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.


More than two-thirds of UAE retail investors hold stocks in AI companies: eToro survey

Updated 24 min 59 sec ago
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More than two-thirds of UAE retail investors hold stocks in AI companies: eToro survey

RIYADH: More than 70 percent of retail investors in the UAE have stocks of companies developing artificial intelligence, according to a survey by trading platform eToro.

The 71 percent mark underscores a widespread understanding of AI’s potential as a catalyst for innovation and a source of competitive edge.

UAE retail investors’ interest in AI goes beyond holding stocks. When asked about their use or plans to use AI tools like ChatGPT to guide investment decisions, 39 percent reported that they already employ these technologies.

Global Markets Strategist at eToro, Ben Laidler, said: “Microsoft’s recent $1.5 billion investment in Abu Dhabi’s G42 is a big endorsement of the UAE’s potential as a global AI hub, which is reflected in the survey results showing widespread AI adoption by local investors and consumers.”

Millennials lead the charge when it comes to generational users, with 40 percent of those aged 25-44 using AI tools.

Baby Boomers and Gen X investors follow closely, with 39 percent and 38 percent, respectively.

Underlining the critical role that artificial intelligence might play in future investment strategies, an additional 52 percent of respondents, beyond those already using AI tools, said they are willing to adopt the technology to guide or adjust their portfolios in the future.

This trend defies generational stereotypes, with the older cohorts of investors directing the charge.

Baby Boomers lead in interest in integrating AI into investment planning, with 60 percent showing enthusiasm, followed by Gen X at 58 percent.

Laidler said: “AI stocks were the performance juggernauts of 2023, leading the tech sector revival and propelling the S&P 500 into bull market territory. AI trends helped make NVIDIA and Meta the best S&P 500 stock performers of last year, with their share prices tripling.”

He added: “Whilst we’re unlikely to see a repeat performance in 2024, the benefits of AI’s rapid adoption are broadening across the stock market and economy as it rapidly moves from hype to reality.”

Furthermore, eToro analyzed which companies experienced the highest proportional increase in UAE-based investors on its platform from quarter to quarter, revealing that AI stocks were the most popular theme during the first three months of the year.


Omani officials forge economic alliances with Saudi Arabia, Japan, and US

Updated 25 April 2024
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Omani officials forge economic alliances with Saudi Arabia, Japan, and US

RIYADH: Oman’s industrial infrastructure is set to receive a boost following a new agreement with Saudi Arabia, fostering private sector participation in the country’s economic growth. 

A memorandum of understanding, aimed at financing the infrastructure of several industrial zones in Oman, was signed during a meeting between Minister of Finance Sultan bin Salem Al-Habsi and Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development, the Oman News Agency reported. 

Discussions centered on cooperation mechanisms between Oman and the fund, along with updates on collaborative development projects. 

The aim is to develop the industrial and logistical sectors by providing all necessary basic services, thereby encouraging the private sector to contribute to Oman’s economic development in line with Oman Vision 2040, as reported by the agency. 

This memorandum falls within the framework of cooperation between the two parties to support developmental areas in Oman. These encompass infrastructure, higher and vocational education programs, and water, along with the industry and mining sectors. Additionally, it includes transportation and communications sectors, as well as developmental projects in the energy sector. 

On another note, Ali bin Masoud Al-Sunaidi, chairman of the Public Authority for Special Economic Zones and Free Zones, met with Ken Saito, minister of economy, trade and industry of Japan, and his accompanying delegation in Tokyo. 

During the meeting, they reviewed the business cooperation between the two countries and the major projects under construction in the economic and free zones and industrial cities in Oman, notably the low-carbon iron production project in the Special Economic Zone in Duqm. 

The visit also included meetings with officials from companies engaged in iron and its derivatives production, and renewable energy equipment manufacturing companies, as well as a visit to Yokohama Port to learn about its experience in receiving ships specialized in energy and petroleum product transportation. 

Also on April 24, Oman and the US explored ways to enhance trade, investment, and address challenges comprehensively during the second strategic dialogue held in Washington. 

The Omani side was chaired by Sheikh Khalifa bin Ali bin Issa al-Harthy, undersecretary for Diplomatic Affairs, Ministry of Foreign Affairs, while the US side was chaired by Jose Fernandez, undersecretary of state for Economic Growth, Energy, and the Environment.

Both sides discussed opportunities for American companies in Oman, focusing on ICT, semiconductors, and clean energy services, expressing commitment to enhancing cooperation in clean energy solutions and mineral investments.  

They addressed environmental priorities under the Omani-American cooperation memorandum, fostering communication between researchers from both countries for clean energy research. 


Saudi NHC, Spain’s Urbas to construct almost 600 housing units in Al-Fursan suburb 

Updated 13 min 58 sec ago
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Saudi NHC, Spain’s Urbas to construct almost 600 housing units in Al-Fursan suburb 

RIYADH: Saudi Arabia’s Al-Fursan suburb will soon be home to 589 new residential units worth around SR1 billion ($266 million) thanks to a deal sealed by the National Housing Co.

Inked with Urbas Middle East Real Estate Co., a subsidiary of the Spanish Urbas Group, the agreement involves the development as well as construction of the housing units on an area spanning 150,000 sq. m, the Saudi Press Agency reported. 

This collaboration marks a significant milestone in the development of the Al-Fursan suburb. It also promises to set new standards in property development. 

“This agreement complements the efforts of the recent visit to Spain and continues to attract international investments with major companies to provide various housing products that fulfill and meet the desires of citizens,” Saudi Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail said in a post on X.

“As an extension of our journey in attracting the best international experiences and expertise in the real estate development industry, I was pleased to meet the CEO of the Spanish company Urbas, which is planned to be one of the companies developing the Al-Fursan neighborhood project in Riyadh,” Al-Hogail added. 

The minister also highlighted how this step will contribute to providing innovative housing options and facilitate the exchange of experiences between Saudi and international developers.

 

Moreover, NHC has also revealed the sale of 1,300 residential units within Al-Fursan in the first quarter of 2024, generating a total value exceeding SR1.5 billion. 

This accomplishment emphasizes the firm’s keenness in creating vibrant, quality living spaces that meet and exceed the expectations of modern residents. 

Al-Fursan, known as one of the largest urban development projects in the region, is designed to align with the Kingdom’s Vision 2030. 

The suburb covers an area of 35 million sq. m. and is set to feature over 50,000 housing units, accommodating more than 250,000 residents. 

It is equipped with over 190 crucial facilities, including educational, healthcare, and recreational services, all surrounded by more than 6 million sq. m. of green spaces. This widespread greenery is part of a broader initiative to further elevate the living environment and contribute to the Saudi Green Initiative by planting over half a million trees. 

Urbas Group has experience in over 20 countries with 30,000 residential units. Urbas Middle East plans to grow in Saudi Arabia, showing its commitment to global expansion. 


IMF surcharges on borrowings exacerbate global inequities: report 

Updated 25 April 2024
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IMF surcharges on borrowings exacerbate global inequities: report 

BENGALURU: Countries, mostly middle and lower-income, have been burdened by surcharges on top of interest payments on their borrowings from the International Monetary Fund, widening global inequities, according to a report by US think tanks. 

WHY IT’S IMPORTANT 

Indebted member countries paid about $6.4 billion in surcharges between 2020-2023, the report from Boston University’s Global Development Policy Center and Columbia University’s Initiative for Policy Dialogue released on Tuesday showed. 

And the number of countries paying these surcharges has more than doubled in the last four years. 

The IMF is expected to charge an estimated $9.8 billion in surcharges in the next five years, according to an earlier report by the Center for Economic and Policy Research. 

Critics of the policy argue that surcharges do not hasten repayment and instead punish countries already struggling with liquidity constraints, increase the risk of debt distress and divert scarce resources that could be used to boost the struggling economies. 

BY THE NUMBERS 

Countries such as Ukraine, Egypt, Argentina, Barbados and Pakistan pay the most in surcharges, the report showed, accounting for 90 percent of the IMF’s surcharge revenues. 

These surcharges, levied on top of the fund’s increasingly steeper basic rate, are IMF’s single largest source of revenue, accounting for 50 percent of total revenue in 2023. 

KEY QUOTES 

“IMF surcharges are inherently pro-cyclical as they increase debt service payments when a borrowing country is most need of emergency financing," Global Development Policy Center’s Director Kevin Gallagher said. 

“Increasing surcharges and global shocks are compounding the economic pressure on vulnerable countries.” 

CONTEXT 

Data published by the Institute of International Finance earlier this year showed global debt levels hit a record of $313 trillion in 2023, while the debt-to-GDP ratio — a reading indicating a country’s ability to pay back debts — across emerging economies also scaled fresh peaks. 

IMF shareholders agreed last week on the importance of addressing challenges faced by low-income countries, Managing Director Kristalina Georgieva said on Friday.


China’s wealth fund joins with Bahrain’s Investcorp for $1bn Middle East investment

Updated 25 April 2024
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China’s wealth fund joins with Bahrain’s Investcorp for $1bn Middle East investment

RIYADH: China’s growing interest in the Middle East continues as the country’s sovereign wealth fund partnered with Bahrain’s Investcorp to establish a $1 billion investment pot. 

According to a press statement, Investcorp Golden Horizon fund will assist companies across Saudi Arabia, the wider Gulf Cooperation Council region and China. 

The reserve will be anchored by reputable institutional and private investors from the GCC, as well as China Investment Corp. 

The press statement revealed that target companies are expected to have high growth potential in sectors including consumer, health care, logistics and business services.

“During the past couple of years, we have built several bilateral funds with leading financial institutions to facilitate industrial cooperation between China and major economies in the world,” said Bin Qi, executive vice president and chief information officer at CIC. 

He added: “Currently, we are working closely with Investcorp to build a similar bilateral fund to strengthen financial and industrial ties between China and GCC countries.” 

This commitment from CIC comes when the GCC’s appeal to institutional investors is gathering pace, thanks to its stable regulatory environment and pro-business policies, driven by economic diversification efforts in the region and strategic privatization mandates. 

“This commitment by CIC, one of the world’s largest sovereign wealth funds, is a testament to Investcorp’s unparalleled franchise in the GCC and reinforces the trust placed in the firm’s global platform and teams. We are looking forward to building on this relationship and growing our partnership in the future,” said Mohammed Al-Ardhi, executive chairman of Investcorp. 

Co-CEO of Investcorp Hazem Ben-Gacem said the launch of the new fund will facilitate cross-border cooperation and investments between the GCC and China. 

Trade and economic relationships between the Middle East and China have always been strong. 

In 2023, China’s exports to Saudi Arabia and the UAE amounted to $42.86 billion and $55.68 billion respectively. 

On the other hand, the Asian giant’s imports from Saudi Arabia totaled $64.36 billion in 2023. 

In November, Saudi Arabia’s central bank, also known as SAMA, and the People’s Bank of China signed a local currency swap agreement worth $6.93 billion. 

SAMA, in a statement, said that the three-year agreement “has been established in the context of financial cooperation between the Saudi Central Bank and the People’s Bank of China.”

The Asian country’s central bank said that the agreement will help strengthen financial cooperation between Saudi Arabia and China, promote the use of local currencies, and strengthen trade and investments between nations.