ORLANDO, Florida: More than 6,500 delegates from 73 countries, including over 1,300 international and domestic travel buyers and 500 media from the US and abroad, attended the US Travel Association’s 47th annual IPW, the travel industry’s premier international marketplace.
The event, the largest single generator of travel to the US, convened in Orlando, Florida earlier this month.
The Saudi delegation was more strongly represented than in recent years, with travel experts attending from around the Kingdom; while the US Consulate General in Jeddah sent their Travel and Tourism Specialist from the Commercial Service, Mai AbuDabat.
Travel from Saudi Arabia to the US has increased greatly since May 2015 when the US started facilitating visas for the Saudi market by issuing US business visitors five-year, multiple-entry visas, said Yasser Rafaat, events and groups manager for the Jeddah-based Attar Travels.
“Facilitating visa issues for the Saudi market has been a huge help for us,” Rifaat said. The US will see the positive impact of this in the next few years.
“Saudi nationals spend a lot of money when they travel, and are the biggest travelers to the US in the region.”
AbuDabat, commercial specialist, told Arab News: “Saudis’ attitudes to travel to the US are positive.”
AbuDabat added: “Many generations of Saudi nationals have a history here, especially with the King Abdullah Scholarship program, the KASP program, which is US-centric; 55 percent of Saudi students travel to US universities, and the rest go to the UK or Australia. We find that since so many Saudi students come to the US this results in generation after generation of Saudis who feel an affinity for the US.”
A first timer to IPW, Shehazad Ahmed, manager for Leisure and MICE (an acronym for Meetings, Incentives, Conferences and Exhibitions) for the Al Khobar-based ITL World, came “looking for new products, like Legoland, for our market.”
At IPW, he said that he found other “unique products” for his clients, such as Amtrak vacations “which is good, as we currently are handling Eurail trips in Europe.”
These fortuitous meetings are part of IPW’s success.
Over the course of three days, nearly 100,000 pre-scheduled business meetings took place between travel buyers and US travel organizations.
Aslam Pasha, general manager for the AlKhobar-based Almajdouie Travels, said he had a very positive experience, noting that “IPW is purely business, it is not a social gathering.”
To configure so many business meetings between so many people, IPW runs the 3-day convention like clockwork.
“I really admired the professionalism in managing the show,” said Pasha.
“Everything is well-run and tightly run. Here you learn how to manage time. Anyone who wants to succeed needs to learn how to value time. Here everything is perfectly organized: transportation, hotels, food, even the hotels selected to host the attendees.”
When asked how many of their meetings with American suppliers were positive in the sense that they felt it would lead to future business deals, they all said that they felt that between 50 percent to 70 percent of their meetings at IPW would lead to further business opportunities for them here.
The Saudi team did say there was some room for improvement.
“The negative we noticed here is that managers of IPW never talk about Middle East clients,” said Rafaat, who has been in the travel industry for over 23 years.
“They talk about Japan, Brazil, China and the UK but never mention us.”
This is unfortunate, as according to IPW President Roger Dow, Middle East tourists traveling to the US number 243,000 and spend $618 million annually.
Nonetheless, Ahmed appreciated what IPW did offer.
“The IPW show is very disciplined and the arrangements are good, and the meetings are serious and constructive.”
This is what IPW does best: bringing together travel professionals from every corner of the US, including representatives of hotels, destinations, attractions, museums, amusement parks and other travel businesses.
These professionals market themselves to the world’s top international tours operators and wholesalers that sell travel to the US.
Pasha praised the daily activities at IPW, including lunches, which he said “are fun and yet always focused on business outcomes.”
Pasha said: “A good example of how well-organized they are is that even the lunches are very energizing — which makes it easy to continue doing business after lunch, as opposed to Saudi Arabia.”
The lunch entertainment here is re-energizing, which is important, as we work so hard here, said Pasha.
“Business deals are easily made on the floor here.”
AbuDabat’s presence was useful working with the Saudi tourism authorities who attended IPW.
“Saudi companies can work through the US Dept of Commerce,” she explained.
“We link US suppliers with Saudi buyers, which creates more business for US companies. My role is to link Saudi buyers with US suppliers. We coordinate the introduction, and have offices all over the US.”
AbuDabat said: “So, if Yasser [Rafaat, Attar Travel] informs me that he wants to organize children’s trips to summer camps in the US, I send a mass e-mail to all our tourism teams in the US and explain the request. Then they reply with what they have to offer. We do this across many industries, not only travel.”
AbuDabat said: “We will try to increase Saudi delegates from 5 to 8 or 12. We’re the biggest market in the Middle East by demographics and income. Now that the visa entry process has improved, there’s very good working relationship between the two countries.”
IPW-initiated travel is expected to bring 8.8 million international visitors to the US, an independent firm, Rockport Analytics, recently published.
Overseas travelers will earn the $28 billion in total spending, and $4.7 billion in direct bookings to US destinations over the next three years.
Saudi travelers returning to America
Saudi travelers returning to America
Saudi Chambers launch first national committee for military industries
RIYADH: Military industries are set to receive a boost with the Federation of Saudi Chambers announcing the formation of the first special national committee of its kind.
This marks the first time that a committee focused on the defense sector has been formed under the umbrella of the private sector, represented by the Saudi body.
Its purpose is to collaborate closely with relevant authorities and entities, such as the General Authority for Military Industries, the Saudi Arabian Military Industries, and others, the Saudi Press Agency reported.
This initiative aligns with the federation’s new strategic directions, aimed at aligning with the modern economic sectors highlighted in Saudi Arabia’s Vision 2030.
The vision emphasizes the organization and localization of the Kingdom’s military industries sector, with a target of achieving more than 50 percent nationalization by 2030.
The federation also announced the election of Salman Al-Shathri as president and Ziyad Al-Muhaimid as vice-president for the session 2023-2026.
The Federation of Saudi Chambers serves as the umbrella and sole legitimate representative of the Kingdom’s business community, encompassing all its diverse groups, sectors, and regions.
Regional startups join forces to further propel the ecosystem
CAIRO: Startups across the Middle East and North Africa region are increasingly collaborating through strategic partnerships to enhance the entrepreneurial ecosystem.
Ventures from various industries are forging alliances, and signing agreements to bolster expansion, penetrate new markets, and enhance customer satisfaction initiatives.
At the forefront of these strategic partnerships, the Kingdom’s National Technology Development Program has joined forces with Outlier Ventures, a prominent global Web3 accelerator, to bolster the technology sector in Saudi Arabia.
Under the memorandum of understanding, the Base Camp Web3 accelerator program aims to support and cultivate the growth of promising Web3 startups in the Kingdom.
Participating startups will benefit from Outlier Ventures’ expertise, receiving guidance on product development, entity structuring, and token design from a team of in-house experts.
Additionally, these startups will gain invaluable insights and networking opportunities through direct interactions with leading mentors and investors in the Web3 domain.
“Under Vision 2030, the rapid pace of change and development is visible across all sectors of the economy. The achievements are testimony to the level of dedication and focus driving the Kingdom forward. Our strategic collaboration underscores our joint dedication to nurturing technological progress,” said Stephan Apel, CEO and founding partner of Outlier Ventures.
This collaboration marks the introduction of the first deep tech Web3 accelerator program in Riyadh, slated to begin later in 2024.
The initiative aligns with Saudi Vision 2030 and Outlier Venture’s commitment to nurturing global entrepreneurial talent, specifically targeting the burgeoning Web3 ecosystem within the Kingdom.
Inbox Business partners with AstroLabs for expansion in KSA
Pakistan’s Inbox Business Technologies sealed a partnership with business facilitator AstroLabs to support the former in entering the Saudi market.
Inbox Business Technologies, under the ownership of the Dawood Group, is renowned for its extensive experience in delivering transformative innovation across various technology domains in Pakistan.
With a workforce exceeding 1,800 professionals, Inbox is well-equipped to offer services in business applications, enterprise managed services, cloud migration, digital security, and cybersecurity.
The collaboration with AstroLabs will establish Inbox Business Arabia, the company’s Saudi branch, to capitalize on the burgeoning digital sector, enabling a timely and strategic market expansion in the Kingdom.
“Inbox Technologies Arabia is actively expanding its operations within Saudi Arabia, with several key projects currently in progress,” said Mohsin Ali, CEO of Inbox Business Technologies.
“Among these initiatives is the development of a content management database specifically for a multinational corporation based in Jeddah. Additionally, we’re playing a crucial role in delivering IT services and overseeing strategic programs for the nation’s foremost IT enterprise, along with a company owned by the Public Investment Fund,” he added.
True Gamers partners with Takefluence to introduce ambassador program
True Gamers and Takefluence have partnered to unveil an ambassador program dedicated to the gaming community.
This innovative initiative aims to empower gaming enthusiasts and content creators, providing them with a platform to express their creativity, engage with broader audiences, and convert their gaming passion into tangible opportunities.
“This partnership reflects a shared vision for the future of Gaming, eSport and content creation in the region, highlighting the synergies between technological innovation and community engagement,” said Archie Rudyuk, CEO and co-founder of Takefluence.
True Gamers is a UAE-based esports gaming cafe network with 150 outlets globally.
Takefluence is a platform that automates the onboarding, reporting and payouts for brands looking to launch their ambassador and creator campaigns, engage audience, and leverage influencers and user-generated content.
“By combining our resources and expertise, we are not just offering a platform for gamers and creators but also setting the stage for the next generation of gaming content. This initiative is about recognizing and amplifying the talents within our community, ensuring that the Middle East becomes a main hub of innovation and creativity in the global gaming scene,” said Vlad Belyanin, co-founder of True Gamers.
Deliveroo UAE teams up with Kayali to offer luxury fragrances
Deliveroo UAE has forged a partnership with Kayali, the prestigious perfume brand created by beauty entrepreneur Mona Kattan.
This collaboration marks a significant development in on-demand shopping, with Deliveroo being the exclusive aggregator to feature Kayali’s luxury fragrances on its new shopping vertical.
This move expands Deliveroo’s range of offerings and showcases its commitment to providing customers with convenient and premium shopping experiences.
Through this partnership, Deliveroo underscores its position as a trusted platform for brands and a provider of unique value to its customers across the UAE.
MBC Group acquires significant stake in Anghami
Saudi Arabian media giant MBC Group, via its MBC Ventures division, has acquired over 4 million ordinary shares in the Nasdaq-listed music streaming service Anghami.
This purchase secures MBC Group a 13.7 percent ownership in Anghami and raises its stake’s value to $6.48 million from $4.074 million.
The acquisition also coincided with a substantial 59 percent increase in Anghami’s share price on March 20, which soared to $1.59 from $1 the previous day.
Ahlan App secures $3m in funding
Bahrain’s Ahlan App, a loyalty program and delivery service, has secured a $3 million investment at a $15 million valuation in a round led by Hope Ventures, with contributions from Al Rajhi Holdings and other angel investors.
Founded in 2021 by Faisal Rashed, Ahlan rewards users with cashback for dining in, picking up, or home delivery services.
This fresh influx of capital is earmarked for increasing Ahlan’s market presence, emphasizing its commitment to enhancing customer loyalty and expanding its services.
Egypt’s Sprints.ai raises $3m
Sprints.ai, an Egypt-based edtech firm, has raised $3 million in a bridge round led by Disruptech Ventures, with contributions from EdVentures and Challenge Fund for Youth Employment, among others.
Founded by Ayman Bazaraa and Bassam Sharkawy in 2020, Sprints.ai is addressing the tech talent shortage in the Middle East and Africa region by offering a guaranteed hiring program to prepare qualified candidates for the job market.
This new funding will support Sprints.ai’s ambitious plan to penetrate 10 new markets, reinforcing its mission to bridge the educational gap in technology sectors across the region.
Saudi e-commerce thrives as sales using Mada cards reach $3.76bn in February
RIYADH: Saudi e-commerce sales using Mada cards reached SR14.11 billion ($3.76 billion) in February – an annual increase of 25 percent, the Kingdom’s central bank has revealed.
This figure includes transactions through online shopping, in-app purchases and e-wallets, and excludes transactions by Visa, MasterCard and other credit cards.
Mada serves as Saudi Arabia’s national card payment scheme, aimed at advancing digital payments within the country, particularly in supporting e-commerce, point of sales, and ATM growth. Linked directly to the cardholder’s bank account, it enables real-time, secure, and reliable transactions for a variety of purposes, including purchasing, cash withdrawals, and online payments.
The number of e-commerce transactions also increased by 44 percent on a year-on-year basis to reach more than 84 million in February.
The shift in consumer behavior post-COVID-19, supported by regulatory reforms, robust internet infrastructure, and the continuous advancement of sophisticated e-commerce businesses, has been key drivers of the shift away from cash.
In the past three years, online sales in Saudi Arabia surged by almost 60 percent across various categories, with significant growth seen in media products, apparel, and footwear segments, according to the American International Trade Administration in a January commercial guide.
Additionally, the average spend per e-commerce user in the Kingdom rose by over 50 percent.
The organization anticipates continuous growth, projecting Saudi Arabia to reach 33.6 million e-commerce users by 2024, marking a 42 percent increase from 2019.
Factors contributing to this growth include the country’s 97 percent smartphone penetration rate, high mobile broadband subscriptions, and ranking as the 10th country globally for internet speed.
Moreover, 72 percent of Saudis over the age of 15 possess bank accounts highlighting the readiness of the population for digital transactions and online commerce.
The organization emphasized the prevalence of local platforms and the introduction of new entrants like Amazon Prime, which debuted in January 2021.
Other contributing factors include the government’s initiatives to enhance the sector’s regulatory framework, aimed at bolstering confidence among Saudis and encouraging the use of its platforms, with a focus on protecting consumers and businesses alike.
However, the organization also highlighted challenges for this sector, particularly the need to strengthen cyber-security measures to counter malicious emailing, which poses risks such as phishing scams exposing sensitive information like passwords, financial details, and personal data.
The shift to online shopping became apparent in the wake of the COVID-19 pandemic, significantly altering consumer behavior and impacting traditional retail outlets. The rise of e-commerce has proven essential, providing digital access to products and enabling businesses to adapt to changing market trends and consumer preferences.
This trend is reflected in data from the Kingdom’s central bank, also known as SAMA, showing a remarkable surge in e-commerce sales. In 2020, at the onset of the pandemic, sales increased by 279 percent, soaring from SR10.25 billion in 2019 to nearly SR39 billion.
This momentum continued in 2021 with a further annual rise of approximately 91 percent, reaching SR74 billion, and a subsequent increase of 65 percent in 2022 to SR123 billion. By the end of 2023, e-commerce sales through Mada cards had reached SR157 billion, underscoring the sector’s robust growth.
According to data from the German e-commerce database website, the top five online retailers in Saudi Arabia’s e-commerce sector for 2023 are jarir.com, nahdionline.com, amazon.sa, extra.com, and namshi.com.
Jarir.com leads the market with revenues of $452.8 million in 2023, followed by nahdionline.com with $330.1 million in sales, and amazon.sa with $328.5 million.
These top three online retailers collectively account for a market share of 38.7 percent among the top 100 stores in the Kingdom’s e-commerce market, as reported by the database.
The ranking is based on the top stores by net sales in the market for the year 2023.
According to a 2023 Deloitte Digital report, these companies are utilizing data and analytics to gain deeper insights into their customer base, tailoring their offerings to better meet their needs.
The Kingdom has come a long way from a population initially lacking trust in online retailers, limited payment options, and product diversity, to now holding the potential to become a thriving e-commerce market, according to the firm.
This transformation is particularly supported by the Saudi government’s implementation of various initiatives aimed at boosting the digital economy’s contribution to the Kingdom’s gross domestic product.
The adaptability of the regulatory framework and its adjustments to market dynamics have created an environment conducive to the growth of e-commerce and the flourishing of innovative technologies.
As the industry evolves, new payment methods are emerging, prompting the central bank to establish a sandbox for testing and regulating these innovations. This serves as a crucial platform for the industry to experiment with and adopt new technologies.
Additionally, the Communications, Space, and Technology Commission introduced a dedicated sandbox for delivery applications, streamlining operations and enhancing efficiency for e-commerce businesses.
Regulatory initiatives have facilitated the entry of major players like STC, and partnerships such as Aramco’s collaboration with Google Cloud have further supported and provided infrastructure for all participants in the e-commerce ecosystem, Deloitte added.
Furthermore, the establishment of free zones has played a pivotal role in simplifying logistics and expediting the movement of goods, thus bolstering Saudi Arabia’s e-commerce landscape.
Deloitte forecasts a remarkable surge in the sector, with a projected market volume of $23.46 billion by 2027. Additionally, the number of e-commerce users in the Kingdom is expected to reach 34.5 million by 2025, with user penetration increasing from 66.7 percent in 2023 to 74.7 percent by 2027.
Oil Updates — Crude rises more than $1 a barrel on tighter supply outlook
NEW YORK: Oil prices jumped more than $1 a barrel on Thursday, closing out the month higher on the prospect of OPEC+ staying the course on production cuts, ongoing attacks on Russia’s energy infrastructure and a falling US rig count tightening crude supplies, according to Reuters.
Brent crude futures for May settled at $87.48 a barrel, its highest level since Oct. 27, after gaining $1.39, or 1.6 percent. The more actively traded June contract settled at $87 a barrel, rising $1.58, with the May contract expiring on Thursday.
US West Texas Intermediate crude futures for May delivery settled at $83.17 a barrel, rising $1.82, or 2.2 percent.
On the week, Brent rose 2.4 percent and WTI gained about 3.2 percent. Both benchmarks finished higher for a third consecutive month.
In the prior session, oil prices had come under pressure from last week’s unexpected rise in US crude oil and gasoline inventories, driven by an increase in crude imports and sluggish gasoline demand, according to Energy Information Administration data.
However, the crude stock increase was smaller than the build projected by the American Petroleum Institute, and analysts noted the increase was lower than expected for the time of year.
“We ... expect US inventories to rise less than normal in reflection of a global oil market in a slight deficit,” SEB analyst Bjarne Schieldrop said. “This will likely hand support to the Brent crude oil price going forward.”
US refinery utilization rates, which rose 0.9 percentage point last week, also supported prices.
The oil and gas rig count, an early indicator of future output, also fell by three to 621 in the week to March 28, according to energy services firm Baker Hughes.
The US economy, meanwhile, grew faster than previously estimated in the fourth quarter. Gross domestic product increased at a 3.4 percent annualized rate from the previously reported 3.2 percent pace, the Commerce Department’s Bureau of Economic Analysis said.
“The strength in the stock market suggests strong forward earnings that are, in turn, hinting at a surprisingly strong US economy conducive toward better than expected energy product demand,” said Jim Ritterbusch of energy consultancy Ritterbusch and Associates.
Inflation data also affirmed the case for the US Federal Reserve to hold off on cutting its short-term interest rate target, a Fed governor said on Wednesday, but he did not rule out trimming rates later in the year.
“The market is converging on a June start to cuts for both the Fed and the European Central Bank,” JPMorgan analysts said in a note. Lower interest rates typically support oil demand.
Investors will watch for cues from a meeting next week of the Joint Monitoring Ministerial Committee of producer group the Organization of Petroleum Exporting Countries.
Increased geopolitical risk has raised expectations of possible supply disruption, but OPEC+ is unlikely to make any oil output policy changes until a full ministerial gathering in June.
Attacks by Ukraine on Russian energy infrastructure have also boosted the sentiment around global crude supplies tightening and helped to support oil prices, said Again Capital LLC partner John Kilduff.
“It’s a prime target, and they appear to have not heeded the ask by the Biden administration to not attack Russian energy infrastructure,” Kilduff said.
UAE, Saudi Arabia ranked as leading global entrepreneurial ecosystems
RIYADH: The UAE and Saudi Arabia have been ranked first and third respectively in the Global Entrepreneurship Monitor report for 2023-2024.
The report, which assesses the entrepreneurial ecosystems of countries worldwide, is highly regarded by international bodies such as the World Bank, International Monetary Fund and various UN organizations,
Saudi Arabia showed significant progress in its entrepreneurial environment, with its National Entrepreneurship Context Index score increasing from 5.0 in 2019 to 6.3 in both 2022 and 2023.
This reflected the country’s successful efforts to diversify its economy and foster a supportive climate for entrepreneurship, said the report. A notable highlight was increased female entrepreneurship, with eight women starting new businesses for every 10 men in 2023.
The country also has the highest proportion of adults who know an entrepreneur, perceive ease in starting a business, recognize good business opportunities, and believe they possess the necessary skills and experience to start a business.
However, despite high acknowledgment of opportunities and capabilities, there remains a considerable fear of failure, the report concluded.
Additionally, a significant percentage of Saudi entrepreneurs are expected to leverage digital technologies and focus on minimizing environmental impacts and maximizing social impacts, indicating a readiness for future challenges.
Meanwhile, the UAE set a record with its National Entrepreneurship Context Index score of 7.7, the highest in the report’s history.
The report also positioned the UAE as the best environment in the world for starting and conducting new business ventures, surpassing many advanced economies. It also ranked third globally in terms of physical infrastructure.
Significant strides have been made in entrepreneurship education within schools, emphasizing skills like creative thinking, problem solving, opportunity recognition and risk assessment. The country ranked among the top five out of 49 in this aspect.