Al-Habtoor Group plans Lebanon comeback, pending security guarantees

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Updated 16 January 2025
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Al-Habtoor Group plans Lebanon comeback, pending security guarantees

Al-Habtoor Group plans Lebanon comeback, pending security guarantees
  • AHG chairman emphasizes the importance of stability for future growth

RIYADH: Al-Habtoor Group is moving forward with plans to reopen its five-story mall in Beirut and relaunch the Habtoorland amusement park in Jamhour, contingent on Lebanon’s government delivering the promised security and stability measures.

In an interview with Arab News, AHG Chairman Khalaf Al-Habtoor emphasized that restoring the mall and amusement park remains a key priority for the group. However, these initiatives depend entirely on the assurances of safety and governance from Lebanon’s new leadership.

“We have a different management now overseeing the mall. They are waiting only for the implementation of plans by the president and the prime minister. I fully believe in the president, even though we haven’t met, and I believe in the prime minister,” Al-Habtoor stated.

On Jan. 9, Lebanon elected former army commander Joseph Aoun president, and on Jan. 13, appointed Nawaf Salam, the chief judge of the International Court of Justice, prime minister.

Al-Habtoor expressed his belief that the newly installed leaders possess the potential to unite the country and initiate the critical reforms needed for Lebanon’s economic revival.

Despite Lebanon’s long-standing political instability, including the devastating Beirut Port explosion, AHG has kept its facilities operational, ensuring that its employees retained their jobs throughout turbulent times.

“We don’t close our hotels. Even when we closed (temporarily), we didn’t terminate anyone. During the war, even after the port explosion, we did not release any of our employees. We paid them their salaries because they are part of us, like a family, like partners with us,” Al-Habtoor explained.

He further highlighted the group’s long-standing commitment to Lebanon, emphasizing its role in creating jobs and fostering local development. “We have been working for a very long time in Lebanon, and we created a lot of projects to create jobs for our people there, for our families—I call them. The Lebanese are part of us.”

While acknowledging the political challenges facing the country, the AHG chairman expressed optimism about Lebanon’s future under its new leadership, stressing the importance of public support for the government’s agenda. 

“If the Lebanese people want Lebanon to compete with successful countries, they have to support the president and the prime minister. Lebanon needs a lot of work, renovation, and fixing,” he noted. 

Al-Habtoor pointed to security as the linchpin for any future investments in Lebanon. “Nobody will invest a penny unless there is 100 percent safety and security in the country,” he asserted.

The AHG chairman said if the new president and prime minister manage to establish their authority within the next three months, he will personally return to Lebanon to oversee the group’s projects.

Although AHG has explored new ventures, including the establishment of a production studio, political instability had previously delayed such plans. 

Al-Habtoor reaffirmed his commitment to reconsidering these opportunities once Lebanon’s security situation stabilizes: “I will definitely reconsider, but the country’s shift to safety and security remains priority No. 1.”

The UAE-based businessman also stressed the necessity of clean, well-vetted leadership for Lebanon’s Cabinet. “They should not let any person from another country be involved,” he emphasized.

Despite these challenges, Al-Habtoor expressed hope for Lebanon’s revival under its new leadership, reflecting confidence in their sincerity and commitment to reform. 

“I have hope from these people. I believe in these genuine leaders and their honesty. If they deliver what they promised, I will be there, with my feet on the ground,” he said.

Reflecting on his personal connection to Lebanon, Al-Habtoor shared fond memories of time spent in the country. “My family and I spent a lot of time in Lebanon. We have our house in Jamhour, and we invested in many things. I have a lot of friends there. I miss them, and they miss me,” he said.

Looking ahead, AHG is also set to expand internationally, with the upcoming launch of the 200-key Al-Habtoor Palace luxury hotel in Budapest, scheduled for Feb. 3. The company is also pursuing ongoing projects in Dubai, which Al-Habtoor referred to as “the jewel of the world.”

He added that in Dubai, everyone can sleep and relax, fully assured of their safety and security. “This is what we need in Lebanon,” Al-Habtoor concluded.


Abu Dhabi's PureHealth agrees to buy 60% stake in Hellenic Healthcare

Abu Dhabi's PureHealth agrees to buy 60% stake in Hellenic Healthcare
Updated 18 sec ago
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Abu Dhabi's PureHealth agrees to buy 60% stake in Hellenic Healthcare

Abu Dhabi's PureHealth agrees to buy 60% stake in Hellenic Healthcare

DUBAI: Abu Dhabi's PureHealth Holding has agreed to buy a 60 percent stake in Hellenic Healthcare Group, in a deal valuing the provider of private healthcare services in Greece and Cyprus at €2.2 billion ($2.31 billion).

CVC Capital Partners will retain a 35 percent stake in the business while HHG's CEO Dimitris Spyridis will keep the remaining 5 percent stake, PureHealth said in a statement, without disclosing a timeline for the completion of the deal.

PureHealth, owned by Abu Dhabi sovereign wealth fund ADQ, has been investing in recent years to grow its portfolio and expand globally.

Last year, it acquired British hospital operator Circle Health Group for around $1.2 billion, while in 2022 it snapped a 26 percent stake in US firm Ardent Health Services.

“Integrating HHG into our portfolio not only reinforces our position in Europe but also creates significant value for our group by contributing to revenue diversification, driving operational synergies, and strengthening our financial performance,” said Shaista Asif, Group CEO at PureHealth.

“This move aligns with our vision of becoming a global leader in healthcare, with more than 50 percent of our revenues originating outside the GCC.”

The deal will allow PureHealth to serve a further 1.4 million patients annually, it said, noting the move underscores the firm’s “ambition to diversify its revenue streams and enhance operational efficiencies.”

It is also another step in Abu Dhabi’s accelerating efforts to diversify its economy, as the UAE’s capital invests in fields like technology and health to cut reliance on oil revenues.

AI-powered health care company M42, backed by one of ADQ’s bigger peers Mubadala, last week announced a new operating structure to support more acquisitions and expansion into new markets.


Oil Updates — prices hover near two-week low; weak China data adds to demand concerns

Oil Updates — prices hover near two-week low; weak China data adds to demand concerns
Updated 32 min 46 sec ago
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Oil Updates — prices hover near two-week low; weak China data adds to demand concerns

Oil Updates — prices hover near two-week low; weak China data adds to demand concerns

NEW YORK/SINGAPORE: Oil prices ticked up but hovered near a two-week low on Tuesday after weak economic data from China and warming weather forecasts elsewhere soured the demand outlook.

Brent crude oil futures rose by 42 cents, or 0.54 percent, to $77.5 per barrel by 7:30 a.m. Saudi time. US West Texas Intermediate crude futures were up 34 cents, or 0.46 percent, to $73.51. Brent settled on Monday at its lowest since Jan. 9, while WTI hit its lowest since Jan. 2.

China, the world’s largest importer of crude oil, reported on Monday an unexpected contraction in manufacturing activity in January, adding to concerns over global crude demand growth.

“The general tone of caution in the risk environment, coupled with weaker Chinese PMI numbers that cast further doubt on China’s oil demand outlook, may serve as a drag on oil prices,” IG analyst Yeap Jun Rong said.

China’s crude oil demand is also expected to be hit by the latest US sanctions on Russian oil trade. FGE analysts see refineries in Shandong losing up to 1 million barrels per day of crude supply in the near-term amid a ban imposed by the Shandong Port Group on US-sanctioned tankers.

“Alternative crude barrels (to Russian supply) are being sought after at the same time, but they come at much higher costs,” the analysts noted.

Several independent refineries in China have halted operations, or plan to do so, for indefinite maintenance periods, sources told Reuters, as new Chinese tariff and tax policies plunge plants deeper into losses.

India, the world’s third-largest crude importer, also faces disruptions to Russian oil supply, but refiners there are taking advantage of a wind-down period in the sanctions to make purchases until March, the FGE analysts said.

In the US, weather forecasts are for warmer-than-normal temperatures through this week, which is weighing on demand for heating fuels after extreme cold sparked a natural gas and diesel rally in prior sessions.

“Temperatures in both regions (US and Europe) are increasing, allowing for heating fuel demand to slide off some,” StoneX oil analyst Alex Hodes said on Monday.

Broader financial markets were under pressure from a surge of interest in a low-cost artificial intelligence model launched by Chinese firm DeepSeek.

“Losses (in the oil market) appear relatively limited from the turmoil in US tech stocks,” IG’s Yeap said.

Still, caution is likely to persist as the Feb. 1 deadline for US tariffs approaches, with any potential trade restrictions likely to introduce downside risks to global growth, which could translate to downward pressure on oil, Yeap added. 


Oman, India revise deal to avoid double taxation

Oman, India revise deal to avoid double taxation
Updated 27 January 2025
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Oman, India revise deal to avoid double taxation

Oman, India revise deal to avoid double taxation

JEDDAH: Oman and India have finalized an updated protocol to prevent double taxation and curb financial evasion related to income taxes, further bolstering their economic ties.

The agreement was signed in Muscat on Jan. 27 by Nasser bin Khamis Al-Jashmi, Chairman of Oman’s Tax Authority, and Indian Ambassador to Oman Amit Narang, as reported by Oman News Agency.

Al-Jashmi highlighted the importance of the new protocol in strengthening economic relations between the two countries, noting that the agreement is the result of ongoing efforts to enhance bilateral cooperation in the tax sector.

In December, Oman also signed a similar agreement with Tanzania to deepen their strategic partnership.

That deal aimed to foster an attractive investment climate, protect investors from double taxation, and increase transparency in financial transactions.

In October, Al-Jashmi represented Oman in signing a similar agreement with Estonia. The agreement adhered to the standard framework set by the Organization for Economic Co-operation and Development.

According to a statement from Estonia's Ministry of Foreign Affairs, the agreement was designed to provide a stable tax environment for both foreign entrepreneurs investing in Estonia and Estonian businesses expanding internationally.

The ministry emphasized that the primary goal of double taxation avoidance agreements was to foster investment between the signatory countries.

Additionally, the ministry highlighted that foreign investors value the assurance that they will not face a higher tax burden than local businesses operating in the target country.

As of October 2024, India exported $410 million worth of goods to Oman and imported $743 million, resulting in a trade deficit of $334 million, according to the Observatory of Economic Complexity.

India’s top exports to Oman included petroleum products valued at $146 million, processed minerals at $24.4 million, and basmati rice at $15 million. Iron and steel exports totaled $13.9 million, while ships, boats, and floating structures contributed $9.93 million.

On the import side, India’s purchases from Oman were led by fertilizers, totaling $118 million. Petroleum products accounted for $92.5 million, and ships, boats, and floating structures reached $77.5 million. Other commodities amounted to $45.2 million, while crude petroleum was valued at $43.5 million.


Asir region offering further $5.3bn in investment opportunities: top official 

Asir region offering further $5.3bn in investment opportunities: top official 
Updated 27 January 2025
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Asir region offering further $5.3bn in investment opportunities: top official 

Asir region offering further $5.3bn in investment opportunities: top official 

RIYADH: Saudi Arabia’s Asir region is working on securing a further SR20 billion ($5.3 billion) in private investments as part of its transformation into a year-round tourism destination, with significant projects already underway. 

With 7.8 million visitors recorded in 2024, the region is rapidly approaching its formal target of 9.1 million annual tourists by the end of the decade, revealed a senior official. 

In an interview with Arab News at the Real Estate Future Forum in Riyadh, Hashem Al-Dabbagh, CEO of the Asir Region Development Authority, said that private sector investments in the region have already exceeded SR7 billion ($1.87 billion).

“Aside from that SR7 billion of investments from the private sector, we also have another SR20 billion or so that we are working on, and it’s in the pipeline, but it’s not yet realized,” said Al-Dabbagh. 

He added: “So hopefully, between the investments that are realized and the ones in the pipeline, we have from the private sector somewhere around SR27 billion that hopefully is going to happen in Asir.”  

Al-Dabbagh noted that while some of the projects currently in the pipeline are expected to be finalized this year, others are slated for completion in 2026 or 2027, with certain long-term initiatives extending beyond 2030.  

He expressed optimism about the progress of investments in Asir, noting that the region has been “moving full speed ahead” in this area.  

Al-Dabbagh emphasized that the ongoing projects in Asir are primarily driven by private sector investments, while also highlighting significant initiatives led by the Public Investment Fund. 

Among these, he pointed to the Alwadi project, a SR14 billion waterway development located in the heart of Abha.  

The project will include commercial, cultural, residential, and agricultural spaces on both banks, all designed with pedestrians in mind and catering to both locals and visitors.  

“I claim that with that investment, Abha is going to be the most livable and beautiful city in the Arab world as a whole,” Al-Dabbagh added.  

He also highlighted the Al Soudah Development Project, another mega initiative with an investment of SR14 billion.  

“This is in the forest-covered mountains of Asir, where there’s going to be, again, development of hotels and residences, high-end for the most part, in six different areas within Al Soudah,” he said. 

Both projects are expected to remain under development through 2030. 

Al-Dabbagh noted that smaller-scale projects are also in the pipeline which some slated for completion by 2025.  

He further discussed the role of the Asir Investment Co. in spearheading mega developments across the region.  

“AIC has a number of iconic projects in a number of areas, not just within Abha, but in other regions on the coast, in the north, on the mountain ridge, and of course, in Abha as well,” he said, adding that these projects “are going to be announced formally in the next months, in 2025.”  

Al-Dabbagh highlighted that the region’s strategy is focused on transforming Asir into a year-round destination for visitors. 

“The formal target for Asir is 9.1 million annual visitors by the year 2030. I expect this target to be raised,” he said, explaining that the unofficial number of visitors to Asir in 2024 already neared 7.8 million.  

Additionally, he pointed to the broader national tourism target for Saudi Arabia, which was recently increased from 100 million to 150 million visitors, suggesting that regional goals, including Asir’s, are likely to be adjusted upward.  

“Without a doubt, this is going to have an impact on the economic development in the region and on the number of jobs,” Al-Dabbagh added.  

He noted that Asir has traditionally been an exporter of workforce to other parts of Saudi Arabia, such as Riyadh, Jeddah, and Eastern Province, due to limited job opportunities in the region. 

However, he emphasized that the tide is turning. “Now with everything that is happening in Asir, we find that there is a reverse migration, if you like,” he said.  

Al-Dabbagh added that he has observed this shift firsthand within the Asir Development Authority and through reports from larger investment projects, as more local residents are choosing to return to Asir to work on the new developments.   

He noted that Saudi Arabia only opened its doors to international tourism a few years ago, meaning that due to the country’s prior restrictions, “the vast, vast majority” of tourists in Asir were domestic visitors, along with some travelers from Gulf countries, he said.  

Al-Dabbagh added that, while the majority of tourists to Asir are expected to be from Saudi and the Gulf region, the proportion of international visitors is anticipated to grow significantly — from around 1 percent to approximately 10 percent, even as the total number continues to rise.  


Closing Bell: Saudi main index sheds, Nomu gains 

Closing Bell: Saudi main index sheds, Nomu gains 
Updated 27 January 2025
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Closing Bell: Saudi main index sheds, Nomu gains 

Closing Bell: Saudi main index sheds, Nomu gains 

RIYADH: Saudi Arabia’s Tadawul All Share Index dropped on Monday, losing by 13.27 points, or 0.11 percent, to close at 12,372.89.   

The total trading turnover of the benchmark index was SR7.1 billion ($1.9 billion), as 91 of the listed stocks advanced, while 147 retreated.   

The MSCI Tadawul Index also dropped by 6.80 points, or 0.44 percent, to close at 1,538.59. 

The Kingdom’s parallel market Nomu increased, gaining 118 points, or 0.38 percent, to close at 31,014.29. This comes as 40 of the listed stocks advanced while 45 retreated.    

Jabal Omar Development Co. was the best-performing stock of the day, with its share price surging by 10 percent to SR25.85.   

Other top performers included Knowledge Economic City, which saw its share price rise by 9.89 percent to SR16.66, and Makkah Construction and Development Co., which saw a 9.84 percent increase to SR106.    

Taiba Investments Co. and Jadwa REIT Al Haramain Fund also saw a positive change, with their share prices surging by 9.81 percent and 5.78 percent to SR51.50 and SR6.59, respectively.    

Raoom Trading Co. saw the steepest decline of the day, with its share price easing 5.18 percent to close at SR183.    

Nice One Beauty Digital Marketing Co. and Al-Baha Investment and Development Co. recorded declines, with their shares slipping 4.92 percent and 4.26 percent to SR56 and SR0.45, respectively.   

ARTEX Industrial Investment Co. also faced a loss in today’s session, with its share price dipping 4.06 percent to SR16.08 while Lumi Rental Co. saw a 4.01 percent drop to settle at SR76.60. 

On Nomu, International Human Resources Co. saw the highest gain, with a 10.95 percent increase, reaching SR5.98. 

Knowledge Tower Trading Co. followed with a 9.28 percent increase to SR17.42, while Enma AlRawabi Co. reached SR24.44 — a 6.26 percent growth. 

National Building and Marketing Co. and AME Co. for Medical Supplies were also among the top performers, with 5.44 percent and 5.14 percent increases to reach SR189.80 and SR122.80, respectively. 

Mulkia Investment Co. was Nomu’s worst performer of the day, witnessing a 9.86 percent decline to settle at SR33.35. 

Albattal Factory for Chemical Industries Co. and Arabian Food and Dairy Factories Co. also saw declines of 6.25 and 5.91 percent to settle at SR60 and SR94, respectively. 

Academy of Learning Co. and Leaf Global Environmental Services Co. saw drops of 5.71 and 5.08 percent to settle at SR9.58 and SR112.