Pagano sees contribution of TRSDC-AMAALA tourism projects to Saudi GDP at $9bn

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Updated 11 May 2022
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Pagano sees contribution of TRSDC-AMAALA tourism projects to Saudi GDP at $9bn

  • TRSDC is on track to open three new hotels this year and receive its first guests in early 2023.
  • There will be 13 more hotels inaugurated by the end of next year.

DUBAI: The Red Sea Development Co. is on a bigger mission now after it added AMAALA to its portfolio with the two projects expected to contribute around SR33 billion ($8.8 billion) to the Saudi economy in five years.

TRSDC is on track to open three new hotels this year and receive its first guests in early 2023. There will be 13 more hotels inaugurated by the end of next year.

What’s more? The archipelago of 90 islands in the Red Sea, which houses the fourth largest barrier reef globally, will focus on sustainable tourism with a twist of luxury. The giga-project has already signed up nine global brands, and more will follow suit.

What’s interesting about what we’re doing is that it’s not a built-up urban area; it’s a part of Saudi that is untouched.

John Pagano

“What’s interesting about what we’re doing is that it’s not a built-up urban area; it’s a part of Saudi that is untouched,” said John Pagano, CEO of TSDRC and AMAALA, in an interview with Arab News at sidelines of the Arabian Travel Market, the international travel trade show in Dubai.

“Our first guests can choose between two luxurious island resorts or a desert resort next year,” he added.

The two island hotels are in the hyper-luxury segment, both boutique hotels with 80 rooms in one and 90 in the other.

Positioned like high-end Maldives offerings, they will be highly serviced and attract discerning luxury travelers.

Pagano revealed that the St. Regis brand would operate one of the hotels, while the other island resort will be announced soon. The desert resort will be managed by the Six Senses group, which shares a commitment to green practices.

High sustainability standards

Sustainability is a crucial offering for TSRDC, both in terms of catering to consumer demand and as a differentiator in a crowded regional tourism market.

The Red Sea covers an area the size of a country like Belgium; however, Pagano confirmed that the company would only develop less than one percent of that to respond to an ecological ceiling based on what the environment can handle without incurring damage.

“Rather than overdevelop simply because we can, we actively monitor the environment using artificial intelligence and data to watch out for warning signs if something we are doing is not going according to plan,” he said. “We do not want to cause any lasting damage.”

Sustainable travel is in demand now, with 81 percent of 30,000 travelers in a Booking.com survey released this year saying that sustainable travel is essential to them. Fifty-nine percent of travelers wanted to leave the places they visited better than when they arrived.

“Luxury doesn’t mean what it used to. We have moved away from luxury being ostentatious: It’s about experiences and the traveler today wants more sustainable experiences,” said Pagano. “So we give people a choice to go to a destination that puts nature first. We aim to be the biggest tourist destination in the world powered 100 percent by renewable energy.”

Even the company’s financing efforts were green; last year, The Red Sea Development Company secured an SR14.120 billion green loan, marking the first-ever Riyal-denominated Green Finance credit facility.

“We are fully capitalized at the moment for phase one of the development and have a good track record in the market if we need to raise more for other projects, including AMAALA,” said Pagano.

Sea change in development

Merged under the TRSDC brand, AMAALA is a megaproject along the Red Sea coastline that is now managed under the Red Sea Development umbrella. The project plans to award $319.9 million in contracts in the second quarter of this year to create a new wellness-focused tourism destination. There are currently eight hotels under construction for AMAALA, aiming for completion by the end of 2024.

A new international airport is being built to cater to expected rising demand in the Red Sea area. Designed by award-winning, sustainability-focused architecture firm Forest + Partners, the airport will have a 3.7-kilometer runway and can handle up to one million passengers per year.

“The air site is virtually complete now,” said Pagano. “We will have a temporary terminal at the beginning of next year. We will also have operational seaplanes for our first guests on the island resorts.”

Working closely with the Ministry of Tourism, Pagano said TRSDC is part of a dozen similar projects planned along the Red Sea coastline. This will have a positive trickle-down effect on the economy; The two current projects, TRSDC and AMAALA alone, will generate 120,000 new jobs and contribute SR33 billion to GDP within the next five years, according to Pagano.

Though tied together by a commitment to sustainability, each development is distinct. For example, Sheybarah Island, the furthest from the mainland in the south of the Red Sea, is currently under construction with futuristic, shiny stainless-steel pod-like villas manufactured in the United Arab Emirates. The island resort will open at the end of 2023.

“We are privileged to build sensitively around nature,” said Pagano. “Sustainability will set us apart.”

 


Saudi finance minister to lead Kingdom’s delegation at IMF-World Bank Spring Meetings  

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Saudi finance minister to lead Kingdom’s delegation at IMF-World Bank Spring Meetings  

RIYADH: Saudi Finance Minister Mohammed Al-Jadaan will head the Kingdom’s delegation to the International Monetary Fund and the World Bank Group assemblies in Washington this week to discuss global economic developments.

Al-Jadaan will chair the first meeting of the International Monetary and Financial Committee under Saudi Arabia’s three-year chairmanship.
The meeting will review economic developments and the threats to overall global development. It will also discuss global economic policy, key priorities and the role of the Washington-based lender in providing financial assistance, advice, technical capacity building to member states, and financial support to countries in need.

The minister will also take part in the meeting of the World Bank Development Committee to discuss the global development plans implemented by the entity.  

Moreover, Al-Jadaan and the governor of the Saudi Central Bank, Ayman Al-Sayari, will also participate in the second meeting of finance ministers and central bank governors of the G20 under the Brazilian presidency.

The meeting will discuss a number of economic and development issues as well as ways to enhance international cooperation to meet the challenges of the global economy.

The Kingdom’s delegation includes the CEO of the Saudi Fund for Development, Sultan Al-Marshad, the deputy chair of the International Monetary and Financial Committee of the IMF, Ryadh bin Mohammed Al-Khareif, and Assistant Minister of Finance for the Macro Fiscal Policies and International Relations Abdulmohsen Al-Khalaf.

 


Closing bell: Saudi main index slips to close at 12,666 

Updated 14 April 2024
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Closing bell: Saudi main index slips to close at 12,666 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 38.52 points, or 0.30 percent, to close at 12,666.90. 

The total trading turnover of the benchmark index was SR6.28 billion ($1.67 billion) as 103 of the stocks advanced, while 122 retreated.   

On the other hand, the Kingdom’s parallel market Nomu gained 137.34 points, or 0.52 percent, to close at 26,390.11. This comes as 31 of the stocks advanced while as many as 38 retreated. 

Meanwhile, the MSCI Tadawul Index slipped 16.03 points, or 0.98 percent, to close at 1,615.00.  

The best-performing stock of the day was Etihad Atheeb Telecommunication Co. The company’s share price surged 9.98 percent to SR110.20.  

Other top performers include ACWA Power Co. as well as Saudi Steel Pipe Co. 

The worst performer was Sahara International Petrochemical Co., whose share price dropped by 4.72 percent to SR34.35. 

Other worst performers include the Arab National Bank as well as the Saudi National Bank.  

On the announcements front, Gulf Insurance Group has announced the board of director’s decision to distribute SR78.75 million in cash dividends to shareholders for the fiscal year 2023. 

According to a Tadawul statement, the total number of shares eligible for dividends amounted to 52.5 million, with the dividend per share standing at SR1.5. 

The statement also revealed that the percentage of dividends to the share par value stood at 15 percent. 

Moreover, Scientific & Medical Equipment House Co. has announced the signing of an SR180 million contract with the Ministry of Health to provide cooked nutrition to hospitals in Madinah.  

A bourse filing revealed that the financial impact of the five-year agreement will commence in the third quarter of 2024.  

Additionally, Al Kathiri Holding Co. has announced that one of its subsidiaries, Msandh Al-Emdad Co., has been awarded a project with the Presidency of State Security to establish a building in Riyadh with a total value of SR20 million.  

According to a Tadawul statement, this project includes the supply and implementation of structural, architectural, and mechanical as well as electrical and systems works for the building in accordance with competition drawings and documents.  

Furthermore, the Saudi Ground Services Co. has announced the signing of an SR2 billion contract renewal with flynas for a duration of five years.  

A bourse filing revealed that under this contract, the Saudi Ground Services Co. would provide ground handling assistance, including ramp and passenger services, for domestic and international flights at all airports in the Kingdom. 

Meanwhile, Gulf General Cooperative Insurance Co. has announced the completion of the sale of 3,321 fractional shares.  

According to a Tadawul statement, the sale revenue of the fractional shares stood at SR44,838, with the average selling price per share reaching SR13.50.  

This comes following the decrease of the company’s capital based on the approval of the extraordinary general assembly.


Saudi master developer KEC inks 2 deals worth $78m for Al-Alya project    

Updated 14 April 2024
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Saudi master developer KEC inks 2 deals worth $78m for Al-Alya project    

RIYADH: Saudi master developer Knowledge Economic City Co. has signed two deals to deliver 396 residential apartments within the first phase of its mixed-use project Al-Alya.

In Tadawul filings, the listed firm announced the deals with Elkhereiji Commerce and Contracting Co., worth SR288.6 million ($77.92 million).

The first agreement entails fully implementing contracting works for additional residential buildings in the first phase of the Al-Alya mixed-use project. This comprises a group of four houses, offering 132 apartments of different sizes valued at SR117.5 million, excluding value-added tax.

The second contract involves the implementation of electromechanical, finishing, gardening, and site coordination works for a group of eight residential buildings valued at SR171.13 million, providing 264 apartments, the company said in a statement to Tadawul.

Based on work progress, both contracts will be paid in installments per monthly payment certificate.

The company commented on the second deal, saying: “Accordingly, the financial impact is represented in the cash outflow for the amount payable to the contractor over a period of 20 months starting from the end of May 2024.” 

The firm said that the financial impact of the first agreement is represented in the cash outflow for the amount payable to the contractor over a period of 24 months.

Al-Alya is one of the main projects in the Knowledge Economic City and represents a project with mixed-use components within a gated complex compound that combines hospitality, housing and offices as well as retail and education services.

It was designed to respond to the urban trend of humanizing cities and the quality-of-life program that relies on green areas and pedestrian walkways to create a style and vibrancy that meets the Kingdom’s Vision 2030.

The project aims to enable local and foreign companies, businessmen, and digital entrepreneurs to work in Madinah.

In October last year, Knowledge Economic City Co. signed an agreement with Gulf International Bank Capital for SR3.5 billion to establish a real estate investment fund.

The initiative is poised to launch the initial phase of the Islamic World District in Madinah and will span over 140,000 sq. meters, transforming the area into a mixed-use development.

The site will include hospitality, residential, retail, entertainment, and cultural zones, providing over 5,000 hotel keys, 743 residential apartments, plus a designated area of 24,000 sq. m. for retail shops.

GIB Capital is a subsidiary of Gulf International Bank, owned by the governments of the Gulf Cooperation Council, in which Saudi Arabia’s Public Investment Fund holds a 97.2 percent stake, according to the bank’s 2022 annual report.

The project aims to enhance the visitor experience in Madinah, a city that holds historical significance as the first capital of Islamic civilization and a destination that draws millions of pilgrims and tourists annually.


Jordan’s new mining strategy is set to create a $2.9bn industry 

Updated 14 April 2024
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Jordan’s new mining strategy is set to create a $2.9bn industry 

RIYADH: Jordan’s mining sector is set to grow substantially, with projections indicating that its contribution to the nation’s gross domestic product will reach 2.1 billion Jordanian dinars ($2.9 billion) by 2033. 

Up from 0.7 billion dinars in 2023, this ambitious target is part of the government’s newly announced initiative to transform Jordan into a mining state by 2033, as outlined in the country’s National Mining Strategy. 

This strategic overhaul aims to elevate the sector’s workforce to 27,500 and boost the value of its exports to 3.5 billion dinars from 1 billion dinars, according to a report issued by the state-owned Jordan News Agency, also known as Petra.   

The strategy emerges from its Economic Modernization Vision and is backed by directives from Jordan’s King Abdullah, emphasizing the need to accelerate investment-stimulating procedures in mineral exploration.  

A cornerstone of this transformation was the formulation of the strategy, spearheaded by the global consultancy firm Wood Mackenzie.  

In 2023, the Jordanian Ministry of Energy and Mineral Resources completed initiatives and projects under the EMV for the mining sector and set priorities within the vision’s executive program.  

The vision’s main pillars revolve around expediting the nation’s full economic potential while improving the quality of life for its citizens and maintaining sustainable measures. 

Moreover, the ministry’s proactive engagement has led to the signing of 11 memorandums of understanding to bolster investment in Jordan’s extractive industries.  

An additional three memorandums of cooperation were signed with various companies to further these goals.  

According to statements made to Petra, the ministry plans to continue advancing these undertakings throughout 2024, pushing these MoUs toward value-added mining operations.  

These initiatives are part of the nation’s ongoing efforts to boost its standing in the mining and minerals industry. 

In a report carried by Petra earlier in January, the ministry said that it aims to position the country on the global mining map by capitalizing on positive mineral exploration results. 

Over the past two years, the country established several partnerships with international companies in mining exploration.  

Moreover, it recently launched an investment platform to showcase national resources and opportunities in the energy sector. 


Egypt to increase funds for health sector by 25% in upcoming budget

Updated 14 April 2024
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Egypt to increase funds for health sector by 25% in upcoming budget

RIYADH: Egypt will increase health sector allocations in the next general budget to 495.6 billion pounds ($10.4 billion), according to the country’s finance minister.   

The North African country’s upcoming fiscal year is set to begin in July. 

Mohamed Maait said in a statement that this reflects an annual growth rate of 24.9 percent compared to the funds allocated for the sector in the current fiscal.   

This is in line with the nation’s goal to improve medical services for citizens, which is also an objective of Egypt’s Vision 2030.  

Moreover, the minister added that allocations for the education sector will also be raised to 858.3 billion pounds, with an annual growth rate of 45 percent.   

Scientific research reserves are also on track to increase to more than 139.5 billion pounds in the next budget, reflecting an annual growth rate of 40.1 percent.

Mait noted that the country will continue to provide the necessary funds to expand healthcare initiatives, supply medicines and medical aids to hospitals, and increase support for health insurance programs. 

He emphasized how Egypt was also working on targeting the speed of gradual expansion in extending the umbrella of comprehensive health insurance.

Furthermore, the minister said the last social package implemented in March included allocating 15 billion pounds in additional increases for doctors, nurses, teachers, and university faculty members. 

The breakdown was divided into 8.1 billion pounds to approve an additional increase in the wages of teachers in pre-university education as well as 1.6 billion pounds to approve a raise for faculty members and their assistants at universities, institutes, and research centers. 

There was also 4.5 billion pounds to approve a supplementary rise for members of the medical professions and nursing bodies.

In 2022, Egyptian President Abdel Fattah El-Sisi discussed strengthening cooperation with the World Health Organization to improve the country’s healthcare sector.