Frankly Speaking: Saudi Arabia can be number one market for Rolls-Royce, says carmaker’s CEO Torsten Muller-Otvos

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Updated 27 December 2021
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Frankly Speaking: Saudi Arabia can be number one market for Rolls-Royce, says carmaker’s CEO Torsten Muller-Otvos

  • With more women and young people drawn to the brand, Saudi Arabia is becoming a top Middle East market for Rolls-Royce
  • CEO Torsten Muller-Otvos says Rolls-Royce is a “frontrunner” in the electric car transition among ultra-luxury brands

DUBAI: Big changes under way in Saudi Arabia could turn the Kingdom into the top market in the Middle East for Rolls-Royce cars, Torsten Muller-Otvos, the elite motor company’s chief executive, told Arab News.

“Saudi obviously is a big market. I see even more potential to come from Saudi in the years to come because the market is currently also opening up and is growing,” said Muller-Otvos, citing the royal decree of 2017 that granted Saudi women the right to drive and obtain driving licences for the first time.

“We see now the first female drivers in our cars in Saudi and for that reason I foresee we might in a couple of years talk about this being a massive, great market. It might even one day be the number one market in the entire region. Who knows? Potential-wise, it’s possible, but it depends on some other aspects,” he added.

Muller-Otvos delivered his forecast on Frankly Speaking, the series of video interviews with thought leaders in the Middle East and the world.




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In the interview, the boss of the British-designed but German-owned luxury car manufacturer set out Rolls-Royce’s road map to go completely electric, the effects of the COVID-19 pandemic on global and regional sales, and the effect of rising oil prices on elite car sales.

He also talked about some of the more extravagant custom features regional customers want on their cars.

The Rolls-Royce mark, founded in Britain 115 years ago but owned by BMW of Germany since 2003, is the ultimate status symbol in motoring, from California to Shanghai, but with a particular appeal among Arab buyers.

The transition currently under way in the global transportation market, with the surge in electric vehicle sales, has impacted Rolls-Royce and other petrol-engine manufacturers. Nevertheless, Muller-Otvos says Rolls-Royce is leading the way in electrification among the ultra-luxury market.




A vintage Rolls-Royce is shown during the exhibition in the King Abdullah II car museum in Amman, Jordan  Feb. 18, 2016. (Shutterstock)

“I would even say we are front-runners,” he said. “I mean, we are not comparing ourselves with what I would call the ‘normal’ automotive business. We are high in luxury. And you might also know that we are the very, very first ones in the ‘ultra-high luxury’ segment worldwide.”

The first electric Rolls-Royce, the Specter, will be available in the Middle East from 2023. “I can tell you Spectre will be a stunning, remarkable Rolls-Royce,” Muller-Otvos said. “We also took our time because, first of all, it needs to be a Rolls-Royce, so that means no compromises around luxury experiences for our clients worldwide, and then second comes, obviously, electric.”

The Spectre — which motoring pundits expect will cost around $350,000 for a starter-level vehicle — will play to Rolls-Royce’s traditional strengths. “It is also silent. We are not defining ourselves with loud engine noises or exhaust noises and for that reason I think it’s a perfect fit for the brand,” he said.




Rolls-Royce has announced that its first electric car would be made available by 2023. (Supplied)

But there were also commercial and regulatory imperatives for Rolls to get into the electric market. “We also see, worldwide, certain regulations kicking in that might mean in a couple of years you can’t enter city centers any longer without driving electric. And that, of course, would not be great for the brand.”

Elon Musk’s Tesla has so far been the headline grabber in the move to electric vehicles. Now, many traditional car companies in all the big markets are jumping on the “EV” bandwagon. However, Muller-Otvos is confident Rolls-Royce has traditional strengths in the hotly competitive market.

“Rolls-Royce never defined itself purely by the engine. That is not us. That is for other brands. We defined ourselves as the ultimate in luxury. It is about the finest materials, the best craftsmanship. It takes 1,000 hours at least to build one of these beautiful masterpieces,” he said.

Muller-Otvos also believes the move toward electric vehicles fits the shifting demographic of the Rolls-Royce clientele. “I think we will see a trend, step-by-step. Particularly the younger ones are very much attracted to electric propulsion. What we have also learned is that once you’re in an electric car, you are probably not getting back into a combustion car,” he said.

In the past, Rolls-Royce customers were overwhelmingly male, successful business executives, celebrities, or even royalty. That profile is now changing.

“When I started — and I’ve been in the role now for nearly 12 years — the average age of a Rolls-Royce customer was around 56. We are now down to 43. We have massively refurbished the brand, reinvented the brand, rejuvenated the brand. We now have young clients all over the world,” he said.

In the Middle East in particular, more women want to drive a Rolls-Royce. “When I joined, (the client base) was 1 percent female worldwide. Now we are at around 15 percent worldwide, and I think there are more to come, particularly here in the Middle East. You see quite a lot of female drivers behind the wheel. I think in the Middle East, we are talking probably 20 percent or so, and that’s quite a good share,” he said.

A big earner for Rolls-Royce has long been the trend towards customization — what the manufacturer calls the “bespoke proces” — where wealthy customers pay extra for unique features in their cars.

Sometimes, this results in lurid color schemes and outlandish accessories that would horrify Rolls-Royce traditionalists. But Muller-Otvos does not see himself or Rolls-Royce as an arbiter of individual taste.

“Let’s imagine, for a moment, a bright orange exterior and a yellow interior. It might look a little bit odd in central London, but down here in bright sunshine it looks stunning. I think you always need to keep that in mind. The last thing I want to do is judge — with my European taste — international clients. We are not the taste police in Rolls-Royce,” he said.

There was one request for a luxury accessory, however, that went aa bit too far — a request from a wealthy client for a chilled cigar compartment on the dashboard.

“One that was too crazy and was declined was for a humidor on the top panel, and that, unfortunately, wasn’t possible, technically, because we would have lost homologation (regulatory approval),” he said.




The Cullinan has been tested in the world’s toughest terrain, including Arabian deserts. (Photo courtesy of rolls-roycemotorcars.com)

Rolls-Royce has long held a special place in the Arab world, dating back to the time when Britain’s then-prime minister Sir Winston Churchill presented King Abdulaziz of Saudi Arabia with a custom Phantom model as a post-war gift.

The early stages of the COVID-19 pandemic saw a sharp drop in Rolls-Royce sales, as the Goodwood plant in the UK was forced to halt its production line for two months and deliveries were disrupted.

But that turned out to be the prelude to a rapid acceleration in sales in the Middle East and the wider world once the recovery got under way, matching a global phenomenon that saw all sales of luxury goods grow after the initial shock of lockdown. Muller-Otvos had an intriguing explanation for this.

“Many clients told me they have realized that it is possible that you could die suddenly, and many of them have even seen that up close. That made them think: You only live once, enjoy your life now, don’t postpone it to later days,” he said




The new Rolls Royce Ghost – re-engineered and relaunched in 2020 – is in high demand in the Middle East (Shutterstock)
 

The Cullinan, Rolls-Royce’s first foray into the luxury SUV market, has been in particularly high demand in the Gulf, as has the Black Badge Ghost.

As ever in the region, the fortunes of the oil market continue to determine the strength of the economy — and Rolls-Royce sales.

“The oil price is quite an indicator here for how healthy the economy is and we are very much dependent on how the economy goes,” Muller-Otvos said. “If the economy flies, we fly.”


Four years with a company counts as loyalty in the modern job market, HR summit hears

Updated 18 June 2025
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Four years with a company counts as loyalty in the modern job market, HR summit hears

  • Delegates at Human Resources Summit and Expo in Riyadh hear generational diversity and differing views on career progression are challenges that must be addressed
  • Experts discussed the effects of AI on the job market and explored strategies businesses need to adopt to ‘future-proof’ talent and navigate changing work landscapes

RIYADH: An employee who remains in the same role for four years is considered loyal in today’s job market, the audience at a human resources conference in Riyadh heard during a panel discussion on Tuesday.

The comment, at the Human Resources Summit and Expo, came from Syed Azharudin, director of learning and organizational development at logistical services company Ajex, who cited a recent study into workforce trends. Generational diversity is a factor that has to be addressed, he added.

“The biggest challenge for the HR industry is that you have different generations working together, like Gen X, baby boomers, millennials, Gen Z, and soon Gen Alpha, so you cannot have a blanket approach,” Azharudin said.

People from the most recent generations are more likely to be “job-hoppers,” he added; a study by global tech consultancy FDM Group found that Generation Z respondents were 13 per cent more likely than their non-Gen Z counterparts to view their current role as a stepping stone to a better career. 

In other sessions, HR experts discussed the effects of artificial intelligence on the job market, and explored the strategies companies need to adopt in their attempts to “future-proof” talent and navigate ever-changing work landscapes. As the rapidly evolving technology continues to dominate headlines, they considered a hot-button question: What would the future look like if human labor was replaced by AI?

“We’re not going to lose (our jobs) but we also need to make sure that we go efficiently and with innovative ways to utilize such tools,” said Eid Alkhaldi, succession management director at the Saudi Telcom Company.

During another discussion, Nada Al-Hassan, the Saudi Ministry of Investment’s director of training and development, spoke about ways to advance inclusive leadership in the region. 

“There are a lot of success stories and a lot of initiatives in all governmental sectors (in Saudi Arabia),” she said, highlighting in particular the Vision 2030 Human Resources Development Program and the Saudization program Tawteen.

The Human Resources Summit and Expo began on June 15 and continues until June 19.


Saudia flight from Jeddah to Jakarta diverted after bomb threat, lands safely

Inspections by authorities confirmed the aircraft was secure and the bomb threat was false. (Supplied)
Updated 59 min 51 sec ago
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Saudia flight from Jeddah to Jakarta diverted after bomb threat, lands safely

  • ⁠Flight SV5276, bound for Jakarta, was rerouted to a different airport in Indonesia after an email claimed there was an explosive device on board
  • The aircraft landed safely at Kualanamu International Airport in Medan, where passengers and crew evacuated the aircraft and nobody was hurt

RIYADH: Saudia has confirmed that all passengers and crew are safe after a flight from Jeddah to Jakarta made an emergency landing at another airport in Indonesia, Al Arabiya News Channel reported on Tuesday.

The flight was forced to divert after an email threat claimed there was a bomb on board, a Saudia spokesperson said.

Abdullah Al-Shahrani, the airline’s general manager of corporate communications, told Al Arabiya that in response to the security alert, Flight SV5276 was rerouted to Kualanamu International Airport in Medan as a precaution.

The plane landed there safely and all passengers and crew evacuated the aircraft without incident and nobody was hurt, he added. Inspections by authorities confirmed the aircraft was secure and the bomb threat was false. Al-Shahrani said passenger safety remains Saudia’s top priority and the airline was working to help passengers continue their journeys.

In a statement to Arab News, Saudia confirmed: “In response to a security alert received in flight, Saudia diverted Flight SV5276, operating from Jeddah to Jakarta, to Kualanamu International Airport in Indonesia as a precautionary measure.

“The aircraft landed safely, and all guests and crew disembarked without incident. Local authorities conducted standard checks shortly after landing, and have cleared the aircraft for continued operation.

“The safety and well-being of our guests and crew remain Saudia’s highest priority. Full care and support have been provided and onward travel arrangements are being made."


UN two-state conference co-chairs urge renewed push for Palestinian state amid regional escalation

Updated 18 June 2025
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UN two-state conference co-chairs urge renewed push for Palestinian state amid regional escalation

  • The statement said the latest escalation had “necessitated the suspension” of the high-level conference in New York

RIYADH: Saudi Arabia and France, co-chairs of the United Nations Conference on the Peaceful Settlement of the Palestinian Question, joined with the chairs of the conference’s working groups in issuing a joint statement on Tuesday expressing “deep concern” over recent developments in the region, the Saudi Press Agency reported.

The statement said the latest escalation had “necessitated the suspension” of the high-level conference, underscoring “the validity of warnings about the fragility of the situation” and the urgent need to “restore calm, respect international law, and strengthen diplomatic action.”

Despite the setback, the group reaffirmed their “full commitment to the conference’s objectives” and pledged to “ensure the continuity of its work and the achievement of its goals,” SPA added.

They added that “the co-chairs of the working groups will announce the date of the conference's roundtables soon,” with the aim of generating “clear and coordinated international commitments” to advance the implementation of a two-state solution.

“In these critical circumstances,” the statement continued, “we must redouble our efforts calling for respect for international law and the sovereignty of states, and to promote peace, freedom, and dignity for all peoples of the region.”

The group also reiterated its “unwavering support for all efforts aimed at ending the war in Gaza” and called for a “just and sustainable settlement of the Palestinian issue,” affirming that regional stability and security hinge on a lasting peace.


Riyadh event highlights women’s role in diplomacy

Updated 17 June 2025
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Riyadh event highlights women’s role in diplomacy

  • Speech stresses progress made under King Salman, Crown Prince Mohammed bin Salman

RIYADH: The Prince Saud Al-Faisal Institute for Diplomatic Studies in Riyadh has held a symposium to mark the forthcoming International Day of Women in Diplomacy. It was attended by Vice Foreign Minister Waleed Elkhereiji, female diplomatic leaders, and ambassadors accredited to the Kingdom.

Elkhereiji spoke of the importance of empowering women in diplomacy, citing the progress made under the leadership of King Salman and Crown Prince Mohammed bin Salman in light of the Vision 2030 reform plan.

He noted that Saudi women now serve as ambassadors, leaders, and negotiators on the global stage, the Saudi Press Agency reported.

The symposium discussed efforts to support women’s diplomatic careers, the role of men in advancing change, and the unique contributions women bring to diplomacy.

Topics also included the global rise of women in diplomacy, their impact on foreign and domestic policy, and ways to enhance female participation in multilateral forums to address future challenges.


Saudi theatrical show ‘Terhal’ returns to Diriyah

Updated 17 June 2025
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Saudi theatrical show ‘Terhal’ returns to Diriyah

  • “Terhal” is a pioneering Saudi production which boasts advanced lighting and visual technology

RIYADH: The Ministry of Culture is to present the theatrical performance “Terhal” from Aug. 4-25 at Mayadeen Venue in Diriyah.

“Terhal” is a pioneering Saudi production which boasts advanced lighting and visual technology, according to the Saudi Press Agency.

It offers a visually captivating experience, telling the story of a young Saudi man who dreams of shaping his country’s future.

His journey across the Kingdom takes him through diverse landscapes and rich traditions, helping him to rediscover Saudi Arabia’s cultural and natural heritage. He returns to his village at the end with renewed confidence, wisdom, and hope.

The show features stunning scenes inspired by Saudi landscapes, and highlights young Saudi talents alongside renowned international performers.

The second edition of “Terhal” builds on the success of its 2023 debut which celebrated Saudi culture, from performing arts to handicrafts, traditional attire and cuisine.