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RIYADH: Red Sea Global has announced the installation of 750,000 solar panels in a huge boost for the development’s sustainability drive.
The giga-project has also constructed five solar stations as it gears up for the first phase of its opening, which will see 16 hotels, retail, and entertainment venues come online and powered entirely by renewable energy.
RSG is also implementing the world’s largest battery storage facility at a capacity of 1,200 megawatts per hour, which will enable the company to achieve 100 percent grid independence.
The tourist destination is set to operate 50 resorts by 2030, with up to 8,000 hotel rooms and over 1,000 residential buildings spread across 22 islands and six inland areas.
Along with the giga-project of NEOM, RSG has put sustainability as a key tenet of its development, in line with Saudi Arabia’s target to reach net-zero for carbon emissions by 2060.
John Pagano, the CEO of RSG, said ensuring that the world’s largest tourism destination is fully powered by renewable energy falls within such commitment, according to the Saudi Press Agency.
Pagano added that the installation of electroluminescent panels at the five solar stations had been completed as part of the first phase of the Red Sea Project, and the complete independence of the venture from the national grid makes it not only the largest, but also the first of its kind in the world.
All vehicles transporting visitors to the Red Sea Tourism Project will be fully powered by solar energy, starting with their arrival at the Red Sea International Airport and continuing through their movements within the sites and between the nearby islands.
According to the SPA, RSG is also investing in human capital, and has provided vocational training scholarships to 500 people in cooperation with the Human Resources Development Fund, of which 50 people have received training in renewables.
The company aims to provide specialized training to a total of 10,000 Saudi citizens by 2030.
Alongside this, RSG is working to ensure half of its workforce are Saudi nationals.
In May, while speaking to Arab News on the sidelines of Arabian Travel Market 2023 in Dubai, Tracy Lanza, global head of brand development at RSG, revealed the company was edging closer to hitting that target.
“The goal is 50-50 and we are nearly there, and I can say from a marketing standpoint, our team is at 67 percent and growing. We also have the largest percentage of Saudi women, I think, at the company,” said Lanza.
RIYADH: Saudi Energy Minister Prince Abdulaziz bin Salman and his French counterpart, Agnes Pannier-Runacher, on Saturday signed a Memorandum of Understanding to cooperate in the field of energy, with a focus on clean energy from renewable resources.
In a joint statement carried by the Saudi Press Agency, France and Saudi Arabia agreed on a hydrogen cooperation and electricity produced from renewable resources roadmap focusing on three pillars:
• Technology development: Cooperation will advance hydrogen and electricity produced from renewable technology deployment from production, transportation and conversion at demand centers;
• Business co-operation: the private sector has a critical role to play, Saudi–France cooperation welcomes joint efforts between Saudi and French companies to partner in the entire energy supply chain to unlock business and hydrogen trade;
• Policies and regulation: the roadmap will further promote the development of the hydrogen industry through a mutual recognition of certification framework including emission life cycle assessment from all possible sources necessary for consistency in international trade.
“Both countries will work to enhance their cooperation in developing and sustaining supply chains for the energy sectors and to enable cooperation between companies to maximize the utilization of local resources in both countries, which contributes to achieving flexibility and effectiveness of energy supplies,” the statement said.
The MoU also calls for the creation of a “French-Saudi Task-Force” to carry out the cooperation arrangement.
According to the statement, both countries acknowledge the importance of advancing the implementation of the United Nations Framework on Climate Change (UNFCCC) and the Paris Agreement in accordance with the principles, objectives and goals defined therein, including pursuing efforts to limit the temperature increase to 1.5°C.
“Addressing climate change and promoting secure, reliable, affordable and sustainable supplies of energy are shared strategic priorities of Saudi Arabia and France,” the statement said.
“Moreover, the two countries recognize that clean hydrogen is an essential fuel to reach the shared objective of promoting a sustainable economic development while mitigating the impact of climate change,” it said.
Both countries agreed to enhance cooperation on all aspects of energy production, including generation from renewable energy resources, grid interconnection projects, as well as encouraging the participation of private sectors in power sector projects.
“Both countries have agreed to engage in joint efforts to enhance energy efficiency, enhance cooperation in the field of nuclear energy in a peaceful and safe framework, the management of radioactive waste and the nuclear applications, and the development of human capabilities,” the statement also said.
“Both countries agreed to cooperate on advancing climate technologies and solutions including carbon capture utilization and storage for hard-to-abate sectors such as cement, aviation, marine, and petrochemicals, among others,” the statement added.
Saudi Arabia aims to become the leading exporter of hydrogen and electricity produced from low emission resources globally, capitalizing on its ability to produce hydrogen and electricity produced from low emission resources at competitive cost.
The Kingdom has the necessary resources of renewable energy, natural gas and carbon sinks, to export hydrogen in addition to its strategic location with proximity to major global demand centers.
The French strategy for the development of decarbonized hydrogen aims at having a significant contribution to the decarbonization of industry and transport. The strategy includes a public investment program, France 2030, aimed at accelerating investment and innovative solutions in sectors of French excellence to decarbonize industry and to develop renewable energy with the goal to increase the renewable power installed capacity up to 100GW by 2050, with more than 40 GW coming from offshore wind farms.
CAIRO: Dubai-based wellness startup Valeo has made deep inroads into Saudi Arabia with the growing acceptance of telemedicine, remote monitoring and convenient health management in the Kingdom.
The company has expanded to Riyadh, Dammam, Jeddah and Makkah since its launch in January, offering at-home blood testing facilities and health supplements.
“We have launched at-home blood testing services in the major cities of Saudi Arabia and supplements across all cities,” Sundeep Sahni, CEO and co-founder, told Arab News.
The company has been expanding in the Kingdom because of a growing need for on-demand preventive healthcare services.
According to the US-based International Trade Administration, Saudi Arabia accounts for 60 percent of the Gulf Cooperation Council countries’ healthcare expenditure, and the sector remains a top priority for the government.
According to the US-based International Trade Administration, Saudi Arabia accounts for 60 percent of the Gulf Cooperation Council countries’ healthcare expenditure, and the sector remains a top priority for the government.
In 2022, the Saudi Ministry of Health launched the Health Sector Transformation Program, part of Vision 2030, ensuring continued healthcare services and infrastructure improvement.
“Valeo can benefit from national programs like Vision 2030’s Quality of Life & Health Transformation Program and the emphasis on telemedicine and remote healthcare,” said Sahni.
The other important factor for the demand is the increase in life expectancy from 76.4 years in 2019 to 81.8 years. Concurrently, the population is also expected to grow from 34.3 million in 2019 to 39.4 million by 2030 are key drivers of infrastructure demand.
At the same time, the increase in life expectancy is creating a need for long-term care facilities, rehabilitation and home healthcare services.
“Our goal is to make health convenient and empower individuals to care for themselves,” said Sahni, adding that he is planning to expand to more cities in the Kingdom and provide a broader range of services other than those they are already providing.
“For our at-home blood tests, the plan is to expand to a new city every month and eventually cover the whole country,” he added.
Our goal is to make health convenient and empower individuals to care for themselves.
Sundeep Sahni, Valeo CEO and co-founder
The company believes personalized and targeted health solutions are essential in promoting better health outcomes.
“We will identify the specific services and features that are most valuable to the local population, and we will incorporate them into our offerings,” Sahni added.
The Kingdom has been actively investing in developing its healthcare infrastructure and services to improve accessibility, quality and patient outcomes.
“One key aspect that stands out is the Saudi government’s commitment to investing in healthcare, reflected in initiatives such as the Saudi Vision 2030,” Sahni said.
Under Vision 2030, the country aims for a 3 percent reduction in obesity and a 10 percent decrease in diabetes prevalence by 2030.
“Such initiatives create a favorable environment for innovative healthcare companies like ours to contribute to developing and delivering cutting-edge solutions,” he added.
Sahni further emphasized that the increase in chronic diseases in the Kingdom presents both a challenge and an opportunity.
For instance, diabetes prevalence alone has increased by 99 percent in Saudi Arabia to 2.7 million in 2019 from 1.4 million cases in 2009, according to the World Bank.
“The rise in healthcare demand calls for advanced technologies, digital health solutions and patient-centric approaches to improve efficiency, cost-effectiveness and overall healthcare outcomes,” he explained.
Valeo’s presence in Saudi Arabia aligns with its growth strategy and allows it to leverage favorable market conditions.
“Our main offerings consist of at-home blood test packages curated to suit different profiles and health goals such as women’s health, men’s health, fitness, weight loss, food intolerances and more,” said Sahni.
He added: “We also provide a selection of grade-A supplements based on international manufacturing standards delivered straight to your doorstep.”
The healthcare firm also offers intravenous drips and physiotherapy sessions. Its recently launched treatment focuses on tackling specific needs such as hair loss or skin care.
“The journeys are designed to provide a comprehensive approach to solving specific issues from customized testing to connecting you with the right expert and recommending the right products all in one place,” Sahni further explained.
Through its services, Valeo aims to fill the gap of complicated or inconvenient healthcare experiences and empower its users to check on their health continuously.
Furthermore, the company aims to strengthen its presence in the Kingdom through strategic partnerships and collaborations to empower the digital health sector.
“Collaboration and partnerships are vital in the healthcare market and we are actively seeking opportunities to collaborate with local providers, government entities, and other stakeholders,” Sahni said.
“By working together, we believe we can leverage each other’s strengths to drive innovation, improve healthcare access, and ultimately positively impact the health and well-being of the Saudi population,” he added.
The company currently has a team of 40 people spanning the UAE, India, Lebanon and Saudi Arabia, in addition to co-founder Nadine Karadag.
Valeo also has a presence in Riyadh and plans to have an office in the city by the end of the year.
The wellness startup received $3 million in its latest funding round with investors such as DFDF, Global Ventures, Nuwa Capital, Global Founders Capital, Sanabil 500 and FJ Labs.
RIYADH: Saudi Arabia’s business sector saw a boom across most segments in May, with banks extending loans, overdrafts and lines of credit to companies seeking to invest in their projects, purchase capital goods and expand operations.
Out of the 16 business segments of the National Classification of Economic Activities, 15 registered an annual increase in bank credit for May. The only segment that witnessed a dip was agriculture, forestry and fishing, which fell by 8.06 percent.
Bank credit to professional, scientific and technical activities in Saudi Arabia increased 49.49 percent to SR5.01 billion ($1.34 billion) in May, from SR3.35 billion in the same month last year, showed the latest data from the Saudi Central Bank, also known as SAMA.
SAMA’s recent monthly report revealed that the segment also recorded a 21 percent increase in bank credit compared to SR4.11 billion in April.
It encompasses a wide range of professional services, including legal and accounting, architectural and engineering, technical tests and analysis, and research and development in scientific fields.
The Kingdom has seen significant growth in the segment, with state-run institutions such as Research Development and Innovation Authority collaborating with the private sector to promote innovation and entrepreneurship.
The sector is also set to play a crucial role in the Kingdom’s Vision 2030 diversification strategy that aims to reduce dependence on oil revenues and develop a knowledge-based economy, with German research platform Statista projecting it to reach $8.5 billion in 2024.
Boosting the energy mix
The other segment that attracted significant bank credit was that covering electricity, gas and water suppliers, which booked a 34.79 percent rise to SR124.49 billion in May from SR92.35 billion in the year-ago period.
The segment also includes activities such as generating, transmitting and distributing electricity, gas and steam.
Water collection, treatment and supply are also included, as is the production and distribution of ice.
One of the biggest drivers in this sector is the Saudi Vision 2030 blueprint that aspires to replace the petroleum used to generate 42 percent of the country’s 110 gigawatts daily electricity needs with a mix of 50 percent natural gas and 50 percent renewable energy by 2030.
Moreover, the Ministry of Energy’s spending on power and renewable energy projects is expected to reach $293 billion by 2030.
Bank credit to professional, scientific and technical activities in Saudi Arabia increased 49.49 percent to SR5.01 billion ($1.34 billion) in May, from SR3.35 billion in the same month last year.
“Serious actions have been taken by the Kingdom aiming to diversify the energy supply mix and introduce energy efficiency programs. This strategy would benefit Saudi Arabia in the long-term by lowering the reliance on fossil fuels,” said Hani Aldhubaib, assistant professor of electrical engineering at Umm Al-Qura University, in his paper on the future of electrical energy in Saudi Arabia published in December 2022.
Financial force
Bank credit to financial and insurance activities in May also rose 29.41 percent on an annual basis to SR95.77 billion. The segment also received loans worth SR101.43 billion in March, its highest since May 2022..
The segment includes national commercial banks, branches of foreign commercial banks and firms involved in financial technology and management of cash centers.
Much of the growth in this segment can be attributed to the Kingdom’s expanding economy, which has increased demand for financial services, such as loans, investments, and insurance coverage.
Quick estimates for the first quarter of 2023 indicate that real gross domestic product increased by 3.9 percent compared to the same period a year earlier, fueled by 5.8 per growth in non-oil activities and 4.9 percent in government services.
“By leveraging favorable macro conditions and strong sector growth, Saudi banks can pursue strategic investments to grow revenues and optimize costs,” said Markus Massi, managing director of the Middle East office of Boston Consulting Group, in its recent report on the Kingdom.
SAMA has also been instrumental in driving the financial and insurance sector by creating a regulatory environment that provides stability and confidence, encouraging banks to lend to the industry.
In the first quarter, the bank launched the Open Banking Lab, enabling banks and fintech companies to develop, test and license open banking services.
Realty check
The property market has also been up, with bank credit to real estate activities increasing 29.39 percent to SR227.36 billion in May, compared to SR175.71 billion in the same month last year.
According to the NCEA classification, this segment comprises buying, selling, leasing and managing warehouses and residential and non-residential properties.
The stimulus to this growth has been spurred by a growing population, urbanization, and increased demand for housing.
This demand and government initiatives to address housing shortages and improve affordability have created opportunities for real estate companies to undertake residential projects.
“The provision of world-class housing sits at the heart of Vision 2030. With demand pivoting toward community living, there remains an opportunity to develop more town housing, which offers the privacy and outside space buyers are looking for,” said Yazeed Hijazi, associate partner, real estate strategy and consulting, Knight Frank, in its recent report on Saudi Arabia.
The overall increase in bank credit among various economic segments is a reason to cheer as it leads to increased business activity, job creation and higher production levels, contributing to economic growth and the lofty ambitions of Vision 2030.
RIYADH: As the Kingdom continues to transform both economically and socially, ushering in a host of new institutes, ministries and mega and giga-projects, a large segment in its change is growth in the private sector.
In February this year, the non-oil element of this witnessed its highest growth since 2015, with the Kingdom’s Purchasing Managers Index hitting 59.8, up from 58.2 in January.
At the helm of Saudi Arabia’s private sector growth are small and medium enterprises, with many increasingly led by the Kingdom’s women.
Saudi women ran their own businesses long before the social reforms of Vision 2030 were implemented. Yet the acceleration and growth in the sector — propelled by an increasing number of female entrepreneurs — can be largely attributed to the changes taking place in the Kingdom as it opens up to the world.
“I established my consultancy Niche Arabia over 13 years ago and now I am investing in female-owned start-ups,” Marriam Mossalli, a Saudi lifestyle editor, journalist and founder of communications agency Niche Arabia, told Arab News.
“I have been able to witness firsthand the difference in the entire process; from legal registration to even human resources and training support, through programs like Hadaf and Tamheer,” she added.
Mossalli emphasized how the Kingdom is witnessing an increase in women not just in the workforce — up from 17.4 percent to 33.6 percent in just the last five years, according to Saudi Arabia’s General Authority for Statistics — but also in the world of entrepreneurship.
“Whether it’s in tourism or technology, there are many sectors that are attractive to women and we are seeing more women take on the entrepreneurial role,” said Mossalli, adding: “Women-owned companies in the Kingdom have increased by 60 percent in the past two years.”
Mossalli says she’s focusing on the next wave of “conscious consumers coming out of Saudi Arabia from Gen Z,” and as such in September she will invest in two female-owned businesses that focus on clean beauty and fashion.
“I am investing in women,” states Mossalli. “What is exciting for me now is being able to invest in the next generation.”
According to the Brookings Institute, the female labor force participation rate in Saudi Arabia jumped 64 percent between 2018 and 2020.
This growth was of a magnitude rarely seen elsewhere in the world.
According to the report, between 2018 and 2020, the labor force participation rate of Saudi women, that is to say those working or looking for work, rose from 19.7 percent to 33 percent.
Historically, the labor female labor force participation rate for Saudi women has been low, but it increased substantially due to reforms providing more freedom and business incentives to women under Vision 2030, which is actively supporting female SMEs through various programs.
A report in 2022 by Monsha’at, the Kingdom’s official SME general authority in 2022, revealed that 45 percent of such businesses are now led by women in Saudi Arabia.
“This is concrete proof that women are leading the SME growth in Saudi Arabia and in multiple sectors from retail to the food industry and to tech,” Honayda Serafi, an esteemed Saudi fashion designer, told Arab News.
Serafi, who launched her eponymous fashion brand in 2016 and focuses on pret-a-porter and couture lines, sees her brand as a way to empower women both psychologically and also to start their own fashion businesses.
Serafi recently designed the gown worn by Saudi Rajwa Al Saif, Jordan’s future queen.
“My journey was definitely a challenging one,” Serafi said. “When I launched my brand in 2016, the Kingdom was still not yet on the line of growth of the Vision 2030. I struggled a lot because back then the Saudi fashion industry lacked everything — from raw materials, to technical information, guidance, support etc … so I started from scratch looking for external consultancy, for suppliers internationally.”
After a period of trial and error, Serafi began producing seasonal collections to exhibit in Paris, and raised an international name for the brand.
“From a marketing perspective, the public was very much interested in my story,” she said. “I am the first Saudi woman to have created an international ready-to-wear brand and to have dressed A-list celebrities in Hollywood. When I talk about the mission of the brand to empower women, I am one of those women.”
From all corners of the Kingdom, women are becoming the driving force behind Saudi Arabia’s growing SME sector.
In Baljurashi, a city in the Al-Baha region, Sharifa Algamdi has transformed her traditional home into a boutique hotel.
A retired mathematics professor, three years ago she set out to restore her family’s home, built around the turn of the century.
It was easier to refurbish it and build her business after the reforms of Vision 2030 began being implemented, as it allowed her to more freely interact with other men to buy fabrics and other goods for the home, as well as hotel guests.
Both Mossalli and Serafi emphasize that the government’s support for the growth of the private sector has led to the creation of a full accelerator body with incubators, accessible data, funding, and loan facilities to develop different sectors in the Kingdom.
Serafi is clear that the Saudi Fashion Commission — established in February 2020 — and the Ministry of Culture have led the growth of the sector.
“I have been myself part of that supporting system providing mentorship, guidance and practical assistance to the small and emerging brands,” says Serafi. “And now the announcement of the first Saudi fashion week that will not only showcase emerging Saudi brands, but also involve other industries in the Kingdom for the production of that big event.”
Ranyah Seraj, who is half-Saudi, half-Scottish, launched her platform 6th Dimension of the Arts in Riyadh in 2021, a consultancy focused on art advising, concept creation and design catering to businesses and individuals.
“Women in Saudi are super in charge, but they have been for ages,” Seraji tells Arab News.
Seraj had a previous company that she launched in 2009 before the reforms were made, but it was an entirely different process then.
“It was one of the first companies as soon as Saudi made it applicable for women to have their own registered commercial registration,” she explained, adding: “However, you still needed a male component with you in your company, even if it was registered as a sole trader.
“You needed your father, your brother, your son, your husband’s name on that — that has been abolished since then.
“Everything has changed significantly. There are hundreds of thousands of opportunities that are now available to Saudi women.
“It is really a fantastic time for Saudi women now to lead the way in entrepreneurship and business.”
How does the increasingly female driving force of SMEs in Saudi Arabia compare to its Gulf Cooperation Council neighbors?
The difference, state Saudi women, is the focus on investing and growing homegrown Saudi brands instead of relying on foreign direct investment.
As Serafi states: “Vision 2030 has set goals to achieve growth for and by the Saudi citizens, which means that the Kingdom’s economy is being constructed to rely on its local businesses, rather than depending solely on foreign investors in Saudi Arabia.
“SMEs are being pushed financially, technically and technologically, to grow beyond the Kingdom and be competitive internationally.”
It is a model that is not only empowering women, but empowering a newfound sense of Saudi pride and identity — one that works with foreign investment but seeks to identify itself for its Saudi authenticity. Women are a big part of this push.
JEDDAH: The International Islamic Trade Finance Corp., a member of the Islamic Development Bank Group, has signed a $1.4 billion financing plan with the Bangladeshi government to fund the country’s oil imports, the Saudi Press Agency reported on Saturday.
The signing took place during a recent official visit by a high-level delegation from Bangladesh to the ITFC headquarters in Jeddah.
“This financing plan will enable the Bangladesh Petroleum Company to import oil products from July to June 2024,” the statement on SPA said.
The agreement “reflects the successful long-term partnership between the two parties and will contribute to ensuring energy security for one of the fastest-growing economies in South Asia.”
It “demonstrates the corporation’s commitment to supporting the economic development of its member states and providing financing solutions that meet the needs of its customers,” the statement added.