Qiddiya giga-project set to propel Saudi Arabia’s entertainment sector

Qiddiya is one of several large-scale entertainment projects in the Kingdom, dubbed the ‘capital of entertainment, sports, and the Arts.’ there is no doubting its importance as one of the cornerstones of the sector. (Supplied)
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Updated 04 August 2024
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Qiddiya giga-project set to propel Saudi Arabia’s entertainment sector

  • Theme park has huge ‘disruptive potential’ across global industry

RIYADH: The cultural landscape of Saudi Arabia is being enriched as the entertainment sector undergoes significant expansion.

The ambitious Saudi Vision 2030, which strives to diversify the economy and increase global engagement, is the driving force behind this broader cultural transformation.

One prime example of the Kingdom’s initiatives aimed at propelling the entertainment sector is the Qiddiya giga-project.

Launched in 2018 under the leadership of King Salman bin Abdulaziz, Qiddiya is an emerging capital for entertainment, sports and culture that aims to build destinations, programs and initiatives based on the power of play that will enhance the quality of life of visitors and residents.

Qiddiya’s role in propelling the Kingdom’s entertainment sector

Qiddiya is just one of several large-scale entertainment projects in the Kingdom but, dubbed the “Capital of Entertainment, Sports, and the Arts,” there is no doubting its importance as one of the cornerstones of the sector.

Canadian company AtkinsRéalis is the lead design consultancy for the project, and the firm’s Global Director of Creative, Theming and Show Design Bradley Caruk set out his vision for Qiddiya to  Arab News.

“Having worked in the global entertainment industry for the past 25 years, I have learnt we are all the same. Everyone wants to have fun. With major innovative parks like Six Flags Qiddiya City, we have the unexpected – a fully immersive story-driven theme park experience,” he said.

Caruk added that the attraction will have “the world’s tallest, longest, fastest rides”, and said: “We even support the storyline further by including original music compositions.”

Sector expert Jamie Ryder, a partner at Entertainment & Media Industry Group at law firm Reed Smith, told Arab News that Qiddiya has a huge amount of “disruptive potential.”




Jamie Ryder

He said: “In terms of Qiddiya’s disruptive potential, this is immediately clear when considering the sheer scale of the development.  When complete, Qiddiya will be home to over 600,000 residents and aims to attract 48 million visits per year.”

Ryder continued: “In addition to the specific, innovative – and in the case of Dragon Ball theme park – world’s first attractions Qiddiya will host, the focus on ‘play’ throughout the development, and the ability to host major sporting and entertainment events in cutting edge venues means that Qiddiya’s disruptive potential is significant.”

Partnerships that Qiddiya has established with local or international entities

Of those collaborations and partnerships that have been announced so far, it is very easy to quickly see the alignment with various elements of the Vision 2030 as well as reflecting the fact that Saudi society is a young, connected and vibrant population.

Ryder highlighted the Dragon Ball theme park – based on the popular Japanese animated series – as something that will appeal directly to young people in the Kingdom and beyond.

“Anime is incredibly popular in KSA with Saudi reported as having the largest share of anime viewers worldwide,” he said, adding: “With the UAE second in the world rankings for anime viewership, this promises to be a popular attraction enticing tourists from across the region.”

Ryder also cited the Six Flags theme park being the first outside of the Americas appealing to both Saudi youth and visitors.

He said one of the jewels in the crown of Qiddiya will be the Speed Park Track, which garnered significant attention in the motor racing world when the design was unveiled. The attraction comes as the popularity of Formula 1 in the region grows.

“Add to this mix the cutting-edge mixed-use Prince Mohammed Bin Salman Stadium, and dedicated gaming and esports neighborhood, and it is clear to see how Qiddiya will offer world-class attractions and experiences to locals and tourists,” he said

Firms’ roles in supporting the Saudi’s vision of developing a world-class entertainment experience

Several firms in the industry recognize Saudi Arabia’s vision of developing top attractions and world-class entertainment destinations in line with the high bar set from the big parks that have been around for over 50 years.

From AtkinsRéalis point of view, Caruk emphasized that the company’s multi-disciplinary teams understand guests’ expectations and work towards exceeding those expectations.

“We work as one team, but there are hundreds of us taking a concept and turning it into a reality – all with a common goal to make experiences memorable and timely,” he said.

“When we hear the phrase ‘That was awesome, can we go back there again’ that’s when we know we’ve done something right. Nothing like witnessing guests leaving our designed theme park with a sense of awe and a desire to return. We expect to hear a lot of these reactions in the years to come,” Caruk added.




Bradley Caruk

He was keen to emphasize the pride his firm has in working on the project, saying: “Our commitment to Saudi’s Vision 2030 is unwavering, and we value our partnership with Qiddiya, where we contribute to creating unparalleled fun.”

Qiddiya’s alignment with the Saudi Vision 2030

There is no doubt that Qiddiya plays a major role in Saudi Arabia’s 2030 vision, aiming to become a leading destination for entertainment, work, sports and daily life.   

While economic diversification is at the heart of Vision 2030, promoting culture and entertainment in the Kingdom was included as one of the key goals for Vision 2030 when it was first announced in 2016.

A vibrant society, thriving economy, and an ambitious nation are three key pillars of the Vision.

From Reed Smith’s viewpoint, Ryder said: “As such, the role of Qiddiya is not just about economic diversification but, like so many of the projects in KSA, it is about enhancing the quality of life for Saudi citizens and tourists alike with Quality of Life also being one of the Vision 2023 key Vision Realization Programs.”

He added: “The Quality of Life VRP was launched in 2018 with the aim of transforming Saudi Arabia into a world-renowned sports and entertainment location, and a global tourism hotspot and there can be little doubt that Qiddiya is a key element of this program.”

From AtkinsRéalis’ perspective, Caruk believes Qiddiya City will be a “premier destination” for play, adding: “It has something for everyone – a rarity in this region. The complexity and diversity of experiences across the whole development are truly remarkable and will also set a precedent for future developments across the globe”.

He went on: “Today, entertainment is a multi-billion-dollar industry and Qiddiya will play a major role in helping realize people’s dreams. At AtkinsRéalis, we feel fortunate to be hands-on and part of this groundbreaking project.”


Oil Updates – prices climb on Fed rate cut outlook

Updated 4 sec ago
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Oil Updates – prices climb on Fed rate cut outlook

SINGAPORE: Oil prices rose in Asian trade on Monday amid expectations of a US interest rate cut this week, though gains were capped by persistent demand worries and weaker China data.

Brent crude futures for November were up 38 cents, or 0.5 percent, at $71.99 a barrel at 10:00 a.m. Saudi time. US crude futures for October were up 49 cents, or 0.7 percent, at $69.14 a barrel.

Both contracts had settled lower in the previous session, with concerns about supply disruptions easing as Gulf of Mexico crude production resumed following Hurricane Francine and as rising data showed a weekly rise in US rig count.

Still, nearly a fifth of crude oil production and 28 percent of natural gas output in the Gulf of Mexico remain offline in the hurricane’s aftermath.

“Markets are focused on upcoming FOMC policy decisions and traders are likely to stay cautious,” said Phillip Nova senior market analyst Priyanka Sachdeva, adding that prices are still supported by some supply worries given some capacity remains offline in the Gulf of Mexico.

The Federal Open Market Committee is expected to make a decision during its Sept. 17-18 meeting.

Fed fund futures show investors are increasingly betting the US central bank will cut by 50 basis points instead of 25 bps, according to CME FedWatch.

Lower interest rates typically reduce the cost of borrowing, which can boost economic activity and lift demand for oil.

However, analysts are concerned that an aggressive rate cut of 50 bps could signal underlying recession worries, which would be a bane for demand.

“A cut of 50 bps from the Fed will likely indicate weakness in the US economy, raising demand concerns for oil,” said OANDA senior market analyst Kelvin Wong in an email.

Optimism in the market was dampened by weaker Chinese economic data released over the weekend, with the low-for-longer growth outlook in the world’s second largest economy reinforcing doubts over oil demand, said IG market strategist Yeap Jun Rong in an email.

Industrial output growth in China, the world’s top oil importer, slowed to a five-month low in August, while retail sales and new home prices weakened further.

“Coupled with increased odds of a deflationary risk spiral in China after industrial production and retail sales growth declined in August, the current rebound in WTI crude oil is likely unsustainable with intermediate key resistance at $72.20/73.15 per barrel,” OANDA’s Wong said.

Oil refinery output also fell for a fifth month as disappointing fuel demand and weak export margins curbed production.


Italy’s Saipem wins $4 billion contract from QatarEnergy

Updated 30 min 16 sec ago
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Italy’s Saipem wins $4 billion contract from QatarEnergy

  • Contract will help boost production at QatarEnergy’s North Field offshore natural gas field

DOHA: Italian energy engineering group Saipem said on Sunday it had won an offshore contract worth $4 billion from QatarEnergy, one of the world’s top suppliers of liquefied natural gas.
The contract will help boost production at QatarEnergy’s North Field offshore natural gas field, which lies off the northeastern coast of Qatar, Saipem added in a statement.
Earlier this year, Qatar announced an expansion project to boost the North Field’s LNG output to 142 million tons per annum (mtpa) from the current 77 mtpa by 2030.
The Italian group said this month it had won two offshore contracts in Saudi Arabia worth about $1 billion in total, under an existing long-term agreement with oil giant Saudi Aramco.


US firm Alcoa sells stake in Ma’aden JVs for $150m, 2.21% share of new capital

Updated 25 min 7 sec ago
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US firm Alcoa sells stake in Ma’aden JVs for $150m, 2.21% share of new capital

RIYADH: American industrial giant Alcoa Corp. is set to sell its stakes in Ma’aden Aluminum Co. and Ma’aden Bauxite and Alumina Co. to the Saudi Arabian Mining Co., or Ma’aden.

The deal will involve Alcoa receiving $150 million in cash and newly issued shares representing approximately 2.21 percent of Ma’aden’s share capital after the transaction.

This move aligns with US firm’s strategy to deepen its involvement with Ma’aden and underscores its ongoing commitment to the Saudi company.

It also comes at a time when Ma’aden has reported impressive financial results, achieving a net profit of SR2 billion ($532 million) in the first half of 2024, a 160 percent increase compared to the same period in 2023.

Ma’aden CEO Bob Wilt remarked: “Ma’aden formed our joint venture with Alcoa in 2009 to develop a world-class aluminum business. Now, it’s time for our partnership to evolve.”

He added: “Streamlining the management structure of our aluminum business is a crucial step forward as we prepare for future growth and continue to build mining as the third pillar of the Saudi economy.”

Alcoa’s President and CEO William Oplinger stated: “We deeply value our partnership with Ma’aden and our joint ventures. We are confident that under this new arrangement, MBAC and MAC are well-positioned for success.”

He also noted that the transaction would simplify Alcoa’s portfolio, enhance visibility into the value of its investment in Saudi Arabia, and provide greater financial flexibility.

The transaction will grant Ma’aden full ownership and complete operational and management control of MAC and MBAC, streamlining its aluminum business operations. The deal is subject to regulatory and corporate approvals, as well as the completion of other customary closing conditions, with an expected completion by the first quarter of 2025.

Ma’aden’s strong performance and strategic advancements highlight its commitment to leading the mining sector and supporting Saudi Arabia’s economic diversification, particularly in establishing mining as a key pillar of the Kingdom’s industrial sector.


Closing Bell: Saudi main index climbs to 11,900

Updated 15 September 2024
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Closing Bell: Saudi main index climbs to 11,900

  • Parallel market Nomu fell by 164.65 points, or 0.63%, to finish at 25,769.95
  • MSCI Tadawul Index increased by 7.12 points, or 0.48%, ending the day at 1,478.60

RIYADH: Saudi Arabia’s Tadawul All Share Index rose by 57.75 points, or 0.49 percent, to close at 11,900.30 on Sunday. 

The benchmark index saw a total trading turnover of SR4.14 billion ($1.10 billion), with 138 stocks advancing and 80 declining. 

The Kingdom’s parallel market Nomu fell by 164.65 points, or 0.63 percent, to finish at 25,769.95, as 19 stocks advanced and 46 retreated. 

The MSCI Tadawul Index increased by 7.12 points, or 0.48 percent, ending the day at 1,478.60. 

The top performer of the day was Saudi Fisheries Co., with its share price surging 9.93 percent to SR25.35. 

Other top gainers included Amlak International Finance Co. and Saudi Arabian Cooperative Insurance Co., with their share prices rising by 7.59 percent and 7.36 percent, respectively. 

The worst performer was Al-Baha Investment and Development Co., which saw its share price drop by 5.56 percent to SR0.17. Middle East Specialized Cables Co. saw a decline of 1.99 percent, while First Milling Co. dropped by 1.83 percent. 

On the announcements front, Riyad Capital, acting as the sole financial adviser, lead manager, bookrunner, and underwriter for Fourth Milling Co.’s initial public offering, has revealed the offering price range and the start of the institutional book-building period. 

According to a Tadawul statement, the price range for the offering is set between SR5 and SR5.30 per share, with the book-building period running from Sept. 15 to 19. 

The offering includes 162 million ordinary shares, representing 30 percent of Fourth Milling’s current share capital. Participating parties can apply for a minimum of 300,000 shares, with a maximum of 26.99 million shares available. 

The financial adviser may reduce the number of shares allocated to participating parties to 129.6 million, or 80 percent of the total offer, to accommodate individual demand. Up to 32.4 million shares, or 20 percent, will be allocated to individual subscribers. 

The total offering size is projected to range from SR810 million to SR858.6 million, suggesting a market capitalization of SR2.7 billion to SR2.8 billion at listing. The company will have a free float of 30 percent of shares post-listing. 

The Capital Market Authority has also approved the registration and offering of 3 million shares of Multi Business Group for Projects Co., representing 20 percent of the firm’s share capital, in the parallel market. The offer will be limited to qualified investors, with the prospectus to be published ahead of the offering. 

The CMA also approved the registration and offering of 337,500 shares of Digital Research Co. and 250,000 shares of Balsm Alofoq Medical Co., both representing 20 percent of each firm’s share capital, in the parallel market. 

The offering for Al-Majed for Oud Co. was held on Sept. 15, with Saudi Fransi Capital serving as the lead manager and Banque Saudi Fransi and Al-Rajhi Bank acting as receiving entities. The retail offering comprised 1.5 million shares, each priced at SR94. 


Nestle to build its first Saudi manufacturing plant in Jeddah 

Updated 15 September 2024
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Nestle to build its first Saudi manufacturing plant in Jeddah 

JEDDAH: Swiss food and beverage company Nestle has signed an agreement to establish its first manufacturing plant in Saudi Arabia.

The new facility will be located on a 117,000 sq. meter site in Jeddah’s Third Industrial City.

The Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, announced the agreement, which was formalized in the presence of Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef, who also serves as MODON’s chairman.

The signing ceremony, held on Sept.15 in Jeddah, was also attended by Majed Al-Argoubi, CEO of MODON, and Robert Helou, CEO of Nestle Saudi Arabia, according to the Saudi Press Agency.

Slated to open in 2025, the plant represents an initial investment of SR270 million ($72 million). The project is set to enhance local production capabilities, contribute to sustainable food security in the Kingdom, and meet local demand while enabling exports to other Middle Eastern and North African markets.

The initiative aligns with Saudi Arabia’s broader efforts to improve food security by diversifying and localizing food sources and reducing import dependency. In support of the National Industrial Strategy, MODON is advancing the food sector through the development of industry clusters in Jeddah’s second and third industrial cities, aimed at strengthening supply chains and boosting exports.

With an initial production target of 15,000 tonnes annually, the plant is expected to foster growth in the region’s food manufacturing industry. The factory will focus on producing food for children and will feature an automated production line with advanced packaging and filling technologies operated by highly skilled local professionals.

The project is anticipated to create hundreds of direct and indirect jobs and will include a central warehouse, an industrial services building, an advanced laboratory, and an administrative office.