Accor to build 45 new hotels in Saudi Arabia by 2030: CEO

Accor to build 45 new hotels in Saudi Arabia by 2030: CEO
Duncan O’Rourke, CEO of the Middle East, Africa and Asia at Accor, speaking to Arab News. AN
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Updated 12 May 2024
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Accor to build 45 new hotels in Saudi Arabia by 2030: CEO

Accor to build 45 new hotels in Saudi Arabia by 2030: CEO

RIYADH: French multinational hospitality company Accor is set to expand its hotel portfolio in Saudi Arabia with 45 new establishments by 2030, as revealed by the regional CEO.

In an interview with Arab News, Duncan O’Rourke underscored the company’s dedication to the Kingdom’s vibrant hospitality sector and its aspirations embodied by Vision 2030.

O’Rourke said: “Saudi is an extremely important theater for us to play also because of what is happening, we are very proud to be part of this journey, this vision of 2030.” 

Reflecting on the firm’s substantial presence in Saudi Arabia, O’Rourke highlighted that while the company currently has 41 hotels in the Kingdom, it plans to add more – initially claiming there would be another 40, before later revealing it be 45, with an additional 9,800 rooms by 2030.

Commenting on Accor’s participation in the Future Hospitality Summit, the CEO said that it aims to actively share its expertise, learn from industry peers, and collaborate on initiatives that will shape the future of the hospitality sector.

With a historical foothold in the Kingdom, the CEO reminisced: “Accor has a very long history in Saudi, a very established history.”

He added: “We are very excited to be here, me personally, having lived here 22 years ago and see the growth and the challenges.” 

O’Rourke added: “One of the things we noticed tremendously was talent, and getting people to work in the hotels. Opening the hotels is one thing, but we need the local talent as well.” 

He highlighted Accor’s partnership with the Ministry of Tourism and Education to nurture Saudi talent for the hospitality industry, saying: “We signed a partnership, which we were really excited about with the Minister of Tourism and Education, so we signed that partnership to be able to educate on all different levels, local people, to work in the hotels as well.” 

In line with Accor’s commitment to nurturing local talent, O’Rourke explained that the firm’s academies are based worldwide and driven out of Paris, saying: “It’s been very famous how we’ve done that and trained and coached, but we felt that here with this tremendous growth in the speed of that growth and the fact that we really wanted to get local talent working.” 

Diving more into the “Tamayyaz by Accor” program, the CEO explained that the educational process goes from an entry-level to a more senior position.

Accor and the Ministry of Tourism in Saudi Arabia have signed this partnership, which is dedicated to nurturing and developing Saudi talent in the hospitality industry. 

O’Rourke told Arab News that they’re starting with a modest number of around 250 trainees, but that’s “quickly going to go up to over 3,000 continuously going through the process there, and so every process, 3,000 more going through.”

Expanding beyond major urban centers, O’Rourke emphasized “it’s not just in Riyadh, or in Jeddah, but in the secondary and third cities as well,” signaling Accor’s commitment to broadening its footprint across the Kingdom.

In a discussion about Accor’s varied brand lineup, he explained: “We split our luxury lifestyle, so we’re one of the largest luxury players in the market, the largest lifestyle player in the market, and then we have that premium midscale economy.”

Accor is the largest hospitality operator in the Holy Cities, with 13 hotels encompassing 11,900 rooms and a pipeline of six hotels with 1,700 rooms. 

The firm has significantly contributed to developing the holy destination of Makkah, providing high-quality hospitality with direct access to the Haram. 

Accor currently operates 13 brands and more than 16,000 rooms in Saudi Arabia, ranging from premium to economy segments, including luxury brands and Ennismore’s lifestyle collective. With leading names like Novotel, Swissotel, and Pullman, it’s a top hospitality provider offering diverse services and experiences.

He added: “We go with all those brands there in those resorts, not in just major cities, with Banyan Tree, Sofitel, and then, of course, Fairmont Raffles and the rest of the traditional brands as well.”

O’Rourke highlighted the necessity of employing locals, saying: “At the Novotel hotel, which we opened tonight, that’s the first female GM (general manager) in Saudi and so we are very proud of this diversification and giving opportunities to everybody there.”

The CEO added: “Being able to be part of this growth industry in terms of opening hotels, but also in educating and watching talent grow and one day moving from Saudi out and using that talent abroad, is also very exciting.” 

In terms of partnerships, O’Rourke emphasized Accor’s strategic approach to collaborations that benefit both parties and local communities.

 “In any partnership which we do with our core, we want somebody that embraces our values. We call them partners, we want to synergize with partners and then grow where it makes benefit for them, for us and the communities as well,” he said.

Reflecting on market trends, O’Rourke said: “Where we see the secondary cities the most traction we are in that sense there is coming from the mid-scale and the premium midscale economy,” highlighting the burgeoning demand in these segments.

“Where we do see a difference and more and more coming through is that leisure markets both locally, so Saudis traveling in Saudi, but also from the GCC coming through there,” the CEO added acknowledging the rise of leisure travel.

As Saudi Arabia continues its remarkable growth trajectory, O’Rourke expressed optimism, asserting: “We stay focused on our footprint. We have a very aggressive expansion plan to go from 44 to another 40 by 2030 is already aggressive.”

He concluded Accor’s commitment to delivering on its expansion goals while fostering talent development in the Kingdom, saying: “We continue to drive forward and make sure that we are not only opening hotels with the right brand, right partners, but then being able to really deliver on what we promised.” 


Islamic banking in Kuwait and Oman stable amid favorable conditions: Fitch Ratings  

Islamic banking in Kuwait and Oman stable amid favorable conditions: Fitch Ratings  
Updated 22 sec ago
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Islamic banking in Kuwait and Oman stable amid favorable conditions: Fitch Ratings  

Islamic banking in Kuwait and Oman stable amid favorable conditions: Fitch Ratings  

RIYADH: The standalone credit profiles of Islamic banks in Kuwait are expected to remain stable in 2025, supported by favorable operating conditions, according to a recent analysis by Fitch Ratings. 

The report highlighted that Islamic banking remains a significant sector in Kuwait, accounting for 49 percent of total banking sector assets by the end of the first half of this year.  

This follows a similar forecast from Moody’s in September, which predicted faster growth for Islamic financing compared to conventional banking. Moody’s cited rising demand for Shariah-compliant products and the inherent stability of Islamic banks’ net profit margins as key drivers. 

Fitch Ratings noted that capital at Kuwaiti Islamic banks remains adequate, supported by moderate growth and steady profitability in 2024 and 2025. 

“As for conventional banks, we view Islamic banks’ profitability to have peaked, and we expect earnings to slightly decline in 2025 following expected rate cuts,” said Fitch Ratings.  

The credit rating agency noted that funding at Kuwaiti Islamic banks remains strong, with 80 percent sourced from customer deposits. 

The report also highlighted a slight increase in the average impaired financing ratio among Islamic banks in Kuwait, rising to 2 percent by the end of the first half, driven by pressure from higher rates and slower financing growth. 

“The average financing impairment charges/average gross financing ratio increased slightly in the first half of 2024 but remains well below the pandemic level. Relatively high real estate exposure and concentration are key risks to the bank’s asset quality. Fitch expects asset quality to be stable in 2024-2025,” added Fitch.  

Oman’s Islamic finance sector expanding 

In a separate report, Fitch Ratings indicated that Omani Islamic banks are benefiting from favorable economic conditions, improving asset quality, stable profitability, and reasonable liquidity.  

The total assets of Omani Islamic banks stood at $21.3 billion by the end of the third quarter of this year, with the Islamic banking sector holding a market share of 18.7 percent of the country’s total banking assets. 

Fitch pointed to several factors driving the growth of Islamic finance in Oman, including increasing public demand, deeper distribution channels, the use of sukuk by both the government and corporates, and regulatory initiatives. 

“The Central Bank of Oman addressed a structural gap in October 2024 with the introduction of the Bank Deposit Protection Law, which would protect Islamic banks’ deposits,” said Fitch. 

“We expect this will aid confidence in Oman’s Islamic banking sector as the previous deposits insurance scheme only covered conventional banks’ deposits,” it added.  

The report forecast that Oman’s Islamic finance sector will surpass $40 billion in the medium term, with Fitch estimating its total value at $30.9 billion by the end of September 2024. 

According to the analysis, the Omani debt capital market reached $45 billion in outstanding debt by the end of the third quarter. There is no expectation of a significant short-term surge, as the government continues to prepay more of its debt using the budget surplus generated by high oil prices. 

Fitch also highlighted Oman’s growing sukuk issuance, which increased by 86 percent year on year to $2 billion in the first nine months of 2024, outpacing conventional bond issuance, which rose 53 percent to $5.6 billion during the same period.  

Fitch stated: “The Omani Islamic finance sector remains one of the smallest in the GCC (Gulf Cooperation Council),” and pointed out that it continues to face several challenges. 

These challenges include “the lack of Islamic liquidity-management instruments and smaller capital bases compared to the conventional banks,” which, according to Fitch, “could restrict their involvement in major government financing projects.” 

However, Fitch emphasized the sector’s long-term growth potential, citing recent regulatory developments and Oman’s predominantly Muslim population as key factors supporting future expansion.


Saudi Aramco maintains propane, butane prices for December

Saudi Aramco maintains propane, butane prices for December
Updated 8 min 1 sec ago
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Saudi Aramco maintains propane, butane prices for December

Saudi Aramco maintains propane, butane prices for December

RIYADH: The Saudi Arabian Oil Co., also known as Saudi Aramco, kept its December contract prices unchanged month on month at $635 per tonne, according to an official statement

The company also maintained butane prices for the month at $630 per tonne.

Propane and butane are types of liquefied petroleum gas with different boiling points. LPG is commonly used as a fuel for vehicles, heating, and as a feedstock for various petrochemicals.

Aramco’s OSPs for LPG are used as a benchmark for contracts supplying the product from the Middle East to the Asia-Pacific region.

In winter, the demand for propane rises significantly due to its use in heating homes, which can lead to higher prices if supply struggles to keep up.

Such fluctuations are a normal part of the market and are expected during colder months. The increase in prices reflects the basic economic principle of supply and demand, with higher demand resulting in higher costs.


Mawani, Lloyd’s Register ink deal to streamline maritime operations

Mawani, Lloyd’s Register ink deal to streamline maritime operations
Updated 20 min 27 sec ago
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Mawani, Lloyd’s Register ink deal to streamline maritime operations

Mawani, Lloyd’s Register ink deal to streamline maritime operations

RIYADH: The Saudi Ports Authority has signed an agreement with the UK’s Lloyd’s Register to unify and streamline operational and maritime procedures across Saudi ports.

The deal is set to enhance efficiency by developing comprehensive manuals and guidelines, including quality and environmental procedure manuals that align with International Organization for Standardization standards, the Saudi Press Agency reported.

The collaboration aligns with Mawani’s efforts to improve operational excellence at ports and strengthen Saudi Arabia’s connectivity with global markets, thus boosting national exports. As part of the partnership, the Saudi Ports Authority aims to double the container throughput capacity at its ports, from 20 million containers to over 40 million.

This goal is part of Saudi Arabia’s broader vision to modernize its logistics infrastructure under the National Transport and Logistics Strategy, which targets increasing the sector's contribution to gross domestic from 6 percent to 10 percent.

The deal also seeks to define clear responsibilities through a code of good practices, ensuring compliance with updated International Maritime Organization agreements.

Additionally, the partnership will help secure international certifications such as ISO 9001:2015 for quality management and ISO 14001:2015 for environmental management, further enhancing operational efficiency, customer satisfaction, and sustainability practices.

As part of the cooperation, comprehensive training programs will be offered to port employees, including courses on ISO standards, maritime certifications, and the latest inspection and safety protocols. Digital solutions and cutting-edge technologies will also be integrated to support sustainable operations and improve overall port competence.

Lloyd’s Register, a renowned maritime classification society established over 260 years ago, is one of the most prestigious organizations in the global maritime sector. The company operates in 81 offices worldwide and serves over 40,000 clients across the maritime and logistics industries.

 


Aramco launches global innovation award for robotics excellence at WRO 2024

Aramco launches global innovation award for robotics excellence at WRO 2024
Updated 28 min 16 sec ago
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Aramco launches global innovation award for robotics excellence at WRO 2024

Aramco launches global innovation award for robotics excellence at WRO 2024

Aramco has partnered with the Aston Martin Aramco Formula One® Team and World Robot Olympiad to launch the Aramco Innovation Award, a new global honor recognizing excellence in robotics design and technology.

The award aims to inspire and reward young innovators who excel in creativity, problem-solving, critical thinking and technical skills.

The first Aramco Innovation Award will be presented at the 2024 World Robot Olympiad international final, which will take place from Nov. 28-30 in İzmir, Turkiye.

It will be given to the winning team of the future innovators category (senior age group). More than 5,500 teams and 15,000 students from around the world will compete for the award.

At the international final, 48 teams from 45 countries are eligible to win.

The prize includes an exclusive Aston Martin Aramco Formula One® Team Innovation Experience, which features a tour of the AMR Technology Campus in Silverstone, the home of British motorsport.

Khalid A. Al-Zamil, Aramco vice president of public affairs, said: “We’re excited to launch the Aramco Innovation Award as part of our dedication to developing future science, technology, engineering and math innovators. By partnering with Aston Martin Aramco Formula One® Team and World Robot Olympiad, we aim to inspire young minds to explore new possibilities in robotics and encourage the next generation of STEM careers.”

Luca Furbatto, engineering director, Aston Martin Aramco Formula One® Team, said: “We are thrilled to work with our partner Aramco to offer this insightful tour of our technology campus in Silverstone to the winners of the Aramco Innovation Award. It allows students the chance to see how a Formula One® team operates, and we expect it will help to inspire the next generation of designers and engineers through STEM opportunities.”

The Aramco Innovation Award celebrates young innovators who use robotics to address real-world challenges. By recognizing these achievements, Aramco and its partners are investing in future technology leaders who will help to shape the technologies of tomorrow’s world.

Claus Ditlev Christensen, secretary general of WRO, said: “Introducing the Aramco Innovation Award at this year’s WRO international final represents our ongoing mission to inspire young innovators. This collaboration with Aramco and Aston Martin Aramco Formula One® Team gives students an extraordinary chance to experience the latest technology. We believe these future leaders have the potential to drive the next wave of advancements in robotics.”


Saudi Arabia strengthens cybersecurity leadership at Black Hat MENA

Saudi Arabia strengthens cybersecurity leadership at Black Hat MENA
Updated 41 min 16 sec ago
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Saudi Arabia strengthens cybersecurity leadership at Black Hat MENA

Saudi Arabia strengthens cybersecurity leadership at Black Hat MENA

RIYADH: Saudi Arabia reinforced its commitment to cybersecurity by hosting the Black Hat Middle East and Africa conference and exhibition this week. The event, held from Nov. 26-28, highlighted the Kingdom’s efforts to advance digital security and technological innovation as part of its broader Vision 2030 goals.

Organized by the Saudi Federation for Cybersecurity, Programming, and Drones in partnership with Tahaluf, Informa Global, and the Events Investment Fund, Black Hat MENA brought together global experts to discuss critical cybersecurity issues and share insights on protecting digital infrastructures, the Saudi Press Agency reported.

One day before the gathering, Mutab Al-Qunai, CEO of the Saudi Federation for Cybersecurity, told SPA that the event aims to foster innovation and collaboration in digital safety

The conference included a series of technical sessions and workshops centered on the role of cybersecurity in safeguarding emerging technologies. The Kingdom’s efforts to cultivate local talent and align with international cybersecurity standards were key themes. Notably, the event featured a drone challenge zone, aimed at engaging Saudi youth in drone technology and the cybersecurity challenges it presents.

Experts such as Nikhil Shrivastava, an Indian security researcher, and Bianca Lewis, founder of Girls Who Hack, contributed to discussions on the evolving landscape of cybersecurity threats and solutions.

Black Hat MENA also featured five national pavilions, with representatives from the US, Canada, India, Egypt, and Pakistan, alongside 43 exhibitors. The event hosted over 300 speakers, 450 exhibitors, and 350 workshops covering a wide array of cybersecurity topics.

The Activity Zone, sponsored by Haboob, presented cybersecurity challenges with prizes totaling more than SR2 million ($532,000). These included tests on smart home security, medical device hacking, and infrastructure vulnerabilities. The Capture the Flag tournament also took place, awarding SR790,000 in prizes, including SR90,000 for Saudi teams.

Faisal Al-Khamisi, chairman of the Saudi Federation for Cybersecurity, emphasized that hosting Black Hat MENA aligns with Saudi Arabia’s goal to lead in cybersecurity. He said the event demonstrated the Kingdom’s commitment to innovation, collaboration, and developing the cybersecurity skills necessary to protect the digital future.

Saudi Arabia’s efforts to strengthen its cybersecurity infrastructure and cultivate talent position the Kingdom as a growing hub for technological innovation in the region.