Variety is the spice of life as Saudi Arabia ushers in dining renaissance

As more restaurant entrepreneurs enter the market, the competition is driving everyone to elevate their game. (Instagram/sawada.ksa)
As more restaurant entrepreneurs enter the market, the competition is driving everyone to elevate their game. (Instagram/sawada.ksa)
Short Url
Updated 21 July 2024
Follow

Variety is the spice of life as Saudi Arabia ushers in dining renaissance

Variety is the spice of life as Saudi Arabia ushers in dining renaissance
  • Local eateries are nurturing a sense of community, providing valuable job opportunities to Saudis

RIYADH: In the bustling heart of Saudi Arabia, a culinary revolution is unfolding. Restaurant entrepreneurs are launching new coffee shops and fast-food restaurants that are redefining the dining landscape by offering high-quality food and drinks at accessible prices. The cherry on top? They’re hiring local talent, bolstering both the community and the economy.

Imagine walking into a newly opened coffee shop or fast-food joint with modest expectations, only to be pleasantly surprised by the taste and quality of your order. This is the new norm sweeping across the nation. These establishments are quickly earning reputations for delivering great food and drinks without the hefty price tags.




As more restaurant entrepreneurs enter the market, the competition is driving everyone to elevate their game. (Instagram/sawada.ksa)

“Honestly, I always look for a fair price when it comes to my coffee, and this place fits the bill perfectly,” frequent customer Khalil Al-Azwari told Arab News. “This coffee shop is one of my favorites, and they serve the best V60 for only SR10 ($2.67). It’s great value for money.”

A cornerstone of this transformation is the focus on employing local workers. By prioritizing job opportunities for Saudis over expats, these businesses are not only boosting the economy but also fostering a stronger sense of community.

Establishing a new business requires a deep and thorough study of market needs, sound management, and dedication to the business.

Talat Hafiz, Financial analyst

“Working here has been an amazing experience,” said Ahmed Saleh, a barista at a prominent coffee shop in Riyadh. “I get to work with top-notch ingredients and learn new skills. Plus, it’s great to see familiar faces enjoying the coffee and food we prepare.”

The allure of these new dining spots extends beyond just offering great food and drinks. By prioritizing local hires, these businesses are nurturing a sense of community and providing valuable job opportunities. This approach represents a refreshing change in a country where the service industry has traditionally been dominated by foreign workers.




As more restaurant entrepreneurs enter the market, the competition is driving everyone to elevate their game. (Instagram/sawada.ksa)

Local customers are equally thrilled with the shift. “I love that these new places are hiring people from our own cities,” said Bashayer Mohammed, a regular patron. “It makes the experience feel more personal and connected to our community.”

However, not everyone is embracing this wave of new dining options. Some local business owners are feeling the heat as these large restaurant entrepreneurs gain popularity. Many local establishments, which often have higher prices, are struggling to compete.

“It’s tough,” said Saad, who used to own a coffee shop in Alkhobar. “We can’t match the prices of these big traders, and people are noticing. We’re losing customers, and it’s affecting our livelihood."

Saad opened his coffee shop in October 2021 with high hopes for success. “In the first month, the numbers were doing great,” he recalled. However, as the months went by, business began to decline steadily. Despite his efforts to adapt, the situation worsened. “It was surprising because it got way worse each month,” Saad said.

Determined to save his business, Saad tried everything. “We changed the menu, collaborated with coupon companies, and partnered with delivery apps. We even invested in advertising,” he explained. Despite trying every strategy he could think of, nothing seemed to work. “None of it made a difference,” he admitted.

On top of these challenges, Saad faced unexpected financial burdens. “The rent was much higher than I expected, and I didn’t fully account for staff salaries and insurance,” he said. These expenses quickly added up, straining his finances.

The increase in costs has led most merchants to reduce expenses, cut salaries, and lay off employees. “This is a sign of failure,” Saad added. “Successful merchants invest in the human element and intellect to create and innovate solutions for survival. The general public has a consumer mentality, not a problem-solving one.”

Desperate, Saad even tried to sell the coffee shop to investors. “It just didn’t work,” he said. Ultimately, the mounting losses forced him to close the coffee shop in 2023. “It was a huge loss for me,” Saad reflected.

As more restaurant entrepreneurs enter the market, the competition is driving everyone to elevate their game. Local businesses are starting to take notice and are striving to match the quality and affordability that these new players offer, although it remains a challenging transition.

In an interview with Arab News, financial analyst Talat Hafiz emphasized the crucial role that small and medium enterprises play in the Saudi economy: “SMEs in Saudi Arabia and elsewhere around the world are the backbone of the economy and business activities.”

Recognizing this, the Saudi government has been proactive in fostering the growth of these enterprises. It has made significant efforts to facilitate the growth of SMEs and enhance their contribution to the Kingdom’s non-oil gross domestic product from 20 percent to 35 percent by 2030, Hafiz added.

The establishment of the General Authority for Small and Medium Enterprises, also known as Monshaat, in 2016 is a testament to these efforts. “Monshaat was created to regulate, support, and develop the SME sector in the Kingdom,” Hafiz said.

Additionally, the Loan Guarantee Program, established in 2006, aims to overcome financing obstacles for economically viable SMEs lacking the necessary guarantees. Despite these avenues of support, many SMEs still face significant challenges. “There are still some companies that fail to continue their businesses successfully and close their doors within the first year or by the third year of operation,” he said.

Hafiz has identified several reasons behind these failures. “Most complaints from SME owners are due to various fees imposed by the government, especially violation fees,” he said. However, he believes that the primary reasons for failure lie elsewhere.

“The main reasons behind the failure of SMEs, especially startups, include a lack of careful consideration of market needs and different consumer preferences, lack of management experience, technical and professional expertise, and the imitation of adding value to the market,” Hafiz added.  

He also highlighted the importance of management dedication and sufficient financial resources. “Establishing a new business requires a deep and thorough study of market needs, sound management, and dedication to the business. It also requires specific talents that allow the company to respond quickly and effectively to market and economic changes,” he noted.

While the Saudi government has regulated fines to be more transparent, fair, and progressive, Hafiz stresses that the focus should not be limited to government fees. “The focus on business failures should also address the main and real causes of businesses’ failure. The government fines are transparent and progressive, and it is also not permissible to impose them the first time, as there is a warning that precedes the violation.”

 


Saudi Arabia’s NEOM gigaproject a ‘generational investment,’ minister says

Saudi Arabia’s NEOM gigaproject a ‘generational investment,’ minister says
Updated 26 November 2024
Follow

Saudi Arabia’s NEOM gigaproject a ‘generational investment,’ minister says

Saudi Arabia’s NEOM gigaproject a ‘generational investment,’ minister says
  • The world’s top oil exporter has poured hundreds of billions of dollars into development projects through the kingdom’s $925 billion sovereign fund

RIYADH: Saudi Arabia’s NEOM gigaproject, a futuristic region being built in the desert, is a “generational investment” with a long timeline, the country’s investment minister told Reuters on Monday, adding that foreign investment will pick up pace.
“NEOM was not meant to be a two-year investable opportunity. If anybody expected NEOM to be foreign investment in two, three or five years, then they have gotten (it) wrong — it’s a generational investment,” Minister Khalid Al-Falih said on the sidelines of the World Investment Conference in Riyadh.
“The flywheel is starting and it will gain speed as we go forward, as some of the foundational assets come to the market,” he said.
The world’s top oil exporter has poured hundreds of billions of dollars into development projects through the kingdom’s $925 billion sovereign fund, the Public Investment Fund (PIF), as it undergoes an economic agenda dubbed Vision 2030 to cut dependence on fossil fuels.
NEOM, a Red Sea urban and industrial development nearly the size of Belgium that is meant to eventually house 9 million people, is central to Vision 2030. Saudi Arabia has scaled back some lofty ambitions to prioritize completing elements essential to hosting global sporting events over the next decade as rising costs weigh, sources told Reuters earlier this month. NEOM announced this month its long-time chief executive, Nadhmi Al-Nasr, had stepped down, without giving further details.
Asked what effect the departure would have on investors, the minister said the executive had done “a respectable job” but that “there is a time for everybody to pass on the baton.”
Asked if PIF will continue to do much of the spending on NEOM until more foreign funds come in, Al-Falih said it was not binary.
“I think foreign investors are starting to come to NEOM, they’re starting to channel capital. Some of the projects that the PIF will be doing will be financed through global capital pools, through some alternative and private capital. That’s taking place as we speak,” he said.
“So I urge you not to look at NEOM as being 100 percent PIF and then suddenly there will be a cliff and it will go private.”
Saudi Arabia, which is racing to attract $100 billion in annual foreign direct investment by the turn of the decade — reaching about a quarter of that in 2023 — has recently seen more co-investment deals between state entities and foreign investors.
“It’s always been the intent,” Al-Falih said of foreign inflows alongside state funds.
He noted that foreign investors were at times “still looking, still examining, still sometimes questioning,” but that now there was confidence in the profitability of investment opportunities and that “the risk-return trade-offs are very, very fair and positive to them.”


Saudi crown prince extends condolences to Kuwaiti counterpart on death of Sheikh Mohammed Abdulaziz Al-Jarrah Al-Sabah

Saudi crown prince extends condolences to Kuwaiti counterpart on death of Sheikh Mohammed Abdulaziz Al-Jarrah Al-Sabah
Updated 26 November 2024
Follow

Saudi crown prince extends condolences to Kuwaiti counterpart on death of Sheikh Mohammed Abdulaziz Al-Jarrah Al-Sabah

Saudi crown prince extends condolences to Kuwaiti counterpart on death of Sheikh Mohammed Abdulaziz Al-Jarrah Al-Sabah

RIYADH: Saudi Crown Prince Mohammed bin Salman sent a cable of condolences to Kuwaiti Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah on the passing of Sheikh Mohammed Abdulaziz Hamoud Al-Jarrah Al-Sabah.
In the cable, the crown prince extended his deepest sympathy to Sheikh Sabah and the family of the deceased.


Saudi tech diplomat meets Iraqi PM to discuss digital cooperation

Saudi tech diplomat meets Iraqi PM to discuss digital cooperation
Updated 25 November 2024
Follow

Saudi tech diplomat meets Iraqi PM to discuss digital cooperation

Saudi tech diplomat meets Iraqi PM to discuss digital cooperation
  • Deemah Al-Yahya, head of the multilateral Digital Cooperation Organization, commended Iraq’s investment in human capital as driver for growth and expansion of digital economy
  • Iraq has been working in recent years to develop a strategy for digital transformation to help support the private and public sectors and grow the economy

RIYADH: Saudi senior tech diplomat Deemah AlYahya, the secretary-general of the multilateral Digital Cooperation Organization, held talks on Monday with Iraq’s prime minister, Mohammed Shia Al-Sudani, about support for Baghdad’s plans to develop its digital business and artificial intelligence sectors.

They discussed Iraq’s strategy for digital transformation, and the need to create and develop a workforce with the tech skills required to help grow the Iraqi economy effectively, the Saudi Press Agency reported.

Though Iraq is not a member of the DCO, an international body that focuses on the digital economy, Al-Sudani said his country is keen to work with the organization to meet the nation’s needs for a skilled workforce in the business sector.

AlYahya commended Iraq for the progress it has already made in terms of investment in the human capital needed to develop the digital skills that are essential to drive growth in a digitized economy.

Iraq has been working in recent years to develop a strategy for digital transformation to help support the private and public sectors and grow the economy. Authorities this month organized the first Digital Space Iraq Forum, which focused on the use of advanced technologies, including AI, to help build a comprehensive digital economy.

The DCO says that since it was founded in November 2020, it has been at the forefront of efforts to curate policies and initiatives to support the digital economy in several countries. Currently, 16 nations are members, including Saudi Arabia, Jordan, Pakistan, Bahrain, Bangladesh and Oman. It also has 39 observer partner organizations.

DCO member states have a collective gross domestic product of $3.5 trillion and serve a combined market of nearly 800 million people, more than 70 percent of whom are under the age of 35.


Saudi FM pushes for regional stability at G7-Arab foreign ministers meeting

Saudi FM pushes for regional stability at G7-Arab foreign ministers meeting
Updated 25 November 2024
Follow

Saudi FM pushes for regional stability at G7-Arab foreign ministers meeting

Saudi FM pushes for regional stability at G7-Arab foreign ministers meeting
  • In his address, Prince Faisal highlighted the ongoing crises in Gaza and Lebanon

RIYADH: Saudi Foreign Minister Prince Faisal bin Farhan took part in an expanded session of the second meeting between G7 foreign ministers and their counterparts from Arab nations on Monday, the Saudi Press Agency reported.

The meeting was hosted in Italy under the theme “Together for the Stability of the Middle East.”

The session, which addressed pressing regional and international challenges, was held with the participation of Saudi, Jordanian, Emirati, Qatari and Egyptian officials, as well as the secretary-general of the Arab League.

In his address, Prince Faisal emphasized the importance of strengthening partnerships to address these challenges effectively.

He highlighted the ongoing crises in Gaza and Lebanon, urging the international community to act immediately to secure a ceasefire, facilitate unrestricted humanitarian aid, and progress toward establishing an independent Palestinian state.

He also called for respect for Lebanon’s sovereignty, and renewed international efforts to resolve the crisis in Sudan and alleviate the resulting human suffering.

The meeting was also attended by Prince Faisal bin Sattam bin Abdul Aziz, Saudi ambassador to Italy, the SPA reported.


Scientists awarded for sustainable water innovation at Saudi conference

Scientists awarded for sustainable water innovation at Saudi conference
Updated 25 November 2024
Follow

Scientists awarded for sustainable water innovation at Saudi conference

Scientists awarded for sustainable water innovation at Saudi conference
  • Research aims to improve desalination efficiency
  • Makkah’s deputy emir in attendance

JEDDAH: Scientists were awarded prizes for their work in researching desalination and wastewater treatment technologies during an event in Jeddah on Monday.

The third edition of the Innovation-Driven Water Sustainability Conference was attended by 480 experts, scientists, researchers, specialists and 40 leading organizations in the water sector, from 20 countries.

The grand prize — the Global Prize for Innovation in Desalination 2024 — went to Lee Nuang Sim from Singapore’s Nanyang Technological University for his project “uncovering the power of centrifugal reverse osmosis,” and Sue Mecham, CEO of NALA Membranes, for her project “chlorine stable new membranes for sustainable desalination and wastewater treatment/reuse.”

Visitors attend the third Innovation-Driven Water Sustainability Conference in Jeddah on Nov. 25, 2024. (Supplied)

Mecham, from North Carolina, US, spoke to Arab News after receiving her award, saying: “We are honored to be selected for the Global Prize for Innovation in Desalination 2024. Our mission is to bring new membranes to market and reduce the cost and complexity of water purification.”

Meanwhile, Saudi Ghadeer Al-Balawi from the University of Tabuk was another one of this year’s prizewinners with her project “novel heterogeneous catalysts for improving wastewater treatment plants in Saudi Arabia.”

Al-Balawi told Arab News: “I am incredibly honored to be one of the recipients of the Global Prize for Innovation in Desalination 2024. This recognition means so much to me. This project has been conducted at the University of Sheffield with hard work and dedication with the assistance of my supervisor, Dr. Marco Conte.”

The event’s opening ceremony was attended by Makkah Deputy Emir Prince Saud bin Mishal and Minister of Environment, Water and Agriculture Abdulrahman Abdulmohsen Al-Fadley, as well as other senior officials.

Following the opening, Abdullah Al-Abdulkarim, chairman of the Saudi Water Authority, said that the event reflects the Kingdom’s commitment to promoting scientific and research innovation as a pillar for achieving water sustainability and security.

Through the conference, the SWA aims to share the impact of innovation in promoting the sustainable supply of water, according to SWA spokesperson Sultan Al-Rajhi.

“This conference discusses the latest global practices and innovative solutions in the water industry, with the participation of experts, scientists and specialists, who emphasize the pivotal role of innovation in accelerating the future prosperity of water and achieving the Sustainable Development Goals for water and the environment,” he said.

The two-day conference will continue to feature discussions on more than 180 research papers, as well as a water hackathon organized by the Saudi Water Innovation Center.