Red Sea Farms hopes to hit 30 hectares of desert farm operations by end of 2022

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Updated 05 June 2022
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Red Sea Farms hopes to hit 30 hectares of desert farm operations by end of 2022

  • Founded in 2018, Red Sea Farms grows fresh produce in enclosed and climate-controlled farms
  • It uses sunlight and saltwater as base resources instead of relying on rainfall, fresh groundwater, or desalinated water

RIYADH: Agriculture technology startup Red Sea Farms is planning to widen the scope of its greenhouse space in Saudi Arabia to 100 hectares in the next three years, said a top executive of the company.

Speaking to Arab News, Simon Roopchand, Red Sea Farms’ new global COO and regional CEO of the Middle East, said: “We have an expansion plan for the Kingdom that will take us to over 100 hectares of greenhouse space in the next three years.”

The company hopes to achieve 30 hectares of desert farm operations by the end of this year and has already started cultivating snack tomatoes and snack pepper in the Kingdom.

“Our objective is to expand the produce business to cater to the region’s market and ensure that we have the right quality of locally grown produce,” said Roopchand.




Red Sea Farms COO Simon Roopchand. (Supplied)

With the low supply of berries in the region, the company is currently experimenting with producing a wide range of locally grown berries in their greenhouses.

Ploughing on sunshine and sea water

Founded in 2018, Red Sea Farms grows fresh produce in enclosed and climate-controlled farms that largely depend on saltwater to cool greenhouses and irrigate crops.

The company uses sunlight and saltwater as base resources instead of relying on rainfall, fresh groundwater, or desalinated water.

Its innovative technology saves 300 liters of freshwater per kilogram of produce — an approach effective in areas where water is sparsely available and arable land is scarce.

“It’s all based on a sustainable food supply that we can deliver in a very sustainable way,” said Roopchand.

Red Sea Farms last month raised $18.5 million from Saudi Aramco’s Wa’ed, The Savola Group, King Abdullah University of Science and Technology Innovation Fund and OlsonUbben to expand its presence in the Gulf Cooperation Council region.

It will also use it to increase its fresh produce line and sell its technology to users in critically water-depleted regions. The company has also earmarked a global expansion plan that is expected to generate its first-generation product sales by the fourth quarter of 2022.

“We want to provide our technology to make it commercially viable for operators and farm growers to grow where it wasn’t possible before,” Roopchand said.

He added that the company aims to be a leading sustainable food business in the GCC, with their products currently being sold in the region.

“One of our challenges is keeping up with the demand. We can see that growing food security is a problem globally, and we are expanding quickly,” he added.

One reaps what one sows

The company has also partnered with The Red Sea Development Co. in the Kingdom as a leading supplier of sustainable fresh food. The ag-tech company will produce a diverse range of fresh leafy greens, herbs, vine crops, vegetables and fruits, including berries.

“We are partnering with TRSDC to produce vegetables and fruits for them sustainably. It’s a huge development,” said Roopchand.

The move assumes significance since The Red Sea Project will welcome 300,000 guests annually by 2023 and upwards of 14,000 employees, which could become a logistical bottleneck, especially in a remotely located and largely arid area.

On the research front, the University of Arizona College of Agriculture and Life Sciences’ Controlled Environment Agriculture Center is evaluating Red Sea Farms’ technology and its potential to produce crops in arid environments.

The university will integrate the company’s technology and study its adaptability for one year before deploying it across the US.

“We are a research-based company, so we won’t stop innovating. We want to feed the world sustainably. To do that, we need to keep reducing our requirements on fossil fuels, monitoring our carbon footprint, and ensuring that we can have local people in harsh environments growing quality crops,” Roopchand said.


Saudi domestic tourism records steady growth in Q1 2024

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Saudi domestic tourism records steady growth in Q1 2024

RIYADH: Domestic tourism in Saudi Arabia witnessed steady growth during the first four months of 2024, an industry report showed.

The report, based on the data extracted from Almosafer’s consumer travel platforms, showed that 53 percent of the total bookings accounted for local tourist destinations. 

The top domestic destinations were Makkah, Riyadh, Jeddah, Alkhobar, and Abha while people also showed keen interest in visiting AlUla, Tabuk, and Hail. 

The sustained interest in domestic tourism showcases the success of government and private sector initiatives to boost local tourism, resulting in a 29 percent increase in total domestic booking volume across Almosafer channels.

Flights saw a 27 percent increase compared to the same period last year while hotel bookings rose by nearly double at 40 percent in the same duration.

With Saudi Arabia’s tourism sector booming, travelers are keen to make the most of their breaks as they focus on in-destination experiences.

The addition of more flight routes, an increase in capacity, and the opening of new airports in the Kingdom has led to more affordable flight options on low-cost carriers, while Saudi travelers are willing to spend on luxury stays with 51 percent of hotel bookings on the platform being for 5-star properties and experiences, they are taking advantage of budget-friendly flight options.

Data showed an overall jump from 55 percent in 2023 to 62 percent among travelers opting to fly low-cost this year.

Internationally this year 46 percent of total bookings were done for low-cost carriers compared to 44 percent in 2023. 

In terms of international destinations, Dubai, Doha, Manama, Cairo, and Istanbul remain the top favorites among Saudis. At the same time, there has been a significant shift of focus toward South Asia and the Far East with Tokyo, Singapore, and Bangkok increasingly seeing more footfall from Saudi travelers.

European capitals including Madrid and Amsterdam are also emerging as trending destinations for bookings made in the first four months of 2024.

It is worth noting that the Kingdom hosted 27.4 million international and 79.3 million domestic tourists in 2023, witnessing 65 percent and 2 percent growth compared with 2022, respectively.

The tourism sector has become important to the national economy, as spending on tourism by domestic and international tourists exceeded SR250 billion ($66.7 billion) in 2023. The sector is set to contribute 10 percent to the non-oil gross domestic product and create 1 million job opportunities by 2030. This spending represented more than 4 percent of the Kingdom’s GDP and 7 percent of the non-oil GDP, highlighting the significance of the tourism sector to the Kingdom’s economy.

According to a World Tourism Barometer report released in January 2024, Saudi Arabia topped UN Tourism’s ranking for the growth of international tourist arrivals in 2023 compared with 2019 among large destinations, achieving a 56 percent increase in international tourist arrivals.

Additionally, the report indicated that Saudi Arabia recorded a remarkable tourism recovery rate of 156 percent in international tourist arrivals in 2023 compared with 2019.

These notable achievements have positioned the Kingdom as a leader in the Middle East’s global tourism recovery. It was the only region to surpass pre-COVID-19 pandemic levels, with a 122 percent recovery rate in international tourist arrivals in 2023 compared with 2019.


Saudi private sector employment reaches 11.27m in April: official data

Updated 13 min 38 sec ago
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Saudi private sector employment reaches 11.27m in April: official data

RIYADH: Saudi Arabia’s private sector has created more job opportunities, with the total number of employees reaching 11.27 million workers in April, official data showed. 

According to the Saudi National Labor Observatory report, there was a net increase in citizen employment for April, with 18,535 individuals newly joining the private sector workforce. 

Among these figures, there are over 2.35 million Saudi nationals, comprising more than 970,200 female workers and over 1.38 million male employees. 

On the other hand, NLO data showed that the total number of residents employed in the private sector exceeded 8.91 million individuals, comprising over 8.55 million male workers and only 364,900 female employees.

The report provides an overview of the Saudi private sector, highlighting a dynamic workforce of over 9.9 million male workers and more than 1.3 million female workers, representing diverse nationalities and playing integral roles in sector operations. 

In February, the total number of employees in the Saudi private sector reached 11.1 million, marking a 0.9 percent increase from the previous month, according to an NLO release. 

The national observatory report revealed that out of the total, 2.3 million were Saudi nationals, while 8.8 million were residents of the Kingdom belonging to different nationalities. 

That data reflected a positive trend in the employment industry as the private sector continues to expand its workforce, creating opportunities for Saudi citizens. 

Moreover, an analysis of the Saudi national workforce revealed that while 961,690 employees were females, 1.4 million were males. 

Meanwhile, among the 8.8 million non-Saudi workers, 348,892 were women, while 8.4 million were men. 

In February alone, the net growth in jobs for Saudi nationals as well as residents stood at 26,694, indicating a steady increase in employment within the private sector. 

Saudi Arabia’s economic diversification efforts have transformed the Kingdom into a hub for employment opportunities, propelled by bold giga-projects such as NEOM, which attract fresh talent into the construction sector.  

NLO, a governmental organization, is tasked with monitoring and analyzing labor market trends and dynamics in the country. It serves as a crucial resource for policymakers, researchers, and stakeholders interested in understanding and addressing issues related to employment, workforce development, and labor market regulations. 


Saudi Arabia’s NHC signs deal with Chinese company to boost building materials supply

Updated 26 min 20 sec ago
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Saudi Arabia’s NHC signs deal with Chinese company to boost building materials supply

RIYADH: Saudi Arabia’s building materials supply is set to get a boost with the signing of a deal between the National Housing Co. and a leading Chinese construction firm.

The agreement with China’s CITIC Construction Group seeks to establish an industrial city and logistic zones for building materials, comprising 12 factories, with the objective of securing supply chains for the NHC’s housing projects.

NHC CEO Mohammad Albuty finalized the deal during the official visit of Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail to China.

In a statement, the NHC said the agreement with the Chinese construction group are part of its efforts to secure supply chains for its housing projects and ensure their timely completion and high quality.

The Saudi company said the deal entails the construction of 12 factories specializing in building materials, harnessing Chinese expertise, and involving local factories to uplift business standards.

It added that the deal also aims to draw top-tier service providers across various sectors of the company, its subsidiaries, and other projects.

The company pointed out that the agreement is expected to maximize the economic and developmental impact of the real estate sector in the Kingdom, develop housing projects, enhance their quality, and promote national transformation in the construction sector through these industrial cities and logistic zones.

The statement also highlighted that this collaboration will facilitate the expansion of small and medium factories in the Kingdom, establish direct production lines for the company’s projects, and foster the growth of the local industry. Additionally, it will create numerous job opportunities in the sector.

The company said the agreement strengthen the comprehensive strategic partnership between Saudi Arabia and China, established during the Chinese president’s visit to the Kingdom in December 2022.


IMF forecasts $14bn increase in Egypt’s foreign cash revenue

Updated 49 min 36 sec ago
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IMF forecasts $14bn increase in Egypt’s foreign cash revenue

RIYADH: Egypt’s foreign cash revenue is projected to surge by $13.7 billion from five key sources this year, a 14.6 percent increase over last year, according to the International Monetary Fund. 

This surge is largely due to investments in the Ras Al Hikma City development deal recently signed by the government with ADQ Holdings, as reported by CNBC Arabia. 

The IMF projected that foreign cash inflows from these five sources for the fiscal year 2023-2024 will total around $107.3 billion, compared to about $93.6 billion in 2022-2023. 

These sources encompass proceeds from commodity exports, tourism revenues, Suez Canal revenues, as well as private transfers and net foreign direct investment. 

Despite expectations of an increase in foreign cash revenue from these sources this year, the IMF anticipates inflows to decrease again in the next fiscal year, dropping below the levels of the previous year to approximately $91.2 billion. 

The fund forecasts foreign cash inflows from commodity exports to decline to $33.2 billion during the current fiscal year, compared to $39.6 billion last year, reflecting a decrease of about 16.2 percent, with an expected increase to $35.6 billion next year. 

It also predicts a decline in Egypt’s tourism revenues during 2023-2024 to around $12 billion, compared to $13.6 billion in 2022-2023, reflecting a decrease of about 11.8 percent, with an increase to around $12.6 billion in 2024-2025. 

Furthermore, the financial agency expects a decline in Suez Canal revenues during the current fiscal year to $6.8 billion, compared to $8.8 billion last year, marking a decrease of about 22.7 percent, with an anticipated increase to around $10 billion next year. 

As for net private transfers from abroad, they are anticipated to increase to around $23.1 billion during 2023-2024, compared to about $21.9 billion during 2022-2023, reflecting a 5.5 percent increase, and continuing to rise to $24.6 billion in 2024-2025. 

Similarly, net foreign direct investment inflows are projected to surge during the current year to around $32.2 billion, compared to $9.7 billion in the previous fiscal year, marking a 232 percent increase, and then decline next year to $8.4 billion. 
 


SEC closes $3bn financing for 3.6GW capacity power stations 

Updated 06 May 2024
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SEC closes $3bn financing for 3.6GW capacity power stations 

RIYADH: Saudi Arabia’s power generation is poised for a substantial boost following the successful closing of financing for two electricity projects, with a combined capacity of 3.6 gigawatts. 

The deals involving the Taiba 1 and Qassim 1 independent power producer projects, with a combined financing value of SR11.4 billion ($3.04 billion), signify a major milestone in Saudi Arabia’s energy landscape, the Saudi Press Agency reported. 

The two IPP projects, featuring combined cycle gas turbine technology, were awarded to the Saudi Electricity Co. by the Saudi Power Procurement Co. as part of an alliance with ACWA Power in October 2023. 

Additionally, in November 2023, a 25-year power purchase agreement was signed with the SPPC for both projects, which are being developed on a build-own-operate basis. 

Khalid Al-Qunun, CEO of SEC, commended the efforts of the company’s team in driving transformation in the electric energy sector in the Kingdom, the SPA report added. 

He said: “These projects embody our ongoing ambitions to expand energy generation projects and adopt the latest technologies to ensure the provision of environmentally friendly energy solutions that contribute to achieving the company’s zero neutrality target by 2050, in line with the Kingdom’s ambitious aspirations in the field of energy sustainability.” 

The financing agreements were signed by the two project companies: Sidra One for Electricity for the Taiba 1 station and Qudra Energy for the Qassim 1 station. The SEC holds a 40 percent share in both companies. 

These modern stations represent a notable advancement in electric energy production in the Kingdom. They signify an important step toward a sustainable future by utilizing the latest energy production technologies, such as combined cycle gas turbines known for their high efficiency. 

According to the SPA report, relying on these advanced technologies contributes to improving generation efficiency, reducing emissions, and reducing reliance on liquid fuels in the electricity production sector in the Kingdom. 

These stations mark the beginning of a series of CCGT stations that will expedite the realization of Saudi Vision 2030 goals, including achieving an optimal energy mix and increasing local content. 

This also sets the stage for achieving the goals of the Saudi Green Initiative, aiming for carbon neutrality by 2060. The engineering design of these stations allows for the future integration of carbon capture facilities, underscoring the SEC’s commitment to environmental, social, and governance responsibility, the SPA report added.