Regulations imperative to introducing fully autonomous transport
Oliver Walker-Jones of Joby Aviation stressed the importance of regulations for projects like Dubai’s flying taxi
Updated 16 February 2024
Sherouk Zakaria
DUBAI: When Dubai first adopted the concept of autonomous flying taxis, it was an idea that lived only in the imagination of the emirate’s rulers.
So when Californian company Joby Aviation put in its successful bid to build these flying taxis, it really was a blank canvas project, and that included the regulations — there were none.
In fact, developing regulations for autonomous transport in Dubai was needed before the full introduction of the technology, said an expert from the US flying taxi manufacturer.
The six-rotor electric flying taxi, made by the Santa Cruz company, has been on display at the World Governments Summit 2024 as Dubai prepares to introduce the revolutionary mode of transport by 2026, enabling passengers to catch their flying cabs from four stations across the city.
HIGHLIGHT
Oliver Walker -Jones described the electric flying taxi as ‘a little bit like a helicopter.’
The initial plan was to have flying taxis above the city that operated without pilots, but the model on display clearly has a seat at the front with all the controls necessary to fly.
Speaking to Arab News, Oliver Walker-Jones of Joby Aviation said establishing the regulation to fly by this new method of transport posed difficulties. “It doesn’t exist or is not quite mature enough yet.
Oliver Walker-Jones
“But the technology to allow autonomy is coming. We are working on it. We’re developing it. And it won’t be immediate, but it is definitely coming,” he added.
The electric air taxi has four passenger seats and a pilot seat. It takes off and lands vertically, and has a maximum speed of 320 kph.
Though the aircraft is not fully autonomous, Walker-Jones said the taxi included a lot of automated technology already.
FASTFACT
The 11th edition of WGS runs Feb. 12-14 in Dubai.
“The pilot is sitting there with two controls. But there’s a lot of computing that happens within the aircraft to move those propellers, to tell them to turn them,” he said.
“It’s a little bit like a helicopter, but then it translates into a plane, now has a wing on it as well.”
Walker-Jones acknowledged it would take time to get people to feel comfortable enough to ride this new form of technology, and that is where regulations come in.
The flying taxi is regulated by the General Civil Aviation Authority in Dubai and, according to Walker-Jones, air travel is the safest form of transportation.
He noted that the aircraft is designed to be as safe as possible. “It has six different propellers. So, let’s say one of them stop working for five more. Same with the battery case. There are four battery packs. Each of the motors is redundant. So, there are two motors powering each of these.”
The pilot seat, in fact, would help ensure the safety of the aircraft and help people gradually adjust to the new mode of transport before it becomes fully autonomous, said Walker-Jones.
Culture meets comfort as Diriyah’s hotel expansion boosts Saudi Arabia’s tourism ambitions
Updated 14 sec ago
REEM WALID
RIYADH: Saudi Arabia’s tourism sector is poised for a significant leap forward with the planned opening of new luxury hotels in Diriyah – a $62.2 billion mega-development that fuses the Kingdom’s rich cultural heritage with ambitious modernity.
In October, the CEO of Diriyah Co. unveiled plans for the groundbreaking of seven new hotels by the end of the year, to go alongside the first luxury offering, Bab Samhan, opening its doors in December.
As part of the Vision 2030 initiative, these developments are set to bolster Saudi Arabia’s position as a global tourist destination while driving economic growth and creating jobs.
Diriyah is set to play a key role in this ambition, with 33 million tourists expected in Riyadh as part of Vision 2030, including major events such as Expo, as well as sports, cultural, and business gatherings.
“The opening of additional uniquely themed hotels in Diriyah supports the Kingdom’s new ambition to welcome 150 million visitors by 2030, following the achievement of the previous target of 100 million visitors by 2023, which was reached seven years ahead of schedule,” Diriyah Co.’s group CEO, Jerry Inzerillo told Arab News.
Diriyah Co.’s Group CEO, Jerry Inzerillo. Supplied
“The expansion of new hotel openings in Diriyah is anticipated to contribute to an increase in tourism spending, thereby supporting the non-oil economy and achieving financial sustainability goals,” he added.
The developments will also feature luxurious designs rooted in local heritage, with Inzerillo highlighting the Bab Samhan Hotel as a “prime example” of this philosophy.
“It offers an experience rich in authentic Najdi heritage, blending traditional design with high-quality services and a superior level of luxury,” the CEO said.
Other hotels under construction include Orient Express, Raffles, and Baccarat, alongside Armani, Fauchon L’Hotel, Corinthia and Rosewood.
These developments are expected to draw millions of visitors annually while elevating the Kingdom’s reputation on the global stage.
The newly-opened Bab Samhan hotel. Diriyah.sa
Cultural and economic growth
Camilla Bevilacqua, partner at management consulting firm Arthur D. Little, highlighted the broader implications of Diriyah’s hotel expansion.
“Diriyah is recognized as a UNESCO World Heritage site and is the historical home of the Saudi royal family. The development of hotels in this area can attract culturally minded tourists interested in exploring the rich heritage and history of Saudi Arabia,” she said.
Bevilacqua noted the importance of integrating cultural authenticity with high-end tourism. “By offering accommodation options within or near this historical site, Diriyah can become a focal point for cultural tourism. The selection of flagship hotel brands, such as Armani and Baccarat, will be a driver for international visitation and establish Riyadh as a competitive global destination,” she added.
The expansion also addresses critical infrastructure needs, with Bevilacqua noting that the groundbreaking of these hotels will significantly increase accommodation capacity in Diriyah.
Enhancing local economies
Diriyah’s hotel developments are set to generate significant economic benefits, with experts predicting that the establishment of new hotels will create numerous direct employment opportunities across various roles.
“International flagship hotel brands will raise the quality of services and customer experience across Riyadh, setting a new standard for the sector and upskilling talent in the Kingdom,” said Bevilacqua.
Inzerillo echoed this sentiment, citing the broader employment impact. “The Diriyah project, upon its completion, aims to create over 178,000 job opportunities, positively impacting youth employment and generating new prospects for citizens and the local community,” he said.
Indirect job opportunities are also expected to thrive, particularly in sectors such as transportation, retail, entertainment, and local artisanship.
“‘Made in Saudi’ retail, F&B, and experiences can be created around the new hotels to offer a unique cultural experience for international travelers,” Bevilacqua said.
The influx of tourists and increased spending are expected to further support the local economy, with hotels playing a key role in this growth. Inzerillo said that Diriyah is projected to attract 50 million visits annually by 2030, driving this economic boost. “This influx is anticipated to increase tourism spending and enhance local revenues,” he added.
The rise of Diriyah as a tourism hub presents significant opportunities for local firms and entrepreneurs. Bevilacqua notes that hotels can partner with businesses such as restaurants, tour operators, and craft shops to create package deals or promotions that encourage tourists to extend their stay in Riyadh and boost spending.
She also emphasized the potential for the creative industry. “This will allow revitalization of the local artisan and SME scene and increase their contribution to the economy and society, weaving heritage and conservation into modernization,” said the Arthur D. Little partner.
Inzerillo pointed to the Diriyah Accelerator Program for entrepreneurship as a platform for nurturing local talent. “The program enhances capabilities through various events and initiatives, enabling entrepreneurs to benefit from tourism growth in the Kingdom and Diriyah in particular,” he said, adding: “This includes opportunities in areas such as tour guiding, transportation, hospitality, and the development of heritage-based products.”
Diriyah celebrates Saudi Arabia being awarded the 2034 FIFA World Cup. Diriyah.sa
Stimulating foreign investment
The new hotels are expected to catalyze foreign direct investment by attracting international hospitality brands and investors, which will drive increased FDI in the region and bolster the overall economy.
Diriyah’s ambitious plans include over 40 luxury hotels in partnership with global brands such as Four Seasons and Ritz-Carlton. “This initiative bolsters investor confidence in the Saudi tourism sector and enhances the influx of foreign investments into the Kingdom,” Inzerillo added.
The project also aims to build local capabilities. “Leveraging partnerships and international cooperation, local talent is poised to grow, and knowledge transfer will create sustainable tourism and heritage capabilities in the Kingdom,” Bevilacqua said.
Diriyah’s hotel expansion is not just about luxury — it is a cornerstone of Saudi Arabia’s broader tourism strategy under Vision 2030. By blending heritage and modernity, creating jobs, and attracting global investment, the project exemplifies the Kingdom’s efforts to diversify its economy and position itself as a premier global destination.
“As Diriyah becomes a tourism hotspot, it may stimulate growth in other regions and sectors, promoting a comprehensive tourism industry across the Kingdom,” Bevilacqua said.
PIF drives Saudi Arabia’s diversification agenda with bold moves in 2024
PIF ranks among the world’s most influential sovereign wealth funds
PIF’s activities in 2024 were not limited to cutting-edge technologies
Updated 46 min 8 sec ago
Nirmal Narayanan
RIYADH: Saudi Arabia’s Public Investment Fund continues to play a key role in the Kingdom’s economic transformation, leading efforts to diversify revenue streams and reduce reliance on oil.
With assets under management reaching $925 billion, PIF ranks among the world’s most influential sovereign wealth funds, driving investments in technology, infrastructure, sustainability, and culture throughout 2024.
The non-oil sector now contributes 52 percent to Saudi Arabia’s gross domestic product, reflecting the success of Vision 2030, the Kingdom’s ambitious plan to create a sustainable and diversified economy. Central to this progress, PIF has expanded its reach both domestically and internationally, with landmark initiatives designed to reshape industries and enhance the Kingdom’s global competitiveness.
PIF’s tech ventures
In February, the fund launched Alat, a company dedicated to making Saudi Arabia a global hub for sustainable technology manufacturing. Alat’s partnership with Lenovo Group in May underscored this vision, with the two entities committing $2 billion through zero-coupon convertible bonds.
The collaboration will establish a regional headquarters in Riyadh for the Middle East and Africa, alongside a new manufacturing hub to support Lenovo’s global operations. By June, Alat had expanded its focus with two new business units in electrification and artificial intelligence infrastructure, aimed at meeting the soaring demand for renewable energy technologies and AI-driven solutions.
The electrification initiative is geared toward strengthening grid technology, addressing the increasing energy needs driven by renewables like solar, wind, and hydrogen. Simultaneously, the AI infrastructure segment is set to position Saudi Arabia as a manufacturing powerhouse, leveraging advanced capabilities to cater to global industries.
Space industry leap
Another major milestone came in May when PIF launched Neo Space Group, a company designed to advance Saudi Arabia’s presence in the commercial satellite and space industry.
Neo Space Group announced its focus on satellite communications, earth observation, remote sensing, and navigation technologies, along with a venture capital fund targeting space-focused startups.
“NSG will contribute to the development and deployment of the latest cutting-edge technologies in the space industry through its four dedicated business segments: satellite communications, earth observation and remote sensing, satellite navigation and Internet of Things, as well as a satellite and space-focused venture capital fund,” said PIF.
In December, Neo Space Group made headlines with its acquisition of UP42, a geospatial platform developed by Airbus. This acquisition is expected to significantly enhance Saudi Arabia’s geospatial capabilities, enabling applications across agriculture, infrastructure monitoring, and more, aligning with the Kingdom’s Vision 2030 goals.
Cultural heritage projects
PIF’s activities in 2024 were not limited to cutting-edge technologies. In September, it launched National Interactive Entertainment Co., known as QSAS, which is focused on creating immersive storytelling experiences rooted in Saudi heritage and Islamic culture.
The initiative reflects Saudi Arabia’s broader efforts to balance cultural preservation with business development. QSAS plans to develop and operate interactive exhibitions across the Kingdom while fostering partnerships in construction, event management, and technology.
AI and ICT expansion
The fund also made a major push in artificial intelligence this year. In October, it signed a landmark partnership with Google Cloud to establish an advanced AI hub near Dammam. The agreement, inked during the Future Investment Initiative, is projected to create thousands of jobs and generate $71 billion in economic impact over the next eight years.
Beyond economic benefits, the hub will offer AI training to millions of students and professionals, contributing to national goals of expanding the information and communication technology sector by 50 percent.
Infrastructure investments
Housing infrastructure also came into focus, with the October launch of Smart Accommodation for Residential Complexes Co., or SAARC. This company aims to address the rising demand for workforce housing tied to Saudi Arabia’s large-scale infrastructure projects. SAARC plans to develop residential complexes that adhere to international standards, creating modern living spaces that support the country’s rapid urbanization.
PIF expanded its global investment footprint with a memorandum of understanding signed with Brookfield Asset Management in October. The deal positions PIF as a strategic anchor investor in Brookfield Middle East Partners, a $2 billion fund targeting key sectors such as industrials, health care, and technology. The partnership underscores PIF’s strategy of leveraging international opportunities to strengthen Saudi Arabia’s economic base.
Tourism and hospitality growth
In the hospitality sector, PIF introduced Adeera in December, a new company tasked with operating and managing hotels that combine world-class standards with authentic Saudi hospitality. Adeera is expected to work closely with local developers, fostering private-sector participation and supporting the growth of homegrown brands as Saudi Arabia positions itself as a premier global tourism destination.
Sustainability and innovation took center stage with the December launch of Milaf Cola by PIF subsidiary Thurath Al-Madina. Unlike conventional soft drinks, Milaf Cola is crafted from Saudi dates, eliminating added sugars and emphasizing natural, nutrient-rich ingredients. Introduced during the Riyadh Date Festival, the drink represents PIF’s focus on creating value-added products from local resources while adhering to global food safety standards.
Strategic acquisitions
Throughout the year, PIF pursued an aggressive acquisition strategy, bolstering its portfolio with high-profile deals.
In January, the fund increased its stake in Middle East Paper Co. to 23.08 percent, enabling the company to expand production and enhance operational efficiency.
February saw PIF acquiring a 40 percent stake in Zamil Offshore Co., a key player in the Kingdom’s energy sector.
October marked another milestone as PIF purchased a 40 percent stake in Central Group, a Thai conglomerate interested in retail, real estate, and hospitality.
Rounding the year, PIF announced plans in November to acquire a 54 percent stake in MBC Group for $1.99 billion, solidifying its influence in the entertainment industry.
PIF’s investments in 2024 reflect its multi-pronged approach to transforming Saudi Arabia’s economy. The fund has played a pivotal role in advancing Vision 2030’s objectives, from technology and space exploration to cultural preservation and hospitality. With a focus on sustainability, innovation, and global partnerships, PIF is laying the foundation for a diversified, resilient economy that can compete on the world stage.
As the Kingdom prepares for the next phase of its transformation, PIF’s initiatives in 2024 serve as a testament to its commitment to redefining Saudi Arabia’s economic landscape.
RIYADH: Saudi Arabia’s net foreign direct investment saw a quarter-on-quarter rise of 37 percent in the three months to the end of September, according to the General Authority of Statistics.
Data released by the organization showed that the figure – which reflects the net investment gain for the Kingdom after accounting for both inbound and outbound activities – reached SR16 billion ($4.27 billion) over the period.
The surge was primarily attributed to a significant decline in FDI outflows, which dropped by 74.36 percent during this period to reach SR2 billion.
Meanwhile, FDI inflows, reflecting the investments received by Saudi Arabia, declined by 7.22 percent to SR18 billion.
The Kingdom has implemented significant regulatory reforms over the past two years to bolster foreign direct investment and foster economic diversification under Vision 2030.
The recent regulatory advancements underscore its commitment to positioning itself as an attractive destination for international investors.
These reforms, along with strategic investments in giga-projects like NEOM, align with Saudi Arabia’s Vision 2030 goals of attracting $100 billion in annual FDI and raising its contribution to gross domestic product to 5.7 percent by 2030.
The latest figures are calculated using a new methodology introduced by the Ministry of Investment in October.
The updated approach aligns with the International Monetary Fund’s sixth edition of the Balance of Payments Manual, providing enhanced transparency and accuracy in tracking cross-border transactions.
By focusing on innovation, enhancing global competitiveness, and modernizing its legal framework, the Kingdom continues to signal its openness for business and its readiness to engage with the international investment community.
Key regulatory changes include introducing a new investment regulation, amending the labor decree, and updating the laws governing companies and civil transactions.
Together, these initiatives are designed to reduce barriers to entry for foreign businesses, protect investor rights, and align legal frameworks with international standards.
The updated law replaces the foreign licensing system with a streamlined register managed by the Ministry of Investment.
It ensures equal treatment for Saudi and foriegn investors while enhancing protections against expropriation and safeguarding intellectual property rights. This simplification is expected to attract more FDI and boost stakeholder confidence.
According to a study by PwC in August, the amendments to the labor law align with global practices, offering improved benefits such as extended maternity and paternity leave, as well as bereavement leave.
Other updates address probation periods and dispute resolution mechanisms, reducing administrative burdens and fostering stronger employer-employee relationships.
In November, the Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved key measures to boost FDI and enhance international economic engagement.
Among these was the approval of the national general framework and guiding principles for such funding, aimed at fostering stronger ties with global organizations.
FDI inflows reached SR96 billion in 2023, a 50 percent annual increase.
The Cabinet also endorsed agreements to strengthen regional and international cooperation, including a tax treaty with Qatar to avoid double taxation and an aviation and space exploration framework with the US.
Additionally, the Kingdom joined the Cement and Concrete Breakthrough Initiative, reinforcing its sustainability and climate goals.
Domestically, the Cabinet highlighted advancements in tourism, with Saudi Arabia climbing 15 places in global tourist revenue rankings since 2019, and commended progress in economic collaboration with India in areas like technology, infrastructure, and sustainable transportation.
The session also reaffirmed the nation’s commitment to regional peace, global health initiatives, and economic diversification.
Oil Updates — crude inches higher in thin trade, investors focus on China, US data
Updated 30 December 2024
REUTERS
SINGAPORE: Oil prices edged up on Monday in thin holiday trade ahead of the year-end as traders awaited more Chinese and US economic data later this week to assess growth in the world’s two largest oil consumers, according to Reuters.
Brent crude futures rose 5 cents to $74.22 a barrel by 07:30 a.m. Saudi time while the more active March contract was at $73.82 a barrel, up 3 cents.
US West Texas Intermediate crude gained 3 cents to $70.63 a barrel.
Both contracts rose about 1.4 percent last week buoyed by a larger-than-expected drawdown from US crude inventories in the week ended Dec. 20 as refiners ramped up activity and the holiday season boosted fuel demand.
Oil prices were also supported by optimism for Chinese economic growth next year that could lift demand from the top crude oil importing nation.
To revive growth, Chinese authorities have agreed to issue a record 3 trillion yuan ($411 billion) in special treasury bonds in 2025, Reuters reported last week.
“Global oil consumption reached an all-time high in 2024 despite China underperforming expectations, and oil stockpiles are heading into next year at relatively low levels,” said Ryan Fitzmaurice, senior commodity strategist at Marex.
“Going forward, China economic data is expected to improve as the recent stimulus measures take hold in 2025. Also, lower rates in the US and elsewhere should be supportive of oil consumption.”
China has also issued at least 152.49 million metric tonnes of crude oil import quotas to independent refiners in a second batch for 2025 so far, trade sources said on Monday.
Separately, the World Bank has raised its forecast for China’s economic growth in 2024 and 2025, but warned that subdued household and business confidence, along with headwinds in the property sector, would remain a drag next year.
Investors are eyeing China’s PMI factory surveys due on Tuesday and the US ISM survey for December to be released on Friday.
In Europe, hopes for a new deal to transit Russian gas through Ukraine are fading after Russian President Vladimir Putin said on Thursday that there was no time left this year to sign a new deal.
The loss of piped Russian gas should see Europe import more liquefied natural gas, analysts said.
Saudi Arabia’s NIDLP surpasses half of Vision 2030 targets shead of schedule
Updated 29 December 2024
Nour El-Shaeri
RIYADH:Saudi Arabia’s National Industrial Development and Logistics Program has already achieved more than half of its targets well in advance of the Vision 2030 deadline, according to Energy Minister Prince Abdulaziz bin Salman.
Speaking at the NIDLP Annual Ceremony 2024, the minister said that 13 out of the program’s 23 targets have been successfully met, with the remaining goals on track for completion.
Prince Abdulaziz attributed the program’s success to a robust action plan and effective collaboration between the Ministry of Energy and NIDLP.
“The mechanisms adopted by NIDLP are closely aligned with those of the Ministry of Energy, allowing for strong, collaborative outcomes,” he explained.
The minister also underscored that the program's achievements extend beyond the energy sector, positively impacting multiple other sectors involved in the initiative.
He highlighted the critical role played by human talent within NIDLP and the energy system, which has been essential in supporting energy security, enhancing supply chain resilience, and driving sustainability.
These efforts are key to realizing Saudi Arabia’s Vision 2030, which aims to position the Kingdom as a global leader in industrial development and logistics.
During his speech, Minister of Industry and Mineral Resources Bandar Alkhorayef, who also chairs the NIDLP Program Committee, shared further program highlights.
He noted that the sectors targeted by the initiative contributed SR433 billion ($115.3 billion) to the Kingdom’s gross domestic product by the third quarter of 2024, reflecting a 2.4 percent growth compared to the previous year.
Exports from these sectors also saw a significant increase, rising by 11.1 percent from third quarter of 2023 to the same period in 2024.
Alkhorayef also highlighted the program’s impact on employment, revealing that total employment across its sectors reached 2.1 million by the third quarter of 2024. Of these, 660,000 were Saudi nationals, with women accounting for approximately 200,000 of the workforce.
