We want to be the top wellness hub in the world: TRSDC's official

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A general view of AMAALA's Triple Bay project. (Supplied)
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A general view of AMAALA's Triple Bay project. (Supplied)
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A general view of AMAALA's Triple Bay project. (Supplied)
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Updated 15 May 2022

We want to be the top wellness hub in the world: TRSDC's official

  • There is a huge scope for digital destinations for both projects, both will absolutely be smart cities, says official

DUBAI: In a bid to become a global wellness hub, AMAALA has merged under the aegis of The Red Sea Development Co. with tourism plans of its own.

“AMAALA is all about wellness, ultra-luxury hospitality and caters to a different segment than the rest of the development along the Red Sea,” Ahmed Ghazi Darwish, the chief administrative officer at TRSDC and AMAALA, told Arab News on the sidelines of the Arabian Travel Market. “We want to be the top wellness hub in the world.”

The first phase of the ambitious project will be complete by the end of 2024, which will include SR5 billion ($1.3 billion) worth of signed contracts. The luxury destination has also emphasized localization of the projects, with 78 percent of the contracts granted to Saudi contractors. The undertaking will develop nine resorts by the end of 2024.

Tech has been integrated in the plans, with an aim to make The Red Sea Project and AMAALA fully functioning smart cities.

“There is a huge scope for digital destinations for both Red Sea and AMAALA projects, both will absolutely be smart cities,” said Darwish. “We are working on getting sensors for the environment to monitor our impact and help us get the right data. At the same time, we will heavily rely on tech for a smoother customer journey.”

While TRSDC is responsible for developing both projects, AMAALA will focus on wellness. The sovereign wealth fund, PIF, wholly owns both mega-tourism projects.

 

Therapeutic strategy

The development holds a lot of promise in light of the 2021 Global Wellness Economy report, which has projected an annual growth rate of 21 per cent from 2020 to 2025. The report also highlighted that wellness travel is predicted to outpace all other sectors of the overall wellness economy.

“The topography of AMAALA is different from the rest of the Red Sea; there are mountains next to the sea and one island,” said Darwish.

“We are starting at base zero for tourism, so it’s a clean slate. We want to focus on the sustainability of regenerative tourism. Beyond green practices, we want to be a regenerative tourism hotspot and have a better impact on the place than when we started.”

The Red Sea Project aims to draw tourists and visitors worldwide. But to do that, certain conditions need to be met, including new social standards and flexible laws.




Boating by the Triple Bay's serene, blue waters is among the attractions being envisioned for the AMAALA wellness project. (Supplied)

The Red Sea Project

“We are working on special economic zones for these projects, on tourism regulations to allow these destinations to be successful,” said Darwish. “This is still in progress and we are trying to get that ready for the first phase of guests. We are working hand-in-hand with the government, tourism board, and several agencies.”

So far, AMAALA has 500 employees and plans for another 300 to come on board by the end of the year.

“The beauty of those projects, the most critical thing, is we are creating jobs, and not just in hospitality, but electricians, tour guides, ground handlers and more,” said Darwish.

 

Classroom in session

TRSDC also runs a program called the Elite Graduate Program that identifies talented youth and offers opportunities to learn on the job for both projects.

A total of 110 fresh graduates have successfully completed the program and will soon be yielding to the increasing demand from hiring managers and employers.

TRSDC partnered with the University of Prince Mugrin to offer 120 scholarships for students studying hospitality ahead of the imminent tourism boom in the Kingdom. The degree is accredited by the prestigious Ecole Hoteliere de Lausanne.




Ahmed Ghazi Darwish. (Supplied)

“It’s an outstanding program. We have set the bar high, and students are already representing us in conferences,” said Darwish. “Besides the bachelor’s degree, we offer vocational training on everything from electrical to ground handling at the airport.”

The company has also funded an Environmental Stewards program to spread awareness of green practices.

“Part of it is about improving the environment, nature and habitat. The rest is about improving the livelihood of people through better education and training,” he said. “We are providing jobs and creating awareness about the environment in the community.”

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Dual impact from oil and non-oil sectors ‘to propel Saudi GDP growth by 10 percent’

Updated 21 May 2022

Dual impact from oil and non-oil sectors ‘to propel Saudi GDP growth by 10 percent’

  • Capital Economics says it will be the highest annual growth rate in over a decade, if this happens

RIYADH: Saudi Arabia’s gross domestic product is expected to grow by 10 percent this year, driven by increased activities in the oil and non-oil sectors, according to a recent note from Capital Economics.

The London-based independent research firm said it will be the highest annual growth rate in over a decade, if this happens.

Capital Economics expects the Kingdom to achieve the projected 10-percent growth due to a  significant increase in oil output combined with an expected loosening of fiscal policy that is set to encourage growth in the non-oil sector.

This projection follows the flash estimate for the first quarter GDP released earlier this month which showed the economy grew 2.2 percent since the last quarter of 2021, and 9.6 percent year-on-year — the highest growth rate in 11 years.

In regards to performance on a quarter-on-quarter basis, the growth is attributed to a 2.9 percent rise in oil GDP due to increased output on the back of the OPEC+ deal and a 2.5 percent growth in non-oil activities.

The increase in energy prices, which has been the largest since the 1973 oil crisis, together with the war in Ukraine — which altered the global patterns on trade, production and consumption — have contributed to this record GDP growth.

SPEEDREAD

The projection by London-based Capital Economicsfollows the flash estimate for the first quarter GDP released earlier this month which showed the economy grew 2.2 percent since the last quarter of 2021, and 9.6 percent year-on-year — the highest growth rate in 11 years.

Though Saudi Arabia still hasn’t met its OPEC+ quota, it is one of the few members raising produc- tion significantly. With other member countries struggling to meet their quotas and an expected decline in Russian output, Capital Economics predicts the Kingdom will increase oil production faster than anticipated under the current OPEC+ agreement.

According to the World Bank, energy prices are expected to rise more than 50 percent in 2022, before easing in 2023 and 2024.

As oil prices remain elevated, policymakers are expected to relax fiscal policy to stimulate non-oil activities, with a reduction in the value-added tax a possibility, the note from Capital Economics pointed out.

The Kingdom’s non-oil sector has also expanded at the fastest rate in over four years, according to the Saudi Arabia PMI survey.

This has been due to new business and activity that boosted sharply as client demand recov- ered after COVID-19.

The increase in business also came in line with Vision 2030, a reform plan that aims to diversify the country’s economic resources.

The 10 percent figure projected by Capital Economics is much higher than recent projections from the IMF, which predicted the Saudi economy to grow by 7.6 percent in 2022, as mentioned in its World Economic Outlook released in April 2022.  


Flash Entertainment plans a KSA office as sector booms

Updated 21 May 2022

Flash Entertainment plans a KSA office as sector booms

  • The new office will be a stand-alone; it will create jobs for Saudi citizens: CEO

Flash Entertainment plans to open a stand-alone office in Saudi Arabia within 3 months as the Kingdom is becoming a hotspot for events and leisure.

The entertainment firm, based in the UAE, is one of the Middle East’s leading live entertainment companies known for organizing some of the biggest global events, including several Formula One Abu Dhabi Grands Prix, the FIFA Club World Cup, UAE National Day, the AFC Asian Cup — arguably the biggest event in the region prior to the upcoming Qatar World Cup — and even Pope Francis’s visit to the UAE in 2019, which saw over 180,000 people in attendance.

“The new office will be the Saudi headquarters, it’s a stand alone, it’s not a branch,” the company’s CEO John Lickrish told Arab News. “We have a branch office in Dubai but here we wanted to set up our own office.” The new office will create 25 jobs for Saudi citizens. Lickrish who was in Riyadh for the fourth edition of the Saudi Entertain- ment and Amusement Expo this week was attending the event to touch base with the local commu- nity in the sector.

“I’m here to touch base with the local community suppliers and decision makers and try to make people aware that we’re entering the market,” he said. “We have done events here but now that we’re establishing an office, we want to integrate the GCC into a network of reliable promoters and suppliers that we can count on, and that’s the real goal of this.”

HIGHLIGHTS

This year’s event brought together some of the leading products, services, and technology brands in the industry from more than 25 countries, as part of the Kingdom’s plans to become the entertainment and leisure hub of the Middle East.

The show offers a global platform for top manufacturers and suppliers of entertainment and leisure products and services to do business with investors, distributors, government officials and owners of malls, cinemas and family entertainment centers, as well as key procurement professionals involved in small and mega Saudi entertainment and leisure projects.

The SEA Expo, held at the Riyadh International Convention and Exhibition Center, is the first trade event dedicated to Saudi Arabia’s burgeoning entertainment and leisure industry, with sellers from around the world showcasing the latest and greatest advances in the sector.

This year’s event brought together some of the leading products, services, and technology brands in the industry from more than 25 countries, as part of the Kingdom’s plans to become the entertainment and leisure hub of the Middle East.

The show offers a global platform for top manufacturers and suppliers of entertainment and leisure products and services to do business with investors, distributors, government officials and owners of malls, cinemas and family entertainment centers, as well as key procurement professionals involved in small and mega Saudi entertainment and leisure projects.

“The office will mostly have people from KSA,” Lickrish said. “We are going to be training them in our systems and processes, but they need to be here on the ground. Right now, we’re looking at 25 (local hires) based on our business plan for the next three years. From there, the sky is the limit.”

Flash Entertainment covers everything from event ideation, event management, marketing and communications, ticketing and sales, talent procurement and full operational and production delivery, as well as managing a portfolio of assets, including the Etihad Park and the multi-purpose state-of-the-art Etihad Arena on Yas Island, Abu Dhabi.

A location for the office has yet to be decided, however, with Jeddah and Dammam as potential cities to set up the shop.

“This is a big populous, so for us, that’s interesting, and it’s an emerging market in the region as well.” Lickrish said. “I think what is important for us now is really setting the foundations, making sure that the country and the region is represented as not only capable but excelling in this field. And then we’ll go on to the regional talent and develop the local markets.” According to Lickrish, the company created the first citywide integrated enter- tainment program for Formula One in 2009 that has since been emulated with subsequent grands prix around the world. “So that was an innovation that we brought into the global market.”

Lickrish himself has been in the entertainment business for over 30 years and in the region for 14. He hopes to bring his exper- tise to Saudi Arabia that plans to invest $64 billion in the devel- opment of the entertainment industry over the next decade as part of Vision 2030.

“My goal is to see a self- sustaining, vibrant, regional business that has international recognition and ultimately a footprint globally,” he said. “We want to be giving them a unique experience, as well as a cultural and international experience.”


FII Institute unveils new inclusive ESG framework and scoring methodology

Updated 20 May 2022

FII Institute unveils new inclusive ESG framework and scoring methodology

  • The institute is investing $527,515 in Timbeter, a leading green tech company specializing in timber measurement
  • Timbeter provides an AI-driven photo-optics app that accurately determines quantities of logs in an area with precise length and diameter

LONDON: The Future Investment Initiative Institute hosted a summit in London about Environmental, Social and Governance in emerging markets, involving world leaders, global CEOs, international investors, thought leaders and heads of sustainability.

The event unveiled a new inclusive ESG framework and scoring methodology to inform and accelerate investments in emerging economies.

The new methodology aims to give unbiased ratings for companies in emerging markets who currently receive less than 10 percent of ESG flows, despite being home to nearly 90 percent of the world’s population and roughly half of global GDP.

ESG rating agencies are one of the main barriers to increasing investment in emerging markets. Currently, mainstream rating agencies employ key perfor- mance indicators not relevant to emerging markets. The existing frameworks focus too much on disclosure and ignore year-over- year performance improvement.

The new framework, developed with the support of Ernst & Young, values performance improvement over time more than breadth of disclosure, emphasizing sectoral challenges rather than country risks, to ensure fair competition between companies in both emerging markets and developed markets.

The FII Institute is investing €500,000 ($527,515) in Timbeter, a leading green tech company specializing in timber measurement. Timbeter provides an artificial intelligence-driven photo-optics application that accurately determines quantities of logs in an area with precise length and diameter.

Timbeter is a software as a service workflow management solution for the timber industry, founded in 2013 at the Nordic Hackathon by Anna-Greta Tsakhna, its CEO, and Martin Kambla, CTO.

Forestry continues to be an important and controversial issue, with world forests decreasing by a third in size over the last century due to reckless practices.

This technology is key to a more proactive management of forests and a more sustainable sector.

Meanwhile, the ESG white paper is designed to encourage greater ESG investment in emerging markets. It calls on investors to publicly commit to raising the portion of capital allocated to emerging markets from less than 10 percent today to a minimum of 30 percent of committed and invested capital by 2030. It also calls on governments to encourage emerging market-headquartered companies to become more proactive at disclosing relevant information through their normal reporting channels.

Richard Attias, CEO of the FII Institute, said: “Central to our work at FII Institute is to increase awareness about the weaknesses in current ESG standards and their impact on global sustainability prospects, and to advocate for an inclusive and equitable application of ESG through driving real action by key players globally.

“ESG has been one of the fastest-growing investment strategies over the past few years, accounting for one-third of all assets under management. But this growth is not even. Working with our partners at EY, we identified and removed the barriers to ESG investment in emerging markets, which are often overlooked,” he added.

“By launching the Inclusive ESG Framework and Scoring Methodology, investing in a global sustainable solutions company, and publishing our recent ESG white paper — we are making tangible actions to create a better future for humanity. And we are confident that our partners around the world will help us drive those actions further.”


World Economic Forum to return in-person as it aims to shed light on ‘History at a Turning Point’

Updated 18 May 2022

World Economic Forum to return in-person as it aims to shed light on ‘History at a Turning Point’

  • This year’s meeting will bring together about 2,500 leaders and experts from around the world, including more than 50 heads of state and government, more than 1,250 leaders from the private sector and nearly 100 Global Innovators and Technology Pioneers

LONDON: The World Economic Forum announced on Wednesday that the theme of its annual meeting for 2022 will be ‘History at a Turning Point: Government Policies and Business Strategies’ in its return to an in-person conference since the pandemic forced it to go virtual since 2020.

“The Annual Meeting is the first summit that brings global leaders together in this new situation characterized by an emerging multipolar world as a result of the pandemic and war,” said Klaus Schwab, the WEF’s founder and executive chairman.

This year’s meeting — which is happening in the spring rather than its usual January slot — returns after a two-year hiatus and will bring together about 2,500 leaders and experts from around the world, including more than 50 heads of state and government, more than 1,250 leaders from the private sector and nearly 100 Global Innovators and Technology Pioneers.

“The fact that nearly 2,500 leaders from politics, business, civil society and media come together in person demonstrates the need for a trusted, informal and action-oriented global platform to confront the issues in a crisis-driven world,” Schwab said.

Civil society will be represented by more than 200 leaders from NGOs, social entrepreneurs, academia, labour organizations, faith-based and religious groups, and at least 400 media leaders and reporting press. The Annual Meeting will also bring together younger generations, with 100 members of the Forum’s Global Shaper and Young Global Leader communities participating.

Against a backdrop of the global pandemic, the Russian invasion of Ukraine and geo-economic challenges, the meeting convenes at a strategic point where public figures and global leaders will meet in person to reconnect, exchange insights, gain fresh perspectives and advance solutions.

Topics that will be discussed at the annual meeting range from COVID-19 and climate change to education, technology and energy governance.

These include the Reskilling Revolution, an initiative to provide 1 billion people with better education, skills and jobs by 2030; an initiative on universal environmental, social and governance (ESG) metrics and disclosures to measure stakeholder capitalism; and the One Trillion Trees initiative, 1t.org, to protect our trees and forests and restore the planet’s ecosystems.

The programme will have six thematic pillars, including fostering global and regional cooperation; securing the economic recovery and shaping a new era of growth; building healthy and equitable societies; safeguarding climate, food and nature; driving industry transformation, and finally; harnessing the power of the Fourth Industrial Revolution.


Bank of England official warns of tough times for crypto

Updated 17 May 2022

Bank of England official warns of tough times for crypto

  • G7 to discuss crypto-asset regulation, says French central banker

RIYADH: Investors in crypto currencies should expect more difficult times ahead as tightening financial conditions around the world stoke appetite for safer assets, Bank of England Deputy Gov. Jon Cunliffe said on Tuesday.

Asked at a Wall Street Journal conference if rising interest rates would ramp up pressure on crypto currencies, Cunliffe said: “Yes, I think as this process continues, as (quantitative tightening) starts in the US ... I think we’ll see a move out of risky assets.” Cunliffe added that the conflict in Ukraine also had the potential to cause a renewed flight to safer assets.

Bitcoin, the world’s largest cryptocurrency, fell as low as $25,401 on Thursday, its lowest since Dec. 2020. It hit a record high of $69,000 in November. 

However, it traded higher on Tuesday, up 0.2 percent to $30,418 as of 08:52 a.m. Riyadh time.

Ether, the second most traded cryptocurrency, was priced at $2,077, up 0.32 percent, according to data from CoinDesk.

G7 meeting

The regulation of crypto-assets is likely to be discussed at a meeting of Group of Seven finance chiefs this week in Germany, French central bank head Francois Villeroy de Galhau said on Tuesday.

“What happened in the recent past is a wake-up call for the urgent need for global regulation,” Villeroy told an emerging markets conference in Paris, referring to recent turbulence in crypto-asset markets.

“Europe paved the way with MICA (regulatory framework for crypto-assets), we will probably ... discuss these issues among many others at the G7 meeting in Germany this week,” he added.

Grayscale to launch digital assets

Grayscale will list an exchange-traded fund in Europe made up of companies representing the “Future of Finance,” the world’s largest cryptocurrency asset manager said in a statement on Monday. 

The ETF, tracking the “Bloomberg Grayscale Future of Finance Index,” will be listed on the London Stock Exchange, Italy’s Borsa Italiana and Germany’s Deutsche Börse Xetra and begin trading on May 17. It is the first time that US-based Grayscale has listed a fund in Europe.

The index contains a mixture of companies involved in digital currencies including asset managers, exchanges, brokers, technology firms, as well as firms directly involved in cryptocurrency mining. “For us, the digital economy is primarily being driven through the proliferation of digital assets,” said Grayscale CEO Michael Sonnenshein.

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