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Saudi Arabia Launches Major Partnerships, Agreements to Boost Tourism

Saudi Arabia launches significant partnerships and agreements to boost tourism and hospitality (Asharq Al-Awsat)
Saudi Arabia launches significant partnerships and agreements to boost tourism and hospitality (Asharq Al-Awsat)
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Saudi Arabia Launches Major Partnerships, Agreements to Boost Tourism

Saudi Arabia launches significant partnerships and agreements to boost tourism and hospitality (Asharq Al-Awsat)
Saudi Arabia launches significant partnerships and agreements to boost tourism and hospitality (Asharq Al-Awsat)

Several global partnerships and agreements enhancing the tourism sector in Saudi Arabia were accomplished at the Future Hospitality Summit, which concluded Wednesday.

Saudi Arabia hosted the second edition of the Future Hospitality Summit under the theme "Reimagined Horizons" on the 24th and 25th of May at Riyadh Airport Marriott Hotel.

The Red Sea Development Company (TRSDC) announced it signed three new management agreements with international brands to operate resorts in the first phase of development at the Red Sea destination.

Chief business officer at the Saudi Tourism Development Fund (TDF) Wahdan al-Kadi said that the project presents a significant opportunity to attract more investors to the Kingdom's tourism sector, resulting in job creation and improving the overall quality of life, and the development of tourism destinations.

TDF signed a financing agreement with Rimal al-Khobar Real Estate Company Ltd., co-owned by Retal Urban Development Co. and Assayel Arabia, to develop the first Nobu complex in the Eastern Province.

"The Saudi tourism sector is undergoing a major development drive, and we are committed to enabling private sector investors' participation and providing them with the necessary support to develop quality tourism projects across the country," noted Kadi.

He noted that the Nobu project reflects investors' confidence in the Kingdom and signals strong support for tourism development projects.

"Agreements like this are testament to the crucial role that TDF plays in advancing the Kingdom's economic diversification."

Meanwhile, the CEO of Dur Hospitality, Sultan al-Otaibi, explained that the summit helps exchange ideas and experiences between industry leaders and investors in the hospitality sector.

Otaibi told Asharq Al-Awsat that the sector is recovering after the coronavirus, which was reflected in the performance in the first quarter of this year.

He stated that the conference helped launch several investment partnerships in the industry and global operators that are in line with the requirements of the next stage, reiterating the importance of the conference's continuity in implementing the Kingdom's hospitality sustainability plans.

Otaibi expected an increase in investment in tourist villages and resorts in the Kingdom during the coming period, pointing out that demand signals a promising future for the sector in Saudi Arabia.

CEO at TRSDC John Pagano confirmed that the signing of the recent agreements is evidence of the increasing demand for opportunities in the rapidly growing tourism market in the Kingdom.

"This announcement demonstrates industry confidence in The Red Sea Project, with a total of 12 hospitality brands now confirmed, and signifies a growing appetite from global leaders to participate in expanding the Saudi tourism market. With two brands now entering the region for the first time, I believe the future of tourism in the Kingdom is bright," said Pagano.

Three renowned luxury brands will join a group of the most prominent international hospitality brands that have previously concluded agreements to manage and operate hotels in the Red Sea, most notably EDITION Hotels and St Regis Hotels & Resorts, which is part of Marriott International, Fairmont Hotel & Resorts, Raffles Hotels & Resorts, and SLS Hotels & Residences, part of global hospitality group Accor.

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Business

Saudi Arabia Tightens Auto Dealer Obligations to Protect Consumers, Improve Ownership Experience

People are seen at the Riyadh Motor Show. (Riyadh Season)
People are seen at the Riyadh Motor Show. (Riyadh Season)
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Saudi Arabia Tightens Auto Dealer Obligations to Protect Consumers, Improve Ownership Experience

People are seen at the Riyadh Motor Show. (Riyadh Season)
People are seen at the Riyadh Motor Show. (Riyadh Season)

Saudi Arabia’s auto market is moving toward greater discipline and competition as the Ministry of Commerce steps up oversight of dealers, seeking to strengthen consumer protection and improve compliance with after-sales service requirements.

The ministry announced it had suspended an auto dealership, barred it from importing vehicles and fined it SAR 8.12 million ($2.1 million) after recording 175 violations. These included failure to provide spare parts and replacement vehicles to customers during maintenance, as well as other breaches involving consumer rights, the Commercial Agencies Law and its implementing regulations.

The ministry investigated the violations, contacted affected consumers and followed up to ensure they received their rights and due compensation, including replacement vehicles.

It also summoned the manufacturer, oversaw corrective measures and recall campaigns, and began transferring the brand to another dealer after verifying its readiness and ability to provide the necessary services.

Mohammed Al-Farraj, chief asset management officer at Arbah Capital, told Asharq Al-Awsat that Saudi Arabia’s large auto market and sustained demand make it one of the region’s most attractive, supported by population and economic growth, expansion of the non-oil economy and mega-projects, and growth in tourism and logistics.

The availability and variety of financing options play a key role in supporting demand, particularly because cars are a necessity for a large segment of the population rather than a luxury, Al-Farraj noted.

Market performance is influenced by vehicle prices, financing costs, income levels and supply, as well as competition among brands and the quality of after-sales services.

Al-Farraj described the ministry’s tougher oversight as a positive step toward protecting consumers and improving market discipline, stressing that a dealer’s obligations do not end with a sale but extend to warranties, maintenance, spare parts and replacement vehicles when needed.

Stronger after-sales compliance should bolster market confidence and gradually shift competition toward quality and reliability rather than price alone.

Al-Farraj expects intensifying competition to push dealers to focus more on the value offered throughout vehicle ownership, including total cost of ownership and customer service.

Business

Mega-Projects, Investment Flows Draw Bank of Jordan to Saudi Arabia

A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)
A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)
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Mega-Projects, Investment Flows Draw Bank of Jordan to Saudi Arabia

A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)
A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)

Saudi Arabia’s appeal extends beyond rising foreign investment and expanding mega-projects to the banking sector, where institutions see the economic transformation driven by Vision 2030 as an opportunity to establish a long-term presence in one of the region’s fastest-growing markets.

Bank of Jordan Group’s entry into the Kingdom reflects growing interest among regional financial institutions in tapping the country’s expanding investment cycle.

The group opened its first branch in Riyadh on Monday, launching its financial and banking operations in Saudi Arabia. The move underscores the Kingdom’s ability to attract not only capital, but also financial institutions seeking to finance the next phase of investment.

Mega-projects, private sector expansion and growing foreign and domestic investment are creating significant opportunities for banks to provide financing solutions and services to companies and investors. At the same time, Saudi Arabia is seeking to deepen the financial sector’s role as a driver of growth and economic diversification.

Saleh Hammad, general manager of Bank of Jordan Group, told Asharq Al-Awsat that the bank’s strategy is based on a clear view of the economic transformations reshaping Saudi Arabia and the wider region.

The group has pursued carefully considered regional expansion, focusing on markets with sustainable economic fundamentals and strategic importance, with Saudi Arabia at the forefront.

Hammad said the Kingdom is undergoing an unprecedented economic transformation under Vision 2030, fueled by investment growth, private-sector expansion and the development of its financial and banking environment.

Establishing a presence in one of the region’s leading financial and economic hubs strengthens Bank of Jordan’s position as a regional institution capable of supporting trade, development and investment opportunities, he noted.

Hammad also highlighted Saudi Arabia’s strong banking system and evolving regulatory environment, supported by the Saudi Central Bank, as key advantages that enhance the group’s position while creating added value for clients and investors.

Business

Gold Eases from Over Two-Month Peak, Inflation Reports in Focus

Ingots of 99.99 percent pure gold are placed in a workroom at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, January 31, 2023. (Reuters)
Ingots of 99.99 percent pure gold are placed in a workroom at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, January 31, 2023. (Reuters)
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Gold Eases from Over Two-Month Peak, Inflation Reports in Focus

Ingots of 99.99 percent pure gold are placed in a workroom at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, January 31, 2023. (Reuters)
Ingots of 99.99 percent pure gold are placed in a workroom at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, January 31, 2023. (Reuters)

Gold ticked lower on Tuesday after hitting its highest level in more than two months, while investors focused on upcoming inflation data for clues on the U.S. interest-rate outlook.

Spot gold was down 0.3% to $4,374.82 per ounce by 0548 GMT, after hitting its highest level since June 5 earlier in the session at $4,434.84.

US gold futures rose 0.4% ‌to $4,435.00.

Gold's move higher ‌in early session trading beyond $4,400 appears to ‌be ⁠driven primarily by ⁠renewed flows into the metal and a notable shift in the metal market sentiment, said Ahmad Assiri, Research Strategist at Pepperstone.

"If this change in sentiment continues to attract further flows, it could remain an important factor in determining whether gold can consolidate around $4,400 and potentially extend the recovery towards higher levels."

The US ⁠consumer price report due on Wednesday and ‌producer price data on Thursday are ‌likely to shape monetary policy expectations after weak July US jobs ‌data last week led markets to scale back bets that ‌the Federal Reserve would raise rates next month.

At its July meeting, the Federal Reserve kept rates steady, with three officials dissenting in favor of a hike.

Lower interest rates tend to support gold as ‌bullion pays no interest.

"If the data continue to point towards a cooling economy without a meaningful ⁠resurgence in ⁠inflation, markets could further reduce expectations for tighter policy. That would likely leave the dollar vulnerable and provide another supportive backdrop for gold," Fawad Razaqzada, a market analyst at Forex.com, said in a note.

On the geopolitical front, US President Donald Trump responded to Iran's conditions for a peace deal with his own demands that Iran pay compensation for people killed in wars, attacks and protests, in a rhetorical escalation likely to complicate efforts to reopen the Strait of Hormuz.

Among other metals, spot silver fell 1.7% to $64.64, platinum lost 0.4% to $1,745.68 and palladium declined 0.8% to $1,372.44.