The Red Sea is preparing a new breed of Saudi hospitality professionals as its hotels to open early 2023

The company’s main task is to develop and promote a new international luxury tourism destination that will set high standards for sustainable development and bring about the next generation of luxury travel. (Supplied)
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Updated 27 May 2022
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The Red Sea is preparing a new breed of Saudi hospitality professionals as its hotels to open early 2023

  • The company is committed to becoming an employer of choice, says top official

RIYADH: A few years ago, it was a bit inconceivable to see tourists in large numbers swimming in Saudi Arabia’s Red Sea or marveling at the breath-taking natural habitats in the nearby islands.

Frankly, the Kingdom was never on the radar screen of potential European, American and Asian tourists as most of these visitors preferred to spend their vacations in more popular tourist destinations.

However, this is about to change.

The Saudi government, which is keen to diversify its economy and reduce its dependence on oil as the primary source of revenue, has embarked on an ambitious multi-billion-dollar plan to turn the Red Sea into a significant tourist attraction.

To achieve this goal, the Kingdom set up The Red Sea Development Co., which was incorporated as a closed joint-stock company wholly owned by Saudi Arabia’s Public Investment Fund.

The company’s main task is to develop and promote a new international luxury tourism destination that will set high standards for sustainable development and bring about the next generation of luxury travel.

According to the company, the development will offer unprecedented investment options and allow visitors to explore the five untouched treasures of the west coast of the Kingdom: the archipelago of over 90 islands with stunning coral reefs, dormant volcanoes and pristine nature reserves.

The new destination, which covers an area of 28,000 sq. km, is located between Umluj and Al Wajh, at the crossroads of Europe, Asia, the Middle East and Africa.

Oasis of relief

The company’s executives are upbeat about the future and feel confident that the first wave of tourists will come to the Red Sea at the end of 2022 with first three hotels to open by early 2023.

“We are gearing up to welcome the world’s most discerning travelers to The Red Sea Project by the end of this year when our first hotels will open. We have marked significant progress to ensure we remain on track,” Anton Bawab, head of operations at TRSDC, told Arab News. 




Anton Bawab, head of operations, TRSDC

Bawab said the company has identified the hotel brands and partners and announced nine of them last October.

These include leading world brands such as Jumeirah, Six Senses, EDITION, St Regis, Fairmont, Raffles, SLS, Grand Hyatt and InterContinental.

“These offerings will form part of the 16 hotels that we planned for the first phase of development by 2023. Upon full completion, we will host 50 resorts offering up to 8,000 hotel rooms and more than 1,000 residential properties across 22 islands and six inland sites. The destination will also include an international airport, luxury marinas, golf courses, and entertainment and leisure facilities,” Bawab explained.

Bawab hoped by 2030 the number of visitors to the Red Sea would reach one million.

“By 2030, annual visitors will be capped at one million to ensure we provide an exclusive experience while mitigating environmental impacts and protecting the local heritage, nature, and culture for future generations.

“Access will drive visitors, and visitors will drive access. To that effect, we are working hand in hand with regional airlines to ensure that our international airport is accessible with frequent flights at guest-friendly timings,” he noted.

According to the estimates of TRSDC, by 2030, TRSP will contribute SR22 billion ($5.9 billion) per year to the local gross domestic product, while construction and 10 years of steady-state operations will generate cumulative revenues of SR464 billion by 2044.

Nurturing local talent 

The work of TRSDC does not stop here. The company has also created a talent team to groom young Saudi nationals to work on the project to create more jobs in the market.

One of the key people behind this team is Zehar Filemban, senior talent development director of TRSDC.

“Our commitment to injecting the local market with 70,000 jobs while engaging with the public, private, and start-up sectors, will reenergize a thriving economy. Our mission is to redefine the relationship between luxury and sustainability while inviting the world to witness previously undiscovered local treasures. This will spotlight the country’s credentials as an ambitious nation on the global tourism stage,” Filemban said. 




Zehar Filemban, senior talent development director

To achieve these strategic imperatives, the company is taking great care and caution to produce economic, environmental, and social co-benefits for the entirety of the tourism value chain.

“The overarching nature of the tourism industry means we are inspiring growth in supporting economic sectors like renewable energy, clean transportation, low-impact building and construction, sustainable agriculture and aquaculture, and wildlife management,” Filemban said.

He emphasized that TRSDC is committed to becoming an employer of choice by recruiting, developing and retaining exceptional talent, promoting Saudization and supporting diversity and inclusion.

“In this pursuit, we will continue to facilitate knowledge transfer within the local, regional, and international industry; enhance professional development opportunities and develop young Saudi talent,” Filemban said.

Preparing for the future

Filemban added that the company is creating the changemakers of tomorrow through robust learning and development courses such as the annual Elite Graduate Program, preparation programs in local towns, community workshops, and advanced training and mentorships opportunities.

“We do this in close partnership with industry leaders like National eLearning Center, Ecole hôtelière de Lausanne, Human Resources Development Fund, Saudi Academy of Civil Aviation, Saudi Entertainment Academy, the University of Tabuk and the University of Prince Mugrin.”

Filemban also supervised different departments to harness the abilities of the young Saudi nationals and prepare them to assume new responsibilities in the future.

“Over 600 students are currently enrolled in educational programs that support the provision of high-quality education and improve the learning experience to meet the needs of all employees and students. Programs that vary between vocational training and scholarships, under a wide range of tracks including hospitality management, airport services and technical services,” he added.

Filemban insisted that people are the company’s greatest assets and are the center of its organizational development, supported by its education and learning systems.
On May 19, TRSDC achieved another key milestone geared towards upskilling young Saudi talent through signing the second agreement with the Human Resources Development Fund to deliver high-quality training programs. General Manager of HRDF Turki Aljawini visited the site to sign the new agreement and get introduced to the project site.

This partnership will create a substantial pipeline to support and equip 1,000 young Saudis with the knowledge and expertise needed to start successful careers at TRSDC spanning across various areas such as hospitality, tourism security and information technology.

Eager to learn

Students also shared their company experience and closely followed the progress of work.

Lojain Labban, a student at the University of Prince Mugrin under a TRSDC scholarship program, learned about the program through a Twitter personality that had advertised the hospitality scholarship, and it triggered her interest. 




Lojain Labban, scholarship student

“I honestly had no idea what I was going into, I didn’t know much about the major, but it seemed like a fantastic opportunity with one of the biggest companies in the Kingdom,” Labban said.

She expressed her admiration for the project and was even more impressed by the determination of officials to attract tourists to the Red Sea.

“I love that they are developing areas of Saudi soon to be one of the top places for tourism; they are creating a tourist hotspot right here. One does not need to look far to see luxury places to holiday in. It is helping the whole and the Saudi citizens themselves to truly explore and appreciate the beauty of the Kingdom,” Labban said.

Abdulrahman Hamid Alshithiwani, a high school student at Umluj, was also among the young Saudis who saw work progress at the Red Sea.

“First of all, I am proud of this most wonderful achievement because they set a very ambitious goal, and it is in my region that I was born and grew in. And to know that I am part of a giga-project that will draw the world’s attention by 2030,” Alshithiwani said.

He believes that these projects will offer massive numbers of job opportunities in many fields such as hospitality, renewable energy, aviation, the environment and much more.

“This project will take us to another level that will enable us to compete and excel in these markets,” Alshithiwani concluded.


Meituan looks to hire in Saudi Arabia, indicating food delivery expansion

Updated 41 min 47 sec ago
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Meituan looks to hire in Saudi Arabia, indicating food delivery expansion

SHANGHAI: Chinese food delivery giant Meituan is seeking to hire staff for at least eight positions based in Riyadh, in a sign it may be looking to Saudi Arabia to further its global expansion ambitions, according to Reuters.

The jobs ads, which is hiring for KeeTa, the brand name Meituan uses for its food delivery operations in Hong Kong, is seeking candidates with expertise in business development, user acquisition, and customer retention, according to posts seen by Reuters on Linkedin and on Middle Eastern jobs site Bayt.com.

Meituan did not immediately respond to a request for comment by Reuters on its plans for Saudi expansion.

Bloomberg reported earlier on Friday that the Beijing-based firm would make its Middle East debut with Riyadh as the first stop.

Since expanding to Hong Kong in May 2023, Meituan’s first foray outside of mainland China, speculation has persisted that its overseas march would continue as the firm searches for growth opportunities, with the Middle East rumored since last year to be one area of possible expansion.

“We are actively evaluating opportunities in other markets,“ Meituan CEO Wang Xing said during a post-earnings call with analysts last month.

“We have the tech know-how and operational know-how, so we are quietly confident we can enter a new market and find an approach that works for consumers there.” 


IMF opens first MENA office in Riyadh

Updated 26 April 2024
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IMF opens first MENA office in Riyadh

RIYADH: The International Monetary Fund has opened its first office the Middle East and North Africa region in Riyadh.

The office was launched during the Joint Regional Conference on Industrial Policy for Diversification, jointly organized by the IMF and the Ministry of Finance, on April 24.

The new office aims to strengthen capacity building, regional surveillance, and outreach to foster stability, growth, and regional integration, thereby promoting partnerships in the Middle East and beyond, according to the Saudi Press Agency.

Additionally, the office will facilitate closer collaboration between the IMF and regional institutions, governments, and other stakeholders, the SPA report noted, adding that the IMF expressed its appreciation to Saudi Arabia for its financial contribution aimed at enhancing capacity development in its member countries, including fragile states.

Abdoul Aziz Wane, a seasoned IMF director with an extensive understanding of the institution and a broad network of policymakers and academics worldwide, will serve as the first director of the Riyadh office.

 


Saudi minister to deliver keynote speech at Automechanika Riyadh conference

Updated 26 April 2024
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Saudi minister to deliver keynote speech at Automechanika Riyadh conference

RIYADH: Saudi Arabia’s Deputy Minister of Investment Transaction Saleh Al-Khabti is set to deliver the keynote speech at a global automotive aftermarket industry conference in Riyadh.

Set to be held from April 30 April to May 2 in the Saudi capital’s International Convention and Exhibition Center, Automechanika Riyadh will welcome more than 340 exhibitors from over 25 countries.

Al-Khabti will make the marquee address on the first day of the event, which will also see participation from Aftab Ahmed, chief advisor for the Automotive Cluster at the National Industrial Development Centre, Ministry of Industry and Mineral Resources.

Saudi Arabia’s automotive sector is undergoing a transformation, with the Kingdom’s Public Investment Fund becoming the major shareholder in US-based electric vehicle manufacturer Lucid, and also striking a deal with Hyundai to collaborate on the construction of a $500 million-manufacturing facility.

Alongside this, Saudi Arabia’s Crown Prince Mohammed bin Salman launched the Kingdom’s first electric vehicle brand in November 2022.

Commenting on the upcoming trade show, Bilal Al-Barmawi, CEO and founder of 1st Arabia Trade Shows & Conferences, said: “It is a great honor for Automechanika Riyadh to be held under the patronage of the Saudi Arabian Ministry of Investment, and we’re grateful for their continued support as the event goes from strength-to-strength.

“The insights and support we’ve already received have been invaluable, and we look forward to continuing this relationship throughout the event and beyond.”

This edition of Automechanika Riyadh will feature seven product focus areas, including parts and components, tyres and batteries, and oils and lubricants.

Accessories and customizing, diagnostics and repairs, and body and paint will also be discussed, as well as care and wash. 

Aly Hefny, show manager for Automechanika Riyadh, Messe Frankfurt Middle East, said: “The caliber of speakers confirmed to take part at Automechanika Riyadh is a testament to the event’s growth and prominence within the regional automotive market.

“We have developed a show that goes beyond the norm by providing a platform that supports knowledge sharing and networking while promoting the opportunity to engage with key industry experts and hear the latest developments, trends and innovations changing the dynamics of the automotive sector.”


Aramco-backed S-Oil expects Q2 refining margins to remain steady then trend upward

Updated 26 April 2024
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Aramco-backed S-Oil expects Q2 refining margins to remain steady then trend upward

SEOUL: South Korea’s S-Oil forecast on Friday that second-quarter refining margins will be steady, supported by regular maintenance in the region, then trend upward in tandem with higher demand as the summer season gets underway, according to Reuters.

Over the January-March period, the refiner said it operated the crude distillation units  at its 669,000-barrel-per-day oil refinery in the southeastern city of Ulsan at 91.9 percent of capacity, compared with 94 percent in October-December.

S-Oil, whose main shareholder is Saudi Aramco, plans to shut its No. 1 crude distillation unit sometime this year for maintenance, the company said in an earnings presentation, without specifying the time. 


Venture investments spark renaissance of Saudi innovation

Updated 26 April 2024
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Venture investments spark renaissance of Saudi innovation

RIYADH: In Saudi Arabia, a dynamic transformation is unfolding within the entrepreneurial landscape, powered by the robust growth of venture capital, which achieved an impressive 86 percent compound annual growth rate from 2019 to 2023.   

This financial infusion has been a game-changer, propelling the Kingdom past the $1 billion mark in venture capital investment last year and igniting a wave of innovative thinking among Saudi entrepreneurs. 

Simply put, VC is a category of private market investment and financing. A VC firm raises capital from investors, referred to as Limited Partners, and uses that capital to fund promising startups they have determined as likely to have high growth potential in an emerging category. 

A vibrant scene   

“The rise of venture capital in Saudi Arabia is fueling a vibrant entrepreneurial scene,” said the founder of Saudi-based VC firm Nama Ventures.   

Offering a unique perspective on this financial phenomenon, Mohammed Al-Zubi shared his insights with Arab News about how venture capital is energizing the entrepreneurial scene in the Kingdom. 

Al-Zubi described this financial influx as a vital nutrient, fostering a fertile ground for innovation and growth within the Kingdom.  

Founder of Nama Ventures, Mohammed Al-Zubi. Supplied

Ripple effects   

“Startups get crucial funding, expert guidance, and exit pathways, attracting and retaining ambitious talent. This creates a ripple effect — successful ventures generate high-quality jobs, attracting more skilled professionals and expertise,” Al-Zubi told Arab News.  

However, he explained that challenges like limited seed funding and skill mismatch require more attention.   

“By fostering a diverse ecosystem and addressing these gaps, Saudi Arabia can harness the power of VC to build a thriving and sustainable entrepreneurial powerhouse,” Al-Zubi added.  

Echoing Al-Zubi’s remarks, Tariq bin Hendi, senior partner at Global Ventures, told Arab News that the Kingdom’s VC growth reflects its booming economy.  

“Saudi Arabia is a large market with compelling macroeconomics and significant funding, which in turn is re-shaping the regional startup landscape,” Hendi said.  

“Increased investment has helped start-ups to digitize, scale and accelerate their business operations — with many success stories: Tarabut, Zension, RedSea, Zid and Hakbah being among the most well-known,” Hendi added.  

An innovative economy 

Hendi emphasizes the crucial role of venture capital in the economic diversification of Saudi Arabia.   

He notes that sectors like agritech, fintech, and cleantech are attracting significant investments, aligning with Saudi Arabia’s Vision 2030 goals.   

“The increase in investment saw Saudi Arabia secure MENA’s (Middle East and North Africa) highest VC funding in 2023, which is also aligned with the country’s Vision 2030 objectives,” he stated   

“Venture capital’s investment in nascent technologies and innovative ventures allows for early-stage experimentation and for new start-ups to respond to analogue-based problems previously difficult to navigate through digitalization,” Hendi added.  

According to him, this synergy between venture capital and startups not only drives technological progress but also offers insights into the regulatory landscape, promoting economic diversity and innovation within the region. 

He also highlights the broader impact of venture capital, noting how it enables local businesses to scale and address global challenges, creating job opportunities and demonstrating the Kingdom’s potential in leading sustainable startup growth.   

Moreover, Hendi points out that venture capital stimulates international collaboration, attracting global investors and reducing investment risks, further bolstering Saudi Arabia’s position as a dynamic hub for economic activity and innovation.  

Tariq bin Hendi, senior partner at Global Ventures. Supplied

Furthermore, in his article “Venture Capital Fundamentals: Why VC Is A Driving Force Of Innovation,” Mark Flickinger, general partner and chief operating officer at US-based BIP Ventures, describes VC as a critical factor for economic innovation.   

“VC is a rewarding form of private market investment that gives innovators a real chance to transform their ideas into businesses. It connects founders and investors, driving progress and successful outcomes for both,” Flickinger said.  

“And for everyone who is part of this virtuous cycle of funding, building, and scaling market-changing businesses, VC is a way to support the impact of the innovation economy – which is the economy today,” he added.  

The challenge  

Hendi underscores the significant transformation underway in Saudi Arabia, driven by the nation’s economic diversification and digitalization, which is fueling a burgeoning demand for talent and innovation.   

With a young, tech-savvy population, the Kingdom is ripe for entrepreneurial ventures, evidenced by success stories like Tabby, he explained.  

The growing ecosystem, supported by incubators and successful exits, showcases the country’s potential as a hotbed for technology-driven businesses catering to consumers, enterprises, and government sectors.  

The challenge now, according to him, is to further enhance this vibrant environment, making Saudi Arabia even more appealing for entrepreneurs.   

He advocates for continued deregulation and the creation of conditions that encourage innovation, enabling entrepreneurs to develop products and services that resonate with consumers and drive economic growth.   

The goal is to not only maintain the momentum but to elevate Saudi Arabia’s status as a premier destination for starting and scaling innovative ventures.  

How to utilize funding  

As VC growth continues to expand, startups are pressured to find efficient ways to use their funding to boost the overall ecosystem.  

Al-Zubi shares his advice stating: “Imagine your funding as rocket fuel – you have to blast off without burning it all at once, right?”  

“To fly long and far, focus on essentials. Build a stellar team, fuel growth with customer love, and lay a strong financial groundwork,” Al-Zubi added.  

“Track your rocket’s path with data, experiment with new maneuvers, and stay tuned to the space weather. Be open with your investors, listen to wise advisors, and don’t be afraid to adjust your trajectory if the wind changes. Remember, long-term success is a marathon, not a sprint. Spend smart, learn fast, and keep your eyes on the stars,” he added.    

Furthermore, Hendi advocates for meticulous planning in resource allocation, emphasizing the importance of understanding the market, timing for product launches, and strategic deployment of capital.   

According to Hendi, startups must have a clear grasp of their financial roadmap, with a detailed understanding of expected expenditures over set timelines, to ensure sustained growth and success in the evolving economic environment.