SPARK attracts over 60 investors with $3bn in investment
Updated 32 sec ago
Nadin Hassan
RIYADH: Saudi Arabia’s King Salman Energy Park has attracted more than 60 investors, amassing over $3 billion in investments to date.
In a recent statement on X, SPARK announced that seven factories are currently operational, with an additional 14 under construction. Established in 2018 by Crown Prince Mohammed bin Salman, SPARK is a fully integrated industrial ecosystem located in the eastern province of Saudi Arabia.
The initiative serves as a regional center for the energy sector, providing a range of integrated solutions to support companies throughout the Kingdom.
As a megaproject, SPARK aims to create an energy city that will become a global hub for energy, industry, and technology, housing approximately 300 industrial and service facilities.
Dedicated to producing clean and sustainable resources, SPARK stands out as the world’s first and only industrial city to receive a Leadership in Energy and Environmental Design Silver certification in 2020 for its energy and environmental practices.
Saudi Aramco, in collaboration with the Saudi Authority for Industrial Cities and Technology Zones, is responsible for the development, operation, management, and maintenance of the project’s infrastructure.
Located between Dammam and Al-Ahsa, SPARK will be developed in three phases, covering a total area of 50 sq. km.
During the inauguration ceremony, Saudi Investment Minister Khalid Al-Falih announced that SPARK will function as a special economic zone, providing tenants with regulatory, fiscal, and non-fiscal support.
Emphasizing SPARK’s pivotal role in unlocking Saudi Arabia’s energy resources in line with the country’s economic transformation plan, Al-Falih stated: “SPARK is one of the country’s most ambitious projects, affirming the Kingdom’s commitment to Vision 2030 by creating thousands of high-skilled jobs, serving as an economic catalyst, and enhancing Saudi Arabia’s strong position in the global energy sector.”
In 2022, SPARK signed a contract with a subsidiary of Abdullah M. Bin Saedan and Sons Real Estate Group to develop a $150 million residential complex and workers’ village.
The residential complex will be constructed in two phases, with the first phase expected to be completed by 2025 and covering an area of 30,000 sq. meters.
FHS World 2024: Leading the charge for sustainable hospitality practices
Updated 5 sec ago
Miguel Hadchity
RIYADH: The Future Hospitality Summit World is returning to Dubai from Sept. 30 to Oct. 2 at Madinat Jumeirah, promising three days filled with insights, networking, and announcements for the hospitality and tourism sectors.
As the largest edition to date, FHS World will gather over 1,500 industry leaders and feature more than 110 distinguished speakers, facilitating dynamic discussions and networking opportunities.
Jonathan Worsley, chairman of The Bench and organizer of FHS World, told Arab News: “The Future Hospitality Summit has grown year on year since its inception, evolving from what was once a purely Middle East-focused event — the much-loved Arabian Hotel Investment Conference — to a world-leading summit that attracts over 1,500 international delegates and puts the global industry in the spotlight.”
He added: “As our biggest and boldest event to date, FHS World 2024 reflects the continued growth of the hospitality and tourism sector and the evolution of FHS as the leading event of its kind.”
Under the theme “Invest in Our Future,” the summit will address critical issues shaping the global hospitality landscape, with a particular focus on innovation, sustainability, technology, and investment opportunities. Worsley emphasized the significance of investment and partnerships, stating, “This year’s theme emphasizes investment, innovation, and sustainability.”
Jonathan Worsley, chairman of The Bench and organizer of FHS World.
He elaborated: “Each year, we work alongside our highly experienced advisory board who guide us on topics, speakers, and event format to ensure we bring in the right people to discuss the most important factors affecting the hospitality industry and add the most value to industry players attending.”
This year’s agenda is packed with over 40 sessions across 20 conference tracks on four dedicated stages: Summit, Future, Exhibition, and Innovation. Topics will encompass environmental, social, and governance issues, sustainable development, human capital, real estate, technology, branding, and culture.
Worsley noted that the emphasis on sustainability has intensified annually. The 2024 agenda includes dedicated tracks where expert insights will guide the development of sustainable business models that prioritize environmental stewardship while enhancing profitability.
The summit will also feature panels addressing urgent topics like scaling tourism with sustainable footprints, decarbonization, and achieving net-positive hospitality, aligning with the global movement toward responsible business practices.
A session “Greening Hospitality: ESG Law Compliance Impacting Hotel Real Estate Value” underscores the rising importance of environmental standards worldwide.
Hala Matar Choufany, president for HVS Middle East, Africa & South Asia.
, remarked: “Sustainability compliance is one of the biggest challenges facing the hospitality industry, as governments and investors push for more stringent environmental standards.”
FHS World 2024 will delve into technology and innovation, with Worsley highlighting, “Artificial Intelligence, the Internet of Things, and automation are transforming our industry in profound ways. FHS World will showcase how technology enhances everything from operational efficiency to guest personalization.”
Choufany added: “Emerging technologies like AI and IoT are transforming hospitality operations by improving efficiency, reducing costs, and enhancing guest experiences. AI allows hotel operators to use predictive analytics to forecast occupancy, adjust staffing, and optimize inventory, while dynamic pricing algorithms help maximize revenue.”
Experts like Nicolas Nasra of Colliers will discuss AI’s transformative potential in hotel operations, and Piergiorgio Schirru of Blastness will emphasize the importance of revenue management systems in securing competitive market prices. Worsley further noted that “Robotics and Generative AI will also take centre stage as tools for creating more efficient systems; however, discussions to address ethics and data protection elements of these new technologies are essential.”
The summit will not only highlight technological advancements but also emphasize sustainability and pathways to achieving net-zero goals. Inge Huijbrechts, chief sustainability and security officer at Radisson Hotel Group, along with leaders from brands like Hilton and Accor, will explore how hotels can leverage data-driven platforms to track, report, and minimize their carbon footprints.
Worsley highlighted key presentations, including “Decarbonization and the Pathway to Net Zero,” “Net Positive Hospitality,” and “Leading with Purpose: Commitment to People, Planet, Profit.”
A key feature of FHS will be the Branded Residences Forum, presented by Accor One Living, focusing on the rising trend of branded residences in the Middle East and beyond. Worsley stated this forum is “set to be one of the biggest draws at FHS World,” providing attendees with insights into the intersection of real estate, branding, and hospitality.
He explained: “Investors are increasingly looking for diversified assets that can weather market fluctuations, and this is driving interest in branded residences and mixed-use developments.”
Choufany added: “The hospitality industry is witnessing several emerging trends that are shaping the future of investments. One notable trend is the rise of extended stay and co-living spaces.” She noted that as remote work and digital nomadism gain popularity, investments in these properties are expected to grow, blending home comforts with hotel-like amenities.
This year’s summit will also feature Country Pavilions exhibitions showcasing hospitality projects from Greece, Italy, Morocco, the Maldives, and Sri Lanka.
Worsley stated: “Our country pavilions are a platform for countries to showcase their hospitality projects and investment opportunities to a global audience, helping investors identify new markets.”
Innovation and creativity will be celebrated with several industry competitions, including the semi-finals of the UN Tourism Women in Tech Start-Up Competition and the new Sustainable Cook-Off, spotlighting top UAE chefs creating culinary masterpieces from locally sourced ingredients. The finals of the Sustainable Hospitality Challenge, a student competition founded by Hotelschool The Hague, will also return, continuing the tradition of recognizing innovative practices in the sector.
Worsley remarked: “One of our most popular events is the Sustainable Hospitality Challenge, which enforces true sustainability through collaboration and is judged by world leaders in their field.”
FHS World will also tackle challenges such as labor shortages and sustainability compliance through solutions-based discussions. Worsley explained: “FHS World addresses these challenges by bringing together experts in green technologies, automation, and workforce development to provide attendees with a toolkit for tackling these issues while capitalizing on new growth opportunities.”
As FHS World expands, it continues to serve as a premier platform for industry leaders to connect, share ideas, and shape the future of hospitality and tourism. Worsley stated, “Our vision for FHS World is to continue to help shape the future of hospitality investment and provide a platform — one that bridges continents and drives innovation, where industry leaders gather to forge partnerships to advance their businesses sustainably.”
With more sessions, speakers, and features than ever before, FHS World 2024 promises to be a defining event for the global hospitality and tourism sector, offering attendees unparalleled insights, networking opportunities, and pathways to invest in the industry’s future.
Saudi Arabia’s leisure tourism soars, drawing 17.5m visitors in 2024
Updated 3 min 19 sec ago
Manal Al- Barakati
RIYADH: Saudi Arabia’s leisure tourism sector has surged by 656 percent since 2019, welcoming 17.5 million international visitors in 2024, according to the Ministry of Tourism.
This growth reflects the Kingdom’s ongoing efforts to enhance its tourism offerings and attract global travelers.
The introduction of the first tourism visa in 2019 marked a pivotal moment for Saudi Arabia's travel industry, significantly boosting international tourism. Under Vision 2030, the Kingdom aims to welcome 100 million tourists by 2030 — a goal achieved seven years ahead of schedule in 2023.
Between January and July of this year, Saudi Arabia saw 4.2 million visitors seeking entertainment and leisure experiences, a 25 percent increase from the previous year. Overall, the total number of international tourists in the first seven months of 2024 represents a 10 percent rise from 2023 and a 73 percent increase compared to 2019. These statistics underline the sector’s rapid expansion, driven by Vision 2030, which aims to transform the Kingdom into a global tourism hub.
The UN World Tourism Barometer recognized the Kingdom as the fastest-growing G20 nation in terms of international arrivals and tourism revenues.
Key initiatives fueling this growth include the development of new tourist attractions, such as the Diriyah Gate project, and substantial investments in luxury resorts along the Red Sea coast.
Additionally, the Kingdom has prioritized cultural and historical tourism, with projects like the AlUla site and the Custodian of the Two Holy Mosques Cultural Heritage Program enhancing its appeal to travelers.
These initiatives, along with a push for integrated tourism destinations, have positioned Saudi Arabia as a premier destination for travelers across the globe.
The tourism sector is poised to significantly impact Saudi Arabia’s employment landscape. By 2030, it is projected to create approximately 1.2 million jobs for Saudis, particularly in hospitality, tour operations, and cultural heritage preservation.
The National Transformation Program, part of Vision 2030, is designed to ensure that a substantial portion of these jobs are held by Saudi nationals.
Currently, tourism is one of the largest sources of employment for citizens, with around 900,000 nationals already working in the sector. These developments indicate the sector’s potential to bolster the economy, reduce unemployment, and empower the local workforce.
Saudi Arabia intensifies mining tech push in meetings with US firms
Updated 23 min 33 sec ago
Mohammed Al-Kinani
JEDDAH: Saudi Arabia is ramping up its adoption of advanced mining technologies as top minister met with senior executives from the US firms at MINExpo International 2024.
During his visit to Las Vegas, Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef held bilateral meetings with these firms to discuss localizing innovative solutions for mining operations and exploring promising investment opportunities in the sector.
The discussions aimed to bolster the Kingdom’s mining industry and enhance its global competitiveness, the Saudi Press Agency reported.
The Kingdom aims to establish mining as a foundational industrial pillar, with its mineral wealth estimated at SR9.4 trillion ($2.4 trillion), according to a recent release from the Ministry of Industry and Mineral Resources.
In addition to mining discussions, the minister explored collaboration with advanced industries, including a visit to JetZero, a California-based aviation company, and a tour of SpaceX, a leader in space exploration technologies.
In a post on his X account, Alkhorayef said: “During my visit to the US state of California, I was briefed on the advanced technologies possessed by JetZero and SpaceX, the two leading companies in their field, and discussed with them enhancing cooperation in the aviation and space industry sector; in line with the Kingdom’s goals and targets in the National Industrial Strategy.”
In the mining sector, Alkhorayef, along with his deputy for mining affairs, Khalid bin Saleh Al-Mudaifer, engaged in discussions about potential investments with Michael Wright, CEO of Thiess, a prominent mining services provider with operations across Australia, Asia, and the Americas.
They evaluated strategic targets outlined in the Kingdom's comprehensive mining strategy and extended an invitation to Thiess to expand its regional footprint in Saudi Arabia.
Alkhorayef also met Jon Stanton, CEO of Weir Group, to explore opportunities in the valves and pumps sectors, which are experiencing rising demand due to major oil and gas projects.
The valves sector was valued at $9.8 billion in Saudi Arabia by the end of 2022. The minister emphasized the potential for establishing a local manufacturing facility for pumps and valves to enhance the sector’s capabilities.
Furthermore, Alkhorayef engaged with Richard Harris and Petri Virrankoski from Sandvik to discuss investments in mining machinery and surface drilling solutions, highlighting Sandvik’s role in advancing operational efficiency through innovative equipment and digital solutions.
The minister also met with Dave Goddard, head of mining at Hexagon, who outlined Saudi Arabia’s digital transformation across various sectors, including mining.
Alkhorayef presented initiatives like the Future Factories program, aiming to automate 4,000 facilities, which could facilitate Hexagon’s expansion and address the growing demand for software solutions, including AI applications.
In discussions with Otto Breitschwerdt, chief technology officer at Caterpillar, Alkhorayef highlighted promising opportunities in heavy equipment and diesel generators amid the Kingdom’s ambitious development plans.
He noted that the heavy equipment market is projected to exceed $4 billion, while the diesel generator market is expected to reach $550 million by 2030.
Alkhorayef also met Dan Lankford, chairman of Impossible Metals, to explore the latest solutions in offshore mineral exploration. Impossible Metals is developing underwater robotic vehicles for critical mineral extraction and has successfully tested its autonomous underwater vehicle, Eureka II, in deep waters.
Oman credit rating rises to ‘BBB-’ from ‘BB+’: S&P
Updated 29 September 2024
Nour El-Shaeri
RIYADH: Oman’s continued improvement in public finances has pushed its credit rating to “BBB-” from “BB+,” according to S&P Global Ratings.
The agency raised its long-term foreign and local currency sovereign credit ratings, underlining a stable outlook on the long-term scores and upgrading Oman’s short-term grades to “A-3” from “B.”
The transfer and convertibility assessment was also improved, rising to “BBB” from “BBB-.”
The upgrade reflects a strengthening of Oman’s public finances and the ongoing external deleveraging of state-owned enterprises.
“Following significant deterioration in the balance sheet over 2015-2021, the government has implemented structural reforms that will see it return to a net asset position from this year,” the report stated.
The government has reorganized its government-related entity sector to enhance operational efficiencies and improve financial stability, leading to a reduction in total GRE debt to $33.8 billion, or 30 percent of gross domestic product, as of June, down from a peak of $35.9 billion, or 41 percent of GDP, at the end of 2021.
S&P highlighted that Oman’s fiscal position remains highly dependent on oil price movements, but resilience against such shocks has strengthened through various reform measures.
Authorities have focused on rationalizing expenditure and mobilizing non-hydrocarbon revenue, with upcoming steps including implementing a personal income tax and phasing out energy subsidies.
Furthermore, the government is reducing its direct involvement in the economy, shifting toward a regulatory role by selling assets to develop the non-hydrocarbon private sector and attract foreign direct investment.
The report also underscored Oman’s growing financial buffers. “On the asset side, the government continues to accumulate sizable liquid buffers via its deposits in domestic institutions and the central bank, alongside its sovereign wealth fund — the Oman Investment Authority,” the rating agency stated.
S&P forecasts that Oman will post fiscal surpluses of 1.9 percent of GDP over 2024-2027, assuming Brent crude oil prices average around $80 per barrel during that period. These surpluses would enable Oman to further reduce external debt levels and accumulate liquid assets.
“S&P upgrading Oman’s investment grade rating affirms the country is confidently advancing toward the national goals of achieving fiscal balance and financial sustainability,” the nation’s Minister of Finance, Sultan Al-Habsi, stated, according to a post on the Oman News Agency’s official X account.
Al-Habsi added that this rating enhances confidence in the resilience, growth capacity, and investment appeal of the country’s economy.
The stable outlook from S&P reflects a balance between the potential benefits of the government’s fiscal and economic reform program and the economy’s structural vulnerability to oil price volatility.
S&P suggested that the ratings could be raised over the next two years if ongoing reforms lead to sustained growth in GDP per capita, bolstered by progress in non-oil sector growth and institutional strengthening aimed at economic diversification and domestic capital market development.
S&P also warned that any slowdown in fiscal and economic reforms or adverse external conditions, such as a significant negative shift in trade terms, could lead to budgetary deficits and elevated net debt levels, prompting a potential downgrade of Oman’s credit rating.
Saudi Arabia’s first natural gas storage project becomes operational
Updated 8 min 41 sec ago
Nadin Hassan
RIYADH: Saudi Arabia has officially launched operations at the Hawiyah Gas Storage facility, marking its first project dedicated to storing natural gas through the injection of processed fuel. Developed by Aramco, the facility is designed to reintroduce up to 2 billion standard cubic feet of natural gas per day into the Kingdom’s Master Gas System, an extensive network of pipelines that connects key production and processing sites to customers nationwide.
This initiative is set to help meet the rising energy demand in the country, particularly during peak periods, as announced by the Ministry of Energy on X. The project plays a crucial role in managing seasonal demand fluctuations, supporting the Liquid Fuel Displacement Program, and reducing carbon emissions.
Launched as part of Saudi Vision 2030, the initiative aims to displace 1 million barrels per day of liquid fuel across the utilities, industrial, and agricultural sectors by the end of this decade. Renewable energy and natural gas are the two primary alternatives identified, enabling the Kingdom to generate 50 percent of its electricity from renewable sources.
Saudi Arabia is actively promoting the use of environmentally friendly gas through a government-led initiative spearheaded by the National Center for Environmental Compliance. In partnership with local and international organizations, this initiative supports private sector factories in transitioning from production lines that create environmentally harmful products—those detrimental to the ozone layer and contributing to global warming—to more eco-friendly alternatives.
Saudi Aramco, the world’s largest oil producer, is positioning itself as a key player in the liquefied natural gas market. In its first international venture into LNG, the energy giant acquired a minority stake in MidOcean Energy from EIG Global Energy Partners for $500 million last year.
This agreement strengthens the existing partnership between Aramco and EIG, which was part of a consortium that acquired a 49% stake in Aramco Oil Pipelines Co., an Aramco subsidiary, in 2021. MidOcean Energy is currently in the process of acquiring interests in four Australian LNG projects, with a growth strategy focused on creating a diversified global business. This strategic partnership with MidOcean Energy marks Aramco’s first international investment in LNG.
