Saudi Arabia secures $13bn for tourism expansion, eyes $85bn revenue boost: minister
Updated 14 March 2024
ARAB NEWS
RIYADH: Saudi Arabia has secured $13 billion in private sector investments for its tourism industry, aiming to distribute the costs involved in becoming a top destination, a minister said.
According to Princess Haifa Al-Saud, the Kingdom’s vice minister for tourism, the investments are expected to increase the number of hotel rooms by 150,000 to 200,000 within the next two years.
Saudi Arabia aims to raise tourism revenue to $85 billion this year, up from approximately $66 billion in 2023, Princess Haifa said in an interview with Bloomberg.
“The current GDP (gross domestic product) contribution is 4.5 percent and we aim to get that to 10 percent by 2030. We started from 3.2 percent when we opened up for tourism,” she said.
Saudi Arabia aims to attract 150 million tourists annually by 2030 as part of Crown Prince Mohammed bin Salman’s economic diversification strategy, which involves shifting revenue streams from oil to sports and technology.
The Kingdom is investing in projects such as Qiddiya and industries including football to attract foreign visitors. It is also the only bidder for the 2034 World Cup.
In 2023, Saudi Arabia welcomed 100 million tourists, the majority of whom were locals. Around 27 million international visitors arrived, many traveling for religious or business reasons.
Due to ongoing building projects, leisure excursions are estimated to account for a small percentage of total travel.
The government plans to recruit $80 billion in private investment in tourism by 2030 and spend $800 billion on the industry in the next decade.
In October 2023, Saudi Arabia’s hospitality sector revised its 2030 target to 150 million visitors, up from the initial 100 million, according to the minister of tourism.
“I think we will close this year with about 100 million (visitors) and almost 6 percent of contribution to gross domestic product, that’s why ... (Crown Prince Mohammed bin Salman) instructed us to revise up our targets to 150 (million visitors),” Al-Khateeb said at the time.
The minister elaborated that out of this new target, an estimated 75 million travelers are expected to be international, with the remaining 75 million domestic.
Kuwait’s CPI rises 2.5% in December amid inflationary pressures
Updated 9 sec ago
MIGUEL HADCHITY
RIYADH: Kuwait’s Consumer Price Index climbed 2.5 percent year on year in December, reaching 135.2, fueled by higher costs across miscellaneous goods and services, food and beverages, and clothing and footwear.
The CPI showed relatively marginal growth on a monthly basis, recording a 0.45 percent increase compared to November, reflecting inflationary pressures across various sectors, according to the country’s Central Statistical Bureau.
While the Gulf state’s annual inflation rate remains among the lowest globally, it outpaced several Gulf Cooperation Council countries, including Saudi Arabia, where the CPI rose by 1.9 percent year on year in December.
This comes as Kuwait continues to recover in its non-oil sector, supported by easing inflation. Its non-oil exports rose to 23.2 million dinars ($74.9 million) in December, marking a 12.08 percent increase from November, according to data from the Ministry of Commerce and Industry.
“This indicator is used as a measure of the changes in the purchasing power of the currency, to determine the interest rates and liquidity by the Central Bank of Kuwait, to support the adoption of appropriate economic decisions by the official bodies, and for the preparation of national accounts at constant prices,” the Central Statistical Bureau report said.
The prices of miscellaneous goods and services rose by 5.43 percent year-on-year in December, while the food and beverages category saw a 5 percent annual increase.
The cost of essential food items, including cereals, bread, meat, poultry, fish, and seafood, all experienced price hikes. Dairy products, oils, fats, and fresh produce also saw growth. Monthly inflation in this category was 0.39 percent compared to November 2024.
Housing services, which include rents and maintenance services, increased by 0.90 percent annually and 0.41 percent monthly, reflecting higher housing costs across the country.
Clothing and footwear prices witnessed a 5.13 percent annual increase and a 0.35 percent rise from November.
The health sector recorded a 4 percent year-on-year rise in costs, with outpatient and hospital services driving the increase. Monthly, this category saw a 0.73 percent rise.
The Transportation category also experienced a 0.57 percent monthly increase, though its annual rate decreased by 1.47 percent, indicating a mixed trend in fuel and vehicle costs.
While some sectors witnessed significant price increases, others remained stable or saw minor changes.
Cigarettes and tobacco prices remained stable monthly, increasing by a mere 0.07 percent annually. Communication costs also held steady, with an annual rise of just 0.88 percent.
Education costs rose slightly by 0.71 percent year-on-year. Recreation and culture recorded a 2.64 percent annual increase, with a 0.53 percent rise compared to November.
Restaurants and hotels saw a 2.03 percent annual increase, while miscellaneous goods and services took the lead among all non-food categories.
In a recent report, the International Monetary Fund highlighted Kuwait’s recovery in the non-oil sector amid easing inflation, but noted a 1.5 percent gross domestic product contraction in the second quarter of 2024, driven by a 6.8 percent drop in the oil sector.
The central bank held interest rate at 4 percent in September last year, citing the continued stability and strength of the country’s monetary and financial conditions.
Portuguese firms Etermar and Microsaur to establish regional headquarters in Riyadh
Updated 20 January 2025
Nirmal Narayanan
RIYADH: Saudi Arabia’s regional headquarters program continues to attract foreign companies, with two firms from Portugal announcing plans to establish offices in the Kingdom.
During the recently concluded Saudi-Portuguese Business Council in Lisbon, Microsaur, a technology solutions and protection systems firm, and Etermar, a port operations specialist, announced that they will set up bases in the Kingdom, the Saudi Press Agency reported.
The report added that more than 260 companies from Portugal also expressed their readiness to enter the Saudi market during the gathering.
The Kingdom’s regional headquarters program provides benefits for international firms, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities for companies, as well as discounts and support services.
Earlier this month, Saudi Arabia’s Investment Minister Khalid Al-Falih said that 571 international companies have opened their regional headquarters in the Kingdom — exceeding the original target of 500 firms by 2030.
As a part of the visit to Lisbon, the Saudi delegation met with key Portuguese officials, including the European nation’s ministers of economy, agriculture, and parliamentary affairs, as well as sports, infrastructure, and housing, and discussed ways to elevate economic cooperation between both nations.
The body also witnessed the signing of an agreement between the Saudi-Portuguese Business Council, the Arab-Portuguese Chamber of Commerce and Industry, and the Portuguese Business Council.
The agreement aims to strengthen economic relations and explore collaborations in multiple sectors, including aviation, tourism, sports investment, and media.
Additional sectors under the agreement include education, health care, agriculture, and fish farming.
During the visit, the delegation, led by the Chairman of the Council Alwaleed bin Khaled Al-Baltan, also met with Saudi Arabia’s Ambassador to Portugal Prince Saud bin Abdul Mohsen.
Established in August, the Saudi-Portuguese Business Council, endorsed by the General Authority for Foreign Trade, aims to elevate trade and economic relationships between both countries, as well as promote investment opportunities.
The formation of this Council also aligns with the Kingdom’s broader goal to attract more European firms into the nation’s market.
According to the General Authority for Statistics, Saudi Arabia’s exports to Portugal in the third quarter of 2024 amounted to SR373.4 million ($99.52 million).
GASTAT added that the Kingdom exported non-oil goods worth SR191.4 million in the third quarter to the European country, while importing shipments valued at SR253 million.
Oil Update — crude slips as investors eye Trump move on Russian export curbs
New US sanctions hit near-term supply, limits ship availability
Trump may relax Russia energy curbs for accord on Ukraine war, analysts say
Updated 20 January 2025
Reuters
SINGAPORE: Oil prices fell on Monday as expectations of US President-elect Donald Trump relaxing curbs on Russia’s energy sector in exchange for a deal to end the Ukraine war offset concern of supply disruption from harsher sanctions.
Brent crude futures dropped 16 cents, or 0.2 percent, to $80.63 a barrel by 7:53 a.m. Saudi time after closing down 0.62 percent in the previous session.
The more active US West Texas Intermediate crude April contract fell 6 cents to $77.33 a barrel. The front-month contract, which expires on Tuesday, was at $78.03 a barrel, up 15 cents, or 0.19 percent, after settling down 1.02 percent on Friday.
Trump, who will be inaugurated later on Monday, is widely expected to make a flurry of policy announcements in the first hours of his second term, including an end to a moratorium on US liquefied natural gas export licenses — part of a wider strategy to strengthen the economy.
“There is a fair amount of uncertainty across markets coming into this week given the inauguration of President Trump and the raft of executive orders he reportedly is planning to sign,” ING analysts said in a note.
“This combined with it being a US holiday today, means that some market participants may have decided to take some risk off the table.”
Both contracts gained more than 1 percent last week in their fourth successive weekly ascent after the Biden administration sanctioned more than 100 tankers and two Russian oil producers. That led to a scramble by top buyers China and India for prompt oil cargo and a rush for ship supply as dealers of Russian and Iranian oil sought unsanctioned tankers to ferry their load.
While the new sanctions could impact the supply of nearly 1 million barrels per day of oil from Russia, recent price gains could be short lived depending on Trump action, ANZ analysts said in a client note.
Trump has promised to help end the Russia-Ukraine war quickly, which could involve relaxing some curbs to enable an accord, they said.
Analyst Tim Evans said the new sanctions are seen curtailing supply, at least in the near term.
“Higher tanker rates on unencumbered vessels and a widening backwardation in crude oil calendar spreads have been among the notable ripple effects, reinforcing the concern over supplies,” he said in his newsletter Evans on Energy.
Backwardation refers to prompt prices being higher than those in future months, indicating tight supply.
The prompt Brent monthly spread widened in backwardation by 5 cents to $1.27 a barrel on Monday. The WTI spread was at 63 cents a barrel, up 14 cents.
Easing tension in the Middle East also kept a lid on oil prices.
Hamas and Israel exchanged hostages and prisoners on Sunday that marked the first day of a ceasefire after 15 months of war.
Separately, investors are watching out for the impact from a cold snap in Texas and New Mexico which may affect US oil production, analysts at ANZ and ING said.
Cloud technology set to transform Saudi Arabia’s mining industry, says Ma’aden executive
Updated 20 January 2025
Nadin Hassan
RIYADH: Saudi Arabia’s mining industry is set for a major transformation, driven by the rapid adoption of advanced technologies such as cloud computing, according to a senior executive.
In an interview with Arab News on the sidelines of the Oracle CloudWorld Tour Riyadh event, Abdullah Al-Osaimi, senior vice president of procurement and business support at Ma’aden, emphasized the critical role of cloud technology in the future of mining operations.
“I think the nature of mining is one of the industries that is going to be heavily dependent on Cloud,” Al-Osaimi said.
He added: “You are exploring unknown territories that do not even have any population. It’s in the remote areas. This is where most of the minerals and discoveries we have.”
Abdullah Al-Osaimi, senior vice president of procurement and business support at Ma’aden. Supplied
Al-Osaimi highlighted the unique challenges faced by the sector, particularly in exploration activities conducted in less inhabited areas.
“If you don’t incorporate a cloud strategy, operating in such environments will be extremely difficult,” he said.
“Cloud solutions, along with mobility and edge computing, are crucial for achieving faster and more accurate exploration and production results.”
With Saudi Arabia’s Vision 2030 strongly emphasizing mining as a key economic driver, Ma’aden is aggressively adopting new technologies to support its ambitious growth plans.
“We are planning to grow tenfold by 2040. Very few companies in the world have such an aggressive growth strategy,” said Al-Osaimi.
He continued: “To achieve this, we are focusing on scalability, cost-effectiveness, and operational efficiency through advanced cloud-based solutions.”
Al-Osaimi also emphasized Saudi Arabia’s commitment to integrating advanced technologies into its development strategy, highlighting the country’s proactive approach to adopting and experimenting with innovations, even relatively new ones globally.
“We are keeping this in the heart of our strategy. We are pushing so hard in every single technology. We are even testing technologies that are very new in the world. We are bringing it here in Saudi Arabia,” Al-Osaimi said.
He continued: “One of our main objectives is to localize these technologies, not only test them but also bring them here in Saudi Arabia, so they will grow from Saudi Arabia, not just we use them and that’s it. We are bringing these technologies, we are investing in them, and we are growing them with us.”
Al-Osaimi pointed out that cloud technology offers mining companies the flexibility to analyze vast amounts of exploration data in real time, reducing the traditional timeline of discovering and processing mineral resources.
“In the mining sector, it usually takes around 15 years to go from exploration to full production. Our goal is to reduce that to at least half by adopting new technologies,” he said.
Al-Osaimi added: “AI is one of the key technologies we are adopting. It is not just a buzzword; it is an essential tool that helps us enhance productivity and accuracy.”
He further explained that technology adoption in mining is not just about implementing systems but also about ensuring data quality and developing the right skillsets among employees.
Talking to Arab News, the managing director and country leader for Oracle Saudi Arabia, Reham Al-Musa, underlined the company’s commitment to the Kingdom’s digital economy, stating: “Our CEO Safra Catz announced an investment of $1.5 billion to expand cloud capacity in Saudi Arabia during her visit two years ago.”
Reham Al-Musa, managing director and country leader for Oracle Saudi Arabia. Supplied
Al-Musa continued: “Oracle was the first cloud provider to open a data center in the Kingdom in 2021, starting in Jeddah, followed by a second region in NEOM and a third in Riyadh, which went live a few months ago.”
She also underlined that Saudi Arabia aims to become a hub for artificial intelligence, and Oracle is supporting this goal by providing technology that integrates generative AI and other capabilities.
“Cloud is the future, and it will come like for everyone. However, there is a regulated industry that they cannot go to the public cloud,” Al-Musa said.
She continued: “We have the capability to build the sovereign cloud, and this is what we did and announced with stc, stc alloy, so this is providing an extra layer of security to give the privilege for the regulated industry to utilize the benefit of the cloud and the latest technology on the cloud.”
In April 2024, Oracle and Saudi Telecom Co. launched sovereign cloud services in the Kingdom, using Oracle Alloy to help accelerate Saudi Arabia’s digital transformation with over 100 Oracle Cloud Infrastructure services for public sector and enterprise customers.
During the event, Oracle celebrated 30 years of supporting the nation’s digital transformation.
For the first time, the annual CloudWorld Tour, typically held in Las Vegas, is being hosted in Riyadh.
“Bringing the CloudWorld Tour to Riyadh for the first time in our 30th year in the Kingdom underscores our commitment to empowering Saudi organizations with cutting-edge cloud and AI technologies,” Al-Musa said during the opening remarks.
The event highlights how Oracle will help customers maximize the benefits of its cloud solutions, and the new data centers the company has opened in Saudi Arabia.
Oracle also announced that the Al-Madinah Development Authority achieved a significant milestone by implementing the Oracle Fusion cloud applications suite.
MDA implemented Oracle Fusion Cloud Enterprise Resource Planning, Oracle Fusion Cloud Supply Chain and Manufacturing, and Oracle Fusion Cloud Human Capital Management.
A custom application for managing supplier payments has also been developed. This achievement is part of the authority’s efforts to enhance operational efficiency, boost productivity, and adopt the latest digital technologies.
World Economic Forum begins in Davos amid hope and uncertainty
Annual meeting coincides with high geopolitical tensions, rapid technological advancements and escalating impacts of climate change
Discussions at Swiss resort town will include center on the future of work, technology, and climate action among other pressing topics
Updated 20 January 2025
Arab News
DUBAI: As the world’s elite arrive in the snow-capped Swiss mountains for the World Economic Forum (WEF) Annual Meeting 2025, the event promises to be a pivotal moment as global leaders address the world’s most pressing challenges.
With more than 350 government leaders, including 60 heads of state, attending, alongside business executives, civil society leaders, global experts, and other influential individuals from more than 130 countries, the forum’s organizers say the event — which runs from Jan. 20 to Jan. 24 — is intended to “drive dialogue and create solutions to the world’s shared problems.”
A picture taken on January 19, 2025 shows the Alpine resort of Davos ahead of the World Economic Forum annual meetig. (AFP)
The theme of the 2025 meeting, “Collaboration for the Intelligent Age,” will focus on five pillars crucial for a sustainable and inclusive future: Reimagining Growth, Industries in the Intelligent Age, Investing in People, Safeguarding the Planet, and Rebuilding Trust.
Klaus Schwab, the WEF’s founder and chairman, emphasized the role of Davos as a unique venue in bringing together thousands of decision makers to address global challenges.
“Despite divergent positions and great uncertainties, the Annual Meeting 2025 will foster a spirit of cooperation and constructive optimism with the objective of shaping the forthcoming Intelligent Age in a more sustainable and inclusive way” Schwab said in a press release
WEF founder and chairman Klaus Schwab speaks with the forum's managing directors Mirek Dusek and Neo Gim Huay, president and CEO Borge Brende and head of media Yann Zopf ahead of the annual meeting in Davos. (AFP)
In that same release, Børge Brende, president and CEO of the WEF, echoed this sentiment, noting that unprecedented collaboration is required to deal with the world’s most pressing issues.
“The only way to address urgent challenges and unlock new opportunities is through innovative, cooperative approaches,” Brende stated.
Among the heads of state set to participate are U.S. President-elect Donald Trump (via video link), European Commission President Ursula von der Leyen, German Chancellor Olaf Scholz, South African President Cyril Ramaphosa, Argentine President Javier Milei, and Ukrainian President Volodymyr Zelenskyy.
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Leaders from international organizations including the United Nations, the World Health Organization, and the International Monetary Fund will also be present, alongside 1,600 business leaders, including more than 900 CEOs and more than 120 “tech pioneers.”
Civil society will also be well represented, with more than 170 leaders from labor unions, non-governmental organizations, and academia, and more than 160 members of the WEF’s Global Shapers, Young Global Leaders and Social Innovators.
Protestors are seen on a two-day hike from Kueblis to Davos as part of a demonstration of the collective 'Strike WEF' in Switzerland on Jan. 18, 2025 ahead of the annual meeting of the World Economic Forum in Davos. (Keystone via AP)
The event will also be attended by 120 “cultural leaders,” and will feature an Arts and Culture program showcasing music, film, photography, interactive AI-driven art and handcrafted creations.
Mirek Dusek, WEF managing director, said in a statement: “By convening leaders from around the world and different walks of life, the Annual Meeting provides a platform to share views and knowledge at a time of profound change for people and communities.
“A core goal of our proceedings is to enable broad-based agency and solutions in the context of the new economy that seems to be emerging.”
Discussions at Davos will include debates on the future of work, technology, and climate action, and will also examine critical initiatives in areas including cybersecurity, artificial intelligence, and renewable energy. (AFP)
Discussions at Davos will include debates on the future of work, technology, and climate action. Reports such as the Global Cooperation Barometer 2025 and the Future of Jobs Report will be discussed during sessions, as will the ways in which new technologies will reshape industries and potentially create millions of jobs, while also terminating many others.
The meeting will also examine critical initiatives in areas including cybersecurity, artificial intelligence, and renewable energy, with the aim of creating “responsible, inclusive strategies for the future.”
Gim Huay Neo, WEF managing director said in a press release, “We will explore how data and technologies, as well as innovative partnerships, can be harnessed to create value and empower leadership for people, planet and prosperity.”
