added.
“In the long term, we need to find a way to end this conflict (for good), and the only way we end it is by having a two-state solution, so we need to chart a clear, time-bound irreversible path to a Palestinian state.
“Saudi Arabia has said in terms of normalization (with Israel), this would be a part of that. The Arab world has had a position with regard to the Arab Peace Initiative, the US and the rest of the world supports this, so we need to make sure we stop the fighting, increase assistance and come up with a pathway to that Palestinian state,” he added.
When pressed by the panel moderator, CNN’s Becky Anderson, on whether a two-state solution would be possible with Benjamin Netanyahu and his right-wing government in charge in Israel, Al-Jubeir said it was in “everyone’s interest” to end the conflict.
“I’m not a mind reader or a psychiatrist; it’s not what I was educated in or my profession,” he said. “But what I can tell you is the interests of everybody in the region requires putting an end to this conflict, the potential that can be unleashed is tremendous, with good will, seriousness and foresight we should be able to get the ball over the goal line,” he added.
Mohamad Al-Ississ, Jordanian finance minister, also said the region had lurched from crisis to crisis over several decades, and told the WEF panel: “The one certain thing anybody can be certain of is that uncertainty is here to stay.”
He said the role of policymakers in the Middle East should be investing and developing sectors that allowed the region’s economies to absorb and ride out the shock and impact that crises can have.
“The top priority is (determining) how to invest in enhancing your buffers, so that you can increase your resilience for when ‘black swan’ events, which have become the norm, unfold,” he said.
Ahmed Galal Ismail, CEO of UAE’s Majid Al-Futtaim Holding, agreed. He said that while peace and stability were “obviously indispensable to economic growth,” if the region just waited for it to happen, it could be “waiting for a long time.”
He cited an example of intra-Arab trading being at its highest-ever level, but added it was “anaemic” compared with other global blocs.
“We need to act. From a private sector perspective, we see opportunities independent from geopolitics and from the cruelty we see in parts of the region, so it is very important the actors in the sector are pragmatic, take the lead, and start what is needed to drive that economic integration.”
Closing Bell: Saudi benchmark index edged down to close at 12,381
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 102.46 points, or 0.82 percent, to close at 12,381.95.
The total trading turnover of the benchmark index was SR3.64 billion ($972 million), as 29 of the stocks advanced while 201 retreated.
Nomu, the Kingdom’s parallel market, also dropped 414.9 points, or 1.55 percent, to close at 26,277.06. This comes as 11 of the stocks advanced while as many as 50 retreated.
Meanwhile, the MSCI Tadawul Index slipped 9.52 points, or 0.61 percent, to close at 1,553.88.
The best-performing stock of the day on the main index was Al-Baha Investment and Development Co. The company’s share price surged 7.69 percent.
Other top performers included Saudi Cable Co. as well as Fawaz Abdulaziz Alhokair Co.
The worst performer was ACWA Power Co., whose share price dropped by 5.76 percent to SR425.
Saudi Ground Services Co. as well as Al-Babtain Power and Telecommunication Co. also did not perform well.
On the announcements front, Saudi Tadawul Group approved the distribution of dividends worth SR276 million to shareholders for the fiscal year ending Dec.31, 2023, with SR2.3 per share and 23 percent share par value.
Moreover, Dr. Sulaiman Al-Habib Medical Services Group announced its interim financial results for the period ending March 31.
According to a Tadawul statement, the company’s net profit hits SR550 million in the first quarter of 2024, reflecting a 12.6 percent surge compared to the same quarter last year.
The increase was mainly driven by revenue growth due to the jump in the number of patients.
Saudi Arabian Amiantit Co. also announced its interim financial results for the first three months of 2024.
A bourse filing revealed that the firm’s net profit reached SR474 million in the first quarter of the year, up 23,672 percent from the corresponding quarter in 2023.
This climb is mainly attributed to the company’s accounting profits which amounted to SR639 million in the current quarter.
Additionally, Arab National Bank announced its interim financial results for the first quarter of the year.
According to a Tadawul statement, the firm’s net profits rose 15.73 percent against the same quarter of the prior year to hit SR1.23.
The increase is primarily linked to net special commission income, net fees and commission income, and dividend income, among other reasons.
Saudi Steel Pipe Co. also announced its interim financial results for the period ending March 31.
A bourse filing revealed that the company’s net profit reached SR76 million in the first quarter of 2024, a 1,166 percent jump from the corresponding quarter in 2023.
This rise is due to an increase in gross profit coupled with a decrease in selling, marketing, and distribution expenses and a drop in trade receivable bad debt provision.
Meanwhile, Savola Group Co. announced the submission of an application to increase its capital by offering rights issues to the Capital Market Authority.
NEOM hosts global financial institutions, showcases progress and investment opportunities
RIYADH: Saudi giga-project NEOM hosted 52 global, regional, and local financial institutions, showcasing ongoing progress across key projects and highlighting investment opportunities.
The meeting also reviewed the progress and latest developments in key NEOM undertakings, including The Line, Oxagon, Trojena, and Sindalah, scheduled to open later this year.
The event showcased the giga-project’s commitment to sustainable growth and development, underscoring its focus on environmental, social, and governance principles.
A notable aspect of the visit included a review of The Line, where dignitaries observed the rapid progress of phase one construction and gained deeper insights into the initiative’s design.
Nadhmi Al-Nasr, CEO of NEOM, said: “Since inception, we have been establishing strong partnerships to help drive this grand vision forward. NEOM’s vast scale and expertise offer strong and ongoing commercial opportunities for global organizations, including financial institutions.”
He added: “We were pleased to host guests from some of the world’s leading financial institutions in NEOM recently to discuss collaborative avenues. NEOM is open for business and we welcome all interested parties to be part of our continued success.”
The event drew representatives from 24 international banks and financial institutions, including those from Germany, Spain, and France, as well as the UK, the US, and China. Additionally, representatives from Japan and South Korea attended the event.
In addition, 13 regional banks from Qatar, Kuwait, and the UAE attended, alongside 15 financial institutions from Saudi Arabia.
In June 2023, NEOM launched the largest public-private partnership for accommodation, valued at over SR21 billion ($5.67 billion).
It also announced an SR37.5 billion joint venture with global logistics company Denmark’s DSV in October 2023 to provide logistics services for the giga-project.
These announcements, along with other NEOM partnerships, were well-received by attendees at Discover NEOM China, an event held in Beijing, Shanghai, and Hong Kong earlier this month. The event attracted more than 500 senior business and industry leaders.
SR10bn credit facility
NEOM also announced the signing of a credit facility worth SR10 billion to meet its short-term financing requirements.
The facility, structured on Murabaha principles, is aimed at supporting the developmental stages of flagship projects like The Line, Oxagon, Trojena, and Sindalah.
Al-Nasr emphasized the strategic alignment of these credit facilities with the Kingdom’s broader economic goals under Vision 2030.
In a press release, he highlighted the collaborative effort of leading Saudi financial institutions in supporting one of the world’s most ambitious projects by providing diverse financing solutions that bolster NEOM’s infrastructure initiatives.
The agreement has garnered significant attention, involving nine prominent banks such as the National Commercial Bank, Riyad Bank, and Saudi First Bank, alongside other key financial players.
