Local communities must be at heart of tourism strategies, says top industry official

Local communities must be at heart of tourism strategies, says top industry official
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Updated 16 February 2024
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Local communities must be at heart of tourism strategies, says top industry official

Local communities must be at heart of tourism strategies, says top industry official
  • Ras Al Khaimah Tourism Development Authority is committed to developing its destinations in a sustainable manner

RIYADH: Tourism authorities must uphold their responsibilities to local communities as the sector grows and expands, a top industry official has insisted.

Speaking to Arab News, Raki Phillips, CEO of the UAE-based Ras Al Khaimah Tourism Development Authority, said his organization is committed to developing its destinations in a sustainable manner.
His comments came just a few weeks after global data and business intelligence platform Statista forecast the number of international tourist arrivals
in the UAE would continuously increase between 2024 and 2029, peaking with 44.66 million arrivals.
Reflecting on the need to maintain robust standards amid this growth, Philips said: “We apply sustainability to everything we do to nurture a tourism industry that is economically, environmentally and socially sustainable — supporting quality of life for our citizens and workforce, while also conserving our unique environment.”
He added: “Nature and our wide-open spaces are the calling card of our destination and in order to protect our natural environment and local communities. We are committed to ensuring that there is no over-tourism in Ras Al Khaimah.”
The official further noted that RAKTDA is working with Earthcheck, one of the world’s leading environmental advisories, to implement green practices in its tourism destinations.
“In 2023, the Emirate achieved Silver Certification under EarthCheck’s Sustainable Destinations program. This achievement makes Ras Al Khaimah the first destination in the Middle
East to be awarded this certification, and only one of a few globally,” he noted.
According to Phillips, the tourism landscape globally is witnessing a shift, as the “Leave no Trace” policy garners strong acceptance.
The importance of sustainability among travel and hospitality businesses is not a “nice to have” thing as the impacts of climate change negatively impact the sector, he added.
“Their focus is moving simple calls for ‘Leave No Trace’ with every tourism sector stakeholder to embrace a strong environment, social and governance framework,” said Phillips.
He continued: “No longer is it viable that a bland blanket of tourists come into a destination and just leave. That’s
now been flipped on its head and tourists are just as responsible as the local community in leaving their environment better than how they found it.”
Reiterating the words of the UN World Tourism Organization, he pointed out that sustainable travel and hospitality is an activity which embodies future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities.

FASTFACTS

8%

• Ras Al Khaimah welcomed over 1.22 million visitors in 2023, its highest-ever arrivals, which also marked an 8 percent increase compared to 2022.

• The revenue of hotels in the Emirates surged to 32.2 billion dirhams ($8.77 billion) in the first nine months of 2023 compared to the previous year.

He revealed that RAKTDA, in partnership with EarthCheck, has launched its own sustainability program named “Responsible RAK” for tourism businesses. Phillips said 20 hotels, attractions and tour operators have earned Responsible RAK Silver Certification to date.
“With 7,000 keys in the pipeline over the next few years, Ras Al Khaimah’s tourism vision continues to gain momentum as we look forward to welcoming over 3 million visitors annually by 2030,” said Phillips.
He further pointed out that the authority is investing in hotels and is also engaged in offering programs and initiatives for local communities to grow and develop in the tourism sector.
“As we continue to invest in hotel developments to bring jobs to locals and enhance their daily lifestyles, we also aim to promote local communities by fostering programs and initiatives that equip community members with the skills needed to work in the tourism industry and preserve their cultural heritage,” he noted.
The official added that RAKTDA has embraced an inclusive approach to welcome people from diverse backgrounds to visit destinations in the Emirate.
“People with disabilities and special needs spend approximately $8 billion on tourism services annually, and the World Health Organization estimates
the number of people with disabilities will double to 2 billion by 2050,” he said.
Phillips further noted: “We have engaged with accessibility experts to map out the consumer journey from the eyes of the traveler with a determined spirit and asked how we can truly embrace this important travel audience.”
Talking about the growth of the tourism sector in the UAE, Phillips, citing the latest data from the Ministry of Economy, revealed that the revenue of hotels in the Emirates surged to 32.2 billion dirhams ($8.77 billion) in the first nine months of 2023 compared to the previous year.
He added that hotels in the UAE hosted more than 20 million guests in the first nine months of 2023, representing a 12 percent increase compared to 2022.
Similarly, occupancy rates among hotels between January and September 2023 hit 75 percent, reflecting a 6 percent growth compared to the same period of 2022.
“These indicators play a crucial role in elevating the tourism sector’s contribution to the UAE’s gross domestic product to 450 billion dirhams by the next decade under the ‘We The UAE 2031’ vision,” added Phillips.
In November 2022 Dubai ruler Sheikh Mohammed bin Rashid Al-Maktoum launched UAE National Vision 2031, outlining the country’s path for the next 10 years, focusing on economy, tourism, and society, as well as ecosystem and diplomacy.
Alongside this, UAE Tourism Strategy 2031 aims to raise the sector’s contribution to the GDP to 450 billion dirhams, attract 100 billion dirhams as additional investment and welcome 40 million hotel guests – all in the next eight years.
Phillips added that Ras Al Khaimah welcomed over 1.22 million visitors in 2023, its highest-ever arrivals, which also marked an 8 percent increase compared to 2022.
“The opening of new attractions, significant hospitality development, and playing host to large-scale events were central to this recovery, both in Ras Al Khaimah and in the wider region,” he said.


‘Unlock the full potential of human capital by making healthcare an utmost priority,’ Saudi minister tells WEF

‘Unlock the full potential of human capital by making healthcare an utmost priority,’ Saudi minister tells WEF
Updated 15 sec ago
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‘Unlock the full potential of human capital by making healthcare an utmost priority,’ Saudi minister tells WEF

‘Unlock the full potential of human capital by making healthcare an utmost priority,’ Saudi minister tells WEF
  • Faisal Alibrahim said healthy, resilient and productive human capital is the backbone of economic vitality
  • Participating in a session at Saudi House, he said health was a major part of Saudi Arabia’s Vision 2030 agenda

DUBAI: Healthy, resilient, and productive human capital is the backbone of economic vitality, Faisal Alibrahim, the Saudi minister of economy and planning, told a panel discussion at the World Economic Forum in Davos on Monday.

“However, we see an interesting story where we invest billions in energy, education and other solutions, but the investments in healthcare seem to be taking a second priority,” he added.

Part of Saudi House, a centralized hub serving as a meeting point for government officials, business leaders and other stakeholders at the forum, the panel was moderated by Faisal J. Abbas, editor-in-chief of Arab News.

It featured health experts such as Dr. Sania Nishtar, CEO of Gavi, the Vaccine Alliance; Sir Jeremy Farrar, chief scientist at the World Health Organization; Rayan Fayez, deputy CEO of NEOM; and Dr. Nouf Al-Numair, secretary-general of the Saudi Ministerial Committee for Health in All Policies.

Alibrahim said health was a major part of Saudi Arabia’s Vision 2030 agenda and it was “important for us to unlock the full potential of human capital in the Kingdom by making healthcare our utmost priority.”

Al-Numair said: “Saudi Arabia has taken concrete and very clear steps to adopt health in all policies.”

The initiative started “by issuing a royal decree that puts public health as a priority in all laws and regulations to prevent diseases and to increase the life expectancy of our population,” she added.

One of the committee’s policies is reducing the amount of salt and bread in foods, aimed at curbing hypertension, which affects cardiovascular health and, in turn, mortality.

“Eventually, (this) will increase the life expectancy in our population, so we have a clear understanding of what success looks like, which is linked to certain KPIs,” said Al-Numair.

A significant part of health is prevention and one of the most important tools for prevention is vaccination, Nishtar told the panel.

Although “there is a lobby of naysayers,” she added that her experience across countries has been varied with some showing a strong demand for vaccines.

“We are looking at our resource envelope, and we’re trying to raise more money, because the demand (for vaccines) from countries is so huge,” she said.

The WHO’s Sir Farrar called for a more horizontal structure with health and science built into different verticals — such as education and transport — along with a “governance structure, which ensures an inclusive voice for every ministry and every constituency.”

“Then, you have the opportunity to not have health as seen through the lens, frankly, of illness, but to have health seen through the lens of well-being,” he said.

He also asserted the need for countries to be able to adopt such a structure “either to address inequalities within the countries or inequalities between the countries.”

Health and well-being are a core part of the 15 sectors NEOM has identified as the “economic engines” of the futuristic city, said Fayez.

He said: “A lot of people hear about NEOM as this mega project or giga project, but it’s important to highlight that it is not the real estate or the infrastructure alone that makes NEOM.”

He explained that NEOM’s healthcare strategy is driven by four principles — prevention when possible, world-class treatment when needed, use of technology and sharing with the globe.


Saudi banking sector poised for stability with 10% lending growth: S&P Global

Saudi banking sector poised for stability with 10% lending growth: S&P Global
Updated 20 January 2025
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Saudi banking sector poised for stability with 10% lending growth: S&P Global

Saudi banking sector poised for stability with 10% lending growth: S&P Global
  • Mortgage lending in the Kingdom is set for growth, supported by lower interest rates
  • Credit losses are expected to range between 50 and 60 basis points over the next 12 to 24 months

RIYADH: Saudi Arabia’s banking sector is set to maintain profitability this year, with lending projected to grow by 10 percent, driven by corporate loans linked to Vision 2030 projects, according to a new analysis. 

In its latest report, S&P Global said that stable credit growth, fueled by lower interest rates and a supportive economic environment, will underpin the sector’s performance. 

The Saudi Arabia Banking Sector Outlook 2025 report projects that credit growth will bolster banks’ profitability, stabilizing the return on assets at 2.1 to 2.2 percent — aligning with its 2024 estimates. 

The growth is. part of the Kingdom’s spending on Vision 2030 programs, which has increased at an annual rate of 33.8 percent since the initiative’s inception, revealed Saudi Finance Minister Mohammed Al-Jadaan in a statement in November. 

“We expect Saudi banks will continue resorting to international capital markets to help fund growth related to Vision 2030,” said Zeina Nasreddine, credit analyst at S&P Global Ratings. “Banks are poised for stable profitability in 2025 as the volume effect compensates for lower margins.” 

The analysis aligns with data from the Saudi Central Bank, which reported a 13.33 percent year-on-year increase in bank loans to SR2.93 trillion ($782 billion) in November, the highest growth rate in 22 months. Corporate loans were the main driver, rising 17.28 percent to SR1.58 trillion. 

S&P Global’s report also said that mortgage lending in the Kingdom is set for growth, supported by lower interest rates and expanding demographics driving demand in the residential real estate sector. 

Credit losses are expected to range between 50 and 60 basis points over the next 12 to 24 months, supported by banks’ strong provisioning buffers. 

External funding needs will persist due to Vision 2030 investment requirements, though recent mortgage-backed securities initiatives could provide some relief, the agency said. 

“NIM (Net interest margin) is expected to drop by 20- 30 bps by the end of 2025 relative to 2023 as SAMA follows the Fed’s rate cuts to maintain its currency peg,” said S&P Global. 

The report anticipates nonperforming loan formation will remain slow in 2025, with NPLs increasing to 1.7 percent of systemwide loans by the end of the year, up from 1.3 percent in September, owing to fewer write-offs. 

S&P Global said that Saudi banks are well-capitalized, ensuring their creditworthiness, adding that earnings generation is sufficient to support asset growth, with the dividend payout ratio expected to average 50 percent in 2025. 

Saudi Arabia is projected to witness an average gross domestic product growth of 4 percent between 2025 and 2027, compared to 0.8 percent in 2024. 

The US-based agency further said that Vision 2030 initiatives are anticipated to drive medium-term non-oil growth, fueled by increased construction activities and a growing services sector supported by rising consumer demand and an expanding workforce. 

The report also highlighted the Kingdom’s booming tourism sector, with growth in the hospitality industry driven by improved visa processes and enhanced leisure options. 


Closing Bell: Saudi main index closes in the green, reaches 12,379

Closing Bell: Saudi main index closes in the green, reaches 12,379
Updated 20 January 2025
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Closing Bell: Saudi main index closes in the green, reaches 12,379

Closing Bell: Saudi main index closes in the green, reaches 12,379

RIYADH: Saudi Arabia’s Tadawul All Share Index edged higher on Monday, rising by 47.67 points, or 0.39 percent, to close at 12,379.54.

The benchmark index saw a total trading turnover of SR6.3 billion ($1.7 billion), with 116 of the listed stocks advancing, while 117 declined.

The MSCI Tadawul Index also gained 5.22 points, or 0.34 percent, to finish at 1,551.75. In contrast, the Kingdom’s parallel market, Nomu, ended the day lower, losing 281.88 points, or 0.89 percent, to close at 31,318.24, with 43 stocks advancing and 45 retreating.

Thimar Development Holding Co. emerged as the best-performing stock of the day, with its share price jumping 10 percent to SR51.70.

Other notable gainers included Arabian Pipes Co., which saw a 6.37 percent increase to SR13.36, and Middle East Specialized Cables Co., which rose by 4.95 percent to SR47.75.

Saudi Reinsurance Co. and ACWA Power Co. also posted solid gains, with their share prices surging by 4.82 percent and 4.41 percent, respectively, to SR58.70 and SR435.20.

Alamar Foods Co. saw the sharpest decline, with its share price dropping 3.33 percent to SR78.50. Nice One Beauty Digital Marketing Co. and Naseej International Trading Co. also recorded losses, with their shares slipping 2.91 percent and 2.60 percent, respectively, to SR56.80 and SR97.30.

Saudi Industrial Investment Group saw a 2.40 percent dip, closing at SR17.90, while Riyadh Cables Group Co. dropped 2.34 percent, settling at SR141.80.

Meyar Co. secured SR5.5 million in financing from Riyadh Bank to support its business expansion and enhance operational efficiency.

According to a bourse filing, the five-year financing agreement is part of the bank’s guarantee and bills program. The funds will be used to expand Meyar’s operations, develop production lines, and strengthen supply chains to boost overall efficiency. The investment aligns with the company’s strategic goals of increasing productivity and scaling its operations.

On the market, Meyar saw a 5.06 percent increase in its share price, reaching SR70.60.

Saudi Top Trading Co. announced the completion of construction at its West Coast Factory, which is set to begin trial production in the first quarter of 2025.

Located at the Rabigh PlusTech Park, the factory will start receiving raw materials, including polymer scrap, rubber, and synthetic wax, from Rabigh Refining and Petrochemical Co. This development follows a memorandum of understanding signed with Petro Rabigh in December 2022.

Under the MoU, Saudi Top Trading secured a 30-year lease on a site to produce 50,000 tonnes annually of polymer compounds, rubber, and waxes. With construction now completed, Saudi Top Trading is poised to enhance its production capabilities and leverage its partnership with Petro Rabigh.


THC partners with SIRC to boost sustainability, innovate waste solutions

THC partners with SIRC to boost sustainability, innovate waste solutions
Updated 20 January 2025
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THC partners with SIRC to boost sustainability, innovate waste solutions

THC partners with SIRC to boost sustainability, innovate waste solutions

JEDDAH: Saudi Investment Recycling Co. and the Kingdom’s the Helicopter Co. have partnered to boost sustainability efforts and develop innovative waste management solutions.

The two companies, operating under the Saudi Public Investment Fund, signed a memorandum of understanding that highlights their commitment to advancing sustainable aviation practices and reducing environmental impact, supporting the Kingdom’s transition to a circular economy in line with Vision 2030.

As part of its 2035 goals, SIRC aims to divert 85 percent of industrial hazardous waste from landfills through recycling and treatment.

The waste sector also targets diverting 60 percent of construction and demolition waste, with 12 percent recycled, 35 percent reused, and 13 percent treated.

Under the partnership, the companies will collaborate on technology-driven operations and expand THC’s services into new sectors that align with sustainability objectives, according to the Saudi Press Agency.

Ziyad Al-Shiha, SIRC CEO, described the partnership as a step toward driving innovation, cutting emissions, and ensuring long-term environmental safety for the sector.

“This collaboration strengthens the Kingdom’s leadership in the global green economy and paves the way for a more sustainable future,” Al-Shiha said, adding that the deal aligns with broader efforts to position Saudi Arabia as a leader in sustainability and green economic initiatives.

Commenting on the collaboration, Arnaud Martinez, CEO of THC, said the initiative is part of his company’s strategy to minimize its carbon footprint.

Martinez added that the agreement is about turning ambitious ideas into tangible achievements that contribute to a sustainable future for aviation and the environment.

THC posted on its X account: “We are pleased to sign a memorandum of understanding with the Saudi Investment Recycling Co., with the aim of enhancing common interests in the waste management and recycling sector, and various environmental sectors in line with achieving the goals of Vision 2030.”

The investment recycling company, the largest industrial waste management company in the Gulf Cooperation Council with a fully integrated platform to handle, store, transport, treat, and safely dispose of the hazardous waste generated by industries, plans to divert 100 percent of municipal solid waste, recycling 81 percent and processing 19 percent for waste-to-energy purposes.

These efforts align with the ambitious targets set by the Waste Management National Regulatory Framework for 2035, including a 13-million-tonne reduction in carbon dioxide emissions, attracting SR6 billion ($1.6) billion in foreign investments, creating 23,000 jobs, and contributing $9.9 billion to the national gross domestic product.


Saudi rent now, pay later firm Rize closes $35m in equity and debt funding

Saudi rent now, pay later firm Rize closes $35m in equity and debt funding
Updated 20 January 2025
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Saudi rent now, pay later firm Rize closes $35m in equity and debt funding

Saudi rent now, pay later firm Rize closes $35m in equity and debt funding
  • Company also plans to enhance its technological offerings, including automating leasing processes
  • Real estate loans in Saudi banks reached a record SR846.48 billion in the third quarter of 2024

RIYADH: Saudi real estate technology company Rize has closed an SR132 million ($35 million) “Series A” funding round to expand its presence beyond the nation’s capital. 

The round included a mix of equity and debt. funding and was led by Raed Ventures, with participation from SEEDRA Ventures, Aqar Platform, JOA Capital, Nama Ventures, and HALA Ventures. 

The funding also featured a debt financing partnership with Partners For Growth to bolster Rize’s financial capabilities. 

Given the high down payment required for tenants to secure a rental property in the Kingdom, the company has developed a model that enables tenants to pay annual rent in 12 monthly installments, while property owners receive the full amount upfront. 

The rise in Saudi Arabia’s real estate financing underscores the sector’s increasing importance in the Kingdom’s economy, creating a strong foundation for innovative solutions like Rize’s “rent now, pay later” model. 

“This investment represents a major turning point in our journey and reflects the investors’ confidence in our vision to develop the leasing sector,” said Ibrahim Balilah, CEO of Rize. 

Founded in 2021 by Balilah and Mohammed Al-Fraihi, the Riyadh-based company aims to promote sustainability in the Saudi rental market and claims to have facilitated over SR500 million in total rental value through its platform. 

The Series A investment will support Rize’s growth strategy, including expanding its presence beyond Riyadh into the Eastern and Western regions of Saudi Arabia. 

The company also plans to enhance its technological offerings, including automating leasing processes via its app to improve user experience. 

Al-Frahi, co-founder and chief technology officer of Rize, said: “We have worked hard to develop our internal technologies to enable the automation process and make the rental experience smoother. This investment round is a significant step to enhance our technologies and accelerate the company’s growth.” 

Aqar Platform, one of the key investors and a major player in the proptech sector, plans to integrate Rize’s RNPL service into its platform, offering tenants more flexibility in payment options. 

The collaboration is expected to enhance the leasing process and provide innovative solutions for users. 

Omar Al-Majdouie, co-founder at Raed Ventures, said: “We believe in Rize’s ability to bring about a transformative change in the real estate leasing sector, not only by offering innovative services but also by enabling digital transformation in this important field.” 

Waleed Al-Barrak, principal at SEEDRA Ventures, compared Rize’s growth trajectory to that of successful regional fintech leaders, like Tabby and Tamara. 

“Rize is transforming the Saudi rental market and redefining the standards of how people rent. Its extraordinary growth mirrors the success stories of industry leaders,” Al-Barrak said. 

Real estate loans in Saudi banks reached a record SR846.48 billion in the third quarter of 2024, reflecting a 13.29 percent year-on-year increase, according to data from the Saudi Central Bank. 

The growth was driven by retail and corporate lending, with corporate loans jumping 22 percent to SR189.6 billion, while lending to individuals accounted for 78 percent of the total at SAR 656.88 billion, growing at 11.02 percent annually. 

Real estate loans now make up nearly 30 percent of the total loan portfolio of Saudi banks, which stood at SR2.85 trillion by the end of the third quarter.