Davos mattered once; it can matter again

A policeman wearing camouflage clothing stands on the rooftop of a hotel near the Congress Centre during the World Economic Forum (WEF) annual meeting in Davos, on January 20, 2020. (AFP)
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Updated 21 January 2020
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Davos mattered once; it can matter again

  • We don’t make peace with our friends, we make peace with our enemies. Our world is not short of sworn enemies — inviting a few to Davos might not end their enmity, but who knows what progress could be made?

DUBAI: It would be fair to say that in 1996, even after 25 years of its glittering annual gatherings, the World Economic Forum (WEF) rarely troubled the front pages — or indeed any pages — of the British tabloid press.

Which is why it was all the more surprising when my editor barked: “Get yourself to Davos!”

Confused, I inquired: “Isn’t that the chief Dalek in Doctor Who?”

“That’s Davros, you fool. Davos is a ski resort in the Swiss Alps where the world’s most powerful and important people meet every year with the aim of making the world a better place.”

The reason for my boss’s newfound interest in alpine matters was that Klaus Schwab, the founder and chairman of WEF, appeared to have assembled a group of key players in the Northern Ireland conflict who, far from appearing in the same room, normally had difficulty sharing the same country.

Even a quarter of a century later, it is impossible to exaggerate the malign and pervasive influence that events in Northern Ireland, the “strife-torn province” of media cliché, had on the UK at that time.

For three decades, a period known euphemistically as “The Troubles” — an area of barely 14,000 square km with a population of less than two million — was awash with heavily armed paramilitary groups known by a bewildering alphabet soup of acronyms: the IRA, Provisional IRA, INLA, IPLO, UDA, UPV, UVF, RHC, LVF — and that was just the bad guys.

The beleaguered police had their own acronym, the RUC.

The terrorists shot, they bombed, they maimed, they killed, mostly each other, admittedly, but an estimated 1,800 innocent civilians died too. And not just in Northern Ireland. The Irish Republican Army (IRA) in particular carried out a series of high-profile bomb attacks in Britain.

In a dynamic that will be familiar to observers of the Middle East, cynical politicians in Northern Ireland exploited and exaggerated an existing sectarian divide — between the Roman Catholic/nationalist/republican tradition, favoring closer links with the Republic of Ireland and eventual unification, and the protestant/unionist/loyalist tradition, favoring closer links with the rest of the UK — to consolidate their own power bases.

And now here was Klaus Schwab bringing together influential representatives of both traditions in a manner that had eluded British and Irish negotiators for years.

An impressive roster it was too: John Hume, the MP and leading nationalist politician; David Trimble, also an MP and the leading unionist politician; Sir Patrick Mayhew, the UK Secretary of State for Northern Ireland; Dick Spring, the Tanaiste, Ireland’s Deputy Prime Minister; and Mitchel McLaughlin, chairman of Sinn Fein, which was the political wing of the IRA — in the sense that Hezbollah is the political wing of Hezbollah.

What could possibly go wrong?

Schwab would have done well to read up on the eminent 19th-century British politician William Ewart Gladstone, of whom it was said that he spent much of his career trying to solve the Irish Question, but every time he thought he was getting warm, the Irish changed the question.

The reconciliation session that Schwab convened took place in private, but he has since described how it went. First, the parties refused to sit at the same table.

Further tables were summoned, but the configuration was deemed unsuitable.

Further configurations were attempted, until all the participants were satisfied that, while still able to talk to each other, they had plausible deniability that they had entered anything remotely resembling negotiations.

What was said at that historic meeting, only the participants know. The immediate aftermath suggests that it was not fruitful.

A month later, the IRA ended a fragile 17-month cease-fire and detonated a massive bomb at Canary Wharf in London’s Docklands, killing two people and causing widespread destruction.

So are there any lessons to be learned from that attempted reconciliation at Davos 1996? Well, yes, two, I think.

First, when did Davos cease to be a forum at which warring parties could at least try to resolve their differences, and turn instead into a self-congratulatory schmooze fest at which everyone agrees with everyone else?

We don’t make peace with our friends, we make peace with our enemies. Our world is not short of sworn enemies — inviting a few to Davos might not end their enmity, but who knows what progress could be made?

Second, just when you think all hope is lost, it isn’t. It is true that 1996 was a bad year for renewed IRA violence, but a year later Tony Blair became British prime minister and turned up the heat under a simmering peace process of which that Davos meeting was a part.

A year after that, in 1998, the Good Friday agreement was signed in Belfast, a democratic power-sharing assembly was established in Northern Ireland, the province’s feuding paramilitaries laid down their weapons — and John Hume and David Trimble, two participants in a Davos meeting that initially appeared to consist chiefly of moving some furniture, were awarded the Nobel Prize for Peace.


Red Sea Global offers more than 50 leisure activities: top official

Updated 30 April 2024
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Red Sea Global offers more than 50 leisure activities: top official

RIYADH: Contrary to popular conception, sporting activities provided in the Red Sea and AMAALA are not just confined to water, but these destinations offer exciting leisure choices on land as well, said a top official. 

Speaking to Arab News at the Future Hospitality Summit, Oliver Wood, senior director of Destination Development at Red Sea Global, said the destination currently offers more than 50 activities for visitors. 

Wood said that RSG created three business entities last year — Galaxea, WAMA, and Akun. 

Galaxea provides diving experiences to visitors, while WAMA and Akun offer water activities and adventure sports respectively. 

“Galaxea is a coral that’s endemic to the Red Sea. It looks like, a kind of submarine galaxy that sits below a constellation and is beautiful. Then we created WAMA which is a way for water. And then we created Akun, which to us, is obviously ‘to be’ in the moment, start when you stand, breathe, leave everything behind,” said Wood. 

He added: “So, all three of these businesses work together to do something that will reduce the misconceived fact that we are just water. We are land as well. In fact, similar to our surroundings, our land was created by water. Fifty million years ago, the sea was 120 km inland and 200 m higher. So we’re finding dinosaur bones. We’ve got petroglyphs, we’ve got ancient trade routes.” 

According to Wood, some of the land activities offered in the Red Sea and AMAALA destinations include biking and hiking, with RSG recently delivering electric fat bikes for visitors. 

“So for us, it’s about taking you out hiking. It’s taking you biking, supercool Akun electric fat bikes that we just got delivered. So, you can go sand, and gravel wherever you want. It’s about climbing to the top of our mountains,” he added. 

The RSG executive also lauded the efforts of the Saudi Sailing Federation and the Saudi Water Sports and Diving Federation in promoting water sports in the Kingdom. 

“The Saudi Sailing Federation, Saudi Water Sports and Diving Federation, they’re bringing this sport to the forefront. So, together we’ve created this blueprint so that you have more Saudis in the water, more tourists that are going in the water,” he noted. 

Wood said that the availability of e-foils is one of the major attractions in the destination. 

“E-foils is a surfboard that’s electrified, has this fin in the middle that pushes you above the water, so you glide through it without any friction. That is one of the most popular things we do. It is really good fun,” said Wood. 

He added: “You can kayak through mangroves. And, then below the water is incredible. It’s one of the most well-preserved reefs in the world, and we’re very lucky to be working with KAUST on the scientific side.” 

According to Wood, Galaxea is not just a diving brand, but it will allow visitors to understand the beauty and value of nature. 

“There are lots of rare and endangered species beneath the water and it’s just incredible. It is a beautiful experience that allows you to reset your mind and just have a beautiful time in the Red Sea,” said the RSG official. 

He revealed that RSG brand Corallium, which is a marine life institute, will help travelers understand more about protecting, preserving, and supporting water ecosystems. 

Wood added that Corallium would also help divers communicate with experts in real-time, as they enjoy the beauty of the marine world. 

According to the RSG website, Corallium can host 650 people at one time, and guests will be able to walk underwater, snorkel with rare species, participate in lab tours as well as dive into the depths of the Red Sea in a submarine. 

“So as a diver, so you go snorkeling, you’re kind of shut off from it and experiencing it. Then you can speak to somebody afterward and understand.

 “We try and extend that a bit further. you actually get to go out in these experiences and dive with a full face mask, communicating in real-time, under the water with our team,” he noted. 

Wood also revealed that RSG has plans to create a scuba spa, where people can enjoy the silence in water. 

Talking about the multiple options available for travelers in the Red Sea, he said: “You can be in the middle of desert dunes, you can be out in granite mountains. You can even go down to volcanoes. We have incredible volcanic lava fields that sit close to us. And then you can be in the water. You can be in front of 600-year-old pillars of coral reef. You can go through caves into the water.” 

Wood also hinted that RSG is working toward offering Red Sea and AMAALA destinations to people who fall both in the luxury class and the middle range. 

“We’re trying to show generosity in the value that we offer everybody there. We’ve tried to not only benchmark globally but try and push it right down so it is accessible to everybody and so that everybody can come and really enjoy it,” said Wood. 

He added: “For me, it’s about building things around that enable people to come and get involved with it. So there are all sorts of things that we’re working on right now that will be revealed and are coming up.” 


BlackRock, PIF launch multi-asset investment management platform in Riyadh

Updated 7 min 37 sec ago
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BlackRock, PIF launch multi-asset investment management platform in Riyadh

  • First-of-its kind partnership aligns with PIF’s initiatives to drive further growth of the Saudi capital markets ecosystem, sector
  • It will be anchored by an initial investment mandate of up to $5bn from PIF

RIYADH: BlackRock Saudi Arabia and the Public Investment Fund signed a memorandum of understanding on Tuesday which entitles the former to establish a Riyadh-based multi-asset investment platform.
It will be anchored by an initial investment mandate of up to $5 billion from PIF, subject to the achievement of agreed milestones between the parties, said a media statement.
Both parties have expressed the intention to establish BlackRock Riyadh Investment Management, which will encompass investment strategies across a range of asset classes. It is expected to be managed by a Riyadh-based portfolio management team and supported by BlackRock’s global asset management platform.
Larry Fink, BlackRock’s CEO, said: “We are excited to build on the deep partnership we have developed with PIF over many years to launch this first-of-its-kind international investment management platform in Saudi Arabia.
“The continued growth of the Kingdom’s capital markets, and diversification of its financial sector, will contribute to future prosperity for its citizens, the competitiveness of its companies and the resilience of its economy.”
Saudi Arabia has become an increasingly attractive destination for international investment as Vision 2030 comes to life, according to Fink.
He added: “We are pleased to offer investors from around the world the opportunity to take part in this exciting, long-term opportunity.”
Yazeed Al-Humied, PIF’s deputy governor and head of MENA (Middle East and North Africa) Investments, said: “PIF’s relationship with BlackRock is well established and growing. This new landmark agreement represents a step forward in PIF’s work in making the Saudi investment and asset management market more internationally diverse and more dynamic.”
As Saudi Arabia continues to transform its economy, BRIM will seek to support foreign institutional investment into the Kingdom and further enhance the Saudi asset management industry, broadening local capital markets while driving investor diversification across asset classes, facilitating knowledge sharing and the development of Saudi-based asset management talent.
BRIM will be fully integrated with BlackRock’s investment capabilities and operating platform, benefiting from global market expertise.
The non-binding memorandum is subject to satisfying certain necessary conditions, regulatory approvals, and fulfilling specified milestones.


Hospitality brands sign deals to expand in Saudi market

Updated 30 April 2024
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Hospitality brands sign deals to expand in Saudi market

RIYADH: Top hospitality brands signed deals at the Future Hospitality Summit in Riyadh to capitalize on the opportunities available in the Kingdom.

France-based Accor Group said it will strengthen its position in the Kingdom with the addition of more than 25,000 rooms and the launch of a wide variety of brands.

The global hospitality group also recently launched Accor One Living, an initiative offering specialized knowledge in mixed-use and branded residential development.

Ladun Investment Co. signed an agreement with Cheval Collection. The partnership encompasses multiple contracts for the construction and operation of Cheval Ladun Living, which is a hotel apartment tower located on King Fahd Road, near the King Abdullah Financial Center in Riyadh.

The deal represents Cheval Collection’s inaugural project in Saudi Arabia, featuring 130 residential units of varying sizes, from one to three rooms, alongside amenities like a gym, a swimming pool, and a sauna.

The project’s construction is scheduled to begin this year and will be completed in 2027.

Marriott International, Inc. and Al Qimmah Hospitality, a subsidiary of BinDawood Trading, signed an agreement to bring the JW Marriott brand to Jeddah.

Located on the Jeddah Corniche, the hotel is expected to become a prime destination for luxury-seeking travelers who desire a waterfront escape.

“The signing of JW Marriott Hotel Jeddah continues to reflect the strong growth opportunities for our luxury brands across the Kingdom. As part of the country’s Vision 2030 framework, Jeddah continues to build itself as a leisure and business destination,” Chadi Hauch, regional vice president of Marriott International, development of the Middle East, said in a press statement.

On behalf of Al Qimmah Hospitality, Abdul Razzaq BinDawood commented: “We will leverage our expertise and experience in the retail and hospitality sectors to make JW Marriott Hotel Jeddah a successful addition to the city’s landscape.” 

Baheej Tourism Development Co., a joint venture between ASFAR, the Saudi tourism investment company owned by the Public Investment Fund, and the Tamimi-AWN Alliance, signed a deal with Kerten Hospitality.

The agreement grants Kerten Hospitality management of Baheej’s hotel in Yanbu under the premium Cloud 7 brand.

Cloud 7 is an innovative hotel and residential lifestyle brand, recognized for its designs, check-in lobbies, healthy food options, and retail boutiques.

“Baheej’s collaboration with Kerten Hospitality underlines our core principle: empowering partners and subsidiaries through our expansive network,” Fahad bin Mushayt, CEO of ASFAR said.

The PIF-owned company also signed agreements with Mantis and KMC to manage the operations of Al Baha Mountain Lodge & Adventure Park.


Cashless payments in Saudi Arabia to rise by 7.6% in 2024

Updated 30 April 2024
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Cashless payments in Saudi Arabia to rise by 7.6% in 2024

RIYADH: Cashless payments in Saudi Arabia are expected to surge by 7.6 percent in 2024 to SR550 billion ($146.8 billion) as compared to SR511.5 billion the previous year, a report said.

The report issued by GlobalData, a London-based data analytics and consulting company, projected the Saudi card payments market to grow at an annual rate of 6.4 percent between 2024 and 2028 to reach SR705.2 billion. 

The uptick comes amid the Saudi government’s push for a cashless society by encouraging consumers to switch to cards for financial transactions.

“While cash has traditionally been a preferred method of payment in Saudi Arabia, its usage is on the decline in line with the rising consumer preference for electronic payments,” said Ravi Sharma, a lead banking and payments analyst at GlobalData. 

He added: “The country has a robust digital payment infrastructure, supported by a developing card market and a well-established card acceptance infrastructure.” 

Sharma further noted that Saudi Arabia’s government is taking effective steps to enhance the infrastructure in the country by encouraging merchants to adopt at least one electronic payment option apart from cash. 

The report, however, added that cash remains an integral part of the Saudi consumer payments landscape, particularly for lower-value transactions, but the usage of hard currency is showing signs of decline. 

Promoting digital payments is crucial for Saudi Arabia, as the Kingdom’s Vision 2030 aims to reduce cash transactions and increase the share of electronic payments to 70 percent of all transactions by 2025.

“The (COVID-19) pandemic changed the way Saudi consumers make payments, with an increasing number of consumers preferring contactless payments,” said Sharma. 

He added: “Contactless cards have been on the rise in the country with the Saudi Arabian central bank reporting 363.4 million transactions using NFC-enabled mada cards in February 2024 compared to 331.7 million in February 2023.” 

In terms of card preference, debit cards dominate the overall card payment space, accounting for 85 percent of the overall card payment value in 2023. 

GlobalData pointed out that the government’s financial inclusion initiatives, consumers’ preference for debt-free payments, and prudent consumer spending have resulted in the domination of debit cards in the Kingdom. 

“Saudi consumers are gradually embracing electronic payments, moving away from cash, supported by government push, improvements in payment infrastructure, growing consumer awareness, and rising adoption of newer technology like contactless,” added Sharma. 

In April, data released by the Saudi Central Bank revealed that payments made through point-of-sale terminals in the Kingdom experienced a significant 20 percent annual increase in February, totaling SR53.72 billion. 

The largest portion of POS spending in February was allocated to beverages and food, comprising 15.7 percent or SR8.43 billion. 

This was followed by spending on restaurants and cafes, accounting for 15 percent of the total, reaching SR8.02 billion. 


Saudi Arabia, China discuss collaboration in urban development during Beijing meeting

Updated 30 April 2024
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Saudi Arabia, China discuss collaboration in urban development during Beijing meeting

RIYADH: Saudi Arabia and China stand to gain by sharing expertise in city planning, sustainable urban development, and construction technology as officials from both sides met in Beijing.   

Saudi Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail and Chinese Minister of Housing and Urban-Rural Development Ni Hong held discussions to explore cooperation opportunities in developing housing policies and programs for residential communities. 

This move extends from the Chinese President’s visit to the Kingdom in December 2022 and the agreements signed between the two nations during that time. 

Following the meeting in Beijing, Al-Hogail stated in a post on X: “Our leaders have completed an agreement on the importance of strengthening the partnership and aligning Saudi Vision 2030 with the Belt and Road Initiative, which will reflect positively on the aspirations and economic standing of Saudi Arabia and China globally.”  

He added: “We are working to enhance fruitful cooperation between the two countries in various fields including developing urban areas and attracting the best Chinese construction companies to benefit from their expertise in enhancing housing units in various regions of the Kingdom, with the aim of achieving the goals of the housing program — one of the programs of the Kingdom’s Vision 2030 — by providing various housing and financing options for citizens.”  

Furthermore, the two countries reviewed successful experiences in providing housing solutions and options, along with enhancing opportunities for citizens to own homes. They also discussed ways to facilitate the exchange of experiences in urban management and the application of best practices in this regard. 

The meeting was part of an official visit by Al-Hogail to the Chinese capital. During his visit, he is scheduled to meet with senior officials in the Chinese government, heads of construction companies, and banks to strengthen the partnership in the construction sector. The trip also aims to attract top international companies in real estate development.