New Murabba reinforces global investor appeal at real estate event

New Murabba reinforces global investor appeal at real estate event
Officials from different departments participated in various sessions at the MIPIM 2025.
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Updated 22 March 2025
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New Murabba reinforces global investor appeal at real estate event

New Murabba reinforces global investor appeal at real estate event

New Murabba, a Public Investment Fund company, participated in the real estate event “MIPIM 2025,” held from March 11-14 in Cannes, France. This year’s participation aimed to enhance international investment in the Kingdom and highlight its commitment to economic diversification.

According to a company press release issued recently, New Murabba’s presence at MIPIM 2025 featured a series of insightful sessions led by key executives. These sessions provided attendees with a deeper understanding of New Murabba’s strategic vision and its alignment with Saudi Arabia’s broader development goals.

CEO of New Murabba Michael Dyke took part in a panel discussion titled “How the Saudi Giga Projects Are Contributing to the Kingdom’s Economy and Vision 2030.”

“We are committed to collaborative development and world-class execution. New Murabba has completed 14 million cubic meters of excavation while achieving 5.5 million safe hours without lost-time incidents. This milestone enables the commencement of permanent works for The Mukaab, ensuring the groundwork is set for the next phase of construction,” said Dyke. 

He also added that this progress underscores New Murabba’s dedication to delivering a world-class destination that will redefine urban development and contribute to a vibrant live-work-visit offering within the project.

EPMO and Stakeholder Management Division Head Eissa Almunif contributed to the panel “Changing Demographics in Saudi Arabia and How This Affects Development Planning.” 

Development Director Ashwaq Albabtain joined the panel “Mega Events, Hospitality, and Leisure,” while Executive Director of Capital Partnerships Development Nida Raza participated in the discussion “The Evolving Real Estate Sector in Saudi Arabia.” 

Director of Healthcare and Education Development Reham Alawaji took part in the panel “Creating Livable Cities with Purpose.” 

These sessions provided valuable insights into the development’s strategic relevance and its potential to reshape the urban landscape.


Hilton to hit 100-hotel milestone in Saudi Arabia

Hilton to hit 100-hotel milestone in Saudi Arabia
Updated 17 May 2025
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Hilton to hit 100-hotel milestone in Saudi Arabia

Hilton to hit 100-hotel milestone in Saudi Arabia

Hilton is set to hit the milestone of 100 hotels trading and in the pipeline in Saudi Arabia this year — reaffirming its long-term commitment to growth across the Kingdom. The global hospitality company continues to introduce more of its award-winning brands to the country, with 14 brands trading and in the pipeline, and has announced multiple new signings with plans to add more than 21,000 rooms in locations across the country.

Guy Hutchinson, president, Middle East and Africa, Hilton said: “Saudi Arabia is undergoing a remarkable transformation, and we are proud to be playing a leading role in it becoming a top global tourism destination. The Kingdom offers a unique blend of rich cultural heritage, natural landscapes, and modern lifestyle developments. Our diverse portfolio — spanning luxury and lifestyle, through to premium economy and midscale brands — will help broaden the appeal for today’s discerning travelers. In line with Saudi Vision 2030, our growing hotel pipeline is set to generate over 15,000 job opportunities, with a significant focus on employing Saudi nationals.”

Commenting on Hilton’s momentum in the Kingdom, Carlos Khneisser, vice president, development, Middle East and Africa, Hilton, said: “We are excited about reaching 100 hotels trading and in the pipeline in Saudi Arabia, as we continue to diversify our footprint and introduce more of our global brands across both established and emerging destinations. Our continued partnership with Al-Musbah Group is testament to this growth and our commitment to supporting private sector development in the Saudi tourism industry. We are proud to have Al-Musbah Group as part of our highly valued ownership community and to be working with them to introduce the region’s first Spark by Hilton in Makkah. With two-thirds of our pipeline in Saudi Arabia already under construction, we look forward to continuing our work with new and existing owners to deliver more hotels at all price points for guests across the Kingdom.”

The new signing marks the debut of Hilton’s premium economy brand, Spark by Hilton, in the Middle East and Africa. Since its launch in 2023, Spark by Hilton has been at the forefront of innovation and is uniquely positioned to grow and scale quickly. Offering a simple, inspired design, comfortable guest rooms and a complimentary breakfast, the conversion-friendly, premium economy brand delivers reliable essentials and friendly service for every guest at an accessible price point.

Spark by Hilton Makkah Aziziyah

Spark by Hilton Makkah Aziziyah is set to open later this year, marking the brand’s debut in the MEA region. The 329-guest room property will offer twin-bed and triple-bed guest rooms.

Located to the east of Masjid Al-Haram in Makkah’s Aziziyah district, near the religiously significant area of Mina, a key site during Hajj with direct train access to Arafat, the hotel is ideally situated to serve pilgrims. The site is surrounded by commercial outlets and hotels that cater to religious travelers year-round. Developed by Al-Musbah Group, Spark by Hilton Makkah Aziziyah is one of several Hilton projects underway with the group across Makkah, Madinah, and Dammam.

Spark by Hilton adds to Hilton’s growing midscale presence across established and up-and-coming cities in the Kingdom, complementing existing brands such as Hampton by Hilton and Hilton Garden Inn, which together account for one-third of the company’s hotel pipeline. Recent signings include Hampton by Hilton and Hilton Garden Inn properties in Jeddah, Jazan, and Abha, as well as at the NEOM Community site. In Makkah, Hilton is partnering with Umm Al-Qura for Development and Construction Company to open the world’s largest Hilton Garden Inn, featuring 1,560 guest rooms.

Hilton has also partnered with Knowledge Economic City to open the region’s first Home2 Suites by Hilton in the Middle East in Madinah, alongside properties under the Hilton Garden Inn and Hampton by Hilton brands.


SAB first in Kingdom to earn CIPS Gold Award

SAB first in Kingdom to earn CIPS Gold Award
Updated 17 May 2025
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SAB first in Kingdom to earn CIPS Gold Award

SAB first in Kingdom to earn CIPS Gold Award

Saudi Awwal Bank, one of the Kingdom’s leading financial institutions, has become the first Saudi entity and the 11th worldwide to be awarded the Gold Certification from the Chartered Institute of Procurement and Supply under its global Procurement Excellence Programme.

This recognition highlights SAB’s leadership and ongoing commitment to embedding global standards in procurement and supply chain practices. It reflects the bank’s strategic focus on governance, ethical sourcing, and sustainable procurement, all central to SAB’s broader vision of operational excellence and innovation.

The Gold Award is one of the highest levels of certification offered by CIPS and is awarded to organizations that demonstrate robust procurement leadership, effective integration across the business, and strong performance management aligned with global best practices.

Ghada Al-Jarbou, chief operating officer at SAB, said: “The CIPS Advanced Gold Certification validates the strength of our procurement transformation. It reflects our focus on building robust governance, enhancing operational efficiency and ensuring our procurement function supports long-term innovation and resilience. This achievement demonstrates SAB’s commitment to operational excellence and strategic growth, which in turn strengthens our ability to deliver sustainable value to our employees, customers and shareholders.”

Ben Farrell, CIPS CEO, said: “This is a proud moment for SAB and a milestone for the wider procurement profession in the Kingdom. SAB’s achievement of the CIPS Gold Award is a clear indication of its commitment to placing procurement at the center of business strategy and transformation. This award recognizes SAB’s excellence in governance, strategic alignment, and operational delivery.”

The CIPS Procurement Excellence Programme is an internationally recognized framework used by public and private sector organizations worldwide to benchmark, assess and enhance their procurement functions. It evaluates performance across leadership, strategy, people, process, and systems — providing a roadmap for continuous improvement.


Lulu reports Q1 2025 revenue of $2.1 billion, up 7.3% year-on-year

Lulu reports Q1 2025 revenue of $2.1 billion, up 7.3% year-on-year
Updated 15 May 2025
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Lulu reports Q1 2025 revenue of $2.1 billion, up 7.3% year-on-year

Lulu reports Q1 2025 revenue of $2.1 billion, up 7.3% year-on-year

Lulu, the largest and fastest-growing pan-GCC full-line retailer, has announced its financial results for the three months ended 31 March.

Its key highlights are: 

  • Q1 2025 revenue of $2.1 billion, up 7.3% YoY, with like-for-like sales up 3.6% YoY driven by strong sales during Ramadan and volume growth in certain product categories.
  • EBITDA of $214.1 million, up 6.4% YoY, with EBITDA margin of 10.3%, stable vs. Q1 2024.
  • Net profit of $69.7 million, up 15.8% YoY, with net profit margin of 3.4%, up 25 bps vs. Q1 2024.
  • Good strategic progress with five new stores opened in Q1 2025 including in Makkah and Madinah, with the target for 20 new stores in 2025 unchanged.
  • E-commerce sales grew strongly, up 25.3% YoY to $93.4 million; now 4.7% of retail revenue.
  • Strong growth in revenue from Private Label products, up 9.5% YoY; 29.3% of retail revenue.
  • Happiness loyalty program members reached c.6.3 million in Q1 vs. c.5.5 million in FY24; linked to 65% of sales.

Saifee Rupawala, chief executive officer of Lulu, said: “We are pleased to have demonstrated good growth in the first quarter of this year, with revenue up 7.3% YoY.

"This was underpinned by a combination of like-for-like sales growth, supported by strong trading during the Ramadan period, and our store rollout program, which remains well on track with five stores opened in the quarter, in line with our plan to roll out a total of 20 stores in 2025.

"The first quarter also saw Lulu make good progress on delivering on our overall growth strategy, supported by robust sales in Private Label and e-commerce, which remain key components of our strategy.”

Rupawala added: “Looking ahead, we expect our growth momentum to continue as we remain focused on several initiatives under each of our four key pillars, including driving growth in existing store network, opening new stores, driving operational efficiencies and delivering further upside through our private label and e-commerce offerings.

"Overall, we are pleased with the performance in the first quarter, marking a good start to 2025, and we look forward to continuing to deliver on our strategy throughout the rest of the year.”

Financial summary

  • Fresh food category revenue grew 7.9% YoY in the first quarter, driven by the Ramadan period, improved consumption trends. 
  • The electrical goods category witnessed revenue growth of 29.0% YoY, mainly due to an increase in sales across higher value items. 
  • Lifestyle products grew 6.9% YoY despite pressure as customers opted for more value products. 
  • Consumer Packaged Goods sales grew steadily at 1.4% YoY, with the sales increase mainly driven by strong volume growth, which was partly offset by some pricing pressure as a result of promotional campaigns.
  • E-commerce remains an important component of Lulu’s growth strategy, with sales +25.3% YoY and customer count +26.1% YoY.

Lulu delivered revenue growth across all segments in Q1 2025, with particularly strong performances in Saudi Arabia and Oman.

  • The UAE, Lulu’s largest market, recorded a mid-single-digit revenue increase of 5.2% YoY, led by particularly strong performance in the fresh food segment, which grew 15.6% YoY. This was further supported by strong e-commerce sales in the UAE, which saw robust growth, rising 40.1% YoY, supported by an increase in sales through aggregators. 
  • In Saudi Arabia, revenue rose by 10.3% YoY, primarily driven by new store openings in the last 12 months and strong LFL growth.

Other key markets also delivered solid results in Q1 2025, with revenue in Oman increasing 7.8% YoY as a result of strong growth in the electrical goods product category, Qatar up 6.7% YoY following a good trading period during festive season, and Kuwait up 4.8% YoY, with supermarket sales contributing c.50% of overall growth in the region, further supported by a strong uptick in e-commerce sales.

Gross profit increased 4.0% YoY to $464.5 million, with gross margins reaching 22.3% in the period, down 70 basis points compared to the prior year.

This margin reduction was mainly due to promotional campaigns to drive higher footfall into Lulu stores during the festive period.

EBITDA grew 6.4% YoY to $214.1 million, supported by improved operational cost efficiencies, which helped offset the lower gross margin.

As a result, Q1 2025 EBITDA margin remained broadly stable at 10.3% compared to 10.4% in Q1 2024. On a post-lease expense basis, EBITDA margin improved by approximately 8 bps, reflecting Lulu’s continued operational discipline.

Net profit increased by 15.8% to $69.7 million, with net profit margins improving by 25 basis points as a result of stronger EBIT margin and lower interest expense, despite higher taxes in the period.

During the quarter, net debt decreased to $2.3 billion, with net debt/EBITDA improving from 3.2x in December 2024 to 2.9x at the end of Q1 2025. Excluding lease liabilities, leverage improved from 1.3x to 0.9x over the same period.

Lulu continues to make good progress on delivering on its growth strategy, having rolled out five new stores in the period, delivered good LFL growth within its existing stores and also benefiting from further upside opportunities across Private Label and e-commerce sales.

During Q1 2025, Lulu opened two hypermarkets and three express stores, adding 22,339 square meters of retail space in the period, with the company’s total retail space up 2% to 1.34 million square meters, as at the end of Q1 2025.

Within this, Lulu was pleased to open an over 10,000 square meter hypermarket in Makkah and an express store in Madinah, two uniquely located stores with high footfall given the proximity to holy sites.

In addition to the two stores in KSA, Lulu also opened two express stores in the UAE, alongside a hypermarket in Bahrain. Lulu remains on track with its store rollout plans, with the company expecting to open a total of 20 stores in 2025, with the remaining 15 stores expected to open over the year.

Lulu is also pleased to have signed a memorandum of understanding with Awqaf Dubai for the development of a group of retail stores as part of Dubai’s endowment projects.

Under the partnership, Lulu will collaborate with Awqaf Dubai on upcoming community projects to develop shopping facilities that will better serve and enhance the retail experience of residents and visitors, while also contributing to Awqaf’s broader social and economic objectives.

Following the successful rollout of its loyalty program across all regions in 2024, Lulu’s Happiness Loyalty program continues to see good momentum in new members.  


Hyundai Motor Manufacturing Middle East celebrates groundbreaking milestone

Hyundai Motor Manufacturing Middle East celebrates groundbreaking milestone
Updated 15 May 2025
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Hyundai Motor Manufacturing Middle East celebrates groundbreaking milestone

Hyundai Motor Manufacturing Middle East celebrates groundbreaking milestone

Hyundai Motor Manufacturing Middle East, a joint venture between PIF and Hyundai Motor Company, hosted its groundbreaking ceremony in the King Salman Automotive Cluster within King Abdullah Economic City.

The ceremony is a significant milestone that marks another step in the development of the automotive industry in Saudi Arabia.

PIF owns a 70% stake in HMMME, with Hyundai holding the remaining 30 percent.

The manufacturing plant, Hyundai's first facility in the Middle East, will roll out its first vehicle by the fourth quarter of 2026 and targets an annual production of 50,000 vehicles.

This will include both internal combustion engines and electric vehicles.

Yazeed A. Alhumied, deputy governor and head of MENA Investments at PIF, said: “This groundbreaking is a significant milestone for PIF as it further strengthens the automotive industry in Saudi Arabia.

"PIF will continue to enable and accelerate the growth of Saudi Arabia’s automotive ecosystem through partnerships. This joint venture underscores PIF’s commitment to build local capabilities, attract cutting-edge technology, and create highly skilled jobs in Saudi Arabia’s automotive and mobility sector.”

Jaehoon Chang, Hyundai Motor Group vice chair, said: "Today's groundbreaking marks the beginning of a new chapter for both the Kingdom and Hyundai Motor Company, as we lay the foundation for a new era of future mobility and technological innovation.

"Through our joint venture, we hope to contribute to the development of talent in the region with advanced skills and capabilities under Saudi Vision 2030."

Wongyun Park, vice president and CEO of Hyundai Motor Manufacturing Middle East, said: "With HMMME, we are driving change forward and paving the way for a new industrial future in the region. The facility will become a platform for growth and industrial excellence in the heart of the Kingdom."

HMMME is building a foundation for a new era of automotive manufacturing in Saudi Arabia.

Harnessing the skills of the local workforce, the new manufacturing plant will create thousands of jobs and allow for knowledge transfer and skills development.

The localization of Hyundai's vehicles will accelerate the growth of Saudi Arabia's automotive and mobility ecosystem and pave the way for a new industrial future.

This partnership is one in a series of PIF initiatives establishing Saudi Arabia as a global automotive player.

Together, these initiatives are driving transformation in the sector and boosting domestic manufacturing capabilities, infrastructure, and supply chains.


Diriyah welcomes Trump to the birthplace of Saudi Arabia

Diriyah welcomes Trump to the birthplace of Saudi Arabia
Updated 15 May 2025
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Diriyah welcomes Trump to the birthplace of Saudi Arabia

Diriyah welcomes Trump to the birthplace of Saudi Arabia

Crown Prince Mohammed bin Salman welcomed US President Donald Trump on Tuesday evening in Diriyah.

During his official visit, Trump toured the UNESCO World Heritage site of At-Turaif, the historic birthplace of the Kingdom, the capital of the First Saudi State, and the ancestral home of the Al-Saud royal family.

Diriyah is located adjacent to the capital city of Riyadh and is a transformative destination contributing to Vision 2030, with At-Turaif standing as a cornerstone of Saudi Arabia’s rich heritage and a symbol of its ambitious future.

Trump was briefed on the significance of At-Turaif and enjoyed a traditional Saudi Samri performance before posing for a commemorative photo in front of Salwa Palace, one of Diriyah’s iconic historical landmarks and once the seat of government.

Commenting on the visit, Jerry Inzerillo, GCEO of Diriyah Company, said: “It was a tremendous honor for us in Diriyah to have hosted President Trump on his visit to At-Turaif, the birthplace of the Kingdom of Saudi Arabia and the ancestral home of the Al-Saud royal family – a place where we celebrate the past and are building the future.

“It was also a unique opportunity to present our future vision for Diriyah and to share with the president the three centuries of history echoing through the palaces and passageways of At-Turaif. President Trump expressed his admiration for what he saw and experienced during this exceptional visit to Diriyah.”

This marks Trump’s first visit to At-Turaif and the Diriyah project.

The site was under restoration during his first official visit to Riyadh during his initial presidential term.

He now joins a distinguished list of world leaders who visited Diriyah in the past year, including French President Emmanuel Macron, UK Prime Minister Keir Starmer, and Bhutan’s king.