With 12 luxury brands, The Red Sea leads the way in promoting sustainable tourism

The developments of the Red Sea Project will be powered by renewable energy. The company seeks to provide ultra-luxury facilities without disturbing the surrounding nature or the ecosystem of the area. (Photo/Supplied)
Short Url
Updated 07 June 2022
Follow

With 12 luxury brands, The Red Sea leads the way in promoting sustainable tourism

  • The company believes in safeguarding, developing landscape and shores of the Red Sea

RIYADH: The traditional concept of tourism is now radically changing as many countries are gradually and earnestly promoting and investing in sustainable travel.

But what is sustainable tourism, and why is there such a big hype among countries eager to attract tourists to their natural and untouched habitats?

According to the UN Environment Program and UN World Tourism Organization, sustainable tourism is defined as “tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities.”

To underline the importance of sustainable tourism, the UNWTO is holding its 116th session in Jeddah from June 7-8. The main theme naturally is sustainable tourism. 

Proudly sharing TRSDC experience 

The host country Saudi Arabia will surely highlight its achievement in enhancing and promoting sustainable tourism with special emphasis on the Kingdom’s pride — The Red Sea Development Co.

TRSDC plans to open three hotels this year and add 13 more by the end of 2023. The ambitious projects aim to create 120,000 jobs and add SR30 billion to the Kingdom’s gross domestic product, according to the company. Brands already on board include St Regis, Six Senses and more ultra-luxury hotel concepts focusing on sustainability.

The company has achieved an overall score of 91 out of 100 in last year’s environmental, social, and governance assessment by the Global Real Estate Sustainability Benchmark, beating the score of 84 it accomplished in its first-ever assessment in 2020.

In November 2021, the company was given the ESG Initiative of the Year award at The Chartered Governance Institute UK & Ireland’s 2021 Awards.

This followed TRSDC’s launch of its Good Governance Toolkit to guide other organizations in Saudi Arabia on best governance practices.

The company’s top executives realize that safeguarding and developing the landscape and shores of Saudi Arabia’s Red Sea is essential to attract tourists who appreciate the earth’s hidden natural treasure.

Not surprisingly, all hotels and sea resorts, both inland and on the islands, must comply with the strict environmental rules and conditions set by TRSDC. 




John Pagano, CEO of TRSDC

“Sustainability will set us apart… The Red Sea concept is all about building and working with nature,” said John Pagano, CEO of TRSDC, in an interview with Arab News. “Coral reef systems are there. For us, the goal is how to deliver what we need without impacting the environment. My visitors will get to truly immerse themselves in nature.”

AMAALA, under TRSDC’s directive, will also open eco-friendly resorts with an added focus on wellness. The project’s first phase, which includes nine resorts, aims to be complete by the end of 2024. 




Ahmad Ghazi Darwish, chief administrative officer at TRSDC, AMAALA

It is a total focus on protecting the environment, Ahmad Ghazi Darwish, the chief administrative officer at TRSDC and AMAALA, commented.

TRSDC’s drive to meet sustainable tourism criteria  

In its efforts to achieve environmental excellence, TRSDC developed an Environmental Management System, producing an EMS Manual in January 2021. The EMS was rolled out companywide by midyear 2021, supporting the company’s bid for The Red Sea Project to achieve ISO14001:2015 certification.

“TRSDC’s EMS is aimed at guiding and managing TRSDC’s activities with respect to the environment throughout the design, construction, and operational stages. The implementation of the EMS allows TRSDC to identify areas in need of improvement and actively work toward bettering them,” according to the company.

In 2021, the organization became one of the first companies in the Middle East to achieve the ISO 9001:2015 certification for quality management for the design and construction of assets.

TRSDC has also signed a memorandum of understanding with social investment company Ethmar and private foundation Ghoroos that will support TRSP’s social development objectives in numerous ways, including studying and implementing agricultural development opportunities in the project area and helping to strengthen community service and volunteer work initiative.

TRSDC partners with Red Sea Farms 

The company has also partnered with Red Sea Farms, a Saudi Arabian ag-tech business, to develop a sustainable food supply for The Red Sea’s flagship destination using sunlight and saltwater.

Red Sea Farms will build and operate the indoor farm, growing crops to sustainably feed guests and residents at The Red Sea Project. It will become the main supplier to the luxury destination’s resorts and restaurants.

The innovative technology uses sunlight and saltwater to cool greenhouses and grows crops instead of relying on rainfall, fresh groundwater, or desalinated water. This saves up to 300 liters of fresh water per kilogram of produce — a 95 percent saving compared with other ag-tech systems. In addition, the technology has been designed and developed in the Kingdom for use in often challenging environmental conditions.

“This means a reduced impact on the environment and a significant cost saving for growers. It also results in more nutritious crops while also providing a richer taste, flavor and texture,” according to TRSDC.

Partnering with Blue Planet Ecosystem

The company’s endeavor to protect the Kingdom’s ecology was also climaxed by another MoU with Blue Planet Ecosystems in October 2021.

“The Land-based Automated Recirculating Aquaculture system works by replicating natural aquatic ecosystems in a modular and automated system. LARA converts carbon dioxide directly into chemical-free seafood using phyto and zooplankton as transitional stages. It is constructed of a tower of three horizontal units. The top unit uses the sun’s energy to grow microalgae which powers the entire system. The microalgae are then moved to the next unit, where it nourishes zooplankton. The zooplankton is then transported to the bottom unit, where it’s eaten by fish,” TRSDC explained.

It added that the project’s first phase would be implemented as a 3.500m2 pilot to assess whether conditions at TRSP are suitable for the solution to work effectively and efficiently. This will be the first LARA pilot in the Middle East to undergo a commercial trial.

Investing in renewable energy

Last year, TRSDC made great strides in its mission to build the world’s largest tourism spot powered by renewable energy on Saudi Arabia’s west coast.

In December 2021, a Saudi ACWA Power-led consortium secured $1.33 billion of financing to operate the renewable power-based multi-utilities infrastructure that will serve the site.

The multibillion-dollar project, based between Umluj and Al Wajh, covers 28,000 sq. km — an area the size of Belgium — which includes over 90 untouched islands, miles of desert dunes and mountain landscapes.


Saudi authorities plan to boost assets under management to 29.4% of GDP in 2024

Updated 03 May 2024
Follow

Saudi authorities plan to boost assets under management to 29.4% of GDP in 2024

  • Capital Market Authority plans to accelerate the pace of listings by welcoming 24 new companies

RIYADH: Saudi Arabia aims to enhance its stock exchange appeal to foreign investors, targeting 17 percent ownership of free float shares by 2024, a new report has revealed.

According to the 2023 Financial Sector Development Program document, the Saudi Capital Market Authority plans to boost assets under management to 29.4 percent of gross domestic product in 2024 by increasing the investment environment and attracting more investors.
The report, published annually, highlights the achievements in the financial sector, particularly the Kingdom’s ongoing progress in competitiveness indicators related to the capital market, as stated by Mohammed Al-Jadaan, minister of finance and chairman of the FSDP.
Commenting on the development of the financial sector, Al-Jadaan emphasized the importance of innovation and investment in talent and technology.
“We have placed innovation and investment in both talent and technology at the top of our priorities, because we recognize the importance of building a dynamic financial environment that allows companies — especially startups — to flourish and succeed,” the minister stated.
In line with its commitment to facilitating financing in the capital market, the CMA also plans to accelerate the pace of listings by welcoming 24 new companies in 2024.
Moreover, there will be a focus on supporting the development of new and promising sectors, with a target of having micro and small enterprises account for 45 percent of total listings.
Another area of emphasis is the deepening of the sukuk and debt instruments market, with the goal of increasing the debt-to-GDP ratio to 22.1 percent by the end of 2024. These measures aim to provide diverse financing options for companies and further stimulate economic growth.
“The capital market ecosystem continued its efforts to contribute to developing the financial sector and achieving the Saudi Vision 2030,” stated Mohammed El-Kuwaiz, chairman of the CMA. 
“By approving rules for foreign investment in securities and streamlining regulatory procedures, we have witnessed a significant increase in foreign investments in the capital market, reaching SR401 billion ($106.9 billion),” El-Kuwaiz added.
The Saudi Central Bank also reaffirmed its commitment to adhering to international standards and best practices to enhance the strength and stability of the financial sector. 
Initiatives such as developing digital solutions for supervising the financial sector and enabling local and international FinTechs demonstrate the Kingdom’s dedication to embracing technological advancements.
Furthermore, the Financial Academy unveiled its new strategy for 2024-2026, focusing on enhancing human capabilities in the financial sector through training programs and professional certifications. 
The academy aims to increase the number of trainees and improve the quality of its services to meet the evolving needs of the industry.
The 2023 FSDP report highlighted significant progress across sectors like fintech and digital banking. 
The Kingdom saw a surge in fintech companies, surpassing 2023 targets with 216 in operation and launching two digital banks. 
Saudi Arabia claimed the top spot in the Corporate Boards Index among G20 nations and secured second place in various indices. Foreign companies relocated headquarters to the Kingdom, deepening the capital market. 
Moody’s, Fitch, and S&P Global Ratings revised Saudi Arabia’s outlook to “Positive” and affirmed its “A1” and “A+” credit ratings, citing fiscal policy development, economic reforms, and structural improvements. 
Saudi Arabia led venture investments in the Middle East & North Africa, securing 52 percent of total investments in 2023, and allocated SR10 billion to support small and medium enterprises across economic activities and regions in the first half of the year.


Islamic finance industry projected to grow in 2024-2025

Updated 02 May 2024
Follow

Islamic finance industry projected to grow in 2024-2025

  • Global sukuk issuance likely to reach around $170 billion in 2024

RIYADH: The Islamic finance industry is projected to grow globally in 2024-2025 with total assets likely to witness single-digit growth driven by economic diversification efforts, a report said.
It predicted that sukuk issuance globally would hover between $160 billion and $170 billion in 2024, representing a steady momentum from $168.4 billion in 2023 to $179.4 billion in 2022.
In its latest analysis, credit rating agency S&P Global highlighted that the industry grew by 8 percent and 8.2 percent in 2023 and 2022, respectively, stemming from growth in banking assets and the sukuk industry.
According to the US-based firm, Islamic banking assets grew 56 percent in 2023 compared to 72 percent in 2022.
Financial institutions across the Gulf Cooperation Council region accounted for 86 percent of the reserve increase in 2023, with Saudi Arabia becoming the chief contributor, having generated 56.7 percent of the maturation.
“We expect the implementation of Vision 2030 and growth in corporate and mortgage lending to continue supporting the Islamic finance industry over the next 12-24 months. In addition, the UAE showed a stronger contribution in 2023 thanks to the good performance of the non-oil sector,” the report noted.
It added: “Elsewhere, we observed some growth, particularly in Turkiye and Indonesia. The performance in Malaysia and Turkiye was somewhat tempered by the depreciation of the ringgit and the lira.”
According to the US-based firm, the issuance of this Shariah-compliant debt product began on a strong footing in 2024, with Saudi Arabia becoming a key contributor to the performance.
“The drop in issuance volumes in 2023, which mainly resulted from tighter liquidity conditions in Saudi Arabia’s banking system and Indonesia’s lower fiscal deficit, was somewhat compensated by an increase in foreign currency-denominated sukuk issuance,” S&P Global said in the report.
It added: “The market has started 2024 on a strong footing, with total issuance reaching $46.8 billion at March 31, 2024, compared with $38.2 billion at March 31, 2023.”
The analysis highlighted that the sukuk market will continue its growth momentum in the near term as financing needs in core Islamic finance countries remain high, given ongoing economic transformation programs, especially in countries like Saudi Arabia.
“We expect the sukuk market to fill in some of these needs. Specifically, we see some opportunities in the structured finance space with banks tapping the sukuk market to refinance their sizable mortgage books,” said the agency in the report.
The agency highlighted that the drive for digitalization and sustainability initiatives have yielded mixed results in the Islamic finance industry.
“While opportunities related to sustainable finance are significant as the industry is concentrated in oil exporting countries, progress has been relatively slow and limited in the global context,” according to S&P Global.
However, the report noted that digitalization has helped the banking side of the industry.
S&P Global concluded the study by saying that the future of Islamic finance is sustainable, collaborative, and digital.
“It is sustainable thanks to the alignment between Shariah principles, overarching pillars of sustainability, and the value proposition of Islamic finance that capture more than just financial objectives,” said the report.
According to the analysis, the future of Islamic finance is collaborative because stakeholders do not want to disrupt the industry equilibrium and erase the development achieved over the past 50 years.
The report added that digitalization will also impact Islamic finance in the coming years, as leveraging emerging technologies could help the industry enhance its efficiency and ultimately increase its value proposition for investors and issuers.


Pakistan says expecting more high-level Saudi business delegations amid investment push

Updated 02 May 2024
Follow

Pakistan says expecting more high-level Saudi business delegations amid investment push

ISLAMABAD: Pakistan expects continued visits by high-level business delegations from Saudi Arabia in the upcoming weeks to further explore investment opportunities facilitated under the Special Investment Facilitation Council, the Foreign Office announced on Thursday.

The statement came just days after Prime Minister Shahbaz Sharif concluded his visit to Riyadh, where he addressed the two-day World Economic Forum conference.

During his visit, Sharif met with Crown Prince Mohammed bin Salman and several Saudi ministers to strengthen bilateral relations and economic partnerships between the two nations.

Prior to his visit to the Kingdom, Saudi Foreign Minister Prince Faisal bin Farhan was in Islamabad with a large delegation, saying the Pakistani administration’s resolve to strengthen the economy would yield “significant benefits.”

“Saudi investors have been coming to Pakistan in recent months, and engaged with the SIFC in terms of exploring opportunities for Saudi investments in Pakistan, and this is an ongoing process, and we expect similar high-level business delegations to undertake visits to Pakistan in the coming days and weeks as well,” Foreign Office spokesperson Mumtaz Zahra Baloch told reporters in her weekly media briefing.

She added that both countries were involved in robust and mutually beneficial dialogue that had gained significant momentum in recent months.

“Pakistan and Saudi Arabia are engaged in consultations with each other in terms of increased Saudi investments in Pakistan, including in the energy domain,” she added.

Asked about reports of Pakistan providing military bases to the US, Baloch called them rumors.

“Pakistani has no plan to provide any bases to a foreign country against any other country,” she said.

Speaking about the Organization of Islamic Cooperation’s summit in Gambia, the spokesperson said the country’s deputy prime minister, Ishaq Dar, would highlight the ongoing genocide in Gaza, the right to self-determination of the people of Jammu and Kashmir, the imperatives of solidarity and unity of the Muslim ummah, rising Islamophobia, issues of climate change, terrorism, and other contemporary global challenges.

She said Pakistan strongly condemned the escalating violations of human rights by Israel and increasing number of illegal Israeli settlements in the West Bank.

“Israel’s actions constitute a breach of international law, including humanitarian laws and other pertinent international laws, and these acts also undermine any prospects of a two-state solution,” she added.


Saudi authority imposes $11.4m in fines on investors for dodgy practices

Updated 02 May 2024
Follow

Saudi authority imposes $11.4m in fines on investors for dodgy practices

RIYADH: Saudi Arabia’s Capital Market Authority slapped fines to the tune of SR42.9 million ($11.4 million) on 13 investors and others found in violation of the law.

A total of SR17 million fines have been imposed on 13 investors “for placing purchase orders that influenced the share price, some of which were linked to sale orders, while trading on the shares of listed companies.”

A CMA statement said: “They and other investors were obligated to pay a total of SR25.9 million for the illegal gains achieved in their investment portfolios.”

The authority clarified that the definitive decision of its Appeals Committee for the Resolution of Securities Disputes resulted from the coordination and mutual collaboration between the authority and relevant entities.

It added that the action was taken in light of the public criminal lawsuit filed by the Public Prosecution.

CMA underscored the importance of investor confidence in fostering the growth and advancement of the financial market. It reiterated its commitment to vigilantly observe any misconduct, apprehend wrongdoers, and ensure the implementation of appropriate measures to impose penalties.

Moreover, it stated that these actions are consistent with the authority’s endeavors to nurture an appealing atmosphere for investors of all types, shielded from unjust, precarious, deceitful, fraudulent, or manipulative activities.


Saudi energy minister lauds growing economic ties with Uzbekistan

Updated 02 May 2024
Follow

Saudi energy minister lauds growing economic ties with Uzbekistan

RIYADH: Saudi Arabia and Uzbekistan’s economic cooperation models reflect mutual commitment to prosperity through shared goals in the two countries’ 2030 plans, said the Saudi energy minister.

During the main dialogue session of the third Tashkent International Investment Forum, Prince Abdulaziz bin Salman emphasized the distinguished relations between the two nations and the commitment of their leaderships to enhance and develop cooperation in all fields, particularly in the energy sector.

Uzbekistan President Shavkat Mirziyoyev also attended the meeting.

The Saudi minister pointed out that economic cooperation between the two countries serves as a model, especially in light of the “Uzbekistan 2030” strategy and the Kingdom’s Vision 2030, with their similar goals aimed at economic growth, diversification, and sustainable development, reflecting a mutual commitment to building a prosperous future for both nations, according to the Saudi Press Agency.

“The bilateral relations saw a notable advancement subsequent to a meeting between Crown Prince Mohammed bin Salman and President Mirziyoyev in Riyadh in 2022,” he said.

Prince Abdulaziz stressed the significance of the energy sector in the growing relations between the two nations, particularly in renewable energy, highlighting the substantial involvement of Saudi companies in Uzbekistan, exemplified by ACWA Power.

He elaborated on the investment flowing between the two countries in this domain, eclipsing $14 billion, with the aim of producing over 11 gigawatts of renewable energy electricity, affirming that Uzbekistan has demonstrated a serious commitment to achieving a fair and equitable energy transition, aligning with the Kingdom’s aspirations.

The energy minister further underscored the rational stances jointly embraced by both nations, placing significant emphasis on the critical aspects of energy security, development, and conservation.

He also underscored the two countries’ collaborative roles in addressing climate change through collective endeavors.

Recently, ACWA Power signed a power purchase agreement with the National Electric Grid of Uzbekistan for the Aral five-gigawatt wind power project worth SR18.2 billion ($4.85 billion).

Two weeks ago, ACWA Power announced it had secured an $80 million equity bridge loan from the Bank of China for its projects in Uzbekistan.

The Saudi entity said the fund will boost its Tashkent 200 megawatts solar photovoltaic power plant and 500 MW per hour battery energy storage system project in Uzbekistan.

“This transaction culminated the initial agreement reached during the 3rd BRF (Belt and Road Forum) summit in October 2023, where ACWA Power was represented by its chairman as a keynote speaker,” the company said in a statement.