Global hospitality leaders eye investment opportunities at Abu Dhabi summit

Hosted at the Hilton Abu Dhabi Yas Island, the agenda for the three-day event includes contributions from more than 150 speakers in the form of panel discussions, one-on-one interviews, roundtables, innovation pitches, and student-led sessions. (Supplied)
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Updated 24 September 2023
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Global hospitality leaders eye investment opportunities at Abu Dhabi summit

  • Key industry players from over 50 countries convene at the Future Hospitality Summit from Sept. 25-27

RIYADH: The global hospitality sector is set to witness a significant influx of investment as key industry players from over 50 countries convene at the Future Hospitality Summit in Abu Dhabi from Sept. 25-27.

Centered around the theme “Focus on Investment,” the event will serve as a catalyst for change, facilitating interactions among over 1,000 hospitality leaders through debates, dialogues, initiatives, and announcements.

Hosted at the Hilton Abu Dhabi Yas Island, the agenda for the three-day event includes contributions from more than 150 speakers in the form of panel discussions, one-on-one interviews, roundtables, innovation pitches, and student-led sessions.

In an interview with Arab News, Jonathan Worsley, chairman of the organizing company The Bench, said that participants can expect a myriad of networking opportunities and receptions throughout the course of the summit.

“From our tried and tested FHS business card exchange and networking receptions to early morning runs, yoga classes, culinary tours, and golf, there are countless experiences available to connect and network for our delegates,” he said.

“As the region’s leading tourism and hospitality summit, we look forward to three action-packed days of discussion, debate, and dealmaking,” he added. 

Worsley told Arab News that the event would explore a diverse array of topics such as the role of environmental, social, and corporate governance, the effects of the current geopolitical landscape on investment opportunities, and the incorporation of technology in the sector.

“Technology will once again be at the forefront of the FHS program with leaders discussing the future of the hospitality and travel tech stack. One of the sessions I am personally very excited about is the presentation by Cenk Sidar, CEO and co-founder of Enquire AI, who will share key insights on the power of artificial intelligence and how it is transforming business decision-making,” Worsley said.

He also highlighted a panel discussion to be led by Marco S. Rentsch, partner at PwC Middle East’s Global Consulting Hospitality and Tourism Center of Excellence. The session will explore the ongoing digital transformation within the hospitality sector and examine best practices and strategies across various industries.

“This panel discussion will cover topics such as how technology can improve operating processes, how data can be monetized and used to optimize the guest experience, and how technology can support meeting ESG goals in the sector,” Worsley said.

“In the lead up to FHS, I spoke with Tatiana Labaki, head of hotel and tourism advisory at TONOMUS NEOM, who is one of the panelists in this session, and she mentioned that as technology is seen as an enabler of an optimal, frictionless, and seamless guest experience we should always start our understanding from the guest journey,” he said.

“She also believes that technology will support the key hospitality verticals, including the guest experience, top-line revenue, and operational/cost efficiencies,” he added.

Worsley believes that fostering entrepreneurship is essential for driving technological adoption and enabling innovation in the hospitality sector. “FHS is proud to act as a springboard for promising startups in the industry,” he added. 

With Yas Island, Miral has showcased that by bringing together world-class attrac-tions, including award-winning theme parks, and a vast portfolio of leisure and hospitality offerings.

Jonathan Brown, chief portfolio officer of Miral

“At The Bench, we’re passionate about helping entrepreneurs position their startups for success and to accelerate their growth, and again this year, we will be hosting the FHS Startup Den in which 11 finalists will be pitching to a senior panel of judges. These startups are tech platforms that are transforming the industry,” he stated.

The event will also highlight the importance of sustainability within the hospitality industry. Worsley noted that given that 2023 is the UAE’s Year of Sustainability and with COP28 scheduled to take place in Dubai, the FHS will bring an unprecedented focus on sustainability issues.

He added that the event will host the finals of the Sustainable Hospitality Challenge, a global competition for students.

“We also look forward to working with our partners Fresh on Table again this year to bring local produce to the food and beverage experience at FHS and to promote local businesses and sustainability in the hospitality sector,” he said.

“Fresh on Table is a digital marketplace that promotes locally sourced food by bringing buyers and local sellers together. Through our partnership with Fresh on Table last year, we were able to save 288 kilos of carbon emissions and 44,168 food miles by sourcing local produce for the conference menu,” he added. 

FASTFACT

Centered around the theme ‘Focus on Investment,’ the event will serve as a catalyst for change, facilitating interactions among over 1,000 hospitality leaders through debates, dialogues, initiatives, and announcements.

He further elaborated that Hilton Abu Dhabi Yas Island will contribute to the event’s focus on sustainability by aiding FHS in becoming carbon-neutral through Hilton’s award-winning sustainability measurement program, LightStay.

“As part of this initiative, we will be measuring and analyzing the environmental impact of FHS 2023 using their proprietary LightStay Meeting Impact Calculator. Once the event is completed, the CO2 emissions will be offset by procuring carbon offset credits from Hilton’s partners — the South Pole Group,” he added.

In an interview with Arab News, Jonathan Brown, chief portfolio officer of the host sponsor Miral, stated that high-level business events such as the FHS play a key role in accelerating diversification and economic development.

“With Yas Island, Miral has showcased that by bringing together world-class attractions, including award-winning theme parks, and a vast portfolio of leisure and hospitality offerings, we can deliver a one-stop destination that provides unique and memorable experiences for our guests and business travelers from across the world,” Brown said.

“We are looking forward to welcoming industry leaders to explore the exceptional experiences this remarkable island has to offer. We encourage guests to take the opportunity to witness first-hand the remarkable offerings that make Yas Island a preferred destination for hospitality and leisure,” he added.

“To further enhance their experience, across the three days there will be a variety of networking activities hosted across the island, including a welcome reception at the Cafe del Mar Beach Club at Yas Bay Waterfront, a networking event at the luxurious Saadiyat Rotana Resort on Saadiyat Island and a closing party at Lock, Stock and Barrel on Yas Bay Waterfront as well,” Brown added.


GCC bank’s profitability to remain strong in 2024 due to delay in US Fed’s interest rate cuts 

Updated 7 sec ago
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GCC bank’s profitability to remain strong in 2024 due to delay in US Fed’s interest rate cuts 

RIYADH: A delay in interest rate cuts by the US Federal Reserve will see Gulf Cooperation Council banks’ profitability remain strong in 2024, according to S&P Global Ratings.

This comes as most GCC central banks typically mirror the Fed’s rate movements to preserve their currency pegs. 

In a statement, the US credit rating agency revealed that it also expects asset quality to remain robust despite the prolonged high interest rates, thanks to supportive economies, contained leverage, and a high level of precautionary reserves.

“We anticipate a slight deterioration in profitability in 2025, as the Fed could start cutting rates in December 2024, and most GCC central banks are likely to follow suit to preserve their currency pegs,” the statement said.

“However, we believe that several factors will mitigate the overall effect,” it added. 

Moreover, S&P disclosed that every 100-basis point drop in rates cuts an average of around 9 percent off the region’s banks’ bottom lines.

This is based on the GCC banks’ December 2023 disclosures and assumes a fixed balance sheet and a parallel shift in the yield curve.


Pakistan shares hit fresh record on rate cut hopes, IMF talks

Updated 9 min 11 sec ago
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Pakistan shares hit fresh record on rate cut hopes, IMF talks

  • Pakistan last month completed a short-term, $3 billion IMF program, seeking fresh, longer-term bailout 
  • IMF mission is in Pakistan to discuss financial year 2025 budget, policies, reforms under potential new program

Pakistan’s benchmark share index touched a lifetime high on Wednesday, breaching the key level of 75,000, on hopes that easing inflation could pave the way for interest rate cuts as early as June.

Still attractive stock valuations, expectations of more foreign inflows, and the start of talks with the IMF on a new loan program added to the bullish sentiment.

The index was trading at 75,013 points at 0531 GMT, up 0.7 percent, after hitting an intraday high of 75,115. It has surged 80 percent over the past year, and it is up 16.1 percent year-to-date after an IMF rescue last summer helped the government avert a debt default.

On Monday, the index closed at a record of 73,822, up 1 percent.

Mohammed Sohail, CEO of Topline Securities, said Wednesday’s gains were fueled by foreign fund buying.

On Tuesday, the MSCI index added a Pakistani bank, National Bank of Pakistan, to the MSCI frontier market index. Its shares rose 1.6 percent on Wednesday, outperforming the benchmark index.

“We estimate Pakistan’s weight will also increase, thereby having the potential to attract more passive foreign funds,” said Sohail.

The market is picking up steam due to an anticipated decline in inflation to 13.5 percent for May and expectations of a monetary easing cycle starting in June, said Shahid Habib, CEO of Arif Habib Limited.

Investors were also optimism about discussions on a new International Monetary Fund financing program and the economic roadmap ahead, Habib said.

Pakistan last month completed a short-term, $3 billion IMF program, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.

An IMF mission is in Pakistan to discuss the financial year 2025 budget, policies, and reforms under a potential new program.

Wall Street bank Citi expects Pakistan to reach a four-year agreement with the IMF worth up to $8 billion by end-July, and recommends going long on the country’s 2027 international bond.


Global conference in Riyadh spotlights procurement and supply chain challenges

Updated 27 min 41 sec ago
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Global conference in Riyadh spotlights procurement and supply chain challenges

RIYADH: Key issues concerning procurement and supply chains will take center stage at a global conference in the Saudi capital, featuring over 35 international speakers.

The upcoming CIPS MENA Conference and Excellence in Procurement Awards, slated to be hosted by the Government Expenditure and Projects Efficiency Authority on May 16 at the Hilton Riyadh Hotel and Residences, reflects the Kingdom’s position as a hub of expertise in procurement and supply chains, according to the Saudi Press Agency.

The agenda will address critical topics, including building sustainable supply chains, enhancing local content, and promoting industry localization. It will also tackle current supply chain challenges and discuss the digital transformation in procurement and corruption in public procurement.

The conference will also focus on building partnerships between organizations in the private sector and government agencies, targeting specialists in the field of procurement and supply chains in the public and the private sectors, decision-makers in the field, and procurement technical systems companies. 


Oil Updates – prices rise on US inventories drawdown expectations, CPI focus

Updated 15 May 2024
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Oil Updates – prices rise on US inventories drawdown expectations, CPI focus

SINGAPORE: Oil prices rose on Wednesday on expectations for higher demand as the US dollar weakened and a report showed US crude and gasoline inventories fell while the release of inflation data may point to a more supportive economic outlook, according to Reuters.

Brent crude futures were up 51 cents, or 0.6 percent, at $82.89 a barrel at 9:30 a.m. Saudi time. US West Texas Intermediate crude futures rose 55 cents, or 0.7 percent, to $78.57 a barrel.

US crude oil inventories fell 3.104 million barrels in the week ended May 10, according to market sources citing American Petroleum Institute figures on Tuesday. Gasoline inventories fell by 1.269 million barrels and distillates rose by 673,000 barrels.

US government inventory data is due later on Wednesday and are likely to also show a drop in crude stockpiles as refineries increase their runs to meet increased fuel demand heading into the peak summer driving season.

“Expectations of another drawdown in US oil inventories should support oil prices,” ANZ Research said in a note.

US consumer price index data is also due on Wednesday and should give a clearer indication whether the Federal Reserve may cut interest rates later this year, which could spur the economy and boost fuel demand.

Oil prices also found support from a softer US dollar and stimulus measures from China, said independent market analyst Tina Teng, with a weaker greenback making dollar-denominated oil cheaper for investors holding other currencies.

Teng was referring to China’s plans to raise 1 trillion yuan ($138.39 billion) in long-term special treasury bonds this week to raise funds to stimulate key sectors of its flagging economy, which is the world’s largest oil importer.

“The US CPI and China’s economic data are key to driving oil prices for the rest of the week,” she added. China will release economic activity data on Friday.

Prices were also supported by concerns around Canadian oil supply, a key exporter to the US

A large wildfire is approaching Fort McMurray, the hub for Canada’s oil sands industry that produces 3.3 million barrels per day of crude, or two-thirds of the country’s total output.


Saudi inflation steady at 1.6% in April, driven by housing prices 

Updated 15 May 2024
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Saudi inflation steady at 1.6% in April, driven by housing prices 

RIYADH: Saudi Arabia’s inflation remained steady at 1.6 percent in April for the second month in a row, driven by changes in housing prices. 

The latest report from the General Authority for Statistics indicated that the Kingdom’s Consumer Price Index experienced a marginal increase of 0.3 percent in April compared to March. 

The monthly inflation index was impacted by a 0.4 percent increase in the prices of housing, water, electricity, gas, and other fuels, which was primarily due to a 0.4 percent rise in actual housing rents and prices. 

Additionally, the prices of personal goods and services increased by 1.2 percent. Similarly, food and beverage prices rose by 0.2 percent, clothing and footwear by 0.6 percent, and recreation and culture by 0.7 percent. 

Conversely, prices in the furnishing and home equipment category declined by 0.5 percent, driven by a 0.5 percent decrease in the prices of furniture, carpets, and flooring. 

However, the prices of services such as education, communications, health, and tobacco products did not show any significant change in April. 

Annual inflation rises  

However, on a yearly basis, the Kingdom’s CPI increased by 1.6 percent in April compared to the same period last year. 

This rise is primarily attributed to a 9.4 percent increase in villa rents and a 0.8 percent rise in food and beverage prices. 

Prices in restaurants and hotels also rose by 2 percent, driven by a 1.8 percent increase in food service prices. Meanwhile, the education sector witnessed a 1.1 percent increase, driven by a 4.1 percent rise in fees for intermediate and secondary education. 

In contrast, prices for furnishings and home equipment decreased by 3.9 percent, influenced by a 6.0 percent decline in the prices of furniture, carpets, and flooring. 

Similarly, prices in clothing and footwear decreased by 4.2 percent, influenced by a 6.6 percent decline in ready-made clothing prices. Transportation prices also decreased by 1.6 percent, affected by a 2.9 percent decrease in vehicle purchase prices. 

According to GASTAT, rental prices were the main driver of inflation in April compared to the corresponding period in 2023. 

“Actual housing rents increased by 10.4 percent in April 2024, influenced by the increase in villa rents by 9.4 percent. The increase in this category had a significant impact on maintaining the annual inflation rate for April 2024, given the weight this group represents (21.0 percent),” stated the GASTAT report. 

Wholesale price index  

In another report, GASTAT noted that Saudi Arabia’s wholesale price index rose by 3.4 percent in April compared to the same month in 2023. 

This rise in the WPI was driven by a 14.5 percent increase in the prices of basic chemicals and a 12 percent jump in the prices of refined petroleum products. 

In the fourth month of the year, prices for food products, beverages, tobacco, and textiles increased by 2.4 percent. This was primarily due to a 10.1 percent increase in the prices of leather, leather products, and footwear, and a 5 percent rise in the prices of grain mills, starch, and other food products. 

Additionally, prices for agricultural and fishery products rose by 0.2 percent, driven by a 2.0 percent increase in prices for live animals and animal products. 

Conversely, prices for ores and minerals dropped by 2.2 percent, largely due to a 2.2 percent decline in the prices of stone and sand. 

Additionally, prices for metal products, machinery, and equipment fell by 0.6 percent. Significant decreases were observed in the prices of radio, television, and communication equipment by 6.7 percent, and office, accounting, and computing machinery by 2.7 percent. 

The WPI decreased by 0.4 percent in April compared to March, primarily due to a 0.9 percent drop in the prices of other transportable goods, driven by an 8.0 percent decrease in the prices of basic chemicals. 

Prices for agriculture and fishery products fell by 0.1 percent, influenced by a 0.4 percent decline in the prices of live animals and animal products. Ores and minerals saw a 0.1 percent decrease, mainly due to a 0.1 percent drop in the prices of stone and sand. 

Conversely, prices for food products, beverages, tobacco, and textiles rose by 0.1 percent, due to a 0.2 percent increase in prices for meat, fish, fruit, vegetables, oils, and fats, along with a 0.1 percent rise in grain mills, starch, and other food product prices. 

Additionally, prices for metal products, machinery, and equipment increased by 0.1 percent, driven by a 0.8 percent rise in the prices of basic metals. 

Average prices up   

In a separate analysis, GASTAT noted that in April, Abu Sorry Egyptian orange and Turkish plums saw the most significant upticks compared to the prior month, with increases of 18.09 percent and 12.82 percent, respectively. 

Additionally, Pakistani mandarin and Lebanese grapes also experienced notable increases, rising by 9.11 percent and 5.88 percent, respectively. 

Conversely, the goods and services showing substantial percentage drops in April, compared to March, were local and imported onions, experiencing decreases of 12.15 percent and 9.13 percent, respectively. 

Additionally, local cucumbers and yellow apples also saw notable declines, with decreases of 6.35 percent and 5.40 percent, respectively.