Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO

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Updated 01 October 2024
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Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO

Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO

DUBAI: The Public Investment Fund subsidiary ASFAR is set to launch new tourist attractions by early next year, reinforcing its commitment to economic growth and diversification, according to CEO Fahad bin Mushayt.

In an interview with Arab News during the Future Hospitality Summit in Dubai, Bin Mushayt said that the latest destination will debut in Al-Baha by the beginning of next year.

ASFAR, which has been operational for nearly two years, is collaborating with investors to enhance the Kingdom’s tourism sector by focusing on eight key destinations aligned with the Ministry of Tourism’s strategy.

While ASFAR does not directly develop these projects, it leverages its robust investment strategies and tourism expertise to partner with other companies, creating new opportunities in the sector. Among its projects are locations in Hail, Al-Baha, Yanbu, Al Hasa, Taif, and Al Jouf.

“Since we started, we are now active in five destinations,” the CEO stated.

In Al-Baha, ASFAR is developing two resorts, with a soft opening anticipated in the first quarter of 2025.

He said the company is “building almost 150 keys across two distinct locations, each offering unique experiences.” The top executive said one “caters to parents and couples, while the other targets the youth with an adventure park combined with hospitality.”

Describing Al-Baha as a “beautiful destination atop the mountains, known for its greenery and mild climate averaging around 20 degrees year-round.”

Bin Mushayt also highlighted plans for Taif, located two hours from Al-Baha, focusing on religious tourism due to its proximity to Makkah.

“We’re targeting religious tourism by building a wellness resort, allowing visitors to reaffirm their spiritual needs while enjoying the local scenery and mountains, just 30 to 40 minutes from Makkah,” he elaborated.

In Yanbu, a coastal city on the Red Sea about two hours from Jeddah, additional developments include a lifestyle hotel, beach club, beach resort, and tourism center featuring food and beverage options, retail, a diving academy, and marine activities. “Yanbu is known as one of the best diving areas in the world,” Bin Mushayt noted.

Further projects are also underway in Al Hasa and Hail, scheduled to open in 2025 and 2026.

Tourism is a key component of Saudi Arabia’s Vision 2030, aimed at diversifying the economy beyond oil revenues.

Bin Mushayt highlighted the sector's growth, stating, “Tourism is currently growing at nearly double-digit rates, contributing significantly to the GDP.”

ASFAR’s initiatives also aim to create jobs and stimulate the overall economy, with aspirations of generating around 250,000 jobs in the tourism sector by 2030.

The company is also investing in transportation, casual dining, and the development of destination management and tour operator companies to enhance visitor experiences.

Bin Mushayt emphasized the importance of local content and community involvement in these projects. “We prioritize using local materials and supporting small and medium enterprises within the destinations,” he said.

He further noted that “many family-oriented products and services will also be offered,” driving economic activity and development through tourism.

Expressing enthusiasm for Saudi Arabia’s goal of attracting 150 million annual visitors, he stated that ASFAR aims to welcome at least 5 million visitors to its destinations.


Saudi electronics spending up 4% according to official POS data

Saudi electronics spending up 4% according to official POS data
Updated 22 sec ago
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Saudi electronics spending up 4% according to official POS data

Saudi electronics spending up 4% according to official POS data

RIYADH: Saudis spent SR170.6 million ($45.4 million) on electronic devices between Feb. 16 and 22, marking a 4 percent increase compared to the previous week.

According to the latest point-of-sale transactions bulletin issued by the Saudi Central Bank, this sector was one of the few that registered positive growth during the week.

Outlays on clothing and footwear saw a 3.4 percent increase in transaction value to SR873.1 million, with transactions growing by 2.9 percent to 6.5 million.

Expenditure on furniture also saw boosts, surging 3.3 percent to SR359.3 million, while hotels followed with a 2 percent rise to SR367 million, and recreation and culture recorded a 0.9 percent uptick to SR269.7 million. 

In contrast, overall POS transactions in Saudi Arabia declined by 2.1 percent, dropping to SR13 billion from SR13.3 billion the previous week, as spending in other sectors cooled, revealed the bulletin issued by SAMA.

Similarly, spending on food and beverages recorded a decrease of 3.7 percent to SR1.904 billion, claiming the largest share of the total POS value. Expenditure in restaurants and cafes followed closely, recording a 1.7 percent decrease to SR1.903 billion. 

Miscellaneous goods and services accounted for the third biggest POS share, with a 3.7 percent downtick, reaching SR1.5 billion. 

The leading three categories accounted for approximately 41 percent, or SR5.3 billion, of the week’s total value.

At 11.6 percent, the most significant decrease occurred in spending on jewelry, leading total payments to SR262.7 million. 

Expenditures on public utilities followed, dipping by 7.7 percent to SR52.3 million, while spending in the health sector recorded a 7.3 percent fall to SR749.6 million.

Geographically, Riyadh dominated POS transactions, representing around 35.3 percent of the total, with expenses in the capital reaching SR4.6 billion — a 2.6 percent decrease from the previous week. 

Jeddah followed with a 1.2 percent dip to SR1.8 billion, and Dammam came in third at SR646.2 million, down 2.1 percent. 

Tabuk experienced the most significant decrease in spending, falling 5.6 percent to SR229.4 million. 

Hail and Makkah followed, with declines of 1.9 percent and 0.1 percent, bringing their respective totals to SR196.9 million and SR555.8 million.

Tabuk and Makkah saw the largest decreases in terms of number of transactions, slipping 5.8 percent and 3.3 percent, respectively, to 4.3 million and 8.4 million transactions.


Global debt marches to record high, raising risk of bond vigilantes, IIF says

Global debt marches to record high, raising risk of bond vigilantes, IIF says
Updated 26 February 2025
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Global debt marches to record high, raising risk of bond vigilantes, IIF says

Global debt marches to record high, raising risk of bond vigilantes, IIF says
  • $7 trillion rise in global debt was less than half of the 2023 increase

LONDON: The global debt-to-GDP ratio rose for the first time since 2020 last year, as the world’s debt stock hit a new year-end record of $318 trillion and economic growth slowed, an Institute of International Finance report showed on Tuesday.
The $7 trillion rise in global debt was less than half of the 2023 increase, when expectations of Federal Reserve interest rate cuts sparked a borrowing surge. The IIF warned, however, that so-called bond vigilantes could punish governments if rising fiscal deficits persist.
“The increasing scrutiny of fiscal balances — particularly in countries with highly polarized political landscapes — has been a defining feature of recent years,” the IIF said.
Market reactions to fiscal policies in the United Kingdom brought down the short-lived tenure of Prime Minister Liz Truss in 2022, while similar pressures in France ousted Prime Minister Michel Barnier last year.
Debt-to-GDP — an indicator of the ability to repay debt — approached 328 percent, a 1.5 percentage point increase, as government debt levels of $95 trillion clashed with slowing inflation and economic growth.
The IIF said it expects debt growth to slow this year, amid unprecedented global economic policy uncertainty and still-elevated borrowing costs.
It warned, though, that despite high borrowing costs and economic policy uncertainty, its forecast of a $5 trillion increase in government debt this year could rise due to calls for fiscal stimulus and larger military spending in Europe.
“I think we will likely see much more volatility in sovereign debt markets, especially in those countries where we see high political polarization,” said Emre Tiftik, the IIF’s director of sustainability research.
ROLLOVER CHALLENGE
Emerging markets, driven by China, India, Saudi Arabia and Turkiye, accounted for roughly 65 percent of global debt growth last year.
This borrowing, along with a record $8.2 trillion in debt which emerging markets need to roll over this year — 10 percent of it in foreign currency — could strain countries’ abilities to weather looming political and economic storms.
“Heightened trade tensions and the Trump administration’s decision to freeze US foreign aid, including cuts to USAID, could trigger significant liquidity challenges and curb the ability to roll over and access to FX debt,” the report said.
“This underscores the increasing importance of domestic revenue mobilization to build resilience against external shocks.”
Tiftik added that the high volatility underscored the need to increase multilateral development banks’ abilities to mobilize private capital.
Several developing economies, such as Kenya and Romania, have struggled to boost domestic revenue due to public anger over tax hikes and coming elections, respectively.


Oil Updates — crude edges up as US stockpile report counters rising supply concerns

Oil Updates — crude edges up as US stockpile report counters rising supply concerns
Updated 26 February 2025
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Oil Updates — crude edges up as US stockpile report counters rising supply concerns

Oil Updates — crude edges up as US stockpile report counters rising supply concerns

SINGAPORE: Oil prices rose marginally on Wednesday, bouncing off two-month lows hit in the prior session after an industry group reported US crude stockpiles fell last week.

Brent crude rose 20 cents, or 0.3 percent, to $73.22 a barrel by 7:30 a.m. Saudi time. US West Texas Intermediate crude oil futures were up 18 cents, or 0.3 percent, to $69.11.

US crude stocks fell 640,000 barrels in the week ended Feb. 21, market sources said on Tuesday, citing American Petroleum Institute data. Official US stockpile data is due later on Wednesday.

“If confirmed by the EIA later today, it would mark the first decline in US crude oil inventories since mid-January,” said ING commodities strategists in a note on Wednesday.

Analysts polled by Reuters estimated a 2.6-million-barrel increase in US crude stocks last week.

On the supply side, prospects for a peace deal between Russian and Ukraine are improving, said ING, while the market also eyed the potential implications of a minerals deal between the US and Ukraine.

“This would take us a step closer to Russian sanctions being lifted, removing much of the supply uncertainty hanging over the market,” the ING strategists said.

The US and Ukraine agreed terms of a draft minerals deal central to Trump’s efforts to rapidly end the war, sources familiar with the matter told Reuters on Tuesday.

Meanwhile, dour economic reports from the US and Germany capped price gains, after pulling oil prices more than 2 percent lower on Tuesday. Brent crude closed at its lowest since Dec. 23, while WTI recorded its lowest settlement since Dec. 10.

US data showed consumer confidence in February deteriorated at its sharpest pace in 3-1/2 years, with 12-month inflation expectations surging. Meanwhile, the German economy shrank in the last three months of 2024 versus the prior quarter.

Oil prices have been buffeted by concerns that US President Donald Trump’s decisions about tariffs against China and other trading partners could add to pressure on the country’s economy.

That has eased worries about tighter near-term oil supply despite fresh US sanctions against Iran, ANZ Bank analysts wrote in a note to clients.

Even though US policy measures could drive an up to 1 million barrel-per-day reduction in Iranian crude exports, any loss in supply from the Middle Eastern nation is countered by OPEC+ members hoping to bring more supply to the market in the months ahead, Commodity Context analyst Rory Johnston said. 


Lucid CEO steps down, company expects to more than double vehicle production this year

Lucid CEO steps down, company expects to more than double vehicle production this year
Updated 26 February 2025
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Lucid CEO steps down, company expects to more than double vehicle production this year

Lucid CEO steps down, company expects to more than double vehicle production this year

BENGALURU: Electric vehicle maker Lucid Group said on Tuesday that Peter Rawlinson, its CEO for over 5 years, is stepping down from the role, and forecast its vehicle production will more than double this year, sending the company’s shares up 10 percent in extended trading.

Through his 12-year tenure as part of the top brass at Lucid, Rawlinson helped launch the company’s Air models and guided it through its public offering.

The company’s operating chief, Marc Winterhoff, will take the position of interim CEO.

Saudi Arabia’s Public Investment Fund is the majority shareholder in Lucid Group via Ayar Third Investment Co., and in October it invested an additional $1.5 billion into the EV producer.

“Now that we have successfully launched the Lucid Gravity, I have decided it is finally the right time for me to step aside from my roles at Lucid,” Rawlinson said.

The firm also forecast vehicle production this year to be around 20,000, compared with around 9,000 cars it made in 2024.

Andres Sheppard, senior equity analyst at Cantor Fitzgerald, said the CEO transition is “surprising” but not unexpected given the company’s previous underperformances, adding that the production forecast is “encouraging.”

The company hired veteran finance professional Taoufiq Boussaid as its chief financial officer last month. Boussaid previously helped reduce debt load for his former company.

As the EV demand in the US remains uncertain, Lucid has been trying to diversify its product lineup and step into the SUV market with the Gravity model, going toe-to-toe with Tesla’s model X and Rivian’s R1S vehicles.

The success of the Gravity SUV is seen as crucial to Lucid’s long-term outlook, as it burns through cash ramping up production while its Air sedans have seen price cuts due to slower demand.

“They (Lucid) still have an amazing product. Now it’s just a matter of can they turn the company around, can they increase demand and production with the Gravity, and really that’s going to bridge the gap to their mid-size vehicle in 2026,” Sheppard said.

The company continues to lose tens of thousands of dollars per vehicle, while rivals such as Rivian move aggressively to cut costs in a bid to make profits.

Lucid reported revenue of $234.5 million, beating Wall Street expectations of $214.2 million, according to data compiled by LSEG.

It posted a loss of $397.2 million in the quarter ended Dec. 31, compared with a loss of $653.8 million a year ago.

Demand for pure battery cars in the US has been slow as people gravitate more toward cheaper hybrids owing to high interest rates and economic uncertainty.


Saudi Arabia raises $2.36bn in euro bonds, including inaugural green tranche 

Saudi Arabia raises $2.36bn in euro bonds, including inaugural green tranche 
Updated 26 February 2025
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Saudi Arabia raises $2.36bn in euro bonds, including inaugural green tranche 

Saudi Arabia raises $2.36bn in euro bonds, including inaugural green tranche 

RIYADH: Saudi Arabia has raised €2.25 billion ($2.36 billion) through a euro-denominated bond sale, including its first green tranche, as part of its Global Medium-Term Note Issuance Program. 

In a press statement, the Kingdom’s National Debt Management Center said the offering, split into two tranches, saw an oversubscription of four times the issuance size, attracting around €10 billion in orders. The green tranche, valued at €1.5 billion, carries a seven-year maturity, while the second tranche, worth €750 million, matures in 12 years. 

This marks the first time Saudi Arabia has issued a green euro bond, aligning with its broader sustainability strategy under the Financial Sector Development Program. The issuance is a step toward the Kingdom’s goal of achieving net-zero emissions and reflects its commitment to sustainable financing, NDMC said. 

“It also highlights the Kingdom’s efforts to investors and market participants, representing a significant step toward realizing the objectives of Saudi Vision 2030,” it added.   

Earlier this month, Muhannad Mufti, NDMC’s chief of portfolio management, said at the Capital Markets Forum that Saudi Arabia is considering issuing green bonds in international markets in 2025. 

The Kingdom’s debt market has grown significantly in recent years, drawing investor interest in debt instruments amid rising interest rates. 

In December, a report by Kamco Invest projected that Saudi Arabia would account for the largest share of bond and sukuk maturities in the Gulf Cooperation Council region, reaching $168 billion between 2025 and 2029. Of this, government-issued bonds and sukuk are expected to total $110.2 billion. 

Another report by Fitch Ratings noted that the GCC’s debt capital market surpassed the $1 trillion outstanding mark by the end of November 2024. 

Meanwhile, NDMC completed its February issuance of riyal-denominated sukuk at SR3.07 billion ($818 million). The Kingdom raised SR3.72 billion in sukuk in January, SR11.59 billion in December, and SR3.41 billion in November.