Remittances from Saudi Arabia surge as expats help families in lockdown

Asian labourers work on a flyover construction site in eastern Riyadh on April 7, 2013. (AFP)
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Updated 04 December 2020
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Remittances from Saudi Arabia surge as expats help families in lockdown

  • Foreign workers defy World Bank forecasts by sending home $32.9bn in first 10 months of year, an 18.58% rise on 2019

RIYADH: Expats in Saudi Arabia sent SR123.4 billion ($32.9 billion) in remittances to their home countries in the first 10 months of this year, a rise of 18.58 percent compared with 2019.

The surge in payments came as foreign workers in the Kingdom looked to support their families during the coronavirus pandemic.

The growth is despite forecasts from the World Bank in April estimating that remittances to low- and middle-income countries would decline by 19.6 percent in the Middle East and North Africa (MENA) region this year as workers struggled to cope with the impact of the global health crisis.

Expat workers make up three-quarters of the 13.6 million workers in the Kingdom, with most coming from countries such as Syria, India, Pakistan, Bangladesh, the Philippines, and Sri Lanka.

Figures from the Saudi Central Bank (SAMA) showed that while remittances by expats in the Kingdom rose by 18.58 percent year-on-year between January and October, the biggest spike was in June when the monthly amount surged 60 percent compared with June 2019.

July also witnessed a rise of 32 percent, while August, September, and October saw monthly levels increase 24.7 percent, 28.5 percent, and 19.2 percent, respectively, compared with the equivalent months last year.

Mazen Al-Sudairi, head of research at Riyadh-based financial services company Al Rajhi Capital, told Arab News: “Debt to GDP (gross domestic product) ratio in emerging economies has increased up to 70 percent recently, and the unemployment rate led by COVID-19 has also increased in countries such as India and the Philippines, which are the countries forming the majority of the expat population in the Kingdom.

“Therefore, we believe that increased remittances are due to rising unemployment and difficult economic conditions back in the home countries of expats.”

He said another reason why expats may have been sending more funds home was because their surplus income had increased as a result of being unable to travel or spend as much as normal due to COVID-19 restrictions.

“Once the unemployment risks recede for expats in KSA, as well as in home countries, this level should normalize in our view,” Al-Sudairi added.

While the expats’ remittances increased in the 10-month period, the relative amount sent abroad by Saudi nationals declined by 17.5 percent to $12.58 billion during the same period, compared with $10.38 billion between January and October 2019.

Coronavirus travel restrictions were introduced in the Kingdom in March, leading to a 41.7 percent drop in funds transferred overseas by Saudi nationals in April compared with the same month last year. While domestic travel resumed in late May, funds sent overseas by Saudi nationals still fell 52 percent that month compared with May 2019.

FASTFACT

13.6 million

Expat workers make up three-quarters of the 13.6 million workers in the Kingdom.

Remittances briefly spiked by 17 percent in June, before reducing to declines again for the remainder of the year.

Al-Sudairi said that the drop in Saudis forwarding money out of the country was also due to the pandemic and travel restrictions.

“This affected tourism and medical treatment-related remittances. Even the business-related remittances were impacted in the earlier months of lockdown due to negative confidence.”

He added that he was “expecting the trend to be better next year” once international travel resumed.

The World Bank, despite its pessimistic outline in April, also predicted that remittances would recover in 2021 and rise by 5.6 percent globally and 1.6 percent in the MENA region.

In a statement issued in April, Michal Rutkowski, global director of the World Bank’s social protection and jobs global practice, said: “Effective social protection systems are crucial to safeguarding the poor and vulnerable during this crisis in both developing countries as well as advanced countries.

“In host countries, social protection interventions should also support migrant populations,” he added.


How the hospitality industry in Saudi Arabia is embracing environmental sustainability

Updated 27 April 2024
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How the hospitality industry in Saudi Arabia is embracing environmental sustainability

  • From the Red Sea coast to Al-Ahsa Oasis, new eco-friendly hotels and resorts are opening across the Kingdom
  • Industry leaders are boosting sustainability by cutting emissions, protecting habitats, and creating jobs locally

RIYADH: Saudi Arabia is emerging as a hotspot for international investment. Its latest hook? Sustainable hospitality.

The Kingdom led the Middle East and Africa’s hotel-building activity in 2023, with 42,033 hotel rooms constructed. This accounted for 35.1 percent of the 119,505 built in the region over the year, according to data from hotel monitoring firm STR. 

Saudi Arabia’s hotel segment is projected to generate $2.51 billion in revenue this year and is expected to reach $3.02 billion by 2027, according to Statista.

One of the Kingdom’s Vision 2030 goals is to champion sustainability across all sectors, and in turn, hotels and plazas across the country have been working to implement more environmental and eco-friendly practices in their facilities. 

From 2010 to 2019, Saudi Arabia’s tourism industry has contributed an average of 6.4 percent to the country’s gross domestic product, while recording a decline in greenhouse gas emissions. 

In contrast, the global GDP average for travel and tourism over the same period rose 4.3 percent, and emissions by 2.5 percent.

Several of Red Sea Global’s developments are already up and running along the Kingdom’s northwestern coastline, including the Six Senses Southern Dunes, The Red Sea and St. Regis Red Sea Resort. 

The company recently announced further projects pillared by environmental sustainability. 

The Four Seasons luxury wellness resort, Amaala, Triple Bay, is branded with regeneration and wellness at its core, and is set to feature a one-of-a-kind Corallium marine life institute. 

Saudi Arabia’s Triple Bay AMAALA will soon be home to a Four Seasons luxury wellness resort and is committed to sustainability, aligning with Four Seasons’ longstanding pledge to well-being. (Supplied)

Progress is also being made on a sustainability-focused staff village that will provide housing for those who work at the resort. RSG says that five international operator brands, including Six Senses and Clinique La Prairie, are expected to be confirmed in the coming months.

“Our mission to develop new destinations as beacons of responsible tourism, showcasing the best in sustainable and regenerative development, gains unprecedented urgency as our planet continues to face challenges in relation to the climate crisis and biodiversity loss,” John Pagano, RSG’s group CEO, said in a statement.

The economic zone NEOM recently unveiled three new sustainable hotels in its Leyja oasis, including three flagship Habitas properties, as well as Zardun, a sanctuary resort designed to harmonize with the surrounding ecosystem. 

NEOM’s Hotel Development division has also sponsored Hotelschool The Hague to bring about the Sustainable Hospitality Challenge, bolstering a new generation of innovation in the industry.

Many of the resorts across Saudi Arabia are built to blend in with the surrounding environment. Take AlUla’s Habitas, for example, which boasts the city’s serene desert landscape that immerses guests in its untouched backdrop.

Habitas’ sustainable design and modular construction aim to minimize environmental impacts. It is free of single-use plastics, offsets carbon emissions, and manages waste, recycling and composting. (Supplied)

The luxury resort brand demonstrates its sustainable ethos, in line with the UN Sustainable Development Goals for 2030, through the offsetting of carbon emissions, waste management and a single-use plastic free policy.

“The AlUla Sustainability Charter is at the core of every hospitality project we develop within the destination,” Phillip Jones, chief tourism officer at the Royal Commission for AlUla, told Arab News.

“From the foundational design and materials of construction to the infrastructure, and the ongoing operations, as we only work with international operators that have a proven track record in sustainability, AlUla’s hotels and resorts each contribute toward delivering on our goals, such as achieving net carbon neutrality for local emissions by 2035.”

As the Arab region demonstrates overall lower environmental sustainability due to water scarcity, harsh climate and biodiversity threats, industry leaders are redefining the buzz term to fit local standards.

There are a number of grassroots projects that examine the existing traces of environmental sustainability awareness throughout the Arab region’s history. The Kingdom’s forefathers exhibited community-centered lifestyles, for example, while Islam advises its followers to conserve food and water consumption. 

Chris Nader, CEO and co-founder of luxury ecolodge brand and management company ENVI Lodges, told Arab News: “Sustainability comes from a basis of trying to minimize our negative impacts on the environment. It’s not only nature, or animals — it’s also people.” 

KAEC will host the first eco-friendly coastal resort in the distinguished and captivating Laguna area. (ENVI Lodges image)

ENVI Laguna Bay, a sustainable project developed by Al-Rasim Hotels and Resorts, will occupy a prime Red Sea coast beachfront destination in King Abdullah Economic City, surrounded by mangroves. 

“KAEC will host the first eco-friendly coastal resort in the distinguished and captivating laguna area,” Aiad Mushaikh, CEO of Al-Rasim Hotels and Resorts, said in a statement.

The project strongly aligns with Saudi Arabia’s Vision 2030. Its road map for tourism sector growth includes respecting the land, protecting wildlife, supporting local communities, sourcing mindfully, in-house food production, engaging guests and designing a sense of place. These pillars have been built into the technical guidelines of building the lodge. 

One common belief is that building necessitates the destruction of land. But through its design principles, ENVI demonstrates different approaches that can be taken to minimize its presence within the natural landscape. The company builds low-impact lodges that blend into the environment. 

“We don’t do excavations,” said Nader. “We put our unit on stilts or decks, and we don’t build the units completely on the site so the amount of people and trucks on the site that have to come and go is very limited.”

An important element is also selecting materials from the environment, whether they be wood, rocks or mud, and sourcing materials and products that will maintain durability and integrity over time. 

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The company also champions sourcing a percentage of the ingredients used in its kitchens from in-house gardens, developing programs for wildlife protection and hiring staff from local communities, all of which are tailor-made programs for each lodge.

The whole concept is to assume the project is temporary, aiming to leave the landscape more or less in the same state it was found in. The walkways are not poured concrete, and the native species are planted to cross-pollinate.

Another way to stitch sustainable practices within the fabric of the community is to engage guests in the initiative.

“Today, guests don’t want to be spectators,” said Nader. “They don’t want to be told that the lodge is planting mangroves. They want to plant themselves. Guests want to clean the beach, or the lodges, to remove any litter and plastic and all of that. They want to be involved in saving wildlife and caring.”

Saudi Arabia’s Public Investment Fund recently launched Dan Company, which specializes in agritourism and ecotourism. Architecture and design practice LWK + Partners is working on a project with Dan Co. that aims to invigorate the agriculture industry in Al-Ahsa through hospitality, serving as a benchmark for future projects.

Ashar Valley’s Banyan Tree in AlUla has a plastic-free pledge as one of its key practices. The luxury brand is built on a sustainable ethos, committed to showing respect to its surroundings. (Supplied)

Kerem Cengiz, MENA managing director at LWK + Partners, told Arab News: “Sustainability isn’t just about the reduction of energy; sustainability is also about the way we create places that are harmoniously designed to make the way we interact with them sustainable. 

“We look at sustainability as a holistic offering, rather than a series of tick boxes that we need to achieve.

“It really is important that when we design, we don’t have a pattern book; it still saddens me that we’ve seen many buildings going up that are just glass towers. They express a certain language and vision, but are they desirable in the context of the challenges that we’re facing environmentally?”

He added that the key to bridging these sustainable values into the future of the industry is to focus on a fundamental understanding of technology and innovation. How do you put in sensors that turn off the AC when guests leave the room, for example?

InterContinental Al-Jubail’s commitment to sustainability includes eco-friendly deep cleaning, water and electricity conservation, and voluntary beach cleaning campaigns. (Supplied)

Saudi Arabia is leading the way in many development practices, said Cengiz. The Holiday Inn Tabuk is utilizing solar energy as an alternative power source in some locations, while the InterContinental Jubail carries out voluntary campaigns to clean its beaches.

Like Nader, Cengiz said that private and public developers should move towards sourcing materials that are locally or regionally available. This adds great value not only economically, but also sustainably, by cutting down on products imported from overseas, simultaneously reducing carbon emissions.

He added: “Now, Saudi is developing its own market and its own product lines. I think that, in itself, has a massive impact and I would love to see more attention on that type of thing.

“I think we’re way past the 2030 Vision now. I mean, we’re evolving it much further into something significantly more impactful.”
 

 


Saudi Coffee Co. and Bieder & Maier blend two coffee cultures

Updated 26 April 2024
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Saudi Coffee Co. and Bieder & Maier blend two coffee cultures

  • Viennese coffee-maker collaborates with local brand to buy Arabica beans from Jazan

RIYADH: The Kingdom and Austria recently celebrated the world premiere of the “Premium Saudi Blend” by Viennese coffee manufacturer Bieder & Maier and the Saudi Coffee Company.

The launch of the product brings Saudi and Austrian coffee culture together. During the presentations in Vienna and Riyadh, guests tasted the new coffee roast, catering for espresso to filter and cold brewing.  

Bieder & Maier collaborates with Jazean brand to become the world's global brand to directly acquire the finest Arabica beans from Jazan. (Supplied)

“The coffee is an embodiment of our culture and identity,” CEO of Saudi Coffee Company Khalid AbuTheeb told Arab News. “With the objective of enhancing the local coffee industry and promoting our coffee tradition, we have collaborated with Bieder & Maier, a Vienna-based coffee powerhouse.”

AbuTheeb said that the collaboration was facilitated by the Saudi Ministry of Investment. “Through this collaboration ... the Saudi Coffee Company will bring forth unique coffee blends utilizing Saudi coffee beans in a mix with international beans to the Saudi and Austrian markets,” he said.

HIGHLIGHTS

• In 2011, Viennese coffee house culture was declared an intangible world heritage, followed by Arabic coffee in 2015 and Saudi Khawlani Arabica beans in 2022.

• They have all been declared intangible world heritage by UNESCO in recognition of their respective traditions and cultural significance.

• Starting during fall this year, a number of coffee houses will be opened in Saudi Arabia, with Cenomi Retail as franchise partner.

According to AbuTheeb, they will supply the finest Saudi coffee beans directly from the Jazan region.

“As we explore roasting capabilities here in the Kingdom, we are not just content with embracing tradition; we are striving to shape the future of coffee, where innovation intersects with heritage on a global scale,” he said.

Dr. Margarete Schramboeck, the former minister of economy and digital affairs of Austria, and current Aramco digital board member, expressed her growing interest in Saudi coffee culture since she moved to the Kingdom.

“It was the year 2022 when I first came to the Kingdom and learned about the Year of Saudi coffee and the amazing culture of growing coffee in Jazan,” Schramboeck told Arab News. “Therefore, I was passionate about bringing this idea of a special Saudi blend to life. An exceptional partnership with the support of the Ministry of Investment of Saudi Arabia has been initiated. I want to thank Minister Khalid Al-Falih and team for the support.”

Recalling her visit to Jazan and its coffee-growing families, Schramboeck said: “The quality and tradition of coffee has deeply impressed me.”

Rudi Kobza, founder and CEO of Bieder & Maier Vienna, stressed the importance of the collaboration. “The Saudi heritage is unique and the ambition of the Saudi Coffee Company is impressive. The Premium Saudi Blend brings this philosophy in an authentical way alive. This can be experienced soon in our first Bieder & Maier cafe in Saudi Arabia, which we will operate with our partner Cenomi, as well as in Vienna.”

“Austrians share a common passion for coffee. Therefore, I was passionate about developing this project. When Saudi Arabia meets Vienna, the home of the Arabica coffee bean combines with the home of traditional coffee house culture to create a particularly enjoyable coffee project.”

In 2011, Viennese coffee house culture was declared an intangible world heritage, followed by Arabic coffee in 2015 and Saudi Khawlani Arabica beans in 2022. They have all been declared intangible world heritage by UNESCO in recognition of their respective traditions and cultural significance.

Starting during fall this year, a number of coffee houses will be opened in Saudi Arabia, with Cenomi Retail as franchise partner.

 


Excavators held for violating water system

Updated 26 April 2024
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Excavators held for violating water system

  • The discovery was made during field tours carried out by the water department

TUBARJAL: The Al-Jouf branch of the Saudi Ministry of Environment, Water and Agriculture has apprehended three excavators who were found to be violating the water system in Tubarjal.
The discovery was made during field tours carried out by the water department, in cooperation with the competent authorities in the governorate.
Separately, authorities in Addayer in the Jazan region have arrested seven Ethiopians for smuggling 105 kg of hashish. Legal procedures have been completed against the offenders who were handed over, along with the seized items, to the competent authority.
Border guard patrols in the Al-Harth area of Jazan have also foiled an attempt to smuggle 71 kg of hashish, with initial legal procedures completed and the find handed over to the competent authority.
Security authorities have reiterated their appeal for citizens and residents to report any information regarding drug smuggling or selling by calling 911 in Makkah, Riyadh, and the Eastern Region, and 999 in the rest of the Kingdom’s regions.
Those with information may also contact the General Directorate of Narcotics Control at 995 or at [email protected].


48th Saudi relief plane for Palestinians

The aid is part of the humanitarian and relief efforts provided by Saudi Arabia through KSrelief. (SPA)
Updated 26 April 2024
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48th Saudi relief plane for Palestinians

  • The plane carried shelter materials to be transported to the conflict-affected Palestinians in the Gaza Strip

AL-ARISH: The 48th Saudi relief plane for Palestinians in Gaza arrived on Friday at Al-Arish International Airport, Egypt.

It was operated by the King Salman Humanitarian Aid and Relief Center, in coordination with the Saudi Ministry of Defense.

The plane carried shelter materials to be transported to the conflict-affected Palestinians in the Gaza Strip.

The provision of aid is ongoing from the Kingdom, which has stood firm with the Palestinians amid crises and tribulations.

 


Direct KSA to Iraq flight routes announced

Updated 26 April 2024
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Direct KSA to Iraq flight routes announced

  • These flights, along with flights to Baghdad and Irbil, will commence from June 1.

RIYADH: The Saudi General Authority of Civil Aviation announced the launch of direct flights from Dammam to Najaf, the Saudi Press Agency reported on Friday.
The decision is in line with the Kingdom’s national aviation sector strategy, aimed at doubling capacity to accommodate over 330 million passengers annually, and extending services to more than 250 global destinations.
These flights, along with flights to Baghdad and Irbil, will commence from June 1.