Saudi Arabia’s Red Sea Global looks to lead in sustainable, regenerative tourism at COP28

Saudi Arabia’s Red Sea Global looks to lead in sustainable, regenerative tourism at COP28
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Updated 01 December 2023
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Saudi Arabia’s Red Sea Global looks to lead in sustainable, regenerative tourism at COP28

Saudi Arabia’s Red Sea Global looks to lead in sustainable, regenerative tourism at COP28
  • John Pagano: COP28 provides a global platform for discussions and decision-making between nations on the topic of climate change

LONDON: Saudi Arabia’s Red Sea Global is looking forward to showcasing the role of tourism development in the environment at the UN Climate Change Conference (COP28) this week.

John Pagano, the chief executive officer of RSG, told Arab News: “Our aim is to help lead by example and demonstrate how tourism development can play a more positive role in mitigating some of the world’s greatest challenges and support our industry peers in this transition.

“For us, communicating some of the ways in which we’ve been able to walk the walk, and not just talk the talk, is key as all eyes turn to the event and its participants, looking for action not just conversation.”

The conference is being held in Dubai from Nov. 30 to Dec. 12 – the second consecutive Arab country to host the annual gathering after Egypt last year.

READ MORE: Click here for our coverage of COP28

“COP28 provides a global platform for discussions and decision-making between nations on the topic of climate change,” Pagano said, adding that RSG and several of its experts would be attending, exhibiting, and speaking at various elements of the forum.

RSG, which is wholly owned by the Saudi Public Investment Fund and was established in 2018, recently concluded its participation at the World Travel Market in London, and Pagano noted that the main difference with their participation this year was that they had been able to talk about being open.

Last month The Red Sea welcomed its first guests and two of its hotels are open for bookings, and the Red Sea International Airport has been receiving a regular schedule of flights since September.




A delegation of Saudi ministers and leaders were the first guests of The Red Sea destination, landing at Red Sea International Airport aboard a special-edition liveried Saudia flight from Riyadh. (www.redseaglobal.com)

Pagano said: “The Red Sea, our luxurious destination situated on the western coastline of Saudi Arabia, has welcomed its first visitors, while Red Sea International Airport, which is on track to be the Middle East’s first carbon-neutral airport, has a regular schedule of flights.

“We’re excited that people can now book a vacation to come and see for themselves what we’ve achieved — awe-inspiring resorts and experiences in scenes of unrivalled beauty, underpinned by a profound respect for the area’s natural treasures,” he added.

Upon full completion in 2030, the destination will comprise 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 luxury marinas, golf courses, entertainment, food and beverage, and leisure facilities.

The CEO said: “(People have been) intrigued by the opening of The Red Sea and energized by our vision of regenerative tourism, which involves improving, and not just protecting, natural environments.

“Since we started on our journey six years ago, we’ve always relished the moment we would be able to talk to industry peers about hotels and resorts being open, so our experience at this year’s WTM will always be special for us.”

He pointed out that The Red Sea opening was not the only reason it had been a year of evolution for the organization, highlighting its launch of a series of subsidiary brands designed to elevate the guest experience, including WAMA and Galaxea to provide watersports and diving experiences, and Akun to operate and manage adventure sports.

“So, it’s been great to talk to industry peers about how we envisage these entities boosting tourism to the Kingdom while upholding our commitment to sustainability,” he added.

RSG has won several awards over recent years in recognition of its efforts and initiatives to promote sustainable and eco-friendly tourism, the latest of which was achieving the highest score recorded to date in the prestigious Platinum LEED v4.1 accreditation from the US Green Building Council, which served as a testament to RSG’s dedication to sustainability and marked a major milestone in the development of regenerative tourism destinations.

On the year ahead, Pagano said: “With people visiting The Red Sea for the first time, we want to ensure that they leave with unforgettable memories and a desire to return again, so the smooth operation of the destination will be a major focus for us throughout the year.”

Developing world-class destinations will also be a priority.

“For example, Amaala – designed to offer transformative personal journeys inspired by arts, wellness, and the purity of the Red Sea – is set to welcome its first guests in 2025, so we look forward to providing further updates at next year’s conference,” he added.

Collectively RSG’s portfolio, which includes the two world-leading destinations — The Red Sea and Amaala — part of Vision 2030, are responsible and regenerative tourism destinations that will aim to enhance the Kingdom’s luxury tourism and sustainability offering, protect the natural environment, and enhance it for future generations.

Pagano said: “We are also committed to our sustainability goals and making our vision of regenerative tourism a reality.

“This year saw us complete the installation of five solar farms, laying 760,000 photovoltaic panels to power the first phase of The Red Sea destination.

“We are also delivering on our strategy for destination-wide clean mobility using electric and hybrid vehicles, boats, and aircraft.

“By 2040, we are committed to delivering a 30 percent net conservation benefit across our destinations through the enhancement of biologically diverse habitats including mangroves, seagrass, corals, and land vegetation.”

He noted that The Red Sea marine biology team monitored around 300 coral reef sites in the Red Sea, and that a pilot phase of coral gardening was now underway to establish what structures and methods worked best for propagating corals. So far, he added, the results had been extremely promising.

“Our mangrove nursery, launched in partnership with the National Center for Vegetation Cover, is on track to meet the goal of planting 50 million mangrove trees by 2030, with the first 1 million seedlings already planted. We are also exploring hands-on opportunities for guests to support coral farming and planting of mangrove seedlings.”

It is one of the programs under the Saudi Green Initiative, launched by Crown Prince Mohammed bin Salman in 2021, to plant 10 billion trees throughout the Kingdom to increase vegetation cover and help combat desertification.

The 10 billion trees are part of a total of 50 billion trees that are to be planted in the region under the Middle East Green Initiative, also launched by the crown prince the same year.

 

 

“We hope that we will have inspired others across the tourism sector to follow our lead,” Pagano said.

He added that The Red Sea and Amaala’s key features — including 24/7 renewable energy, zero single-use plastics, and zero waste to landfill — “might have sounded ambitious when we first announced them, but by 2040, we believe that they will be the norm across our industry.”


MENA startups raise $116m in June, pushing first half of 2024 to $882m: Wamda 

MENA startups raise $116m in June, pushing first half of 2024 to $882m: Wamda 
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MENA startups raise $116m in June, pushing first half of 2024 to $882m: Wamda 

MENA startups raise $116m in June, pushing first half of 2024 to $882m: Wamda 

RIYADH: Investment activity in the Middle East and North Africa region’s startup space slowed in June with 38 tech startups raising $116 million, bringing the half-year total to $882 million, according to the latest data. 

The amount raised in June saw a 59 percent month-on-month decline from the $282 raised in May but marked a 182 percent increase compared to the same period last year, according to venture news platform Wamda. 

In its latest monthly report, the platform stated that UAE-based startups led the region, securing $82.5 million across 15 deals. Egyptian startups followed with $15 million raised by four companies, marking the second-highest total. 

Saudi Arabia dropped to third, with seven initiatives raising $13.5 million. Notable activity was also observed in Iraq, with six startups raising an estimated $1.2 million, though this amount could be higher as Orisdi, Bonlili, and Alsaree3 did not disclose their investment values. 

June was marked by an absence of mega deals, with Tenderd’s $30 million agreement having the biggest ticket size. 

Sector-wise, fintech reclaimed its position as the most funded field, securing $38 million with over 10 deals, closely followed by construction technology, thanks to Tenderd’s deal. Meanwhile, three proptech startups raised $19.6 million in June, reversing the lead it achieved in May. 

The majority of June’s investment went to the pre-series A stage, with four startups receiving $45 million, followed by the seed stage, where five startups raised $27.3 million. 

However, when considering investment volume, early-stage startups are still capturing the attention of investors, with eight startups at their pre-seed stage garnering $3 million and an additional eight securing $140,000 in grants. 

Startups operating the business-to-business model dominated most of the funding in June, raising $66.4 million across 18 deals, accounting for 74 percent of the total investment, while 20 business-to-consumer startups raised $49.5 million.  

The majority of funding went to male-founded startups, which received $103.4 million, or 89 percent of the total, while two female-led startups raised $200,000. 

The UAE was the top-funded ecosystem in the region in the first half of 2024, with 91 UAE-based startups raising $455.5 million, down from $604 million in the same period last year. 

Saudi Arabia followed, attracting $300 million in total funding, down from $554 million last year. 

Egypt’s economic crisis has pushed the Egyptian startup ecosystem to a drastic decline, with just 33 startups raising $83 million, an 80 percent drop from the same period last year. 

In contrast, the Moroccan ecosystem gained momentum, with six startups securing $12.5 million in funding in the same period. 


Saudi banks’ money supply surges over 8% in May to reach record high

Saudi banks’ money supply surges over 8% in May to reach record high
Updated 30 min 31 sec ago
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Saudi banks’ money supply surges over 8% in May to reach record high

Saudi banks’ money supply surges over 8% in May to reach record high

RIYADH: Saudi banks’ money supply hit record levels in May, reaching SR2.825 trillion ($753.31 billion) after seeing an annual increase of 8.56 percent, official data showed.

According to the analysis released by the Saudi Central Bank, also known as SAMA, this represented a rise of more than SR222.93 billion compared to the same period last year.

These liquidity levels strongly support economic and commercial activity, contributing effectively to the economic development process and enabling the achievement of the goals of Saudi Vision 2030. This reflects the strength and solidity of the banking and financial sector.

This surge was mainly fueled by an 18.97 percent increase in banks’ term and savings accounts, which reached SR889.55 billion.

These deposits represented the second-largest portion, comprising 31.4 percent of the total money supply, following demand deposits, which constituted 49.2 percent at SR1.390 trillion.

On the other hand, quasi-money holdings comprised 11.1 percent of the total, experiencing an annual 6.3 percent decrease during this period. 

Meanwhile, currency outside banks accounted for an 8 percent share, reflecting an 8.85 percent growth.

Quasi-money deposits include residents’ deposits in foreign currencies, deposits against letters of credit, outstanding transfers, and repurchase agreements entered into by banks with the private sector.

At the end of January, the money supply was valued at SR2.720 trillion. It also increased by roughly 1.2 percent per month, totaling SR32.402 billion, compared to SR2.793 trillion at the end of April of the same year, the Saudi Press Agency reported.

It is noteworthy that during 2022, SAMA raised key policy rates seven times, followed by an additional four increases in 2023.

The central bank’s repo rate was last raised by 25 basis points to 6 percent in its July 2023 meeting, marking its highest level since 2001. Since then, rates have remained unchanged.

Meanwhile, US inflation surged to a six-month high in March, prompting investors to delay their expectations for Federal Reserve rate cuts.

Deposits represent a costly funding source for banks, with heightened competition in the financial market significantly driving up their average cost.

Despite this, the surge in interest rates also strengthened Saudi banks’ profits on the asset side. Higher borrowing rates led to increased income, offsetting the challenges posed by the expensive funding environment.


Dubai’s high-end property sales undented by drop in listings, consultancy says

Dubai’s high-end property sales undented by drop in listings, consultancy says
Updated 08 July 2024
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Dubai’s high-end property sales undented by drop in listings, consultancy says

Dubai’s high-end property sales undented by drop in listings, consultancy says

DUBAI: The number of homes worth $10 million or more that were sold in Dubai held steady in the first half of the year despite a drop in listings, an industry report showed on Monday, as demand from the international ultra-rich stayed strong, according to Reuters.

A total of 190 homes worth an overall $3.2 billion were sold in the six months to end June compared with 189 properties for $3.3 billion in the same period of 2023, according to provisional data from property consultancy Knight Frank.

The total number of deals held up despite a 65.5 percent year-on-year drop in the number of such luxury homes available on the market in the second quarter, the report showed.

“This is a strong sign of the ‘buy-to-hold’ buyer profile that has taken root in the market,” Faisal Durrani, Knight Frank’s head of research for Middle East and North Africa, was quoted as saying in the report.

The trend suggests international high-net worth individuals “are largely focused on purchasing homes in the city for personal use, rather than to ‘flip’, which was a defining feature of the previous two market cycles,” he added.

Home to the world’s tallest tower, the UAE’s Dubai is the Middle East’s biggest tourism and trade hub, attracting a record 17.15 million international overnight visitors last year.

The city-state was quick to reopen after the pandemic. That, together with massive infrastructure spending, generous income tax policies and relaxed social and visa rules, lured thousands of foreigners, including Russians amid war in Ukraine.

Under a 10-year plan known as D33, Dubai is seeking to grow its economy by investing in tourism, turning its local financial center into one of the top four globally and by attracting foreign capital, including into real estate, with property purchase and rental prices showing no signs of fizzling out.

It is also becoming a preferred wealth hub for many entrepreneurs and rich families in Asia, launching a “family wealth center” last year to help wealthy individuals and businesses deal with cultural issues and governance.

The Knight Frank report showed palm tree-shaped artificial island Palm Jumeirah was the most sought-after area, recording 21 sales of homes worth $10 million or more in the second quarter, accounting for 26 percent of sales in the period.

It was followed by Emirates Hills with 10 percent and the District One area with 7.8 percent of such deals.

Sales of properties worth $25 million or more jumped 25 percent in the second quarter compared with the first three months of the year to a total of 15 homes.

Last year Dubai ranked first globally for the number of home sales above $10 million, selling nearly 80 percent more such properties than second-placed London. 


Saudi Arabia’s non-profit sector organizations reach over 4,900 in June

Saudi Arabia’s non-profit sector organizations reach over 4,900 in June
Updated 08 July 2024
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Saudi Arabia’s non-profit sector organizations reach over 4,900 in June

Saudi Arabia’s non-profit sector organizations reach over 4,900 in June

RIYADH: Saudi Arabia’s non-profit sector’s efforts during the Hajj season led to the registration of 61 new organizations in June, bringing the total number of establishments to 4,942. 

Data issued by the National Center for Non-Profit Sector also revealed the number of volunteers in the sector increased to reach 105,000 in June, up from the around 100,000 recorded in May.

The newly registered entities comprise 46 civil associations, five civil institutions, and 10 family funds, covering a wide range of development fields across the Kingdom.   

This aligns with the non-profit sector’s key role in the Kingdom’s Vision 2030 economic diversification initiative. It also supports the sector’s aim to improve the quality of life and enhance human, social, and religious values. 

Additionally, it reinforces the center’s commitment to collaborating with all parties to ensure transparent oversight of donation collection and disbursement. The center emphasized the importance of compliance with regulations, guidelines, and procedures within the non-profit sector.  

 


Saudi-China housing partnerships to enhance as officials meet in Riyadh 

Saudi-China housing partnerships to enhance as officials meet in Riyadh 
Updated 08 July 2024
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Saudi-China housing partnerships to enhance as officials meet in Riyadh 

Saudi-China housing partnerships to enhance as officials meet in Riyadh 

RIYADH: Strategic partnerships between Saudi Arabia and China across the municipal and housing sectors are set to be enhanced following a high-level meeting in Riyadh.  

The Kingdom’s Minister of Municipal, Rural Affairs, and Housing Majid Al-Hogail met with Beijing’s Ambassador Chang Hua at the ministry headquarters in Riyadh to reiterate real estate relations.  

Officials discussed opportunities to strengthen cooperation and partnership in real estate development, contracting, and municipal services, according to a report by the Saudi Press Agency.  

Al-Hogail emphasized the ministry’s commitment to fostering strategic partnerships with China and expressed his aspiration to develop these relationships further, including forming a joint working team to explore new avenues for cooperation.  

The visit of Al-Hogail marks a significant milestone in Saudi-Chinese housing relations.  

Following the Comprehensive Strategic Partnership agreement signed by King Salman and Chinese President Xi Jinping in December 2022, this visit launched a new phase of bilateral cooperation in the real estate sector.  

The Saudi-Chinese strategic partnership aims to enhance the dynamics of the Saudi real estate market by collaborating with leading local and international companies and attracting investments in the housing sector.  

This cooperation impacts more than 120 activities and industries, providing citizens with more affordable housing solutions and financing options.  

The partnership aims to boost the gross domestic product of non-oil, with the real estate activities sector contributing 12.1 percent and the construction and building field contributing 11.2 percent. 

This collaboration supports the targets of the Housing Program, part of Vision 2030, aiming to raise the homeownership rate to 70 percent by 2030, up from 63.74 percent at the end of 2023. 

The National Housing Co. is working on developing residential suburbs and integrated urban communities, planning to build 300,000 housing units by the end of 2025. 

The two nations have been continuously cooperating to boost the housing sector. In August 2023, the ministry signed 12 real estate agreements worth SR5 billion ($1.3 billion) with Chinese companies.  

Additionally, the Kingdom’s NHC signed an agreement with Chinese construction firm CITIC Construction Group last May to establish an industrial city and logistic zones in Saudi Arabia.  

During the meeting, Hua praised the historical and fruitful diplomatic relations between Saudi Arabia and China.  

He highlighted China’s interest in enhancing commercial and investment relations with the Kingdom, particularly in the infrastructure and contracting sectors.  

The ambassador also lauded the successful outcomes of Al-Hogail’s recent visit to China, which set the stage for deeper collaboration.  

This meeting aligns with Saudi Arabia’s active efforts to boost bilateral cooperation across various sectors.  

Earlier in July, Saudi Arabia and Turkiye expanded cooperation in real estate, infrastructure, and waste management, which was highlighted during a three-day official tour by Al-Hogail in Istanbul.  

During that visit, he met with Turkish officials and companies to explore investment opportunities, reflecting Saudi Arabia’s broader strategy to forge strong international partnerships.  

The Saudi real estate market’s rapid advancement, marked by ambitious urban development projects and significant infrastructure investments, continues to attract global interest, emphasizing sustainability and innovation.