Halo Space unveils Saudi localization plans, confirms upcoming test flight

Carlos Mira, CEO of Halo Space, made the announcement, confirming that the test flight will take place at the end of September in Saudi Arabia. Photo/Supplied
Carlos Mira, CEO of Halo Space, made the announcement, confirming that the test flight will take place at the end of September in Saudi Arabia. Photo/Supplied
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Updated 17 September 2024
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Halo Space unveils Saudi localization plans, confirms upcoming test flight

Halo Space unveils Saudi localization plans, confirms upcoming test flight
  • Halo Space announced the establishment of final assembly and testing facilities in the Kingdom
  • Test flight will take place at the end of September in Saudi Arabia

RIYADH: Saudi Arabia is set to host the next test flight of Halo Space, a leading company in near-space tourism, later this month.

On Tuesday, Halo Space announced the establishment of final assembly and testing facilities in the Kingdom. This development, revealed during a media event in Riyadh, represents a major advancement in Halo Space’s strategic partnership with Saudi Arabia and its ongoing efforts to lead in the burgeoning space tourism industry.

Carlos Mira, CEO of Halo Space, made the announcement, confirming that the test flight will take place at the end of September in Saudi Arabia.

“We in this industry work with launch windows. We open the launch window, on different days we are ready to fly depending on weather. It will be on Sept. 27, then we have the window open for 10-12 days. The reason is that we will fly on the day when we have the best weather conditions. If the best weather conditions are not on day one, we will wait until day two or three,” Mira told Arab News.

The upcoming test flight is scheduled to take place in the desert, approximately 350 km southeast of Riyadh, near Layla.

Mira underscored the significance of this new facility in Halo’s long-term strategy to position Saudi Arabia as a leading global hub for near-space activities.

The top executive said: “The decision to localize industrial capabilities, like the space capsule final assembly and testing facilities, a space port and an immersive experience dome recreating the Halo Stratospheric flights in Saudi Arabia, is a reflection of the Kingdom’s favorable business environment and ideal conditions for near-space activities. We believe that Saudi Arabia is uniquely positioned to take a leadership role in the near-space sector, and we are excited to continue building this partnership as we move forward with our mission.”

Mira highlighted that Halo Space has previously completed five successful test flights: the first in Hyderabad, India, in December 2022, followed by four consecutive tests in the Mojave Desert, California, in September 2023.

The latest announcement precedes the company’s next test flight, scheduled for late September, which will involve rigorous testing of its full-size prototype capsule, Aurora, at an altitude of 30 km. This unmanned flight aims to validate the functionality of the capsule’s critical systems, which have been developed over the past three years, as part of Halo’s commitment to safety and innovation.

Looking ahead, Halo plans its first manned test flight for 2025, a crucial milestone in preparing for commercial operations. The company intends to commence commercial flights in 2026, offering passengers an extraordinary space tourism experience.

By 2030, Halo aims to operate from four strategic locations—Saudi Arabia, Spain, Australia, and the US—providing near-space experiences to over 10,000 passengers.

Thomas Kuruvilla, managing partner at Arthur D. Little, emphasized the significant potential of the near-space sector for Saudi Arabia, noting its alignment with the country’s Vision 2030 objectives.

Kuruvilla said: “Halo Space’s presence in Saudi Arabia presents significant opportunities for the local economy, particularly in the tourism and space sectors. This initiative aligns perfectly with Vision 2030, which seeks to diversify the economy and position the Kingdom as a leader in the new space economy. We believe that Halo’s investment here will accelerate the development of a thriving ecosystem around near-space tourism, bringing high-value jobs and new business opportunities.”
Halo Space’s new facilities will enhance its flagship operational base in Saudi Arabia, supporting the Kingdom’s ambition to become a global leader in technological innovation and economic diversification.

Founded in 2021, Halo Space is revolutionizing space travel with its zero-emission flights that reach the edge of space. Their stratospheric balloon flights elevate passengers up to 35 km above Earth, providing a unique opportunity to view the planet’s curvature and the expanse of space.

Each journey, lasting up to six hours, offers a serene and spectacular experience, featuring unobstructed 360° views from the comfort of the spacecraft.


Saudi’s Hail region welcomes over 1.1m tourists in H1

Saudi’s Hail region welcomes over 1.1m tourists in H1
Updated 51 sec ago
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Saudi’s Hail region welcomes over 1.1m tourists in H1

Saudi’s Hail region welcomes over 1.1m tourists in H1
  • Licensed hospitality facilities in Hail now offer around 2,600 rooms

RIYADH: Saudi Arabia’s Hail region welcomed over 1.1 million tourists in the first half of 2024, including 170,000 international visitors, reflecting the Kingdom’s growing appeal as a travel hub.

The Ministry of Tourism reported that over 907,000 visitors were domestic travelers, showcasing the region’s popularity among residents.

Licensed hospitality facilities in Hail now offer around 2,600 rooms, meeting growing demand.

The surge aligns with Saudi Arabia’s Vision 2030 goals to enhance tourism infrastructure and attract global travelers to the Kingdom.


Saudi entertainment sector to create 450,000 jobs by 2030: Investment ministry

Saudi entertainment sector to create 450,000 jobs by 2030: Investment ministry
Updated 29 min 9 sec ago
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Saudi entertainment sector to create 450,000 jobs by 2030: Investment ministry

Saudi entertainment sector to create 450,000 jobs by 2030: Investment ministry
  • Kingdom issued 34 investment licenses in the entertainment industry in the third quarter of the year
  • It also hosted 26,000 events in the past five years, attracting over 75 million attendees

RIYADH: Saudi Arabia’s entertainment sector is expected to create 450,000 jobs and could contribute 4.2 percent of the country’s gross domestic product by 2030, according to a new report. 

In its latest release, the Kingdom’s Ministry of Investment said that Saudi Arabia issued 34 investment licenses in the entertainment industry in the third quarter of the year, representing a rise of 13 percent compared to the previous three months. 

The ministry added that the total number of investment licenses issued in the entertainment sector from 2020 until the end of the third quarter reached 303. 

“In line with Saudi Vision 2030, Saudi Arabia aims to diversify its economy and enhance the quality of life by promoting tourism and Saudi culture internationally to attract visitors. The entertainment sector is a crucial pillar in achieving these ambitious goals, focusing on enhancing the quality of life through various cultural and entertainment activities,” said the Ministry of Investment. 

The rapid progress of the entertainment sector aligns with the Kingdom’s Vision 2030 goals, which are to reduce the country’s decades-long dependence on crude revenues. 

In 2016, Saudi Arabia established the General Entertainment Authority to boost the entertainment and leisure industry. Since then, the Kingdom has witnessed notable developments, including reopening cinema halls in 2018.

According to the report, Saudi Arabia issued 2,189 licenses in the entertainment sector over the past five years. 

The Kingdom also hosted 26,000 events in the past five years, attracting over 75 million attendees. 

The ministry added that the growing entertainment sector is also catalyzing the growth of the tourism sector in the Kingdom. 

The report said that the number of inbound tourists in the entertainment industry reached 6.2 million in 2023, representing a rise of 153.3 percent compared to 2022. 

Inbound tourist spending in the entertainment industry reached SR4 billion ($1.07 billion) in 2023, a 29.03 percent rise from the previous year. 

“The entertainment sector is a vital and dynamic part of the Kingdom, acting as a catalyst for the tourism sector. By hosting various events and activities, it boosts tourism and attracts visitors, resulting in higher tourism spending and strengthening the local economy,” said the Ministry of Investment.

In 2023, the entertainment sector attracted 35 million local tourists, up 17 percent compared to 2022. 
Local tourists’ spending in 2023 was SR4.7 million, representing a marginal decline of 8.5 percent from the previous year. 


IMF mission concludes visit to Egypt for the 4th review of loan program

IMF mission concludes visit to Egypt for the 4th review of loan program
Updated 21 November 2024
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IMF mission concludes visit to Egypt for the 4th review of loan program

IMF mission concludes visit to Egypt for the 4th review of loan program

CAIRO: The International Monetary Fund said on Wednesday that its mission had concluded a visit to Egypt and made substantial progress on policy discussions toward the completion of the fourth review of IMF loan program.

The review, which could unlock more than $1.2 billion in financing, is the fourth under Egypt’s latest 46-month IMF loan program that was approved in 2022 and expanded to $8 billion this year after an economic crisis marked by high inflation and severe foreign currency shortages.

The IMF also said that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the exchange rate that eased imports, with its central bank reiterating its commitment to sustain a flexible exchange rate regime.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the program not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement. 


Oil Updates – prices edge up on geopolitical tensions; higher-than-expected US inventories cap gains

Oil Updates – prices edge up on geopolitical tensions; higher-than-expected US inventories cap gains
Updated 21 November 2024
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Oil Updates – prices edge up on geopolitical tensions; higher-than-expected US inventories cap gains

Oil Updates – prices edge up on geopolitical tensions; higher-than-expected US inventories cap gains

SINGAPORE: Oil prices rose marginally on Thursday as geopolitical concerns over escalating tensions between Russia and Ukraine countered the impact from a bigger-than-expected increase in US crude inventories.

Brent crude futures rose 16 cents, or 0.2 percent, to $72.97 as of 7:08 Saudi time. US West Texas Intermediate crude futures rose 16 cents, or 0.23 percent, to $68.91.

Ukraine fired a volley of British Storm Shadow cruise missiles into Russia on Wednesday, the latest new Western weapon it has been permitted to use on Russian targets a day after it fired US ATACMS missiles.

Moscow has said the use of Western weapons to strike Russian territory far from the border would be a major escalation in the conflict. Kyiv says it needs the capability to defend itself by hitting Russian rear bases used to support Moscow’s invasion, which entered its 1,000th day this week.

“For oil, the risk is if Ukraine targets Russian energy infrastructure, while the other risk is uncertainty over how Russia responds to these attacks,” said ING analysts in a note.

JPMorgan analysts said oil consumption recovered in the past week thanks to better travel demand in the US and India, and as the latter also showed a significant rise in industrial demand.

Global oil demand is estimated to reach 103.6 million barrels per day (bpd) during the first 19 days of November, up 1.7 million bpd on-year, the analysts said in a note.

But countering the gains was a rise in US crude inventories by 545,000 barrels to 430.3 million barrels in the week ended Nov. 15, exceeding analysts’ expectations in a Reuters poll for a 138,000-barrel rise.

Gasoline inventories last week rose more than forecast, while distillate stockpiles posted a larger-than-expected draw, according to the Energy Information Administration data.

Adding to supply, Norway’s Equinor said it had restored full output capacity at the Johan Sverdrup oilfield in the North Sea following a power outage.

Meanwhile, the Organization of the Petroleum Exporting Countries and its allies led by Russia, the group known as OPEC+, may push back output increases again when it meets on Dec. 1 due to weak global oil demand, according to three OPEC+ sources familiar with the discussions.

OPEC+, which pumps around half the world’s oil, had initially planned to gradually reverse production cuts with minor increases spread over several months in 2024 and 2025.

However, the International Energy Agency said in its report last week even if OPEC+ cuts remain in place, oil supply will exceed demand in 2025 as rising production from the US and other outside producers outpaces sluggish demand. 


Saudi Arabia’s construction contracts jump 47% to $49.3bn in H1 2024  

Saudi Arabia’s construction contracts jump 47% to $49.3bn in H1 2024  
Updated 21 November 2024
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Saudi Arabia’s construction contracts jump 47% to $49.3bn in H1 2024  

Saudi Arabia’s construction contracts jump 47% to $49.3bn in H1 2024  

RIYADH: Saudi Arabia’s construction sector continues to thrive, with contract awards totaling SR185 billion ($49.3 billion) in the first half of the year, revealed a senior executive. 

Speaking during a webinar hosted by the US-Saudi Business Council, Albara’a Al-Wazir, the council’s director of economic research, said the figure represents a 47 percent increase compared to the previous year. 

He added that 2024 was well above where 2023 stood at the same point last year. “On a quarterly basis, in Q2, the value of contract awards reached about $17.6 billion — that’s about SR66 billion — and grew year over year by about 11 percent,” said Al-Wazir.  

He further highlighted that the year-to-date performance was even more impressive. 

Al-Wazir emphasized that the construction sector benefits from strong collaboration between the government and the private sector in helping meet Vision 2030 targets. 

“The private sector’s contribution was 4.9 percent, demonstrating exponential growth in construction contracts,” the executive added. 

The overall construction index, which tracks construction activity expected to move into the execution phase within six to 18 months, surged significantly to reach 271 points. 

“Sustained growth is evident, with the index showing year-over-year increases of 33 percent,” Al-Wazir said. 

Regarding sector-specific growth, he said: “Oil and gas, real estate, and water sectors are keeping the momentum from the first quarter into the second quarter, and the growing influential role of the private sector is expanding not just the economy in general but specifically the construction sector.”  

Oil and gas represented 41 percent of total contract awards, with the second quarter seeing a 505 percent year-over-year growth, largely due to Saudi Aramco’s projects.  

“The oil and gas sector reached unprecedented levels, with $7.3 billion in Q2 alone,” Al-Wazir said. 

The real estate sector also showed strong growth, with an 8 percent year-over-year increase in contract values. Residential real estate remains a key focus, especially as the Kingdom moves closer to its 2030 goal of 70 percent homeownership. 

Water infrastructure saw a 26 percent year-over-year growth, with projects such as sewage plants in the Eastern Province contributing to the overall momentum. 

“There is no sign of a slowdown in these sectors,” he said, adding that the pace of contract awards is expected to remain strong. 

Regional overview 

Regional breakdowns showed that the Eastern Province remains the dominant hub for construction, accounting for 59 percent of total contract awards, driven primarily by oil and gas projects based there. 

Riyadh has also experienced growth, especially in the real estate sector, which accounted for 56 percent of contracts in the capital. Key projects include educational and healthcare infrastructure, such as the SR2.3 billion King Salman University project and the Diriyah Gate. 

Saudi Arabia’s investment surge in infrastructure is part of a broader strategy to build a sustainable and diversified economy. 

“The Kingdom is positioning itself as a diversified economic powerhouse with a thriving private sector that can sustain its economy and drive innovation,” Al-Wazir added. 

Urban transformation  

Saudi Arabia’s urban landscape is undergoing a significant transformation, shifting from a centralized model dominated by Riyadh and Jeddah to a polycentric approach, according to Elias Abou Samra, CEO of RAFAL Real Estate Development Co. 

“Economic activity is no longer clustered solely around traditional hubs. We’re seeing new nodes emerging in the south, such as the Red Sea as a tourist destination, NEOM in the northwest, and economic centers like Dammam and even the north,” Abou Samra said. 

These new urban nodes are being connected through advanced infrastructure, including high-speed railways and newly opened airports. 

This shift, Abou Samra noted, is creating new opportunities for investment and employment while boosting the competitiveness of industries like mining and electric vehicle production. 

“King Abdullah Economic City, for example, is leading in EV car production, and this is just one of many examples,” he added. 

Abou Samra also highlighted the Kingdom’s progress in human capital development. “Saudi Arabia created 1 million jobs in 2023, and we’re on track to break this record in 2024,” he noted, stressing that much of this growth is being driven by the private and quasi-governmental sectors. 

He further pointed out that Saudi Arabia has become an increasingly attractive destination for expatriates, particularly with initiatives like the premium residency program. 

“This program allows expats to invest in real estate and economic sectors through equity stakes, opening opportunities that were previously inaccessible,” he explained. 

While acknowledging the progress, Abou Samra pointed out areas where further improvements are needed, particularly in economic efficiency. 

“I’m not here just to paint a rosy picture, and we need to keep a close eye on economic growth and the efficiency of the economy. The short-run multiplier stands at 0.2 as we speak, and medium to long term, it peaks at 0.6. If we compare this to the G20 countries, we are lagging behind,” he said. 

Abou Samra added, “But the good news is that the government is very keen on improving the multiplier effect, and the efficiency of the public sector is increasing by the quarter, not to say, by the day. This is driven by new involvement by the youth in the public sector.”  

This comes as Saudi Arabia continues to prioritize both social and physical infrastructure development in alignment with Vision 2030. 

“These are really focal points that the Kingdom is addressing currently,” Al-Wazir said. 

Meanwhile, physical infrastructure projects serve as the backbone for developments across the country, requiring significant investment and resources.  

One example is Riyadh’s redevelopment under the Royal Commission for Riyadh City, which is heavily dependent on physical infrastructure support. 

Gross fixed capital formation, a measure of investment in infrastructure and assets, rose by 3.2 percent overall, with private sector contributions growing 5.3 percent. 

“We’re starting to see an inflection point where the private sector is growing its role, while government contributions have declined by 8 percent year-over-year,” Al-Wazir said. 

The Kingdom’s emphasis on fostering public-private partnerships and attracting foreign direct investment is expected to reshape its business landscape. 

“Bolstered public-private partnerships and FDI are likely to foster a more dynamic private sector, driving innovation in technology, urban planning, and renewable energy,” Al-Wazir added. 

The executive reaffirmed the trajectory of Saudi Arabia’s construction sector, noting that the Kingdom is on track to meet many of its Vision 2030 targets, driven by record-breaking investments and an expanding private sector role.